Q4 2025 Snail Inc Earnings Call

March 19, 2026

Speaker #1: Thank you for standing by, and welcome to Snail, Inc.'s fourth quarter and full year 2025 earnings call and webcast. I would now like to turn the call over to Steven Shinmachi.

Operator 1: Thank you for standing by, and welcome to Snail, Inc.'s Q4 and full year 2025 earnings call and webcast. I would now like to turn the call over to Steven Shinmachi with Investor Relations. Please go ahead.

Operator: Thank you for standing by, and welcome to Snail, Inc.'s Q4 and full year 2025 earnings call and webcast. I would now like to turn the call over to Steven Shinmachi with Investor Relations. Please go ahead.

Speaker #1: With investor relations, please go ahead.

Speaker #2: Thank you, and good afternoon, everyone. Welcome to Snail, Inc.'s fourth quarter and full year 2025 earnings conference call and webcast. Joining us for today's call are Snail, Inc.'s chief executive officer, Haishi, chief financial officer, Heidy Chow, and senior vice president, director of business development and operations, Peter Kang.

Steven Shinmachi: Thank you and good afternoon, everyone. Welcome to Snail, Inc.'s Q4 and Full Year 2025 Earnings Conference Call and Webcast. Joining us for today's call are Snail, Inc.'s Chief Executive Officer, Hai Shi, Chief Financial Officer, Heidy Chow, and Senior Vice President, Director of Business Development and Operations, Peter Kang. The company's Q4 and full year 2025 earnings press release was filed earlier today and is available on the investor relations section of Snail, Inc.'s website at www.snail.com or the SEC's website at www.sec.gov/edgar. During this call, management may make forward-looking statements regarding future events and the future financial performance of the company. Actual events or results may differ materially from our expectations, and forward-looking statements are subject to certain risks and uncertainties. Please refer to the company's Form 10-K that has been filed with the SEC and other SEC filings.

Speaker #2: The company's fourth quarter and full year 2025 earnings press release was filed earlier today, and it's available on the investor relations section of Snail, Inc.'s website at www.snail.com, or the SEC's website at www.sec.gov/edgar.

Speaker #2: During this call, management may make forward-looking statements regarding future events and the future financial performance of the company. Actual events or results may differ materially from our expectations, and forward-looking statements are subject to certain risks and uncertainties.

Speaker #2: Please refer to the company's Form 10-K that has been filed with the SEC and other SEC filings. The company makes these forward-looking statements as of today and disclaims any duty or obligation to update them or to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations, or any change in events, conditions, or circumstances on which any statement is based.

Steven Shinmachi: The company makes these forward-looking statements as of today and disclaims any duty or obligation to update them or to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any statement is based. Additionally, on today's call, we refer to bookings and EBITDA, which are non-GAAP financial measures and provide useful information for the company's investors. You will find a historical reconciliation of bookings and EBITDA to the corresponding GAAP measures in the earnings press release and the company's SEC filings. Now I will turn the call over to Peter Kang, Senior Vice President, Director of Business Development and Operations of Snail, Inc. Sir, please proceed.

Speaker #2: Additionally, on today's call, we prefer to bookings and EBITDA, which are non-GAAP financial measures and provide useful information for the company's investors. You will find the historical reconciliation of bookings and EBITDA to the corresponding GAAP measures in the earnings press release and the company's SEC filings.

Speaker #2: And now I will turn the call over to Peter Kang, Senior Vice President, Director of Business Development and Operations of Snail. Sir, please proceed.

Speaker #3: Thank you. Good afternoon, everyone. Thank you for joining us today to review our financial and operational results for the fourth quarter and full year ended December 31, 2025.

Peter Kang: Thank you. Good afternoon, everyone. Thank you for joining us today to review our financial and operational results for Q4 and full year ended December 31, 2025. Q4 capped a pivotal year for Snail and the ARK franchise. We closed 2025 with several key milestones, including the successful launch of ARK: Lost Colony DLC, the debut of a robust multi-year content pipeline for ASA, and meaningful advances across our broader portfolio and initiatives. Since ASA's launch in 2023, the remastered title primarily focused on updates which centered on introducing targeted features, improving game stability, and ongoing polishing.

Speaker #3: The fourth quarter capped a pivotal year for Snail in the ARK franchise. We closed 2025 with several key milestones, including the successful launch of ARK: Lost Colony DLC, the debut of a robust multi-year content pipeline for ASA, and meaningful advances across our broader portfolio and initiatives.

Speaker #3: Since ASA's launch in 2023, the remastered title primarily focused on updates which centered on introducing targeted features, improving game stability, and ongoing polishing. While these enhancements and the release of ARK: Astrios and ARK: Bob's Tall Tales strengthened the foundation and experience of the game, we had not yet released a full-scale expansion pack that truly broadened the narrative, gameplay depth, or overall scope of the ASA experience to fully realize its long-term engagement potential.

Peter Kang: While these enhancements in the release of ARK: Astraeos and ARK: Bob's Tall Tales strengthened the foundation and experience of the game, we had not yet released a full-scale expansion pack that truly broadened the narrative, gameplay depth, or overall scope of the ASA experience to fully realize its long-term engagement potential. ARK: Lost Colony changed that trajectory. Released last December, Lost Colony represents the first of many major standalone DLCs designed specifically to expand the ASA universe and deliver the kind of immersive, content-rich experience our global community has been anticipating. We were very encouraged by the early response of the DLC with pre-sale demands exceeding our internal projections and reinforcing the consumer appetite for deeper ASA content. More broadly, 2025 was a momentum building year for ASA.

Speaker #3: ARK: Lost Colony changed that trajectory. Released last December, Lost Colony represents the first of many major standalone DLCs designed specifically to expand the ASA universe and deliver the kind of immersive, content-rich experience our global community has been anticipating.

Speaker #3: We were very encouraged by the early response to the DLC, with pre-sale demand exceeding our internal projections and reinforcing the consumer appetite for deeper ASA content.

Speaker #3: More broadly, 2025 was a momentum-building year for ASA. Since launch, the title surpassed 4 million units sold, supported in part by a meaningful acceleration in Steam, PlayStation, and Xbox downloads.

Peter Kang: Since launch, the title surpassed 4 million units sold, supported in part by a meaningful acceleration in Steam, PlayStation, and Xbox downloads during Q2 of the past year. Taken together, the traction we see across our titles and the sustained levels of player engagement continue to reinforce the durability and long-term strength of the ARK franchise. During Q4, ASA delivered strong performance with approximately 692,000 units sold, an average DAU of over 91,000, and a peak DAU of over 147,000. ASE also remained a consistent contributor with approximately 580,000 units sold in the quarter, average DAU of roughly 105,000, and peak DAU of about 137,000.

Speaker #3: During the second quarter of the past year, taken together, the traction we see across our titles and the sustained levels of player engagement continue to reinforce the durability and long-term strength of the ARK franchise.

Speaker #3: During the fourth quarter, ASA delivered strong performance with approximately 692,000 units sold, an average DAU of over 91,000, and a peak DAU of over 147,000.

Speaker #3: ASE also remained a consistent contributor, with approximately 580,000 units sold in the quarter, average DAU of roughly 105,000, and peak DAU of about 137,000.

Speaker #3: Meanwhile, ARK Mobile surpassed a major milestone of 10 million cumulative downloads and sustained an average DAU of approximately 130,000. Building on the strength of ASA's fourth quarter performance, and the steady, consistent results from both ASE and ARK Mobile, we are entering a content-rich and strategically important period for the ARK franchise.

Peter Kang: Meanwhile, ARK Mobile surpassed a major milestone of 10 million cumulative downloads and sustained an average DAU of approximately 130,000. Building on the strength of ASA's Q4 performance and the steady, consistent result from both ASE and ARK Mobile, we are entering a content-rich and strategically important period for the ARK franchise, with ASA at the center of this next phase. During our December 2025 Investor Day, we outlined the next chapter of ASA's growth trajectory. The event featured Studio Wildcard co-founder, Jeremy Stieglitz, who unveiled a comprehensive multi-year content roadmap for ASA that includes a robust slate of DLCs and content expansions designed to deepen the ASA universe, elevate engagement, and support durable long-term growth for the franchise.

Speaker #3: With ASA at the center of this next phase, during our December 2025 Investor Day, we outlined the next chapter of ASA's growth trajectory. The event featured Studio Wildcard co-founder Jeremy Stieglitz, who unveiled a comprehensive multi-year content roadmap for ASA that includes a robust slate of DLCs and content expansions designed to deepen the ASA universe, elevate engagement, and support durable, long-term growth for the franchise.

Speaker #3: Beginning in 2026, we plan to release four major DLCs and content updates, including the ARK: Survival of the Fittest Remake, followed by ARK World Creator, ARK: Bob's True Tales, Tides of Fortune, and ARK Dragontopia, to close out the year.

Peter Kang: Beginning in 2026, we plan to release four major DLCs and content updates, including the ARK: Survival of the Fittest Remake, followed by ARK: World Creator, ARK: Bob's True Tales: Tides of Fortune, and ARK: Dragontopia to close out the year. Looking ahead in 2027, we plan to launch ARK: Atlantis, ARK: Bob's True Tales: Galaxy Wars, and ARK: Legacy of Santiago. In total, these seven significant releases represent one of the most ambitious expansion cycles ever planned for ASA and provide Snail with meaningful revenue visibility through 2027. Just last week, during the 2026 Game Developers Conference, we held a private invite-only event to provide additional insights into the timing of some of these upcoming content releases. Jeremy Stieglitz kicked off the event with new details on ARK: World Creator, Bob's True Tales: Tides of Fortune, and Dragontopia.

Speaker #3: Looking ahead to 2027, we plan to launch ARK: Atlantis, ARK: Bob's True Tales, Galaxy Wars, and ARK: Legacy of Santiago. In total, these seven significant releases represent one of the most ambitious expansion cycles ever planned for ASA and provide Snail with meaningful revenue visibility through 2027.

Speaker #3: Just last week, during the 2026 Game Developers Conference, we held a private, invite-only event to provide additional insights into the timing of some of these upcoming content releases.

Speaker #3: Jeremy Stieglitz kicked off the event with new details on ARK World Creator, Bob's True Tales, Tides of Fortune, and Dragontopia. ARK World Creator is a brand-new in-game content creation tool for ASA that will support both console and PC players.

Peter Kang: ARK: World Creator is a brand-new in-game content creation tool for ASA that will support both console and PC players. Up till now, user-generated content in ARK was largely limited to PC players using external tools. World Creator removes this barrier and broadens the accessibility of user-generated content to console players as well. While this is not a paid-for DLC or expansion pack, ARK: World Creator introduces a wealth of new personalized content tailored to each player's preference, and we hope to further drive long-term engagement on ASA. We are targeting a May release for this new feature. Following that is the launch of ARK: Bob's True Tales: Tides of Fortune DLC scheduled for June, along with the free revamped Genesis Part One map for ASA.

Speaker #3: Up till now, user-generated content in ARK was largely limited to PC players using external tools. World Creator removes this barrier and broadens the accessibility of user-generated content to console players as well.

Speaker #3: While this is not a paid-for-DLC or expansion pack, ARK World Creator introduces a wealth of new, personalized content tailored to each player's preference, and we hope to further drive long-term engagement on ASA.

Speaker #3: We are targeting a May release for this new feature. Following that is the launch of ARK: Bob's True Tale, Tides of Fortune DLC, scheduled for June, along with the free, revamped Genesis Part 1 map for ASA.

Speaker #3: We also debuted an event-exclusive trailer highlighting the renewed look for ARK: Survival of the Fittest, and provided details around the upcoming ARK Dragontopia, scheduled for December 2026.

Peter Kang: We also debuted an event-exclusive trailer highlighting the renewed look for ARK: Survival of the Fittest and provided details around the upcoming ARK: Dragontopia scheduled for December 2026. Separate from ASA, we were pleased to introduce PixARK: Worlds, a new title in development featuring advanced user-generated content designed to expand the ARK universe onto Nintendo Switch 2 console. Needless to say, we are thrilled about the opportunities 2026 presents SNAIL as we continue to elevate the ARK franchise globally for players across both PC and consoles. Beyond ARK, we also announced several updates across our broader gaming portfolio. Starting with our indie portfolio, we unveiled a brand new title, Gobby Gang, during GDC. Additional indie titles in the pipeline include Stoneguard, Above The Snow, and Survivor Mercs, to name a few. We also recently celebrated Bellwright surpassing 1 million units sold.

Speaker #3: Separate from ASA, we were pleased to introduce Pixark Worlds, a new title in development featuring advanced user-generated content designed to expand the ARK universe onto Nintendo Switch 2 console.

Speaker #3: Needless to say, we are thrilled about the opportunities 2026 presents Snail as we continue to elevate the ARK franchise globally for players across both PC and consoles.

Speaker #3: Beyond ARK, we also announced several updates across our broader gaming portfolio. Starting with our indie portfolio, we unveiled a brand-new title, Gobby Gang, during GDC.

Speaker #3: Additional indie titles in the pipeline include Stone Guard, Above the Snow, and Survivor Mercs, to name a few. We also recently celebrated Belrite surpassing 1 million units sold in 2026.

Peter Kang: In 2026, we will be launching Bellwright's console ports to Xbox and PlayStation while working towards the eventual 1.0 release. We will also see Honeycomb: The World Beyond in 2026 for a full 1.0 launch across PC and console platforms. Lastly, we are pleased to announce the significant progress made across three developing titles, For The Stars, Nine Yin Sutra: Immortal, and Nine Yin Sutra: Wushu. These three titles are all triple A projects, meaning they are high-budget, high-profile games designed to deliver expansive worlds, cutting-edge visuals, and strong marketing campaigns that far exceed typical games we have launched and licensed. As a reference, ARK is considered a triple A game as well. While the three games I mentioned are smaller in scale than ARK, these titles offer immense upside potential.

Speaker #3: We will be launching Belrite's console ports to Xbox and PlayStation, while working towards the eventual 1.0 release. We will also see Honeycomb in 2026 for a full 1.0 launch across PC and console platforms.

Speaker #3: Lastly, we are pleased to announce the significant progress made across three developing titles: For the Stars, Nanyan Sutra Immortal, and Nanyan Sutra Wushu. These three titles are all AAA projects, meaning they are high-budget, high-profile games designed to deliver expansive worlds, cutting-edge visuals, and strong marketing campaigns that far exceed typical games we have launched and licensed.

Speaker #3: As a reference, ARK is considered a AAA game as well. While the three games I mentioned are smaller in scale than ARK, these titles offer immense upside potential.

Peter Kang: We have invested considerable time and resources into each game, and they are now in the final stages of their development cycle. We believe we are approaching the point where our long-term investment can fully realize its potential, and we look forward to sharing updates as we make progress throughout the year and into 2027. At GDC, we shared an event-exclusive trailer and early concept art of For The Stars, providing a deeper look at the title's open universe exploration, player-driven research systems, and evolving frontier civilization themes. We believe SNAL is well-positioned for meaningful upside over the next two years. With ARK remaining the cornerstone of Snail, supported by a rich pipeline of content, continued investment in our indie titles, and three upcoming triple-A games with substantial upside. We're excited about our trajectory and remain committed to delivering consistent long-term results.

Speaker #3: We have invested considerable time and resources into each game, and they are now in the final stages of their development cycle. We believe we are approaching the point where our long-term investment can fully realize its potential, and we look forward to sharing updates as we make progress throughout the year and into 2027.

Speaker #3: At GDC, we shared an event-exclusive trailer and early concept art of For the Stars, providing a deeper look at the title's open universe exploration, player-driven research systems, and evolving frontier civilization themes.

Speaker #3: We believe Snail is well-positioned for meaningful upside over the next two years, with ARK remaining the cornerstone of Snail, supported by a rich pipeline of content, continued investment in our indie titles, and three upcoming AAA games with substantial upside.

Speaker #3: We're excited about our trajectory, and remain committed to delivering consistent, long-term results. With that, I will now turn the call over to Heidy to discuss our financial results for the fourth quarter and full year ended December 31, 2025.

Peter Kang: With that, I will now turn the call over to Heidy to discuss our financial results for the Q4 and full year ended December 31, 2025. Heidy?

Speaker #3: Heidy?

Heidy Chow: Thank you, Peter, and good afternoon, everyone. Thank you all for joining us today as I review our financial results for the Q4 and full year ended 31 December 2025. Net revenue for the Q4 was $25.1 million, compared to $26.2 million in the same period last year. The decrease was primarily due to a decrease of deferred revenues that were recognized during 2025 of $3.5 million that were partially offset by our increased sales of the ARK franchise of $1.3 million and our Bellwright franchise of $1.2 million. On a sequential basis, we are pleased to see Q4 net revenue increase 82% compared to $13.8 million in Q3 2025.

Speaker #2: Thank you, Peter. And good afternoon, everyone. Thank you all for joining us today as I reveal our financial results for the fourth quarter and full year ended December 31, 2025.

Speaker #2: Net revenue for the fourth quarter was $25.1 million, compared to $26.2 million in the same period last year. The decrease was primarily due to a decrease of deferred revenues that were recognized during 2025 of $3.5 million, which was partially offset by our increased sales of the ARK franchise of $1.3 million and our Belrite franchise of $1.2 million.

Speaker #2: On a sequential basis, we are pleased to see Q4 net revenue increase $82% compared to $13.8 million in Q3 2025. Net revenues for the full-year-ended December 31, 2025 were $81.2 million, compared to $84.5 million in the same period last year.

Heidy Chow: Net revenues for the full year ended December 31, 2025, were $81.2 million, compared to $84.5 million in the same period last year. The decrease was primarily due to a decrease in recognition of deferred revenue of $15.5 million related to the ARK franchise, a decrease in Bellwright and Myths of Empire sales of $1.5 million and $1.3 million, respectively, offset by an increase in ASA sales of $11.3 million, ARK mobile sales of $2.4 million, and revenue generated from SaltyTV app of $800,000. Net loss for Q4 was $900,000, compared to a net income of $1.1 million in the same period last year.

Speaker #2: The decrease was primarily due to a decrease in recognition of deferred revenue of $15.5 million, related to the ARK franchise. Decreases in Belrite and Miss of Empire sales of $1.5 million and $1.3 million, respectively.

Speaker #2: Offset by an increase in AFA sales of $11.3 million, ARK Mobile sales of $2.4 million, and revenue generated from the Salty TV app of $800,000.

Speaker #2: Net loss for the fourth quarter was $900,000, compared to net income of $1.1 million in the same period last year. The decrease was primarily due to a decrease in gross profit of $1.7 million and an increase in operating expenses of $2.8 million, partially offset by an increase in other income of $2 million and a benefit from income taxes of $500,000.

Heidy Chow: The decrease was primarily due to a decrease in gross profit of $1.7 million and an increase in operating expenses of $2.8 million, partially offset by an increase in other income of $2 million and a benefit from income taxes of $500,000. On a sequential basis, net loss improved significantly compared to the $7.9 million net loss in Q3 2025.

Speaker #2: On a sequential basis, net loss improved significantly compared to the $7.9 million net loss in Q3 2025. Net loss for the full-year-ended December 31, 2025 was $27.2 million, compared to net income of $1.8 million in the same period last year.

Heidy Chow: Net loss for the full year ended 31 December 2025 was $27.2 million, compared to net income of $1.8 million in the same period last year, primarily due to a non-cash tax expense related to the full valuation of our deferred tax assets of $10.1 million, increase in general and administrative expenses of $5.2 million, increase in research and development of $2.9 million, increase in advertising and marketing of $3.7 million, and impairment expenses of $1.5 million. EBITDA for Q4 was a loss of $1.3 million, compared to $1.6 million in the same period last year. The decrease was primarily due to the increase in operating expenses of $2.8 million.

Speaker #2: Primarily due to a non-cash tax expense related to the full valuation of our deferred tax assets of $10.1 million; an increase in general and administrative expenses of $5.2 million; an increase in research and development of $2.9 million; an increase in advertising and marketing of $3.7 million; and impairment expenses of $1.5 million.

Speaker #2: EBITDA for the fourth quarter was lost $1.3 million, compared to $1.6 million in the same period last year. The decrease was primarily due to the increase in operating expenses of $2.8 million.

Heidy Chow: EBITDA for the full year ended December 31, 2025, was a loss of $16.8 million, compared to $3.2 million in the same period last year. The decrease was primarily due to the increase in general and administrative expenses of $5.2 million, increase in research and development of $2.9 million, increase in advertising and marketing of $3.7 million, and impairment expenses of $1.5 million. While we experienced some one-off non-recurring headwinds during Q2 and Q3, we continue to reaffirm the strong fundamentals of the Snail business. For the year, total units sold increased 32.7% to 6.3 million, compared to 4.7 million units in the same period last year.

Speaker #2: EBITDA for the full-year-ended December 31, 2025 was lost $16.8 million, compared to $3.2 million in the same period last year. The decrease was primarily due to the increase in general and administrative expenses of $5.2 million, increase in research and development of $2.9 million, increase in advertising and marketing of $3.7 million, and impairment expenses of $1.5 million.

Speaker #2: While we're experiencing some one-off, non-recurring headwinds during Q2 and Q3, we continue to reaffirm the strong fundamentals of the Snail business. For the year, total units sold increased 32.7% to 6.3 million, compared to 4.7 million units in the same period last year.

Heidy Chow: This growth was primarily driven by an increase of 1.7 million units sold across the Ark franchise, partially offset by a combined decrease of approximately 100,000 units in Bellwright and West Hunt sales. Bookings for Q4 increased to $20.8 million, compared to $17 million in the same period last year. The increase was primarily driven by a lower portion of our sales deferred in 2025. Changes in deferred revenue decreased by $4.9 million, while our net revenue decreased $1.1 million. Bookings for the full year ended 31 December 2025 increased 16.2% to $87.8 million, compared to $75.7 million in the same period last year.

Speaker #2: This growth was primarily driven by an increase of $1.7 million units sold across the ARK franchise. Partially offset by a combined decrease of approximately $100,000 units in Belrite and West Hunt sales.

Speaker #2: Bookings for the fourth quarter increased to $20.8 million, compared to $17 million in the same period last year. The increase was primarily driven by a lower portion of our sales deferred in 2025.

Speaker #2: Changes in deferred revenue decreased by $4.9 million, while our net revenue decreased $1.1 million. Bookings for the full year ended December 31, 2025, increased 16.2% to $87.8 million, compared to $75.7 million in the same period last year.

Heidy Chow: The increase was primarily due to an increase of ASE sales, driven by the launch of ARK: Lost Colony, ARK: Astraeos, and ASE's first sales event in June 2025, since the price drop in August 2023. Especially with the robust ARK content pipeline for the next two years, we do expect booking to continue growing on a quarterly basis while adjusting for gradual content launches coming off the backlog. Lastly, as of 31 December 2025, our restricted cash was $8.6 million, compared to $7.3 million as of 31 December 2024. To review our detailed financial statements, please refer to the earnings press release and the Form 10-K filed with the SEC. To close out the call, I would like to reiterate a few of the points Peter highlighted surrounding the significant momentum we carried out of 2025.

Speaker #2: The increase was primarily due to an increase in AFA sales driven by the launch of ARK: Lost Colony, ARK Estradas, and AFE's first sales event in June 2025, since the price drop in August 2023.

Speaker #2: Especially with the robust ARK content pipeline for the next two years, we do expect bookings to continue growing on a quarterly basis. While adjusting for gradual content launches coming off the backlog. Lastly, as of December 31, 2025, unrestricted cash was $8.6 million, compared to $7.3 million as of December 31, 2024.

Speaker #2: To review our detailed financial statements, please refer to the earnings press release and the Form 10-K filed with the SEC. To close out the call, I would like to reiterate a few of the points Peter highlighted surrounding the significant momentum we carried out of 2025.

Heidy Chow: As Peter mentioned, the latter half of 2025 was an especially exciting period for SNAL and the ARK franchise. The increased visibility of the ARK pipeline we have provided put us in a strong position to deliver consistent annual results over the next two years. We also remain strategic and committed to expanding our broader game portfolio. We continue to invest in smaller titles such as Bellwright, Honeycomb, and our indie games, while also advancing our Interactive Films business. As of Q4 end, SaltyTV had released over 100 short film dramas. Interactive Films also expanded beyond short-form content into narrative-driven game development, which is a direction we expect to continue moving forward. Importantly, our three upcoming AAA titles have reached the final stages of their development cycle.

Speaker #2: As Peter mentioned, the latter half of 2025 was an especially exciting period for Snail and the ARK franchise. The increased visibility of the ARK pipeline we have provided put us in a strong position to deliver consistent annual results over the next two years.

Speaker #2: We also remain strategic and committed to expanding our broader game portfolio. We continue to invest in smaller titles such as Belrite, Honeycomb, and our indie games.

Speaker #2: While also advancing our interactive films business, as of Q4 end, Salty TV had released over 100 short film dramas. Interactive films also expanded beyond short-form content into narrative-driven game development.

Speaker #2: This is a direction we expect to continue moving forward. Importantly, our three upcoming AAA titles have reached the final stages of their development cycles.

Heidy Chow: We believe these projects have a tremendous upside for the company, and we have dedicated as much time and resources to meet the potential these games hold. We expect profit margins to remain meaningful higher than what we typically see with external licensed titles. Additionally, the expensive content for each title supports a strong overall game lifespan. Beyond our gaming business, we also minted the first official $USDO stablecoin during our December investor day event. We are currently working towards a potential partnership opportunity tied directly to our stablecoin business, and we look forward to share more details later this year. 2026 and 2027 represent an exciting period for SNAL as we further prove our standing in the broader digital entertainment ecosystem.

Speaker #2: We believe these projects offer tremendous upside for the company. And we have dedicated as much time and resources to meet the potential these games hold.

Speaker #2: We expect profit margins to remain meaningfully higher than what we typically see with external licensed titles. Additionally, the expensive content for each title supports a strong overall game lifespan.

Speaker #2: Beyond our gaming business, we also minted the first official U.S. dollar stablecoin during our December investor day event. We are currently working towards a potential partnership opportunity tied directly to our stablecoin business, and we look forward to sharing more details later this year.

Speaker #2: 2026 and 2027 represent an exciting period for Snail as we further prove our standing in the broader digital entertainment ecosystem. The time and resources invested across many of our projects and initiatives are beginning to bear fruit.

Heidy Chow: The time and resources invested across many of our projects and initiatives are beginning to bear fruit, and we remain focused on executing our strategy to drive long-term sustainable growth. Thank you all for joining us today. We will now open the line for Q&A. Operator?

Speaker #2: And we remain focused on executing our strategy to drive long-term, sustainable growth. Thank you all for joining us today. We will now open the line for Q&A.

Speaker #2: Operator?

Operator 2: Thank you. Ladies and gentlemen, to ask the question, please press star one one on your telephone, then wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Michael Kupinski with Noble Capital Markets. Your line is open.

Operator: Thank you. Ladies and gentlemen, to ask the question, please press star one one on your telephone, then wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Michael Kupinski with Noble Capital Markets. Your line is open.

Speaker #1: Thank you. Ladies and gentlemen, to ask a question, please press star one one (*) on your telephone. Then wait for your name to be announced. To withdraw your question, please press star one one (*) again.

Speaker #1: Please stand by while we compile the Q&A roster. Our first question comes from the line of Michael Kopinski with Noble Capital Markets. Your line is open.

Michael Kupinski: Thank you. I have a couple of quick questions. What is the ending deferred revenue balance in the quarter? Could you just give me that number? If you have it, Heidy.

Speaker #3: Thank you. I have a couple of quick questions. What is the ending deferred revenue balance in the quarter? Could you just give me that number?

Speaker #3: If you have it, Heidy.

Heidy Chow: Thank you, Michael. Our deferred revenue number, I think, it's stated on our 10-K. I think around $30 million.

Speaker #4: Thank you, Michael. Our deferred revenue number, I think, is stated on our 10-K. I think it's around $30 million.

Michael Kupinski: Okay. I was wondering if you could give us an update. I know that we talked about this in the past about the technology gap. Is that still persistent or have there been some changes there?

Speaker #3: Okay. And I was wondering if you can give us an update. I know that we talked about this in the past about the technology gap.

Speaker #3: Is that still persistent, or are there—or have there been—some changes there?

Heidy Chow: Good question, Michael. I'll defer this question to our CEO, Mr. Hai Shi. He will answer that in Chinese, and then we'll have a translator as well.

Speaker #4: Good question, Michael. Our deferred question to our CEO, Mr. Haishi, he will answer that in Chinese, and I will have a translator as well.

Michael Kupinski: Thank you.

Heidy Chow: Okay. First Stop.

Speaker #3: Thank you.

Speaker #5: Okay. Going to go into the film, just 我们我大概24年我是24年回来做CEO的。其实我回来主要的一个工作任务就是把蜗牛上市体系从一个代理公司转向一个全产业链的，包括主要是包括研发的。那么在这个方面我回答你的问题就是说我们其中有一个很重要的项目就是First Up。这个项目的话它最初使用的是我们内部研发的一个叫Flexi引擎。这个引擎的优势是在于它的服务器端和它的处理大数据的能力和数据的安全性。那么它的劣势就是它跟Unreal来相比的话，它是在渲染上和这个叫它的这个工作效率上会有比较大的差距。

Hai Shi: 这个项目的话呢，它最初使用的是我们内部研发的一个叫Flexi引擎。这个引擎的优势在于它的服务器端和它的处理大数据的能力和数据的安全性。那么它的劣势呢，它跟Unreal相比的话呢，它是在渲染上和它的工作效率上，会有比较大的差距。

Hai Shi: [Foreign language]

[Company Representative] (Snail): Hello, this is translator speaking. Mr. Hai Shi stated that he became full-time CEO at Snail, Inc., in 2024. The main goal for Mr. Hai Shi was to make sure that he could revamp the overall system for Snail as a publicly listed company, so that Snail's main focus could shift from a company that mainly publishes external games to have its own production pipelines, especially for a game development side. To answer your question, out of the entire Snail system, one of the important projects is For The Stars or FTS. Initially, we're using our internal proprietary game engine. It's called Flexi Engine to develop that game.

[Translator]: Hello, this is translator speaking. Mr. Hai Shi stated that he became full-time CEO at Snail, Inc., in 2024. The main goal for Mr. Hai Shi was to make sure that he could revamp the overall system for Snail as a publicly listed company, so that Snail's main focus could shift from a company that mainly publishes external games to have its own production pipelines, especially for a game development side. To answer your question, out of the entire Snail system, one of the important projects is For The Stars or FTS. Initially, we're using our internal proprietary game engine. It's called Flexi Engine to develop that game.

Speaker #4: Hello. This is the translator speaking. Mr. Sher stated that he became full-time CEO at Snail Inc. in 2024, and the main goal for Mr. Sher was to make sure that he could revamp the overall system for Snail as a publicly listed company, so that Snail's main focus could shift from a company that mainly publishes external games to having its own production pipelines, especially on the game development side.

Speaker #4: So, to answer your question, out of the entire Snail system, one of the important projects is for the starts with FTS. Initially, we were using our internal proprietary game engine.

Speaker #4: It's called Flexi Engine to develop that game. The advantages of Flexi Engine include its server management, processing capabilities for big data, as well as data security.

[Company Representative] (Snail): The advantage of Flexi Engine includes its server management, processing capabilities for big data as well as data security. However, compared to Unreal Engine, we can see that there's disadvantages for Flexi Engine for rendering as well as efficiency.

[Translator]: The advantage of Flexi Engine includes its server management, processing capabilities for big data as well as data security. However, compared to Unreal Engine, we can see that there's disadvantages for Flexi Engine for rendering as well as efficiency.

Speaker #4: However, compared to Unreal Engine, we can see that there are disadvantages for Flexi Engine in terms of rendering as well as efficiency.

Hai Shi: 但是我们在应该是在2024年底开始就是转向，把整个引擎还是转向了虚幻引擎。那么在转的过程当中，我们服务器端还是使用了Flexi引擎，然后在客户端，因为虚幻引擎它因为我们要创造一些创造的星球是具有是一个圆形的，并且是可以挖掘的。那在这个方面，虚幻引擎并没有成熟的插件，或者它本身也不支持这些东西。那么这是我们很大的一块移植，这个在2025年也已经完成了，整个效果是非常好的。所以目前来看，它拥有了最好的服务器端，也拥有了最好的客户端，包括生产效率。

Hai Shi: [Foreign language]

Speaker #5: 但是我们在应该是在24年底开始就是转向把整个引擎还是转向了虚幻引擎。那么在转的过程当中我们服务器端还是使用了Flexi引擎。然后在客户端因为虚幻引擎它因为我们要创造一些创造的星球是具有是一个圆形的，并且是可以挖掘的。那么在这个方面虚幻引擎并没有成熟的插件或者它本身也不支持这些东西。那么这是我们很大的一块遗址。这个是在25年也已经完成了。整个效果是非常好的。所以目前来看它拥有了最好的服务器端，也拥有了最好的客户端。包括生态效率。

[Company Representative] (Snail): As a result, we upgraded our engine to Unreal at the end of 2024. Now we're still using Flexi Engine to support the server side. For the client side, since we really want to create the sphere shaped planets in game, and also want to make sure that we have deformable terrains, which for Unreal, there's not yet enough mature plugins to support that kind of goals. Right now, we're using Unreal Engine, and it's working very well for us, especially that we have very good server support and client side support and also, we can guarantee efficiency in development.

[Translator]: As a result, we upgraded our engine to Unreal at the end of 2024. Now we're still using Flexi Engine to support the server side. For the client side, since we really want to create the sphere shaped planets in game, and also want to make sure that we have deformable terrains, which for Unreal, there's not yet enough mature plugins to support that kind of goals. Right now, we're using Unreal Engine, and it's working very well for us, especially that we have very good server support and client side support and also, we can guarantee efficiency in development.

Speaker #4: So, as a result, we upgraded our engine to Unreal at the end of 2024. So now we're still using Flexi Engine to support the server side.

Speaker #4: And for the client side, since we really want to create the secure-shaped planets in-game, and also want to make sure that we have the formal terrains, which for Unreal, there's not yet enough mature plugins to support that kind of goals.

Speaker #4: So right now we're using Unreal Engine, and it's working very well for us, especially since we have very good server support and client-side support, and also we can guarantee efficiency in development.

Hai Shi: 最近的话，它已经完全移植到了虚幻五点七，所以在技术上已经完全没有问题。

Hai Shi: [Foreign language]

Speaker #5: 最近的话它已经完全就是移植到了虚幻的5.7。所以在技术上已经完全没有问题。

[Company Representative] (Snail): Very recently, we have fully upgraded to Unreal Engine 5.7. Right now we don't see any technical gap in game development anymore.

[Translator]: Very recently, we have fully upgraded to Unreal Engine 5.7. Right now we don't see any technical gap in game development anymore.

Speaker #4: And recently, we have fully upgraded to Unreal Engine 5.7. So right now, we don't see any technology or technical gap in game development anymore.

Michael Kupinski: Terrific. If I could slip in just a couple of quick ones. Do you have a launch window for your triple-A games at this point?

Speaker #3: Terrific. If I could slip in just a couple of quick ones. Do you have a launch window for your AAA games at this point?

[Company Representative] (Snail): Thank you, Michael. I'll defer that to our CEO, Mr. Hai Shi.

Heidy Chow: Thank you, Michael. I'll defer that to our CEO, Mr. Hai Shi.

Speaker #4: Thank you, Michael. I'll defer that to our CEO, Mr. Haishi.

Hai Shi: 我们整个内部的研发体系，在这两年内基本上已经完成了转移，所以现在来讲是一个非常好的时机。

Hai Shi: [Foreign language]

Speaker #5: Okay. 我们整个内部的研发体系这个在这两年内基本上已经完成了转移。所以现在来讲是一个非常好的一个时机。

[Company Representative] (Snail): Actually our internal development system has been fully transformed and built in the past two years. Right now it's great timing for us.

[Translator]: Actually our internal development system has been fully transformed and built in the past two years. Right now it's great timing for us.

Speaker #4: So actually, our internal development system has been fully transformed and built in the past two years. So, right now, it's a great timing for us.

Hai Shi: 首先是我们的工作室，我们的工作室从过去在上市体系里面只有一个工作室，是研发工作室，现在增加到了四个研发工作室。那么这四个研发工作室，今年都会有自己的，有三个研发工作室会有自己的产品，并且其中一个研发工作室的营收，从目前来看，要翻倍于去年的营收，这是的事。所以整个在工作室的这一块，这个是非常成功的目前。那么关于我们自己直接内部在做的这三款游戏，它的目标比较大，它不像工作室研发的一些产品，可能目标是在几千万美金的一个营收目标。

Hai Shi: [Foreign language]

Speaker #5: 首先是我们的工作室。我们的工作室从过去的在上市体系里面只有一个工作室研发工作室，现在增加到了四个研发工作室。那么这四个研发工作室的今年都会有自己的有三个研发工作室会有自己的产品，并且其中一个研发工作室的营收从目前来看要翻倍于去年的营收。就是所以整个在工作室的这一块这个是非常成功的目前。那么关于我们自己直接内部在做的这三款游戏，它的目标比较大，它不像工作室研发的一些产品可能目标是在几千万美金的一个营收目标。

[Company Representative] (Snail): Before Snail only had one internal development studio. However, now we already have four development studios, and out of these four, three of them are working on their own in-house projects. For one of the studios, because the revenue trend is very positive, it's looking like we will be able to double the revenues of last year. We're doing a very successful job at studio development. We have this ambitious goals for the three internal in-house titles that we're working on right now. We are looking at about tens of millions of revenues here.

[Translator]: Before Snail only had one internal development studio. However, now we already have four development studios, and out of these four, three of them are working on their own in-house projects. For one of the studios, because the revenue trend is very positive, it's looking like we will be able to double the revenues of last year. We're doing a very successful job at studio development. We have this ambitious goals for the three internal in-house titles that we're working on right now. We are looking at about tens of millions of revenues here.

Speaker #4: So before, Snail only had one internal development studio. However, now we already have four development studios, and out of these four, three of them are working on their own in-house projects.

Speaker #4: And for one of the studios, because the revenue trend is very positive, it's looking like we will be able to double the revenues of last year.

Speaker #4: So we're doing a very successful job at studio development. And then we have their ambitious goals for the internal three internal in-house titles that we're working on right now.

Speaker #4: We are looking at about tens of millions of revenues here.

Hai Shi: 这三款游戏呢，实际上是三个很大的IP，每个IP我们的目标都是在$5亿美金的一个整体的收入的目标。

Hai Shi: [Foreign language]

Speaker #5: 这三款游戏实际上是三个很大的IP。每个IP我们的目标都是在5亿美金的一个因为一个整体的收入的一个目标。

[Company Representative] (Snail): All of these three in-house IPs will be immense IPs. We are aiming to achieve $500 million in overall revenues for each IP.

[Translator]: All of these three in-house IPs will be immense IPs. We are aiming to achieve $500 million in overall revenues for each IP.

Speaker #4: So all of these three in-house IPs will be announced IPs. We are aiming to achieve $5 million to $500 million in overall revenues for each IP.

Hai Shi: 首先就像刚刚提到的是For the Stars，For the Stars这是一款太空类的游戏。

Hai Shi: [Foreign language]

Speaker #5: 首先就像刚刚提到的是Forrest Gump。Forrest Gump这是一款太空类的游戏。

[Company Representative] (Snail): The first IP is For The Stars. This is a space-themed game.

[Translator]: The first IP is For The Stars. This is a space-themed game.

Speaker #4: So the first IP is For the Stars. This is a space-themed game.

Hai Shi: 所有只要是一个比较成熟的游戏公司，并且能够把这样的题材的IP做出来的，它的营收规模都是很大的。从星空，从星际公民，包括无人深空都可以看到。

Hai Shi: [Foreign language]

Speaker #5: 所有只要是一个比较成熟的游戏公司，并且能够把这样的题材的IP做出来的，它的营收规模都是很大的。从星空，从这个星际公民，包括无人深空都可以看到。

[Company Representative] (Snail): For The Stars is for any mature gaming company, they're, if they're able to achieve a game of this size, then they will be able to also gain great revenues out of the product. For example, we have Starfield, No Man's Sky, and Star Citizen.

[Translator]: For The Stars is for any mature gaming company, they're, if they're able to achieve a game of this size, then they will be able to also gain great revenues out of the product. For example, we have Starfield, No Man's Sky, and Star Citizen.

Speaker #4: So, for For the Stars, if for any mature gaming companies, if they're able to achieve a gain of this size, then they will be able to also gain a great revenue out of the project.

Speaker #4: For example, we have Starfield, No Man's Sky, and Star Citizen.

Hai Shi: 这款游戏实际上已经研发了将近三年了。那么目前进入了最后的生产阶段。

Hai Shi: [Foreign language]

Speaker #5: 这款游戏实际上已经研发了将近三年了。那么目前进入在最后的生产阶段。

[Company Representative] (Snail): We have spent three years on the development of For The Stars, and now we're closing in on a development cycle.

[Translator]: We have spent three years on the development of For The Stars, and now we're closing in on a development cycle.

Speaker #4: We have spent three years on the development of For the Stars and then now we're focusing on the development cycle.

Hai Shi: 核心团队是在美国，然后有部分的生产是在波兰的一个工作室和中国，中国的一些外包。

Hai Shi: [Foreign language]

Speaker #5: 核心团队是在美国，然后有部分的生产是在波兰的一个工作室和中国的一些外包。

[Company Representative] (Snail): The core development team is based in the US. Some of the production tasks are taken over by the Poland studio, Rustic Root, and some of the tasks were outsourced to our Chinese teams.

[Translator]: The core development team is based in the US. Some of the production tasks are taken over by the Poland studio, Rustic Root, and some of the tasks were outsourced to our Chinese teams.

Speaker #4: The core development team is based in the US. Some of the production tasks are taken over by the Poland studio. Rustic Roots and some of the tasks were outsourced to our Chinese teams.

Hai Shi: 这款游戏今年一共是八个冲刺阶段，目前来讲，到今年年底的时候，我们会开始进行对外的测试。整个的宣传计划是从二季度就已经开始，其实GDC已经开始露面了，然后实际的视频会在下半年放出来。

Hai Shi: [Foreign language]

Speaker #5: 那么这款游戏我们今年一共是八个冲刺阶段。目前来讲到今年年底的时候，我们会开始进行对外的测试。整个的一个宣传计划是从二季度就已经其实GDC已经开始露相露面了。然后实际的视频会在下半年会放出来。

[Company Representative] (Snail): The development cycle of this game includes eight sprints in total. By the end of this year, we are anticipating that we will start external testing or public testing of the game. Actually, we have initially showcased the game at GDC, and we will show more in-game capture in the later half of this year.

[Translator]: The development cycle of this game includes eight sprints in total. By the end of this year, we are anticipating that we will start external testing or public testing of the game. Actually, we have initially showcased the game at GDC, and we will show more in-game capture in the later half of this year.

Speaker #4: So the development cycle of this game includes eight sprints in total. By the end of this year, we are anticipating that we will start external testing, or public testing, of the game.

Speaker #4: Actually, we initially showcased the game at GDC, and we will show more in-game capture in the later half of this year.

Hai Shi: 基本上这款游戏完成了所有游戏人，或者游戏玩家对于太空游戏的几乎所有的梦想。

Hai Shi: [Foreign language]

Speaker #5: 基本上这款游戏完成了所有游戏人在或者游戏玩家对于太空游戏的几乎所有的梦想。

[Company Representative] (Snail): In For The Stars, we're able to achieve all the dreams of all the players who are passionate about space games.

[Translator]: In For The Stars, we're able to achieve all the dreams of all the players who are passionate about space games.

Speaker #4: And in For the Stars, we're able to achieve all the dreams of all the players who are passionate about space games.

Hai Shi: 第二，另外两款产品的IP呢，是在过去在中国已经成功的叫九阴真经。

Hai Shi: [Foreign language]

Speaker #5: 另外两款产品的IP是过去在中国已经成功的叫九阴真经。

[Company Representative] (Snail): Actually the other two IPs were based off of the successful IP that we have released in the past in China.

[Translator]: Actually the other two IPs were based off of the successful IP that we have released in the past in China.

Speaker #4: So actually, the other two IPs were based off of the successful IP that we have released in the past in China.

Hai Shi: 这是一个中国文化的题材的一个IP，那么这个IP在过去的十几年的过程中，它大概产生了八亿美金左右的营收规模。

Hai Shi: [Foreign language]

Speaker #5: 这是一个中国文化的题材的一个IP。那么这个IP在过去的十几年的过程中，它大概产生了8亿美金左右的营收规模。

[Company Representative] (Snail): The IP's name is Nine Yin Sutra. This is coming from the Chinese culture, and in the past dozen of years, the IP has generated more than or about $800 million in revenues.

[Translator]: The IP's name is Nine Yin Sutra. This is coming from the Chinese culture, and in the past dozen of years, the IP has generated more than or about $800 million in revenues.

Speaker #4: The IP's name is Night in Sutra. This is coming from the Chinese culture. And in the past dozen years, the IP has generated more than, or about, $800 million in revenues.

Hai Shi: 我们用这个IP现在在做两款产品，一个是修仙的，因为现在修仙是一个新的文化题材，而且这个市场非常之大。目前来讲，并没有人把真正的修仙做出来，我们会像过去我们在做九阴真经武侠的时候一样，能够会创造一个完整的修仙世界。

Hai Shi: [Foreign language]

Speaker #5: 我们用这个IP写了现在在做两款产品，一个是修仙的，因为现在修仙是一个新的文化题材，而且这个市场非常之大。目前来讲，并没有人把真正的修仙做出来。我们会像过去我们在做九阴真经武侠的时候一样，能够会创造一个完整的修仙世界。

[Company Representative] (Snail): For these two IPs, the first one is Nine Yin Sutra: Immortal. We are seeing that there is still great market potential to tap into, especially because this is a new genre for the gaming industry. Because so far there's no real cultivation games yet out on the market. We want to put in just the same efforts as we used to, just like how we developed the Chinese Nine Yin Sutra games.

[Translator]: For these two IPs, the first one is Nine Yin Sutra: Immortal. We are seeing that there is still great market potential to tap into, especially because this is a new genre for the gaming industry. Because so far there's no real cultivation games yet out on the market. We want to put in just the same efforts as we used to, just like how we developed the Chinese Nine Yin Sutra games.

Speaker #4: So for these two IPs, the first one is Night in Sutra Immortal. We are seeing that there is still great market potential to tap into, especially because this is a new genre for the gaming industry.

Speaker #4: Because so far, there is no real cultivation or cultivation game yet out on the market. We want to put in just the same efforts as we used to, just like how we developed the Chinese Night in Sutra games.

Hai Shi: 第二个是九阴真经的武侠。那么过去我们在创造了武侠之后，实际上我们这些年所有的武侠作品还是在原先我们创造的这个框架里面，一直在做，就是并没有什么太大的创新和变化，但是我们这次整个九阴真经的，可以说是九阴真经二吧，那么我们在这个过程中创造了很多新的东西，并且这些东西是能够让所有的玩家能够耳目一新的，所以我们对它的目标也是非常大。

Hai Shi: [Foreign language]

Speaker #5: 第二个是九阴真经的武侠。那么过去我们在创造了武侠之后，实际上这些年所有的武侠作品还是在原先我们创造的这个框架里面，一直在做就是并没有什么太大的创新和变化。但是我们这次整个九阴真经的这个可以说是九阴真经二吧，那么我们在整个过程中创造了很多新的东西，并且这些东西是能够让所有的玩家能够耳目一新的。所以我们对它目标也是非常大。

[Company Representative] (Snail): For the second IP under Nine Yin Sutra, is called Nine Yin Sutra: Wushu. In the past, for the Chinese IP, Age of Wushu, there were not major changes or innovative changes in the original framework. However, now with Nine Yin Sutra: Wushu, we can consider it almost as a sequel of the original Chinese IP. We have implemented many different changes, and we are hoping that we can impress all the players. That's why, we are very ambitious with this IP.

[Translator]: For the second IP under Nine Yin Sutra, is called Nine Yin Sutra: Wushu. In the past, for the Chinese IP, Age of Wushu, there were not major changes or innovative changes in the original framework. However, now with Nine Yin Sutra: Wushu, we can consider it almost as a sequel of the original Chinese IP. We have implemented many different changes, and we are hoping that we can impress all the players. That's why, we are very ambitious with this IP.

Speaker #4: For the second IP under Night in Sutra, it's called Night in Sutra Wushu. So in the past, for the Chinese IP Age of Wushu, there were not major changes or innovative changes in the original framework.

Speaker #4: However, now with Night in Sutra Wushu, we can consider it almost as a sequel to the original Chinese IP. We have implemented many different changes, and we are hoping that we can impress all the players.

Speaker #4: That's why we are very ambitious with this IP.

Hai Shi: 这两款产品今年都会进入测试。

Hai Shi: [Foreign language]

Speaker #5: Yep. 这两款产品今年都会进入测试。

[Company Representative] (Snail): For both of these IPs, both of the Nine Yin Sutra IPs will start testing this year.

[Translator]: For both of these IPs, both of the Nine Yin Sutra IPs will start testing this year.

Speaker #4: For both of these IPs, for both of the Night in Sutra IPs, we'll start testing this year.

Hai Shi: 我们也今年会参加，大概，现在确定下来的有三个大的展会。也中国的Bilibili、ChinaJoy和德国的客户。

Hai Shi: [Foreign language]

Speaker #5: 我们今年会参加大概现在确定下来的有三个大的展会。中国的哔哩哔哩、China Joy和德国的克隆。

[Company Representative] (Snail): We have also confirmed that we will showcase all these IPs or both of these nice extra IPs in three major gaming events this year. They include Bilibili World, ChinaJoy, and Gamescom.

[Translator]: We have also confirmed that we will showcase all these IPs or both of these nice extra IPs in three major gaming events this year. They include Bilibili World, ChinaJoy, and Gamescom.

Speaker #4: We have also confirmed that we will showcase all these IPs, or both of these Night in Sutra IPs, in three major gaming events this year.

Speaker #4: They include Bilibili World, ChinaJoy, and Gamescom.

Hai Shi: 所以整个来讲，宣传计划是全年都在进行，开始进行了。

Hai Shi: [Foreign language]

Speaker #5: 所以整个来讲，宣传计划是全年都在开始进行了。

[Company Representative] (Snail): Which means that we will have the campaign running for the entire year for these IPs.

[Translator]: Which means that we will have the campaign running for the entire year for these IPs.

Speaker #4: Which means that we will have the campaign running for the entire year for these IPs.

Michael Kupinski: Terrific. Thank you for that, color. I really appreciate it. If I can slip one more question in, you have a very strong release roadmap through 2027, and I was wondering if you could just talk a little bit about the impact on margins, particularly as it relates to R&D and marketing spend. If you could just talk a little bit about the marketing spend cadence around the upcoming launches.

Speaker #1: Terrific. Thank you for that caller. I really appreciate it. If I can flip one more question in If you have a very strong release roadmap through 2027 , and I was wondering if you could just talk a little bit about the impact on margins , particularly as it relates to R&D and marketing spend .

Speaker #1: So, if you could just talk a little bit about the marketing spend cadence around the upcoming launches.

[Company Representative] (Snail): Thank you, Michael. I'll defer the question for Mr. Shi to continue to answer the question.

Heidy Chow: Thank you, Michael. I'll defer the question for Mr. Shi to continue to answer the question.

Speaker #2: Thank you, Michael. I'll defer the question for Mr. Xi to continue to answer the question.

Hai Shi: 就像我刚刚说的，我们自主内部的这三个主力产品，我们的目标都是比较大的IP的盘子。所以，如果要说到具体一点的话，当年我们都至少希望它能够产生六千到八千万的收入。那么，这个是一个最基本的想法和要求。所以在这样的一个目标之下，我们不太会让它在没有完成的时候面向市场。当然我们知道我们今年还需要有营收的增长。

Hai Shi: [Foreign language]

Speaker #3: On the, so, I may or may

[Company Representative] (Snail): As Mr. Shi mentioned earlier, all of these three IPs will be the main revenue drivers of our company, and they're all big IPs that we're working on. To be more specific, we're hoping that the minimum we can have at least $60 to 80 million in revenues from each IP. That's why we also don't want to fully release the games until they're definitely ready, and then we have big hopes for the revenues of these IPs.

[Translator]: As Mr. Shi mentioned earlier, all of these three IPs will be the main revenue drivers of our company, and they're all big IPs that we're working on. To be more specific, we're hoping that the minimum we can have at least $60 to 80 million in revenues from each IP. That's why we also don't want to fully release the games until they're definitely ready, and then we have big hopes for the revenues of these IPs.

Speaker #4: As mentioned earlier , all of these three IPS are . Will be the main revenue drivers of our company , and they're all big IPS that we're working on .

Speaker #4: And to be more specific, we're hoping that at a minimum, we can have at least $60 to $80 million in revenues from each IP.

Speaker #4: So that's why we also don't want to fully release the games until they're definitely ready. And then we have big hopes for the revenues of these IPs.

Hai Shi: 在2026年的话，我们的营收增长主要是集中在这几块。一个是我们的波兰的离子工作室，他们的Bellwright这个项目，它还有它自己的一些原来的老项目。从目前Bellwright来看的话，因为它今年会上主机版本，而且这种题材在主机上是没有的。经过我们的……

Hai Shi: [Foreign language]

Speaker #3: So, the, uh, a user, the—

Hai Shi: 从我们目前这个第一季度的收入来看，以及我们对它主机版本上了以后的预测，它的收入最少要比去年要增加一倍的，这是目前已经可以看得到的趋势。

Hai Shi: [Foreign language]

[Company Representative] (Snail): For our revenue growth in 2026, we're mainly looking at several different projects. The first one is Bellwright, developed by Donkey Crew in Poland. So far, the revenues of Bellwright is performing quite well. This year we're going to release the console version of Bellwright. This genre is actually not yet present on consoles yet. Based on the revenues in Q1, our projections is that the revenues after console release can at least double the revenues of last year.

[Translator]: For our revenue growth in 2026, we're mainly looking at several different projects. The first one is Bellwright, developed by Donkey Crew in Poland. So far, the revenues of Bellwright is performing quite well. This year we're going to release the console version of Bellwright. This genre is actually not yet present on consoles yet. Based on the revenues in Q1, our projections is that the revenues after console release can at least double the revenues of last year.

Speaker #4: So, for our revenue growth in 2026, we're mainly looking at several different projects. The first one is called Bell, developed by Donkey Crew in Poland.

Speaker #4: So, so far the revenues have—. Ballarat is performing quite well, and this year we're going to release the console version of Bellawrites.

Speaker #4: Oh, and this genre is actually not yet present on consoles yet. And then, based on the revenues in the first quarter, our projection is that the revenues after console release can at least double the revenues of last year.

Hai Shi: 从目前来看，离子工作室应该给整个上市公司体系带来差不多一年有$1,200万的收入。

Hai Shi: [Foreign language]

Speaker #3: Please .

[Company Representative] (Snail): It looks like, based on the current performance of Bellwright, we can expect $12 million in revenues from Donkey Crew.

[Translator]: It looks like, based on the current performance of Bellwright, we can expect $12 million in revenues from Donkey Crew.

Speaker #4: So it looks like, based on the current performance of About Right, we can expect $12 million in revenues from Donkey Crew.

Hai Shi: 另外，就是那个Studio Sirens工作室，他们去年做了一个海洋DLC，其实这个产品做得还是很不错的，但是在技术上有一些没有准备好，所以给社区造成了一些困扰。但整个工作室通过这样的产品，他们已经成熟了，所以今年他会做一个是方舟的电竞，这样会帮助这个方舟的人数再创新高，并且能够让方舟的营收还有所提高，这是这是一块。

Hai Shi: [Foreign language]

Speaker #3: Oh , I just might common on DRC . Oh , in the In We saw On the . So

[Company Representative] (Snail): The second one is Studio Sirens, who worked on ARK: Aquatica last year. The product itself is quite decent. However, there were certain issues that might not be fully resolved in terms of the technologies which might have caused the concerns among the communities. Through developing this game, Studio Sirens is now more mature with their capabilities overall. This year, they will work on ARK: Survival of the Fittest, which is an esports game. We're hoping that this game can bring a new peak of the ARK players and then also increase the revenues.

[Translator]: The second one is Studio Sirens, who worked on ARK: Aquatica last year. The product itself is quite decent. However, there were certain issues that might not be fully resolved in terms of the technologies which might have caused the concerns among the communities. Through developing this game, Studio Sirens is now more mature with their capabilities overall. This year, they will work on ARK: Survival of the Fittest, which is an esports game. We're hoping that this game can bring a new peak of the ARK players and then also increase the revenues.

Speaker #4: The second one is studio Sirens , who works on aquatica . Last year , the product itself is quite decent , however , there were certain issues that might not be fully resolved in terms of the technologies which might have caused concerns among the communities .

Speaker #4: But through developing this game , Studio Sirens is now more mature with their capabilities . Overall . And this year they will work on Ark survival of the fittest , which is the esports game .

Speaker #4: And we're hoping that this game can bring a new peak of Ark players and also increase the revenues.

Hai Shi: 第二个呢，就是，我们不仅是在把整个研发力量装进上市公司，其实我们也在把一些IP装进上市公司。他们会接手一个叫PixARK的项目。这个项目营收不高，两百多万，在去年。那么从他们接手的话呢，我们对它希望还是比较大的。但是，从过去经验来看呢，我认为这个工作室差不多会跟离子工作室走过同样的路，所以，今年它也许会完成几百万的收入。这就是。

Hai Shi: [Foreign language]

Speaker #3: By One .

[Company Representative] (Snail): Other than building our development teams in the public company, we also want to include more IPs into our company, which includes PixARK. We want Studio Sirens to take over the development for PixARK, which has made over $2 million last year. We have great hopes for Studio Sirens to work on this project because based on the past experience, they might go through a similar trajectory like Donkey Crew and can create millions of revenues in the future.

[Translator]: Other than building our development teams in the public company, we also want to include more IPs into our company, which includes PixARK. We want Studio Sirens to take over the development for PixARK, which has made over $2 million last year. We have great hopes for Studio Sirens to work on this project because based on the past experience, they might go through a similar trajectory like Donkey Crew and can create millions of revenues in the future.

Speaker #4: So, other than building our development teams in the public company, we also want to include more IPs into our company, which includes Pixar.

Speaker #4: We want studio sirens to take over the development for Pixar , which has made a two over $2 million last year . Where we have great hopes for studio sirens to work on this project because based on the past experience , they might go through a similar trajectory , like donkey Crew and can create millions of revenues in the future Of course , studio Sirens also has other plans and other projects to work on , but overall , we will not be at a loss with this studio anymore

Hai Shi: 当然他们还有一些其他计划。总的来讲，这个工作室今年可能不需要我们再贴钱了。对。

Hai Shi: [Foreign language]

[Company Representative] (Snail): Of course, Studio Sirens also has other plans and other projects to work on. Overall, we will not be at a loss with the studio anymore.

[Translator]: Of course, Studio Sirens also has other plans and other projects to work on. Overall, we will not be at a loss with the studio anymore.

Hai Shi: 第三个工作室呢，是这个叫 Hunter 那个工作室。他们过去是在帮九阴的修仙在做战斗系统。那现在，他们今年会有自己的项目，在夏天也会上线。这个项目也要在 GDC 上公布了，我们期望也比较高。但是呢，这是一种就是快速起量的产品，相对来讲，就是它有点像，叫 Peak。

Hai Shi: [Foreign language]

Speaker #3: Just pick, pick, pick. Pig. Something. So you can Ibamba.

[Company Representative] (Snail): Peak。

[Translator]: Peak。

Hai Shi: 有点像Peak这样的产品，所以有可能会很火爆，也有可能一般般。

Hai Shi: [Foreign language]

[Company Representative] (Snail): The third studio is Matryoshka Games. In the past, Matryoshka Games was involved in the combat developments for Nine Yin Sutra Immortal. Now this year they are also working on their own projects, which was announced at GDC, Gobby Gang. We have great hopes for this project as well. Gobby Gang is more of a fastly iterated project, similar to Peak, is under the French slots genre. We are hoping that the game can perform very well on the market.

[Translator]: The third studio is Matryoshka Games. In the past, Matryoshka Games was involved in the combat developments for Nine Yin Sutra Immortal. Now this year they are also working on their own projects, which was announced at GDC, Gobby Gang. We have great hopes for this project as well. Gobby Gang is more of a fastly iterated project, similar to Peak, is under the French slots genre. We are hoping that the game can perform very well on the market.

Speaker #4: The studio is much . Games . So in the past mature games was involved in the combat development for nine immortal . Now this year they are .

Speaker #4: All are also working on their own projects, which was announced at GDC. Got the game. We have great hopes for this project as well.

Speaker #4: Gabby Zhang is more of a vastly iterated project, similar to Peek, and is under the French philosopher genre. And then we have...

Speaker #4: We are hoping that the game can perform very well on the market.

Hai Shi: 如果表现一般，可能就只有100万左右的收入。但是如果它真的是像他们预期的，因为团队期望很高，如果真的像他们想象的话，那很容易超过100万的销售，因为它卖的比较便宜。差不多1,000万上下，这是他们的期望。

Hai Shi: [Foreign language]

Speaker #3: So, if I want to see

[Company Representative] (Snail): If the game's performance is only medium, maybe we can at least sell about 1 million units. However, if we're able to actually achieve the expectations of the development team, then it should be easy for us to exceed the 1 million units target. We can probably even sell 10 million units.

[Translator]: If the game's performance is only medium, maybe we can at least sell about 1 million units. However, if we're able to actually achieve the expectations of the development team, then it should be easy for us to exceed the 1 million units target. We can probably even sell 10 million units.

Speaker #4: If the games performance is only medium , maybe we can at least sell about 1 million units . However , if we're able to actually achieve the expectations of the development team , then it should be easy for us to exceed the 1 million units .

Speaker #4: Target. We can probably even sell 10 million units.

Hai Shi: 然后，波兰还有一个工作室，他们现在只是在为 For the Stars 做内部的产品做外包，所以他们并没有这个产品，他不会有产品收入。

Hai Shi: [Foreign language]

Speaker #3: So First .

[Company Representative] (Snail): The fourth studio that we have is Rustic Root, which is based in Poland. Right now they're helping with the For The Stars project, so they don't have their own projects to develop.

[Translator]: The fourth studio that we have is Rustic Root, which is based in Poland. Right now they're helping with the For The Stars project, so they don't have their own projects to develop.

Speaker #4: The fourth studio that we have is Rustic Roofed, which in Poland right now they're helping with the For the Stars project. So they don't have their own projects to develop.

Hai Shi: 那么还有一块呢，就是IF公司。IF公司呢，今年它的整个的短剧项目呢，去年大概有一百多款了，今年会增加到七百到八百款这个短剧项目。同时它的这个互动游戏今年也会有一个重头的一个项目，类似于斯巴达克斯这样的一个题材的。

Hai Shi: [Foreign language]

Speaker #3: Okay . No more high . I , I Got the Have you

Hai Shi: 目标也还有这个产品大概几百万吧，可能五六百万的一个目标目前。但是确确实实，我们并没有在这个领域成功过，所以我们也不敢保证。

[Company Representative] (Snail): We have another company called Interactive Films. This year we will also work on a lot more short dramas with this company. Last year, Interactive Films already produced over 100 short dramas, and then this year we will add another additional 700 to 800 short drama projects. This year, Interactive Films will also come out with this interactive game that is a Spartacus genre. Our goal for that interactive game is to sell around 5 to 6 million units. However, we don't really have a successful experience in this field yet, so we cannot really guarantee that success.

[Translator]: We have another company called Interactive Films. This year we will also work on a lot more short dramas with this company. Last year, Interactive Films already produced over 100 short dramas, and then this year we will add another additional 700 to 800 short drama projects. This year, Interactive Films will also come out with this interactive game that is a Spartacus genre. Our goal for that interactive game is to sell around 5 to 6 million units. However, we don't really have a successful experience in this field yet, so we cannot really guarantee that success.

Speaker #4: And we have another company called Interactive Films. And then this year we will also work on a lot more short dramas with this company.

Speaker #4: So last year, interactive films already produced over 100 short dramas. And then this year, we will add another additional 700 to 800 short drama projects.

Speaker #4: And then this year, interactive films will also come out with its interactive game that is a face genre. And then our goal for that interactive game is to sell around 5 to 6 million units.

Speaker #4: However, we don't really have a successful experience in this field yet, so we cannot really guarantee that success.

Hai Shi: 今年的营收增长主要来自于刚刚讲的这几个方面，包括我们的代理游戏。整体的话，营收规模应该比去年有20%到30%的增长，这是目前可以看得见的。

Hai Shi: [Foreign language]

Speaker #3: So We I

[Company Representative] (Snail): Our revenue growth for this year mainly comes from the previously mentioned areas and also from the games that we are publishing. Basically in general, the revenue will have a 20% to 30% growth compared to last year.

[Translator]: Our revenue growth for this year mainly comes from the previously mentioned areas and also from the games that we are publishing. Basically in general, the revenue will have a 20% to 30% growth compared to last year.

Speaker #4: So our revenue growth for this year mainly comes from the previously mentioned areas and also from the games that we are publishing. And then so basically, in general, the revenue will have a 20% to 30% growth compared to last year.

Hai Shi: 当然，就像你关心的2027年的计划，其实重头肯定还在2027年。所以我们如果想说整个公司有一个巨大的井喷的话，应该是出现在2027年初，或者今年年底，也许我们争取努力一下吧。

Hai Shi: [Foreign language]

Speaker #3: And so I’m so for the

[Company Representative] (Snail): You said that you're interested in the plan for 2027. However, most of the major actions will probably happen by then, and we hope that we can achieve something very great by the end of this year. If not, it will happen in 2027.

[Translator]: You said that you're interested in the plan for 2027. However, most of the major actions will probably happen by then, and we hope that we can achieve something very great by the end of this year. If not, it will happen in 2027.

Speaker #4: So, you said that you were interested in the plan for 2027. However, most of the major actions will probably happen by then, and we hope that we can achieve something very great by the end of this year.

Speaker #4: If not, then it will happen in 2027.

Michael Kupinski: Terrific. Thanks for the color. Greatly appreciate that. That's all I have.

Speaker #1: Terrific. Thanks for the color. Greatly appreciate that. That's all I have.

[Company Representative] (Snail): Thank you, Michael.

Heidy Chow: Thank you, Michael.

Speaker #2: Thank you Michael .

Operator 2: Thank you. Ladies and gentlemen, I'm showing no further questions in the queue. At this time, this concludes Snail, Inc.'s Q4 and full year 2025 conference call. If your question was not taken, please contact Snail, Inc.'s IR team at snail@gateway-grp.com. Thank you for your participation. You may now disconnect.

Operator: Thank you. Ladies and gentlemen, I'm showing no further questions in the queue. At this time, this concludes Snail, Inc.'s Q4 and full year 2025 conference call. If your question was not taken, please contact Snail, Inc.'s IR team at snail@gateway-grp.com. Thank you for your participation. You may now disconnect.

Speaker #5: Thank you , ladies and gentlemen . I'm Sean . No further questions in the Q at this time , this concludes Snail, Inc. fourth quarter .

Speaker #5: And full year 2025 conference call . If your question was not taken , please contact Snail, Inc. or our team at s a l at gateway dash g p dot com .

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