Snap Inc. Announces Third Quarter 2026 Financial Results
Snap Inc (SNAP) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Snap Inc. Announces Third Quarter 2026 Financial Results Third quarter revenue increased 14% year-over-year to $1,722 million Third quarter net income of $56 million and Adjusted EBITDA of $383 million Third quarter operating cash flow was $210 million and Free Cash
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data on revenue growth, profitability, and cash flow, offering a clear basis for short‑term trading decisions.
Market read
Snap's earnings beat could trigger a short‑term rally, influencing related ad‑tech stocks.
What to watch
Potential headwinds from competition and user growth slowdown are not reflected in the headline numbers.
Third quarter revenue increased 14% year-over-year to $1,722 million; net income was $56 million, Adjusted EBITDA was $383 million, operating cash flow was $210 million, and Free Cash Flow was $164 million.
Revenue grew 14% year-over-year, Snap returned to GAAP net income and GAAP operating income, Adjusted EBITDA increased 110%, and operating cash flow and Free Cash Flow increased 44% and 76%, respectively.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 RevenueGAAP | $1.72B | – | 14 % |
| Nine months ended September 30, 2026 RevenueGAAP | $ 4,850,255 | – | 15 % |
| Q3 2026 Constant Currency Revenuenon-GAAP | $1.72B | – | 14 % |
| Nine months ended September 30, 2026 Constant Currency Revenuenon-GAAP | $ 4,816,300 | – | 14 % |
| Q3 2026 Cost of revenueGAAP | 649,413 | – | – |
| Q3 2026 Research and development expenseGAAP | 477,678 | – | – |
| Q3 2026 Sales and marketing expenseGAAP | 298,036 | – | – |
| Q3 2026 General and administrative expenseGAAP | 220,628 | – | – |
| Q3 2026 Total costs and expensesGAAP | 1,645,755 | – | – |
| Q3 2026 Operating income (loss)GAAP | $76.72M | – | 160 % |
| Nine months ended September 30, 2026 Operating income (loss)GAAP | $ (168,454) | – | 71 % |
| Q3 2026 Operating income (loss) marginGAAP | 4 % | – | – |
| Q3 2026 Net income (loss)GAAP | $56.50M | – | 155 % |
| Nine months ended September 30, 2026 Net income (loss)GAAP | $ (196,413) | – | 61 % |
| Q3 2026 Net income (loss) marginGAAP | 3 % | – | – |
| Q3 2026 Diluted net income (loss) per shareGAAP | $ 0.03 | – | 150 % |
| Nine months ended September 30, 2026 Diluted net income (loss) per shareGAAP | $ (0.12) | – | 60 % |
| Q3 2026 Adjusted EBITDAnon-GAAP | $382.6M | – | 110 % |
| Nine months ended September 30, 2026 Adjusted EBITDAnon-GAAP | $ 865,595 | – | 161 % |
| Q3 2026 Adjusted EBITDA marginnon-GAAP | 22 % | – | – |
| Q3 2026 Net cash provided by operating activitiesGAAP | $210.5M | – | 44 % |
| Nine months ended September 30, 2026 Net cash provided by operating activitiesGAAP | $ 713,477 | – | 85 % |
| Q3 2026 Purchases of property and equipmentGAAP | −$46.03M | – | (13) % |
| Q3 2026 Free Cash Flownon-GAAP | $164.5M | – | 76 % |
| Nine months ended September 30, 2026 Free Cash Flownon-GAAP | $ 570,998 | – | 147 % |
| Q3 2026 Daily Active Usersother | 495 | – | 4 % |
| Q3 2026 Monthly Active Usersother | 977 | – | 4 % |
| Q3 2026 ARPUother | $ 3.48 | – | 10 % |
| Q3 2026 Common shares outstandingother | 1,717,511 | – | — % |
| Q3 2026 Total common shares outstanding plus shares underlying stock-based awardsother | 1,931,662 | – | 3.8 % |
| Q3 2026 Stock-based compensation expenseGAAP | $ 254,789 | – | (2) % |
| Q3 2026 Depreciation and amortization expenseGAAP | $ 44,625 | – | 5 % |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North America revenueGeographic revenue is apportioned based on the estimate of where revenue-generating activities occur; for advertising revenue, Snap allocates revenue based on the geographic location where advertising impressions are delivered. | $ 1,014,320 | – | 13 % |
| Europe revenueGeographic revenue is apportioned based on the estimate of where revenue-generating activities occur; for advertising revenue, Snap allocates revenue based on the geographic location where advertising impressions are delivered. | $ 362,850 | – | 22 % |
| Rest of World revenueGeographic revenue is apportioned based on the estimate of where revenue-generating activities occur; for advertising revenue, Snap allocates revenue based on the geographic location where advertising impressions are delivered. | $ 345,301 | – | 11 % |
Capital returns
- Repurchases of Class A non-voting common stock for the nine months ended September 30, 2026 were $ (600,964).
- Repurchases of Class A non-voting common stock for the three months ended September 30, 2026 were $ —.
- No dividend amount was reported.
What drove it
- Revenue increased 14% year-over-year to $1,722 million.
- Constant Currency Revenue increased 14% year-over-year.
- North America revenue increased 13%, Europe revenue increased 22%, and Rest of World revenue increased 11%.
- ARPU was $ 3.48, up 10% year-over-year; North America ARPU was $ 11.07, Europe ARPU was $ 3.69, and Rest of World ARPU was $ 1.13.
- Snap reported 495 DAU, up 4% year-over-year, and 977 MAU, up 4% year-over-year.
- Adjusted EBITDA increased 110% year-over-year to $ 382,647, and Adjusted EBITDA margin was 22 %.
Concerns
- Nine-month GAAP operating income (loss) remained negative at $ (168,454), and nine-month net income (loss) was $ (196,413).
- Long-term debt, net was 3,380,216 as of September 30, 2026.
- North America DAU was 92, down (6) % year-over-year; Europe DAU was 98, down (1) % year-over-year.
- Common shares outstanding plus shares underlying stock-based awards was 1,931,662, up 3.8 % year-over-year.
- Snap expects to replace global DAU with global MAU and discontinue regional DAU and regional ARPU beginning with its Quarterly Report on Form 10-Q for the first quarter of 2027.
What to watch
- Q4 2026 outlook figures were not included in the filing text; Snap stated it will discuss its outlook during its Q3 2026 Earnings Call and in its investor letter.
- Execution of the planned global MAU and MAU-based ARPU reporting transition beginning in the first quarter of 2027.
- Whether revenue growth and ARPU growth continue while North America and Europe DAU remain lower year-over-year.
- The effect of the $128.5 million of restructuring charges excluded from Adjusted EBITDA for the nine months ended September 30, 2026.
- Continued conversion of Adjusted EBITDA into operating cash flow and Free Cash Flow.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026 were $ 1,019,215.
- Marketable securities as of September 30, 2026 were 1,751,432.
- Short-term debt, net as of September 30, 2026 was 106,202.
- Long-term debt, net as of September 30, 2026 was 3,380,216.
- Cash, cash equivalents, and restricted cash at September 30, 2026 were $ 1,020,758.
- Net cash used in financing activities for the nine months ended September 30, 2026 was (655,269).
- Net cash provided by investing activities for the nine months ended September 30, 2026 was (68,847).
Analysis
Snap delivered a strong third quarter, with GAAP revenue of $ 1,722,471, up 14 % year-over-year from $ 1,506,839. Constant Currency Revenue was $ 1,724,874 and also increased 14 %. Growth was broad across the reported geographies: North America revenue increased 13 % to $ 1,014,320, Europe increased 22 % to $ 362,850, and Rest of World increased 11 % to $ 345,301. Global DAU reached 495, up 4 %, MAU reached 977, up 4 %, and ARPU increased 10 % to $ 3.48.
Profitability improved materially. The company recorded GAAP operating income of $ 76,716, compared with an operating loss of $ (128,362) in the prior year, while GAAP net income was $ 56,498 compared with a net loss of $ (103,541). Operating income margin was 4 % and net income margin was 3 %, versus (9) % and (7) %, respectively, in Q3 2025. Adjusted EBITDA increased 110 % to $ 382,647, and Adjusted EBITDA margin expanded to 22 % from 12 %.
Cash generation also strengthened. Net cash provided by operating activities increased 44 % to $ 210,484, while Free Cash Flow increased 76 % to $ 164,453. For the nine months ended September 30, 2026, operating cash flow was $ 713,477 and Free Cash Flow was $ 570,998. Snap repurchased $ (600,964) of Class A non-voting common stock during the nine-month period, while total common shares outstanding plus shares underlying stock-based awards rose 3.8 % year-over-year to 1,931,662.
The balance sheet reported cash and cash equivalents of $ 1,019,215 and marketable securities of 1,751,432 at September 30, 2026, alongside short-term debt, net of 106,202 and long-term debt, net of 3,380,216. The quarter's profitability improvement contrasts with continuing nine-month GAAP losses, including operating loss of $ (168,454) and net loss of $ (196,413). Adjusted EBITDA for the nine-month period also excluded $128.5 million of restructuring charges.
Snap provided no numerical Q4 2026 outlook in the filing text, stating that it will discuss outlook during its earnings call and in an investor letter. The company also disclosed a reporting change beginning in the first quarter of 2027: global MAU will replace global DAU as its primary audience metric, global MAU-based ARPU will become the primary monetization metric, and regional DAU and regional ARPU will be discontinued. This transition is notable because North America and Europe DAU declined year-over-year even as revenue and ARPU increased in both regions.
Management, verbatim
In Q3, we generated positive net income as revenue grew 14% year-over-year to $1.72 billion, reflecting the progress we are making to build a more profitable business.
Evan Spiegel, co-founder and CEO
AI is becoming a significant advantage for our teams and advertising platform, and we continue to strengthen our business while investing in our long-term vision for augmented reality with the launch of SPECS.
Evan Spiegel, co-founder and CEO
Not in the filing
stated, not guessed- Numerical Q4 2026 revenue guidance.
- Numerical Q4 2026 gross margin guidance.
- Numerical Q4 2026 operating-expense guidance.
- Numerical Q4 2026 tax-rate guidance.
- Previous-quarter outlook for comparison with Q3 2026 actual results.
- GAAP gross margin and prior-year GAAP gross margin.
- Non-GAAP earnings per share.
- Dividend amount or dividend declaration.
- Explicit operating-segment revenue disclosures beyond geographic revenue.
- Quarterly total debt figure combining short-term and long-term debt.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Snap Inc. filed an 8‑K with the SEC announcing its Q3 2026 financial results, the first public disclosure of these numbers.
Ticker impact
Snap Inc. reported Q3 2026 results with revenue up 14% YoY to $1.72B and a swing to $56M net income.
likely upward pressure as market prices in stronger revenue and profitability
Revenue growth and positive net income exceed prior year loss, indicating improved fundamentals that can drive the stock higher in the near term.
Market effects
Positive earnings may lift the broader social media and digital advertising sector.
U.S. tech stocks could see modest gains following Snap's beat.
Limited to U.S. equities; no direct global macro effect.
Counterpoint
Investors may be cautious as Snap's growth is still modest and AI spend could pressure margins.
Key entities
- companySnap Inc.
U.S. listed social media and AR technology company (NYSE: SNAP).
