Earnings release
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Exhibit 99.1 Snail Born to dream Snail , Inc. Reports Second Quarter 2026 Financial Results CULVER CITY , Calif . , August 11 , 2026 ( GLOBE NEWSWIRE ) Snail , Inc. ( Nasdaq : SNAL ) ( " Snail Games " or the " Company " ) , a leading global independent developer and publisher of interactive digital entertainment , today announced financial results for the second quarter ended June 30 , 2026 . Second Quarter 2026 and Recent Operational Highlights ARK Franchise Updates : • ARK : Survival Evolved ( " ASE " ) : ○ Units sold were approximately 574,000 for the second quarter of 2026 • • О During the second quarter of 2026 , average daily active users ( " DAU " ) were 105,000 and peak DAU was 131,000 ARK : Survival Ascended ( " ASA ” ) : О Units sold were approximately 1.2 million for the second quarter of 2026 о During the second quarter of 2026 , average DAU was 120,000 and peak DAU was over 155,000 о Launched the ARK : Fantastic Tames Season 1 Pack о Launched ARK : Genesis Part 1 Ascended , ARK : Tides of Fortune , and shadow - dropped the ARK : Dragontopia о Revealed teaser for ARK Maker , a content creation tool designed to expand community - generated content opportunities within the ASA ecosystem ARK : Ultimate Mobile Edition ( " ARK Mobile " ) : О 13.2 million downloads as of June 30 , 2026 • ○ During the second quarter of 2026 , average DAU was 129,000 Other ARK IPS ○ Shared new details around ARK : The Animated Series Part 2 at IGN Live о Unveiled PixARK : Terracrypt , the largest paid DLC expansion for PixARK , planned to introduce more than 200 hours of gameplay and 80 new creatures Game Portfolio and Business Updates : • AAA Game Pipeline ○ Officially unveiled 9 Yin Sutra : Immortal at ChinaJoy 2026 , revealing a new trailer and Steam page о Announced attendance at Gamescon 2026 , where the Company will unveil a first look at an unannounced internally developed AAA title , alongside ASA , For The Stars , Bellwright , and Honeycomb : The World Beyond О Released a new developer diary for For The Stars , offering an in - depth look at the game's current development progress , new pre - alpha footage , and previously unreleased concept art
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● Bellwright launched on PlayStation and Xbox ○ Reached the Top 5 Paid Games list on Xbox following the console launch, demonstrating positive early engagement ● Launched Survivor Mercs 1.0 across Steam, Xbox, and PlayStation, and launched Above The Snow on Steam Business and Operational Updates ● Egofold, the Company’s subsidiary, publicly debuted the AI Ranch initiative and Non-Human PlayerTM (NHP), an AI gaming companion for consumers, at the Ai4 2026 conference ● As of June 30, 2026, SaltyTV released 300+ short film dramas ARK Content Pipeline Title Platforms Type Release Schedule ARK Fantastic Tames – Cerberax Steam, Xbox, PlayStation DLC Creature Q3 2026 ARK Fantastic Tames – Enigmasour Steam, Xbox, PlayStation DLC Creature Q4 2026 ARK Dragontopia (content updates) Steam, Xbox, PlayStation ASA DLC Q3 & Q4 2026 ARK Maker Steam, Xbox, PlayStation ASA Content Creation Tool 2026 ARK Survival of the Fittest Steam, Xbox, PlayStation ASA Game Mode 2026 PixARK: Terracrypt Steam, Xbox, PlayStation, Nintendo Switch PixARK DLC 2026 PixARK Worlds Steam, Xbox, PlayStation, Nintendo Switch 2 New Title 2027 ARK Atlantis Steam, Xbox, PlayStation ASA DLC 2027 ARK Galaxy Wars Steam, Xbox, PlayStation ASA DLC 2027 ARK Legacy of Santiago Steam, Xbox, PlayStation ASA DLC 2027
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Diversified Content Pipeline Title Platforms Type Release Schedule Dead Party Steam Indie Title 2026 Honeycomb: The World Beyond Steam Indie Title 2026 Veil of Madness Steam Indie Title 2026 Gobby Gang Steam Indie Title 2027 For The Stars Steam AAA Title TBD 9 Yin Sutra: Immortal Steam AAA Title TBD 9 Yin Sutra: Wushu Steam AAA Title TBD Management Commentary “Over the last several months, we have begun executing against the robust gaming pipeline we previously outlined, which has established a strong foundation for the second half of 2026,” said Snail CEO Hai Shi. “During the second quarter, we launched the ARK: Fantastic Tames Season 1 Pack and brought Bellwright to Xbox and PlayStation, with the console launch providing an important contribution during an otherwise measured quarter for new game releases. Shortly after the second quarter ended, we released three ARK DLC expansion maps: Tides of Fortune, Genesis Part 1 Ascended, and Dragontopia. These launches, together with our broader slate of planned ARK content, have established a strong foundation for the rest of the year. Additionally, we continue to invest in our next generation of internally developed AAA titles, which we view as critical drivers of Snail’s long-term growth profile. For The Stars and 9 Yin Sutra Immortal were showcased across select gaming events over the past several months, demonstrating meaningful development progress and growing visibility for these titles as they move through the later stages of development. “Operationally, we have made significant progress across a new developing initiative that expands beyond traditional game development and publishing. Just last week, we announced our attendance at the Ai4 2026 conference, where we unveiled the AI Ranch initiative and our new product in development called Non-Human Player (NHP), an AI companion product for consumers designed to learn, adapt, and interact like a real human teammate. NHP is designed to deliver a personalized gaming experience tailored to each user’s playstyle. We believe this technology has the potential to address key challenges casual and hardcore gamers face while creating a personalized AI companion that can help players enjoy and improve their gaming experience across multiple titles. “The outlook for the second half of 2026 remains strong as we continue to execute across multiple gaming pipelines and business opportunities. With a strong slate of ARK content through 2027, meaningful progress across three upcoming AAA titles, and the introduction of new business initiatives, we are well-positioned to support the transformation of Snail’s profile over the next several quarters.”
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Second Quarter 2026 Financial Highlights Net revenues were $19.7 million compared to $22.2 million in the same period last year. The decrease was primarily due to a $4.2 million decrease in sales of ARK: Survival Ascended, a decrease of $1.8 million from ARK: Survival Evolved, a decrease of $0.4 million from ARK: Ultimate Mobile Edition, a decrease of $0.2 million from SaltyTV, and a decrease of $0.2 million from other various titles, offset by an increase in revenues related to Bellwright of $1.5 million and $2.8 million change in deferred revenues. Total units sold were 2.0 million units compared to 2.1 million units in the same period last year, primarily driven by lower sales of ARK franchise titles of 0.2 million units, partially offset by an increase in sales of Bellwright of 0.1 million units. Net loss improved 81.6% to $3.0 million compared to a net loss of $16.6 million in the same period last year. The increase was primarily due to a reduction of $14.0 million in the income tax provision from the prior-year quarter and an improvement in gross profit, partially offset by higher general and administrative and research and development expenses. Bookings were $21.8 million compared to $27.1 million in the same period last year. The decrease was primarily due to lower sales of ARK: Survival Ascended and ARK: Survival Evolved, partially offset by bookings generated from Bellwright. EBITDA was $(3.0) million compared to $(2.4) million in the same period last year. The decrease was primarily due to an improvement in net loss of $13.5 million and a decrease in depreciation expense of $0.1 million, more than offset by a decrease in the provision of income taxes of $14.0 million. Six Months 2026 Financial Highlights Net revenues increased 11.1% to $47.0 million compared to $42.3 million in the same period last year. The increase was primarily attributed to a $3.6 million increase in sales of Bellwright and a $5.3 million change in deferred revenues, partially offset by a decrease in ARK: Survival Evolved revenue of $2.7 million and a decrease of $1.4 million attributable to lower sales of ARK: Survival Ascended. Total units sold increased 13.8% to 4.2 million units compared to 3.7 million units in the same period last year. The increase was primarily due to increased sales of ARK: Survival Ascended of 1.0 million units and an increase in Bellwright of 0.2 million units; partially offset by a decrease in ARK: Survival Evolved sales of 0.7 million units. Net loss improved 95.1% to $(0.9) million compared to $(18.5) million in the same period last year. The improvement was primarily due to the absence of the $12.4 million income tax provision recorded in the prior-year period, which resulted from the valuation allowance recognized against the Company’s deferred tax assets, together with a $6.5 million improvement in gross profit.
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Bookings were $48.7 million compared to $49.4 million in the same period last year. The decrease was primarily due to lower sales of ARK: Survival Evolved as the title continued to mature and consumer demand shifted toward ARK: Survival Ascended and its related downloadable content, partially offset by increased sales of ARK: Survival Ascended and Bellwright, which benefited from promotional pricing during the period. EBITDA improved 88.8% to $(0.6) million compared to $(5.8) million in the same period last year. The improvement was primarily due to an improvement in net loss of $17.6 million, partially offset by a decrease in the provision for income taxes of $12.4 million. As of June 30, 2026, unrestricted cash was $13.3 million compared to $8.6 million as of December 31, 2025. Use of Non-GAAP Financial Measures In addition to the financial results determined in accordance with U.S. generally accepted accounting principles, or GAAP, Snail believes Bookings and EBITDA, as non-GAAP measures, are useful in evaluating its operating performance. Bookings and EBITDA are non- GAAP financial measures that are presented as supplemental disclosures and should not be construed as alternatives to net income (loss) or revenue as indicators of operating performance, nor as alternatives to cash flow provided by operating activities as measures of liquidity, both as determined in accordance with GAAP. Snail supplementally presents Bookings and EBITDA because they are key operating measures used by management to assess financial performance. Bookings adjusts for the impact of deferrals and, Snail believes, provides a useful indicator of sales in a given period. Management believes Bookings and EBITDA are useful to investors and analysts in highlighting trends in Snail’s operating performance. At the same time, other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which Snail operates, and capital investments. Bookings is defined as the net amount of products and services sold digitally or physically in the period. Bookings is equal to revenues, excluding the impact from deferrals. Below is a reconciliation of total net revenue to Bookings, the closest GAAP financial measure. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions) (in millions) Total net revenue $ 19.7 $ 22.2 $ 47.0 $ 42.3 Change in deferred net revenue 2.1 4.9 1.7 7.1 Bookings $ 21.8 $ 27.1 $ 48.7 $ 49.4
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We define EBITDA as net income (loss) before (i) interest expense, (ii) interest income, (iii) provision for (benefit from) income taxes and (iv) depreciation expense. The following table provides a reconciliation from net income (loss) to EBITDA: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions) (in millions) Net loss $ (3.0) $ (16.6) $ (0.9) $ (18.5) Interest income and interest income – related parties (0.1) — (0.1) (0.1) Interest expense 0.2 0.2 0.4 0.3 (Benefit from) provision for income taxes (0.1) 13.9 — 12.4 Depreciation expense — 0.1 — 0.1 EBITDA $ (3.0) $ (2.4) $ (0.6) $ (5.8) Webcast Details The Company will host a webcast at 4:30 PM ET today to discuss its second quarter 2026 financial and operational results. Participants may access the live webcast and replay via the link here or on the Company’s investor relations website at https://investor.snail.com/. About Snail, Inc. Snail, Inc. (Nasdaq: SNAL) is a leading, global independent developer and publisher of interactive digital entertainment for consumers around the world, with a premier portfolio of premium games designed for use on a variety of platforms, including consoles, PCs, and mobile devices. For more information, please visit: https://snail.com/. Forward-Looking Statements This press release contains statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “may,” “predict,” “continue,” “estimate” and “potential,” or the negative of these terms or other similar expressions. Forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements regarding Snail’s intent, belief or current expectations. These forward-looking statements include information about possible or assumed future results of Snail’s business, financial condition, results of operations, liquidity, plans and objectives. The statements Snail makes regarding the following matters are forward-looking by their nature: recent game launches and the Company’s broader slate of planned content establishing a strong foundation for the rest of the year; the Company’s next generation of internally developed AAA titles serving as critical drivers of Snail’s long-term growth profile; the For The Stars and 9 Yin Sutra Immortal titles demonstrating meaningful development progress and growing visibility and moving through the later stages of development; the AI Ranch initiative and the development of the Non-Human Player (NHP) product; the Company’s gaming pipeline being well-positioned to support the transformation of the Company’s profile ;the Non-Human Player (NHP) having the potential to address key challenges casual and hardcore gamers face while creating a personalized AI companion that can help players enjoy and improve their gaming experience across multiple titles; and the outlook for the second half of 2026 remaining strong as Snail continues to execute across multiple gaming pipelines and business opportunities. Any forward-looking statements included herein reflect our current views, and they involve certain risks and uncertainties, including, among others, acceptance of our titles in the marketplace and the successful development, marketing or sale of our titles and our ability to retain our key employees or maintain our Nasdaq listing. These risks should not be construed as exhaustive and should be read together with the other cautionary statement included in our Annual Report on Form 10-K for the year ended December 31, 2025, subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K filed with the Securities and Exchange Commission. Any forward- looking statement speaks only as of the date on which it was initially made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law. Investor Contact: John Yi and Steven Shinmachi
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Gateway Group, Inc. 949-574-3860 SNAL@gateway-grp.com
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Snail, Inc. and Subsidiaries Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025 (Unaudited) June 30, 2026 December 31, 2025 ASSETS Current Assets: Cash and cash equivalents $ 13,293,820 $ 8,568,164 Restricted cash and cash equivalents 562,000 187,000 Accounts receivable, net of allowances for credit losses of $523,500 as of June 30, 2026 and December 31, 2025 9,345,753 12,528,347 Loan and interest receivable – related party 108,751 107,759 Prepaid expenses – related party 5,793,460 2,700,474 Prepaid expenses and other current assets 1,621,428 2,232,485 Prepaid taxes 1,047,870 4,734,007 Total current assets 31,773,082 31,058,236 Restricted cash and cash equivalents, net of current portion 1,748,000 1,748,000 Prepaid expenses – related party, net of current portion 5,582,500 8,282,974 Property and equipment, net 4,120,607 4,146,175 Intangible assets, net 3,898,541 3,827,927 Intangible assets, net – related party 4,416,667 4,916,667 Other noncurrent assets, net 908,408 604,793 Operating lease right-of-use assets, net 4,687,027 4,722,366 Total assets $ 57,134,832 $ 59,307,138 LIABILITIES, NONCONTROLLING INTERESTS AND STOCKHOLDERS’ DEFICIT Current Liabilities: Accounts payable $ 3,926,768 $ 5,506,332 Accounts payable – related parties 18,426,220 20,067,013 Accrued expenses and other liabilities 3,939,436 3,364,150 Interest payable – related parties 527,770 527,770 Convertible notes at fair value 568,499 3,842,189 Current portion of long-term debt 1,353,296 1,305,880 Current portion of deferred revenue 28,538,494 14,799,840 Current portion of operating lease liabilities 472,345 393,448 Total current liabilities 57,752,828 49,806,622 Accrued expenses 625,354 468,106 Revolving loan 2,500,000 5,000,000 Long-term debt, net of current portion 3,650,745 4,292,538 Deferred revenue, net of current portion 5,276,523 17,282,685 Operating lease liabilities, net of current portion 4,328,864 4,336,240 Total liabilities 74,134,314 81,186,191 Commitments and contingencies Stockholders’ Deficit: Class A common stock, $0.0001 par value, 500,000,000 shares authorized; 3,363,834 shares issued and 3,093,778 shares outstanding as of June 30, 2026, and 2,076,467 shares issued and 1,806,412 shares outstanding as of December 31, 2025 336 208
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Class B common stock, $0.0001 par value, 100,000,000 shares authorized; 5,749,716 shares issued and outstanding as of June 30, 2026 and December 31, 2025 575 575 Additional paid-in capital 32,732,935 26,926,245 Accumulated other comprehensive loss (295,578) (275,049) Accumulated deficit (40,258,553) (39,352,510) Treasury stock at cost (270,055 shares as of June 30, 2026 and December 31, 2025) (3,671,806) (3,671,806) Total Snail, Inc. deficit (11,492,091) (16,372,337) Noncontrolling interests (5,507,391) (5,506,716) Total stockholders’ deficit (16,999,482) (21,879,053) Total liabilities, noncontrolling interests and stockholders’ deficit $ 57,134,832 $ 59,307,138
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Snail, Inc. and Subsidiaries Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended June 30, 2026 and 2025 (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenues, net $ 19,676,448 $ 22,185,750 $ 46,971,102 $ 42,296,622 Cost of revenues 11,988,665 15,231,005 27,626,878 29,494,350 Gross profit 7,687,783 6,954,745 19,344,224 12,802,272 Operating expenses: General and administrative 4,975,250 3,475,089 9,626,007 8,439,440 Research and development 4,453,153 3,293,409 8,467,822 6,903,154 Advertising and marketing 814,705 1,520,201 1,683,494 2,826,567 Depreciation and amortization 12,834 67,761 25,568 135,665 Impairment of film assets 96,838 415,719 165,987 415,719 Total operating expenses 10,352,780 8,772,179 19,968,878 18,720,545 Loss from operations (2,664,997) (1,817,434) (624,654) (5,918,273) Other income (expense): Interest income 58,235 31,972 100,082 61,878 Interest income – related party 499 499 992 992 Interest expense (152,125) (169,286) (358,171) (250,115) Other (expense) income (415,082) (707,968) (60,031) 61,794 Foreign currency transaction gain (loss) (1,433) (31,891) 8,259 (68,179) Total other expense, net (509,906) (876,674) (308,869) (193,630) Loss before provision for income taxes (3,174,903) (2,694,108) (933,523) (6,111,903) Provision for (benefit from) income taxes (133,629) 13,868,598 (26,805) 12,397,768 Net loss (3,041,274) (16,562,706) (906,718) (18,509,671) Net loss attributable to non-controlling interests (525) (282) (675) (1,238) Net loss attributable to Snail, Inc. (3,040,749) (16,562,424) (906,043) (18,508,433) Comprehensive loss statement: Net loss (3,041,274) (16,562,706) (906,718) (18,509,671) Other comprehensive income (loss) related to foreign currency translation adjustments, net of tax 984 30,587 (25,839) 63,820 Other comprehensive income related to credit adjustments, net of tax — — 5,310 22,023 Total comprehensive loss $ (3,040,290) $ (16,532,119) $ (927,247) $ (18,423,828) Net loss attributable to Class A common stockholders:
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Basic $ (989,812) $ (3,775,300) $ (258,255) $ (4,210,496) Diluted $ (989,812) $ (3,775,300) $ (258,255) $ (4,216,414) Net loss attributable to Class B common stockholders: Basic $ (2,050,937) $ (12,787,124) $ (647,788) $ (14,297,937) Diluted $ (2,050,937) $ (12,787,124) $ (647,788) $ (14,318,033) Loss per share attributable to Class A and B common stockholders: Basic $ (0.36) $ (2.22) $ (0.11) $ (2.49) Diluted $ (0.36) $ (2.22) $ (0.11) $ (2.49) Weighted-average shares used to compute income (loss) per share attributable to Class A common stockholders: Basic 2,774,897 1,697,559 2,292,247 1,693,192 Diluted 2,774,897 1,697,559 2,292,247 1,693,507 Weighted-average shares used to compute income (loss) per share attributable to Class B common stockholders: Basic 5,749,716 5,749,716 5,749,716 5,749,716 Diluted 5,749,716 5,749,716 5,749,716 5,749,716
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Snail, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025 (Unaudited) 2026 2025 Cash flows from operating activities: Net loss $ (906,718) $ (18,509,671) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Amortization – intangible assets, net 327,756 79,424 Amortization – intangible assets, net – related party 500,000 — Amortization – film assets 231,917 645,069 Amortization – loan origination fees and debt discounts 4,932 (19,504) Loss on change in fair value of convertible notes 121,165 82,180 Gain on change in fair value of warrant liabilities (39,243) (91,383) Depreciation – property and equipment 25,568 135,667 Impairment of film assets 165,987 415,719 Gain on remeasurement of previously held equity interest — (7,857) Gain on lease termination (1,799) — Stock-based compensation expense 101,130 280,888 Deferred taxes, net — 10,808,885 Changes in assets and liabilities, net of business acquisitions: Accounts receivable 3,182,594 (7,825,905) Accounts receivable – related party — 3,836,866 Prepaid expenses – related party (392,512) (1,728,666) Prepaid expenses and other current assets 611,057 537,799 Prepaid taxes 3,686,137 1,161,649 Other noncurrent assets, net (696,951) (1,064,165) Accounts payable (1,636,164) (110,912) Accounts payable – related parties (1,640,793) 1,040,862 Accrued expenses and other liabilities 1,378,317 1,009,796 Loan and interest receivable – related party (992) (992) Lease liabilities 108,659 (163,920) Deferred revenue 1,732,492 7,075,046 Net cash provided by (used in) operating activities 6,862,539 (2,413,125) Cash flows from investing activities: Acquisition of software — (290,000) Acquisition of software licenses (343,770) (2,008,690) Investments in software — (718,236) Net cash paid for acquisition of Matrioshka — (9,719) Net cash used in investing activities (343,770) (3,026,645) Cash flows from financing activities: Proceeds from at-the-market offering, net of issuance costs 4,232,897 — Repayments on notes payable (594,376) — Repayments on convertible notes (2,523,295) (638,753) Repayments on revolving loan (2,500,000) (43,018) Borrowings on term loan — 3,500,000 Cash proceeds from exercise of warrants — 159,000 Proceeds from issuance of convertible notes — 3,000,000 Payments of loan origination fees (7,500) — Net cash provided by (used in) financing activities (1,392,274) 5,977,229
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Effect of foreign currency translation on cash and cash equivalents (25,839) 64,023 Net increase in cash and cash equivalents, and restricted cash and cash equivalents 5,100,656 601,482 Cash and cash equivalents, and restricted cash and cash equivalents – beginning of the period 10,503,164 8,238,944 Cash and cash equivalents, and restricted cash and cash equivalents – end of the period $ 15,603,820 $ 8,840,426 Supplemental disclosures of cash flow information Cash paid during the period for: Interest $ 311,933 $ 230,318 Income taxes $ 82,428 $ 612,007 Noncash transactions during the period for: Liabilities converted to equity upon exercise of warrants $ 606,541 $ 323,113 Acquisition of film licenses in accounts payable $ 2,000 $ 86,069 Acquisition of software and software licenses in accounts payable and accrued expenses $ 54,600 $ 313,282 Change in fair value of notes recorded in accumulated other comprehensive income $ 5,310 $ 22,023 Right-of-use assets obtained in exchange for lease liability $ (297,000) $ (55,267) Net assets acquired in a business combination $ — $ 5,461 Debt converted to equity $ 866,250 —