Snail, Inc.
For the period ended Sep 30, 2025. Filed Nov 12, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 12, 2025
SNAL$1.95+7.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-19.
0001641172-25-024806
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-12.
0001493152-25-021909
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 166 previous paragraphs and 174 current paragraphs.
104 unchanged; 55 reworded; 12 added; 7 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
Gaming
Current report
Film and TV
Current report
Digital Asset
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Corporate
Current report
Provision for income taxes
Current report
Net revenues for the three months ended September 30, 2025 decreased by $8.7 million, or 38.7%, compared to the three months ended September 30, 2024. TotalARK sales increased $2.2 million mainly attributed to $2.1 million fromARK: Survival Ascendedand $0.5 million from the release ofARK: Aquatica, andSaltyTV sales increased $0.3 million during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The increase in sales was more than offset by the increase in deferred revenue of $10.9 million primarily fromARK: Survival Ascended and a decrease in revenues related toBellwrightof $0.5 million in the three months ended September 30, 2025 compared to the three months ended September 30, 2024.
Current report
Cost of revenues for the three months ended September 30, 2025 remained consistent when compared to the three months ended September 30, 2024.
Current report
Cost of revenues for the nine months ended September 30, 2025 increased by $3.9 million, or 10.0%, compared to the nine months ended September 30, 2024.
Current report
Provision for income taxes
Current report
Registered Offerings and Registration Statements
Current report
In September 2024, we filed a universal shelf Registration Statement on Form S-3 that registered $50,000,000 of any combination of our Class A common stock, preferred stock, debt securities, warrants or units described therein, either individually or in combination with other securities. The “shelf” Registration Statement was declared effective on September 20, 2024 and was used to register pursuant to a prospectus supplement, dated August 7, 2025, to the “shelf” Registration Statement for the potential sale of up to $4.5 million of shares of our Class A common stock in the “at the market offering” program with Wainwright.
Current report
At the Market Offering Program
Removed paragraphs (7)
Previous report
On June 19, 2025, the Company held its 2025 Annual Meeting of Stockholders (the “2025 Annual Meeting”). The Company’s stockholders approved the following proposals at the 2025 Annual Meeting: (i) election of the eight (8) named director nominees to the Company’s Board of Directors, each for a term of one year expiring at the 2026 Annual Meeting of Stockholders and until such director’s successor has been duly elected and qualified, and (ii) the stockholders ratified the appointment of BDO USA, P.C. as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2025.
Previous report
Pursuant to the ATM Sales Agreement, the Company will set the parameters for the sale of shares of Class A Common Stock, including the number of shares to be issued, the time period during which sales are requested to be made, limitation on the number of shares that may be sold in any one trading day and any minimum price below which sales may not be made. Upon delivery of a placement notice and subject to the terms and conditions of the ATM Sales Agreement, the Sales Agent will use its commercially reasonable efforts, consistent with its normal trading and sales practices, applicable state and federal law, rules and regulations, and the rules of the Nasdaq, to sell shares of Class A Common Stock from time to time based upon the Company’s instructions. The Company has no obligation to sell any shares of Class A Common Stock under the ATM Sales Agreement and may at any time suspend solicitation and offers under the ATM Sales Agreement. The Sales Agent is not obligated to purchase any shares of Class A Common Stock on a principal basis pursuant to the ATM Sales Agreement.
Previous report
Net revenues for the three months ended June 30, 2025 increased by $0.6 million, or 2.7%, compared to the three months ended June 30, 2024. The increase in net revenues was due to an increase in totalARK sales of $3.3 million, $3.0 million recognized for the inclusion ofARK: Survival Ascendedin a platform subscription program in 2025, an increase in sales of theARK Mobileof $0.6 million that was driven by the release ofARK: Ultimate Mobile Edition, and an increase in revenues related to other games of $0.3 million due to the release of various games during the three months ended June 30, 2025 as compared to June 30, 2024. The increase inARKrelated sales is due to sales and discount promotions that did not occur in 2024. These increases were partially offset by the increase in deferred revenues of $3.7 million and a decrease in revenues related toBellwright of $3.0 million in the three months ended June 30, 2025 compared to the three months ended June 30, 2024.
Previous report
Cost of revenues for the three months ended June 30, 2025 increased by $1.7 million, or 12.8%, compared to the three months ended June 30, 2024.
Previous report
Other Factors Affecting Net Loss
Previous report
Cost of revenues for the six months ended June 30, 2025 increased by $4.0 million, or 15.5%, compared to the six months ended June 30, 2024.
Previous report
Registered Offering
Reworded paragraphs (55)
Previous wording
Our mission is to provide high-quality entertainment experiences to audiences around the world. We are a leading, global independent developer and publisher of interactive digital entertainment for consumers around the world. We have built a premier portfolio of premium games designed for use on a variety of platforms, including consoles, PCs, and mobile devices.ARK: Survival Evolved has been a top-25 selling game on the Steam platform by gross revenue in each year we released anARK DLC. Our expertise in technology, in-game ecosystems and monetization of online multiplayer games has enabled us to assemble a broad portfolio of intellectual property across multiple media formats and technology platforms. Our flagship franchise from which we generate the substantial majority of our revenues,ARK, is a leader within the sandbox survival genre with 106.3 million console and PC installs through June 30, 2025 and repeated releases within the top-25 selling games on the Steam platform. See below for discussion of key performance metrics and non-GAAP measures. In the three and six months ended June 30, 2025,ARK: Survival Evolved andARK: Survival Ascendedcombined for an average total of 242,000 and 242,000 daily active users (“DAUs”) on the Steam and Epic platforms, as compared to 218,241 and 213,691 in the three and six months ended June 30, 2024, respectively. We define “daily active users” as the number of unique users who play any given game on any given day. For the three months ended June 30, 2025 and 2024, we generated 90.1% and 77.2%, respectively, of our revenues from theARK franchise. For the six months ended June 30, 2025 and 2024, we generated 90.8% and 77.7%, respectively, of our revenues from theARKfranchise.
Current wording
Our mission is to provide high-quality entertainment experiences to audiences around the world. We are a leading, global independent developer and publisher of interactive digital entertainment for consumers around the world. We have built a premier portfolio of premium games designed for use on a variety of platforms, including consoles, PCs, and mobile devices.ARK: Survival Evolved has been a top-25 selling game on the Steam platform by gross revenue in each year we released anARK DLC. Our expertise in technology, in-game ecosystems and monetization of online multiplayer games has enabled us to assemble a broad portfolio of intellectual property across multiple media formats and technology platforms. Our flagship franchise from which we generate the substantial majority of our revenues,ARK, is a leader within the sandbox survival genre with 107.4 million console and PC installs through September 30, 2025. See below for discussion of key performance metrics and non-GAAP measures. In the three and nine months ended September 30, 2025,ARK: Survival Evolved andARK: Survival Ascendedcombined for an average total of 216,000 and 233,000 daily active users (“DAUs”) on the Steam and Epic platforms, as compared to 210,000 and 212,000 in the three and nine months ended September 30, 2024, respectively. We define “daily active users” as the number of unique users who play any given game on any given day. For the three months ended September 30, 2025 and 2024, we generated 88.4% and 88.7%, respectively, of our revenues from theARK franchise. For the nine months ended September 30, 2025 and 2024, we generated 90.3% and 82.0%, respectively, of our revenues from theARKfranchise.
Previous wording
Our dedication to providing audiences with high-quality entertainment experiences utilizing the latest gaming technology has produced strong user engagement, continued revenue growth, and increased cash flows. Through June 30, 2025, ourARK franchise game has been played for 4.1 billion hours with an average playing time per user of 161 hours and with the top 21.3% of all players spending over 100 hours in the game, according to data from the Steam platform. For the three months ended June 30, 2025 and 2024, our net revenue was $22.2 million and $21.6 million, respectively. For the six months ended June 30, 2025 and 2024, our net revenue was $42.3 million and $35.7 million, respectively. During the three months ended June 30, 2025, approximately 42.8% of our revenue came from consoles, 45.2% from PC and 9.2% from mobile as compared to 38.6% from consoles, 54.7% from PC and 5.2% from mobile during the three months ended June 30, 2024. During the six month ended June 30, 2025, approximately 42.1% of our revenue came from consoles, 45.0% came from PC and 10.4% from mobile platforms as compared to 40.1% from consoles, 47.4% from PC and 5.9% from mobile platforms during the six month ended June 30, 2024. We had a net loss of $16.6 million compared to a net income of $2.3 million, for the three months ended June 30, 2025 and 2024, respectively. For the six months ended June 30, 2025, we had a net loss of $18.5 million as compared to net income of $0.5 million for the six months ended June 30, 2024.
Current wording
Our dedication to providing audiences with high-quality entertainment experiences utilizing the latest gaming technology has produced strong user engagement, continued revenue growth, and increased cash flows. Through September 30, 2025, ourARK franchise game has been played for 4.2 billion hours with an average playing time per user of 161 hours and with the top 21.4% of all players spending over 100 hours in the game, according to data from the Steam platform. For the three months ended September 30, 2025 and 2024, our net revenue was $13.8 million and $22.5 million, respectively. For the nine months ended September 30, 2025 and 2024, our net revenue was $56.1 million and $58.3 million, respectively. During the three months ended September 30, 2025, approximately 33.2% of our revenue came from consoles, 49.5% from PC and 13.1% from mobile as compared to 44.3% from consoles, 45.6% from PC and 4.6% from mobile during the three months ended September 30, 2024. During the nine month ended September 30, 2025, approximately 39.9% of our revenue came from consoles, 46.1% came from PC and 11.0% from mobile as compared to 41.7% from consoles, 46.7% from PC and 5.4% from mobile platforms during the nine month ended September 30, 2024. We had a net loss of $7.9 million compared to a net income of $0.2 million, for the three months ended September 30, 2025 and 2024, respectively. For the nine months ended September 30, 2025, we had a net loss of $26.4 million as compared to net income of $0.7 million for the nine months ended September 30, 2024.
Previous wording
We continuously evaluate and invest in content strategy to improve and innovate our games and features and to develop current technological platforms. We are currently actively investing in expanding our gaming pipeline as well as developing media and eSports content related to our gaming intellectual property. We also continue to invest to grow our micro-influencer platform,NOIZ, by attracting new influencers and brand customers. We have established a new division internally under the Interactive Films brand. This division will focus on creating content in the vertical short film segment of the digital entertainment market. The mobile application has already soft launched on iOS and Android platforms. We have released fifty-five short film dramas including licensed films from external organizations and expect a consistent roll out of new short film dramas.
Current wording
We continuously evaluate and invest in content strategy to improve and innovate our games and features and to develop current technological platforms. We are currently actively investing in expanding our gaming pipeline as well as developing media related to our gaming intellectual property. We also continue to invest to grow our micro-influencer platform,NOIZ, by attracting new influencers and brand customers. We have established a new division internally under the Interactive Films brand. This division will focus on creating content in the vertical short film segment of the digital entertainment market. The mobile application has already launched on iOS and Android platforms. As of September 30, 2025, we have released sixty-seven short film dramas including licensed films from external organizations and expect a consistent roll out of new short film dramas.
Previous wording
We have experienced significant growth in our number of downloads over the last several years. We have sold 53.6 million units between January 1, 2016 and June 30, 2025. During the three months ended June 30, 2025, we sold 2.1 million units compared to 1.3 million in the three months ended June 30, 2024. Our video games provide highly engaging, differentiated entertainment experiences where the combination of challenge and progress drives player engagement, high average player times, and long-term franchise value. The success of our franchise hinges on our ability to keep our current players engaged while also growing our user base by innovating our platform and monetizing new offerings. The degree to which gamers are willing to engage with our platform is driven by our ability to create interactive and unique content that will enhance the game-play experience. We sell DLCs which are supplementary to our master games and expand the gaming universe to continuously evolve the game and retain players. Our master games are the base versions of a specific title, for example,ARK: Survival Evolved is our master game andARK: Genesis is a DLC.
Current wording
We have experienced significant growth in our number of downloads over the last several years. We have sold 54.6 million units between January 1, 2016 and September 30, 2025. During the three months ended September 30, 2025, we sold 1.1 million units consistent with 1.1 million in the three months ended September 30, 2024. Our video games provide highly engaging, differentiated entertainment experiences where the combination of challenge and progress drives player engagement, high average player times, and long-term franchise value. The success of our franchise hinges on our ability to keep our current players engaged while also growing our user base by innovating our platform and monetizing new offerings. The degree to which gamers are willing to engage with our platform is driven by our ability to create interactive and unique content that will enhance the game-play experience. We sell DLCs which are supplementary to our master games and expand the gaming universe to continuously evolve the game and retain players. Our master games are the base versions of a specific title, for example,ARK: Survival Evolved is our master game andARK: Genesis is a DLC.
Previous wording
We are focused on innovation and technology leadership in order to maintain our competitive advantage. We spend a portion of our capital on our research and development platform to continuously improve our technological offerings and gaming platform. Our proprietary video game technology includes a versatile game engine, development pipeline tools, advanced rendering technology and advanced server and network operations. Continued investment in improving the technology behind our existing gaming platforms as well as developing new software tools for new product offerings is important to maintaining our strategic goals, developer and creator talent, and financial objectives. For us to continue providing cutting-edge technology to our users and bringing digital interactive entertainment to market, we must also continue to invest in developmental and creative resources. For our users, we regularly invest in user-friendly features and enhance user experience in our games and platforms. As our industry moves towards increased use of cloud gaming and gaming as a service technology, our ability to bring interactive technologies to market will be an increasingly important part of our business. Furthermore, to accompany our entry into the vertical short film market, we have developed a distribution platform, theSalty TV mobile application that allows users to access the content on demand.
Current wording
We are focused on innovation and technology leadership in order to maintain our competitive advantage. We spend a portion of our capital on our research and development platform to continuously improve our technological offerings and gaming platform. Our proprietary video game technology includes a versatile game engine, development pipeline tools, advanced rendering technology and advanced server and network operations. Continued investment in improving the technology behind our existing gaming platforms as well as developing new software tools for new product offerings is important to maintaining our strategic goals, developer and creator talent, and financial objectives. For us to continue providing cutting-edge technology to our users and bringing digital interactive entertainment to market, we must also continue to invest in developmental and creative resources. For our users, we regularly invest in user-friendly features and enhance user experience in our games and platforms. As our industry moves towards increased use of cloud gaming and gaming as a service technology, our ability to bring interactive technologies to market will be an increasingly important part of our business. Furthermore, to accompany our entry into the vertical short film market, we have developed a distribution platform, theSaltyTV mobile application that allows users to access the content on demand.
Previous wording
In February 2025, we released a brand new DLC map forARK: Survival Ascended,ARK: Astraeos. This expansive Greek methodology map offers over 264-square kilometers of playable area, filled with stunning scenery, ancient ruins, sacred temples, and powerful new bosses. Since release, we sold 480K units across Steam, PlayStation, and Xbox. We have also completed two new game acquisitions through our gaming network and partners as part of the larger effort to expand our games portfolio.
Current wording
In February 2025, we released a brand new DLC map forARK: Survival Ascended,ARK: Astraeos. This expansive Greek methodology map offers over 264-square kilometers of playable area, filled with stunning scenery, ancient ruins, sacred temples, and powerful new bosses. Since release, we sold 574K units across Steam, PlayStation, and Xbox. We have also completed two new game acquisitions through our gaming network and partners as part of the larger effort to expand our games portfolio.
Previous wording
On June 18, 2025, the Lost Colony Expansion Pass pre-sale went live across Steam, PlayStation, and Xbox. The DLC is expected to be released later this year. To deepen our commitment to ourARK fans, we have included a brand-newARK: Fantastic Tames – Drakelings as part of the expansion pass. The pre-sale exceeded our expectations, selling over 160K units through June 30, 2025.
Current wording
On June 18, 2025, the Lost Colony Expansion Pass pre-sale went live across Steam, PlayStation, and Xbox. The DLC is expected to be released later this year. To deepen our commitment to ourARK fans, we have included a brand-newARK: Fantastic Tames – Drakelings as part of the expansion pass. The pre-sale exceeded our expectations, selling over 306K units through September 30, 2025. On October 7 th, 2025, we further enhanced the value of the Lost Colony Expansion Pass by adding a completely new Fantastic Tames, Elderclaw to the bundle.
Previous wording
Furthermore, in an effort to broaden our portfolio offerings beyond the sandbox survival genre, we have released five indies games that cater to a broader set of audience in the second quarter of 2025;The Cecil: The Journey Begins, Chasmal Fear, Castle of Secrets, Zombie Rollerz: The Last Ship, and Robots at Midnight.
Current wording
Furthermore, in an effort to broaden our portfolio offerings beyond the sandbox survival genre, we have released five indies games that cater to a broader set of audience in the second quarter of 2025;The Cecil: The Journey Begins, Chasmal Fear, Castle of Secrets, Zombie Rollerz: The Last Ship, and Robots at Midnight. Towards the end of the year, we have two exciting releases to round out 2025 in Rebel Engine, a fusion of the stylish combat of a hack-n’-slash with the lightning speed and bombastic gunplay of a ‘90s FPS into a wholly unique, fast-paced action game, and Echoes of Elysium, an airship-survival RPG set in the world of “Elysium” where players gather resources, craft, survive, build/customize airships, explore, and combat.
Previous wording
To bring more entertainment to our users, our short film mobile application,Salty TV, brings exclusive, original stories from heart-racing thrillers to jaw-dropping romances to our viewers. We have released fifty-five short film dramas through June 30, 2025 and expect a consistent roll out of new short film dramas throughout 2025 and beyond. In a strategic step forward in advancing the short-film business line, Snail Inc. subsidiary Interactive Films signed a Memorandum of Understanding (MOU) with Mega Matrix Inc. (NYSE American: MPU) for a joint development, production, and global distribution of short dramas.
Current wording
To bring more entertainment to our users, our short film mobile application,SaltyTV, brings exclusive, original stories from heart-racing thrillers to jaw-dropping romances to our viewers. We have released sixty-seven short film dramas through September 30, 2025 and expect a consistent roll out of new short film dramas throughout 2025 and beyond. In a strategic step forward in advancing the short-film business line, Snail Inc. subsidiary Interactive Films signed a Memorandum of Understanding (MOU) with Mega Matrix Inc. (NYSE American: MPU) for a joint development, production, and global distribution of short dramas. Furthermore, we expanded the short film dramas’ product scope with the release of a new game based on the produced stories; The Fame Game: Welcome to Hollywood, an adventure that follows an up-and-coming actor as he navigates the complexities of romance, ambition, and the unexpected truths hiding beneath the red carpet.
Previous wording
We primarily derive revenue from the sale of our games through various gaming platforms. Through these platforms, users can download our games and, for certain games, purchase virtual items to enhance their game-playing experience. We offer certain software products through third-party digital storefronts, such as Xbox Live and Game Pass, PlayStation Network, Steam, Epic Games Store, the Apple App Store, the Google Play Store, My Nintendo Store and the Amazon Appstore, and certain retail distributors. For sales arrangements through Xbox Live and Game Pass, PlayStation Network, Steam, Epic Game Stores, My Nintendo Store and retail distributors, the digital platforms and distributors have discretion in establishing the price for the specified good or service, and we have determined we are the agent in the sales transaction to the end user and therefore report revenue on a net basis based on the consideration received from the digital storefront. For sales arrangements through the Apple App Store and the Google Play Store, we have discretion in establishing the price for the specified good or service and have determined that we are the principal to the end user and therefore report revenue on a gross basis. Mobile platform fees charged by these digital storefronts are expensed as incurred and reported within cost of revenue as merchant fees.
Current wording
We primarily derive revenue from the sale of our games through various gaming platforms. Through these platforms, users can download our games and, for certain games, purchase virtual items to enhance their game-playing experience. We offer certain software products through third-party digital storefronts, such as Xbox Live and Game Pass, PlayStation Network, Steam, Epic Games Store, the Apple App Store, the Google Play Store, My Nintendo Store and the Amazon Appstore, and certain retail distributors.
Previous wording
The provision for income taxes consists of current income taxes in the various jurisdictions where we are subject to taxation, primarily the United States, as well as deferred income taxes reflecting the net tax effects of temporary differences between the carrying amounts of assets and liabilities in each of these jurisdictions for financial reporting purposes and the amounts used for income tax purposes. Under current U.S. tax law, the federal statutory tax rate applicable to corporations is 21%. Our effective tax rate of (515%) differed materially from the federal statutory tax rate of 21% primarily due to the impact of the valuation allowance recorded against U.S. net deferred tax assets.
Current wording
The provision for income taxes consists of current income taxes in the various jurisdictions where we are subject to taxation, primarily the United States, as well as deferred income taxes reflecting the net tax effects of temporary differences between the carrying amounts of assets and liabilities in each of these jurisdictions for financial reporting purposes and the amounts used for income tax purposes. Under current U.S. tax law, the federal statutory tax rate applicable to corporations is 21%. Our effective tax rate of 16.6% differed from the federal statutory tax rate of 21% primarily due to state income taxes, foreign withholding taxes, and permanent differences.
Previous wording
The increase in cost of revenues for the six months ended June 30, 2025 was due to an increase of $3.0 million in software license royalties – related parties, a result of increasedARKrevenues, an increase of $0.7 million in license and amortization due to the increased depreciable base of intangible assets in 2025, an increase in merchant fees of $0.6 million related to the increasedARK: Ultimate Mobile Editionrevenues, an increase of $0.2 million in internet, server and data center, partially offset by decreased engine fees of $0.5 million.
Current wording
Cost of revenues for the three months ended September 30, 2025 included a decrease of $2.0 million in software license royalties – related parties, attributable to the deferred revenues recognition ofARKsales, a decrease of $0.3 million in software license royalties, partially offset by an increase in engine fees of $1.0 million due to a one time engine fee expense, an increase of $0.5 million in license and amortization due to the increased depreciable base of intangible assets in 2025, an increase of $0.5 million in internet, server and data center and an increase in merchant fees of $0.3 million related to the increasedARK: Ultimate Mobile Editionrevenues.
Previous wording
General and administrative expenses for the three months ended June 30, 2025 increased by $0.7 million, or 24.3%, compared to the three months ended June 30, 2024. The increase in general and administrative expenses was due to an increase in contractors expense of $0.2 million, an increase in public company expense of $0.1 million, an increase in office expense of $0.1 million, an increase in insurance expense of $0.1 million, and an increase in legal and professional expense of $0.1 million.
Current wording
General and administrative expenses for the three months ended September 30, 2025 increased by $1.0 million, or 26.0%, compared to the three months ended September 30, 2024. The increase in general and administrative expenses was due to an increase in salaries and wages of $0.5 million, an increase in contractors expense of $0.4 million, an increase in legal and professional fees of $0.1 million, an increase in insurance costs of $0.1 million and an increase in office expenses of $0.1 million, partially offset by a decrease in other tax expenses of $0.2 million.
Previous wording
Research and development expenses for the three months ended June 30, 2025 increased by $1.4 million, or 77.0%, compared to the three months ended June 30, 2024. The increase in research and development expenses was due to the outsourced development ofFor the StarsandNine Yin Sutra: Immortal paid through Suzhou Snail and an increase in internal research and development salaries as the Company continues to expand its internal development team*.*
Current wording
Research and development expenses for the three months ended September 30, 2025 decreased by $0.2 million, or 4.0%, compared to the three months ended September 30, 2024. The decrease in research and development expenses was due to lower development milestone payments of the Suzhou Snail development contract forFor the StarsandNine Yin Sutra: Immortal offset by increases in internal research and development salaries as the Company continues to expand its internal development team*.*
Previous wording
Advertising and marketing expenses for the three months ended June 30, 2025 increased by $0.8 million, or 119.0%, compared to the three months ended June 30, 2024. The increase in advertising and marketing expenses was due to the increased advertising campaigns for ourARK: Aquatica andRobots at Midnighttitles andSaltyTVapplication and related offerings.
Current wording
Advertising and marketing expenses for the three months ended September 30, 2025 increased by $0.4 million, or 78.4%, compared to the three months ended September 30, 2024. The increase in advertising and marketing expenses was due to the increased advertising campaigns for ourARK: Aquatica DLC andSaltyTVapplication and related offerings.
Previous wording
Impairment of film assets for the three months ended June 30, 2025 increased by $0.4 million, or 100.0%, compared to the three months ended June 30, 2024. The increase in impairment of film assets was due to the underperformance of specific film assets and changes in the market conditions affecting expected future cash flow during the three months ended June 30, 2025.
Current wording
Impairment of film assets for the three months ended September 30, 2025 increased by $0.3 million, or 100.0%, compared to the three months ended September 30, 2024. The increase in impairment of film assets was due to the underperformance of specific film assets and changes in the market conditions affecting expected future cash flow during the three months ended September 30, 2025.
Previous wording
Interest income was $0.0 million and $0.1 million for the three months ended June 30, 2025 and June 30, 2024, respectively. The decrease was due to the balance of our cash deposits being lower on average during the three months ended June 30, 2025.
Current wording
Interest income was $0.5 million and $0.1 million for the three months ended September 30, 2025 and September 30, 2024, respectively. The increase was due to the interest portion of the IRS refunds received during the three months ended September 30, 2025.
Previous wording
Interest expense primarily related to our outstanding indebtedness with third-party lenders. Interest expense increased slightly for the three months ended June 30, 2025 due to the new term loan initiated on June 10, 2025. The new term loan increased the average debt during the three months ended June 30, 2025.
Current wording
Interest expense primarily related to our outstanding indebtedness with third-party lenders. Interest expense increased slightly for the three months ended September 30, 2025 due to the increased the average debt during the three months ended September 30, 2025.
Previous wording
Other income decreased by $0.9 million for the three months ended June 30, 2025, in comparison to the three months ended June 30, 2024. The decrease is due to the recognition of $0.5 million due to the revaluation of warrant liabilities and $0.4 million due to the revaluation of the convertible notes in the three months ended June 30, 2025 in comparison to the recognition of $0.2 million in the other income during the three months ended June 30, 2024 for the revaluation of the Company’s warrant liabilities.
Current wording
Other income was $0.1 million for the three months ended September 30, 2025 and 2024. There was an increase in the revaluation of convertible notes of $0.2 million that was offset by a decrease in the revaluation of warrant liabilities of $0.3 million in the three months ended September 30, 2025 in comparison to the recognition of $0.1 million in other income during the three months ended September 30, 2024 for the revaluation of the Company’s warrant liabilities.
Previous wording
The Company had an income tax provision of $13.9 million and an income tax benefit of $0.6 million for the three months ended June 30, 2025 and 2024, respectively. This is primarily due to the impact of the valuation allowance recorded against U.S. net deferred tax assets. Our effective income tax rate was (515%) and 21% during the three months ended June 30, 2025 and 2024, respectively.
Current wording
The Company had an income tax benefit of $1.6 million and an income tax provision of $0.2 million for the three months ended September 30, 2025 and 2024, respectively. This is primarily due to the Company being in a net loss position during the three months ended September 30, 2025 while recognizing a net income in the three months ended September 30, 2024. Our effective income tax rate was 16.6% and 40.4% during the three months ended September 30, 2025 and 2024, respectively.
Previous wording
Comparison of the six months ended June 30, 2025 versus the six months ended June 30, 2024
Current wording
Comparison of the nine months ended September 30, 2025 versus the nine months ended September 30, 2024
Previous wording
Net revenues for the six months ended June 30, 2025 increased by $6.6 million, or 18.4%, compared to the six months ended June 30, 2024. The increase in net revenues was due to an increase in totalARK sales of $6.1 million, $3.0 million in revenues for the inclusion ofARK: Survival Ascendedin a platform subscription program and an increase in sales of theARK Mobileof $1.9 million that was driven by the release ofARK: Ultimate Mobile Edition. These increases were partially offset by the decrease in revenue specific toBellwrightof $2.2 million, a non-reoccurring Angela Games settlement of $1.2 million occurring in 2024, the related decrease in Angela Games revenues of $0.7 million, and the increase in deferred revenue of $0.3 million during the six months ended June 30, 2025 compared to June 30, 2024.
Current wording
Net revenues for the nine months ended September 30, 2025 decreased by $2.2 million, or 3.7%, compared to the nine months ended September 30, 2024. TotalARK sales increased $13.7 million andSaltyTV increased $0.6 million during the nine months ended September 30, 2025 compared to September 30, 2024. The sales increase was more than offset by the increase in deferred revenue of $11.9 million primarily fromARK: Survival Ascended, a decrease in revenues related toBellwright of $2.6 million, a decrease in Angela Games revenues of $1.2 million and a non-recurring Angela Games settlement of $0.6 million occurring in 2024.
Previous wording
Cost of revenues for the six months ended June 30, 2025 and 2024 comprised the following:
Current wording
Cost of revenues for the nine months ended September 30, 2025 and 2024 comprised the following:
Previous wording
The increase in cost of revenues for the three months ended June 30, 2025 was due to an increase of $1.1 million in software license royalties – related parties, a result of increasedARKsales, an increase of $0.4 million in license and amortization due to the increased depreciable base of intangible assets in 2025, an increase in merchant fees of $0.3 million related to the increasedARK: Ultimate Mobile Editionrevenues, an increase of $0.3 million in internet, server and data center, partially offset by decreased engine fees of $0.4 million.
Current wording
The increase in cost of revenues for the nine months ended September 30, 2025 was due to an increase of $1.1 million in software license royalties – related parties, a result of increasedARKrevenues, an increase of $1.2 million in license and amortization due to the increased depreciable base of intangible assets in 2025, an increase in merchant fees of $0.8 million related to the increasedARK: Ultimate Mobile Editionrevenues, an increase of $0.6 million in internet, server and data center and other costs related to advertising of $0.1 million, an increase in engine fees of $0.4 million, partially offset by decreased software license royalties of $0.4 million.
Previous wording
General and administrative expenses for the six months ended June 30, 2025 increased by $3.4 million, or 66.2%, compared to the six months ended June 30, 2024. The increase in general and administrative expenses was due to an increase in salaries and wages of $2.1 million, the result of the Company recording $0.3 million in stock compensation expense in 2025 versus an income related to stock based income compensation of ($0.8) million in 2024 and the Company’s increased headcount in 2025, an increase in office expense of $0.3 million, an increase in contractors expense of $0.3 million, an increase in legal and professional fees of $0.2 million, an increase in travel expense of $0.1 million, an increase in insurance expenses of $0.1 million, an increase in other tax expense of $0.1 million, and an increase in public company expenses of $0.1 million.
Current wording
General and administrative expenses for the nine months ended September 30, 2025 increased by $4.3 million, or 48.9%, compared to the nine months ended September 30, 2024. The increase in general and administrative expenses was due to an increase in salaries and wages of $2.5 million, the result of the Company recording $0.3 million in stock compensation expense in 2025 versus an income related to stock based income compensation of ($0.8) million in 2024 and the Company’s increased headcount in 2025, an increase in contractors expense of $0.7 million, an increase in office expense of $0.4 million, an increase in legal and professional fees of $0.3 million, an increase in insurance expenses of $0.2 million, an increase in travel expense of $0.1 million, partially offset by a decrease in other tax expense of $0.1 million.
Previous wording
Research and development expenses for the six months ended June 30, 2025 increased by $3.3 million, or 89.8%, compared to the six months ended June 30, 2024. The increase in research and development expenses was due to the outsourced development ofFor the StarsandNine Yin Sutra: Immortalpaid through Suzhou Snail and an increase in internal research and development salaries as the Company continues to expand its internal development team*.*
Current wording
Research and development expenses for the nine months ended September 30, 2025 increased by $3.1 million, or 41.4%, compared to the nine months ended September 30, 2024. The increase in research and development expenses was due to the outsourced development ofFor the StarsandNine Yin Sutra: Immortalpaid through Suzhou Snail and an increase in internal research and development salaries as the Company continues to expand its internal development team*.*
Previous wording
Advertising and marketing expenses for the six months ended June 30, 2025 increased by $2.0 million, or 238.4%, compared to the six months ended June 30, 2024. The increase in advertising and marketing expenses was due to the Company’s presence at the Game Developers Conference (“GDC”) during the six months ended June 30, 2025, and increased advertising campaigns for ourARK: AquaticaandWandering Wizard titles andSaltyTVapplication and related offerings in 2025.
Current wording
Advertising and marketing expenses for the nine months ended September 30, 2025 increased by $2.4 million, or 178.8%, compared to the nine months ended September 30, 2024. The increase in advertising and marketing expenses was due to the Company’s presence at the Game Developers Conference (“GDC”) during the nine months ended September 30, 2025, and increased advertising campaigns for ourARK: Aquatica DLCandWandering Wizard titles andSaltyTVapplication and related offerings in 2025.
Previous wording
Impairment of film assets for the six months ended June 30, 2025 increased by $0.4 million, or 100.0%, compared to the six months ended June 30, 2024. The increase in impairment of film assets was due to the Company’s underperformance of four films and changes in the market conditions affecting expected future cash flow during the six months ended June 30, 2025. There were no such impairments during the six months ended June 30, 2025.
Current wording
Impairment of film assets for the nine months ended September 30, 2025 increased by $0.8 million, or 100.0%, compared to the nine months ended September 30, 2024. The increase in impairment of film assets was due to the Company’s underperformance of certain short films and changes in the market conditions affecting expected future cash flow during the nine months ended September 30, 2025. There were no such impairments during the nine months ended September 30, 2024.
Previous wording
Interest income was $0.1 million and $0.2 million for the six months ended June 30, 2025 and June 30, 2024, respectively. The decrease was due to the balance of our cash deposits being lower on average during the six months ended June 30, 2025.
Current wording
Interest income was $0.6 million and $0.2 million for the nine months ended September 30, 2025 and September 30, 2024, respectively. The increase was due to the interest portion of IRS refunds received during the nine months ended September 30, 2025.
Previous wording
Interest expense primarily related to our outstanding indebtedness with third-party lenders. Interest expense decreased by $0.2 million for the six months ended June 30, 2025 because of lower average debt during the six months ended June 30, 2025.
Current wording
Interest expense primarily related to our outstanding indebtedness with third-party lenders. Interest expense decreased by $0.2 million for the nine months ended September 30, 2025 because of lower average debt during the nine months ended September 30, 2025.
Previous wording
Other income decreased by $0.4 million for the six months ended June 30, 2025, in comparison to the six months ended June 30, 2024. The decrease is due to the recognition of a $0.4 million expense due to the revaluation of warrant liabilities in the six months ended June 30, 2025. In the six months ended June 30, 2024 the company recognized a $0.2 million expense due to the revaluation of warrant liabilities and recognized litigation revenues related to a revenue share agreement resulting for the settlement with Angela Games.
Current wording
Other income decreased by $0.3 million for the nine months ended September 30, 2025, in comparison to the nine months ended September 30, 2024. The decrease is due to the recognition of a $0.5 million expense attributable from the revaluation of warrant liabilities and recognized litigation revenues of $0.1 million related to a revenue share agreement resulting for a settlement of Angela Games in the nine months ended September 30, 2025. This is partially offset by the revaluation of the convertible notes of $0.3 million during the nine months ended September 30, 2025.
Previous wording
The Company had provision of income taxes of $12.4 million and $0.1 million for the six months ended June 30, 2025 and 2024, respectively. This is primarily due to the impact of the valuation allowance recorded against U.S. net deferred tax assets. Our effective income tax rate was (203%) and 19% during the six months ended June 30, 2025 and 2024, respectively.
Current wording
The Company had provision of income taxes of $10.8 million and $0.3 million for the nine months ended September 30, 2025 and 2024, respectively. This is primarily due to the impact of the valuation allowance recorded against U.S. net deferred tax assets. Our effective income tax rate was (69.7%) and 27.6% during the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
Units sold increased during the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, by 0.8 million units, or 58.4%. The Company’s units sold increased due to an increase in sales ofARK: Survival Evolved and its related DLC’s of 0.7 million units andARK: Survival Ascended and its related DLC’s by 0.3 million units. This was offset by the decline in sales of other various games of 0.2 million units.
Current wording
Units sold remained consistent at 1.1 million during the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. The Company’s units sold increased due to sales of ARK franchise IPs by 0.1 million units. This was offset by the decline in sales of ARK: Survival Evolved and its related DLC’s of 0.1 million units.
Previous wording
Units sold increased during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, by 1.3 million units, or 52.4%. The Company’s units sold increased due to an increase in sales ofARK: Survival Evolvedand its related DLC’s of 0.8 million units*,and an increase in sales ofARK: Survival Ascendedand its related DLC’s of 0.6 million units. This increase was partially offset by the decrease of units sold ofBellwright*of 0.1 million during the six months ended June 30, 2025.
Current wording
Units sold increased during the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, by 1.3 million units, or 38.7%. The Company’s units sold increased due to an increase in sales ofARK: Survival Evolvedand its related DLC’s of 0.8 million units*,and an increase in sales ofARK: Survival Ascendedand its related DLC’s of 0.7 million units. This increase was partially offset by the decrease of units sold ofBellwright*of 0.2 million during the nine months ended September 30, 2025.
Previous wording
For the three months ended June 30, 2025, bookings increased by $4.2 million or 18.5%, compared to the three months ended June 30, 2024, driven by various sales promotions in 2025 that did not occur in 2024, specifically aroundARK: Survival Evolvedand the release ofARK: Lost Colonyto presale in 2025.
Current wording
For the three months ended September 30, 2025, bookings increased by $1.5 million or 9.3%, compared to the three months ended September 30, 2024, driven by various sales promotions in 2025 that did not occur in 2024, specifically aroundARK: Survival Evolvedand the release ofARK: Lost Colony andARK: Aquatica in 2025.
Previous wording
For the six months ended June 30, 2025, bookings increased by $7.0 million, or 16.3%, compared to the six months ended June 30, 2024, because of the releases ofARK: Survival AscendedDLCAstraeosin the first quarter of 2025, sales promotions that were the first of their kind onARK: Survival Evolvedin 2025, and the release ofARK: Lost Colony to presale in 2025.
Current wording
For the nine months ended September 30, 2025, bookings increased by $8.4 million, or 14.3%, compared to the nine months ended September 30, 2024, because of the releases ofARK: Survival AscendedDLCAstraeosin the first quarter of 2025, sales promotions that were the first of their kind onARK: Survival Evolvedin 2025, the release ofARK: Lost Colony to presale in 2025, and the release ofARK: Aquatica.
Previous wording
For the three months ended June 30, 2025, EBITDA decreased by $5.5 million, or 182.9%, compared to the three months ended June 30, 2024, primarily because of an increase in net loss of $18.9 million, partially offset by an increase in provision for income taxes of $13.3 million and an increase in interest income and interest income – related parties of $0.1 million.
Current wording
For the three months ended September 30, 2025, EBITDA decreased by $10.2 million, or 2,038.6%, compared to the three months ended September 30, 2024, primarily because of an increase in net loss of $8.1 and a decrease in the provision for income taxes of $1.8 million, partially offset an increase in interest income and interest income – related parties of $0.4 million.
Previous wording
For the six months ended June 30, 2025, EBITDA decreased by $7.0 million, or 616.3%, compared to the six months ended June 30, 2024, primarily because of an increase in net loss of $19.0 million, a decrease in interest expense of $0.3 million, partially offset by an increase in provision for income taxes of $12.3 million.
Current wording
For the nine months ended September 30, 2025, EBITDA decreased by $17.2 million, or 1,053.9%, compared to the nine months ended September 30, 2024, primarily because of an increase in net loss of $27.1 million, a decrease in interest expense of $0.2 million, partially offset by an increase in provision for income taxes of $10.5 million and increase in interest income and interest income – related parties of $0.4 million.
Previous wording
Our primary sources of liquidity are the cash flows generated from our operations, that are currently available as unrestricted cash. Our unrestricted cash was $7.9 million and $7.3 million as of June 30, 2025 and December 31, 2024, respectively.
Current wording
Our primary sources of liquidity are the cash flows generated from our operations, that are currently available as unrestricted cash. Our unrestricted cash was $12.3 million and $7.3 million as of September 30, 2025 and December 31, 2024, respectively.
Previous wording
The Company has raised capital through the issuance of the convertible notes, equity line of credit, and the distribution agreement entered into with our retail partner which provided advanced royalties. We may need to raise additional capital and issue registered shares to draw on an equity line of credit if needed. The need for additional capital depends on many factors, including, among other things, whether we can successfully renegotiate the terms of our debt arrangements, the rate at which our business grows, demands for working capital, revenue generated from existing DLCs and game titles and launches of new DLCs and new game titles, and any acquisitions that we may pursue. From time to time, we could be required, or may otherwise attempt, to seek additional sources of capital, including, but not limited to, equity and/or debt financings. We cannot provide assurance that we will be able to successfully access any such equity or debt financings, that the required equity or debt financings would be available on terms acceptable to us, if at all, or that any such financings would not be dilutive to our stockholders.
Current wording
The Company has raised capital through the issuance of the convertible notes, equity line of credit, and the distribution agreement entered into with our retail partner which provided advanced royalties. For example, on October 24, 2025, the Company entered into a Securities Purchase Agreement with CROM Structured Opportunities Fund I, LP (“CROM”), whereby it issued an unsecured convertible note with a principal amount of $2.2 million for total gross proceeds of $2.0 million, reflecting a 10% original issue discount. Nonetheless, we may need to raise additional capital and issue registered shares to draw on an equity line of credit if needed. The need for additional capital depends on many factors, including, among other things, whether we can successfully renegotiate the terms of our debt arrangements, the rate at which our business grows, demands for working capital, revenue generated from existing DLCs and game titles and launches of new DLCs and new game titles, and any acquisitions that we may pursue. From time to time, we could be required, or may otherwise attempt, to seek additional sources of capital, including, but not limited to, equity and/or debt financings. We cannot provide assurance that we will be able to successfully access any such equity or debt financings, that the required equity or debt financings would be available on terms acceptable to us, if at all, or that any such financings would not be dilutive to our stockholders.
Showing the first 40 of 55 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
(Benefit from) Provision for income taxes
Current report — wording carried from elsewhere
Other Factors Affecting Net Income (Loss)
Current report — wording carried from elsewhere
On August 7, 2025, we entered into an ATM Sales Agreement with Wainwright to sell shares of our Class A common stock from time to time, in an “at the market offering” program through Wainwright, with certain limitations on the amount of Class A common stock that may be offered and sold thereunder. The sales, if any, of the shares of Class A common stock made under the ATM Sales Agreement will be made by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended (the “Securities Act”), including sales made directly on or through the Nasdaq Capital Market (the “Nasdaq”) or on any other existing trading market for the Class A common stock, directly to Wainwright as principal, in negotiated transactions at market prices prevailing at the time of sale or at prices related to such prevailing market prices, and/or in any other method permitted by law.