Snail, Inc. Revenue Disclosure
NOTE 3 – REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of revenue
Timing of recognition
The Company recognizes revenue at a point in time for performance obligations that are met at the time of sale or at the time of a release. The Company recognizes revenue over a period based on the estimated service period of the product and additional performance obligations met over time for technical support. Net revenue by timing of recognition during the years ended December 31, 2025 and 2024 were as follows:
| 2025 | 2024 | |||||||
| Over time | $ | 5,904,976 | $ | 4,520,499 | ||||
| Point in time | 75,320,646 | 79,946,548 | ||||||
| Total revenue from contracts with customers: | $ | 81,225,622 | $ | 84,467,047 | ||||
Geography
The Company attributes net revenue to geographic regions based on customer location. Net revenue by geographic region for the years ended December 31, 2025 and 2024 were as follows:
| 2025 | 2024 | |||||||
| United States | $ | 72,070,053 | $ | 73,117,378 | ||||
| United Kingdom | 7,430,097 | 9,207,537 | ||||||
| Other international | 1,725,472 | 2,142,132 | ||||||
| Total revenue from contracts with customers: | $ | 81,225,622 | $ | 84,467,047 | ||||
Platform
Net revenue by platform for the years ended December 31, 2025 and 2024 were as follows:
| 2025 | 2024 | |||||||
| Console | $ | 31,153,898 | $ | 35,791,684 | ||||
| PC | 40,606,078 | 40,659,044 | ||||||
| Mobile | 7,790,182 | 4,632,413 | ||||||
| Physical retail and other | 1,675,464 | 3,383,906 | ||||||
| Total revenue from contracts with customers: | $ | 81,225,622 | $ | 84,467,047 | ||||
Our net revenues through our top four platform providers, as a proportion of our total net revenue, for the years ended December 31, 2025 and 2024 were as follows:
| 2025 | 2024 | |||||||
| Platform 1 | $ | 39,345,153 | $ | 39,217,130 | ||||
| Platform 2 | 10,113,472 | 12,434,911 | ||||||
| Platform 3 | 19,775,689 | 21,056,125 | ||||||
| Platform 4 | 1,261,256 | 2,298,946 | ||||||
| All Other Revenue | 10,730,052 | 9,459,935 | ||||||
| Total | $ | 81,225,622 | $ | 84,467,047 | ||||
Distribution channel
Our products are delivered through digital online services (digital download, online platforms, and cloud streaming), mobile, and retail distribution and other. Net revenue by distribution channel for the years ended December 31, 2025 and 2024 was as follows:
| 2025 | 2024 | |||||||
| Digital | $ | 71,759,976 | $ | 76,450,728 | ||||
| Mobile | 7,790,182 | 4,632,413 | ||||||
| Physical retail and other | 1,675,464 | 3,383,906 | ||||||
| Total revenue from contracts with customers: | $ | 81,225,622 | $ | 84,467,047 | ||||
Other Revenues
As discussed in Note 15, the Company recognized the $1.2 million payment related to the Angela Games settlement upon satisfaction of performance obligations included in the contract. This amount is included in other revenues for the year ended December 31, 2024. No amounts were recognized for the year ended December 31, 2025.
Snail Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Deferred Revenue
The Company records deferred revenue when payments are due or received in advance of the fulfillment of our associated performance obligations; reductions to deferred revenue balance were primarily due to the recognition of revenue upon fulfillment of its performance obligations, which were in the ordinary course of business. As of December 31, 2025, the balance of deferred revenue was $32.1 million, of which $31.0 million is due to non-refundable payments. The Company is expecting to recognize $24.5 million of non-refundable payments in the next 12 to 60 months through the release of DLC’s and additional ARK titles. The remaining $3.7 million of current non-refundable deferred revenues and $2.8 million of long term non-refundable deferred revenue will be recognized as revenue primarily on a straight-line basis over the next 60 months, based on our estimates of technical support obligations, the usage of consumable virtual goods and estimated period of time an end user will play the game. The Company’s refundable deferred revenue consists of $1.1 million in advance payments received in accordance with the agreement the Company has made with its retail distributor. Activities in the Company’s deferred revenue as of December 31, 2025 and 2024 were as follows:
| 2025 | 2024 | |||||||
| Deferred revenue, beginning balance in advance of revenue recognition billing | $ | 25,467,447 | $ | 34,316,706 | ||||
| Revenue recognized | (2,453,623 | ) | (18,506,635 | ) | ||||
| Revenue deferred | 9,068,701 | 9,657,376 | ||||||
| Deferred revenue, ending balance | 32,082,525 | 25,467,447 | ||||||
| Less: current portion | (14,799,840 | ) | (3,947,559 | ) | ||||
| Deferred revenue, long term | $ | 17,282,685 | $ | 21,519,888 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 19, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
| 2023 | Apr 1, 2024 | |
| 2022 | Mar 29, 2023 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.