Snail, Inc.

2025 Earnings Call. At this time, all participants are in the listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Stephen Shinmaki, Investor Relations, Please go ahead. Thank you.

Thank you, and good afternoon, everyone. Welcome to Snail, Inc.' 's third quarter 2025 earnings conference call and webcast. Joining us for today's call are Snail, Inc.' 's chief financial officer, Heidi Chow, and senior vice president, director of business development and operations, Peter Kang. The company's third quarter 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 website at www.sec.gov. 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-Q that has been filed with SEC, the most recent Form 10-K that was filed with SEC on March 26, 2025, and other SEC filings. The company makes these forward-looking statements as of today and claims 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 such statement is based. Additionally, on today's call, we referred 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. And now, I will turn the call over to Heidi Chow, Chief Financial Officer of Snail. Ma'am, please proceed.

Thank you, and good afternoon, everyone. Thank you for joining us today to review our financial and operational results for the third quarter and the September 30th, 2025. The third quarter was a combination of growth, development, engagement, and heightened awareness across our portfolio, highlighted by participation in industry events. The launch of a new indie title, awards won by our upcoming indie title, ongoing progress across key projects and initiatives, and sneak peeks into upcoming titles and content. Peter will dive into the details around the gaming business later in the call, but I would first like to provide an update on our stablecoin project. We continue to make meaningful progress towards our goal of becoming one of the first gaming companies to issue its own proprietary stablecoin. Currently, we are developing the underlying infrastructure that will support the coin and advancing through the multi-state regulatory application process. The team we have put together has been instrumental in making such progress since we publicly announced this new project a few months back. While much of the work is happening behind the scenes, We are in a strong position to share more tangible updates with stakeholders in the next couple of months. To reiterate our rationale for pursuing this stablecoin project, by pursuing this initiative, we are positioning SNAIL as one of the pioneers in a space with significant untapped potential. We believe that the investments we are making today in technology and infrastructure will yield long-term benefits and create a foundation for innovation across the industry. We view stablecoins as the future of digital payments, and as a gaming company, we see endless opportunities. While widespread adoption will acquire an industry shift, Passage of the Genius Act a few months ago was a pivotal moment that created a framework to accelerate this transformation. For a sector that relies heavily on online transactions, a digital currency packed to the U.S. dollar offers immersed utility, efficiency, and reliability. Of course, achieving this mission will require many other stakeholders within the industry to embrace such initiative, which in reality will take time. That said, we believe that the investments we are making now position us ahead of the curve as the bellwether and unlock a wealth and potential opportunities in the future. The progress made so far has been truly exciting, and we look forward to sharing more substantive updates with our shareholders and stakeholders in the near future. Before I turn the call over to Peter to discuss our gaming business, I would like to address our third quarter performance and provide some context behind our reported decline in net revenue for the third quarter. while top line results for the quarter decreased year over year. This was primarily driven by the timing of revenue recognition rather than a fundamental changes in our business or a reduction in the sales and demand for our products. Under our revenue recognition model, certain sales are deferred and recognized over time as performance obligations are met. We record deferred revenue when payments are received in advance of the fulfillment of our associated performance obligations, such as when we pre-sell certain games and content. During this quarter, deferred revenues increased approximately 10.9 million compared to the same period last year, primarily driven by ARC Survival Ascendant's Lost Colony Expansion Path DLC bundle. As a quarter ended, deferred revenue balance was $36.4 million, of which $35.3 million is due to non-refundable payments. More importantly, we do expect to recognize approximately $26.5 million in non-refundable deferred revenue payments within the next 12 months. We also are targeting the launch of ARK Lost Colony in December 2025, which we expect $5.8 million of the deferred revenue balance to be recognized and positively impact our fourth quarter top-line results. Despite our deferred revenues affecting this quarter's results, our core gaming business is still generating cash. with our operating cash flow for the nine-month period remaining solid at approximately $4.2 million. Our bookings for the third quarter also grew 9.3% to $17.6 million compared to the year-ago period, further demonstrating the strong demand and engagement we experienced in the third quarter. Now, I also typically experience the sales spikes during quarters where we launch a new ARC DLC. In addition to the deferred revenues, we expect incremental sales driven by the launch of lost colonies from players who did not participate in the pre-sale event. With this new content on the horizon, we also anticipate a corresponding increase in engagement in the SA. Together, this catalyst positioned us for a significantly stronger fourth quarter compared to Q3 and set us up to finish the year on a high note. Demand and engagement across our gaming portfolio remains robust. And with lots of colonies slated for Q4, we are confident in finishing the year on solid footing. Before I dive deeper into our quarterly results, I will hand the call over to Peter to discuss some recent developments in our gaming business and operations. Peter?