Q2 FY2026
Filed Aug 3, 2026Second quarter revenue increased 19% year-over-year to $1,599 million; net loss was $164 million and Adjusted EBITDA was $250 million.
Revenue grew 19% year-over-year, operating loss and net loss narrowed, and operating cash flow, Free Cash Flow, and Adjusted EBITDA increased substantially from the prior year.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $ 1,598,993 (dollars in thousands) | – | 19 % |
| Operating lossGAAP | $ (170,721) (dollars in thousands) | – | 34 % |
| Net lossGAAP | $ (163,960) (dollars in thousands) | – | 38 % |
| Adjusted EBITDAnon-GAAP | $ 249,615 (dollars in thousands) | – | 505 % |
| Net cash provided by operating activitiesGAAP | $ 176,214 (dollars in thousands) | – | 99 % |
| Free Cash Flownon-GAAP | $ 120,538 (dollars in thousands) | – | 407 % |
| Diluted net loss per share attributable to common stockholdersGAAP | $ (0.10) | – | 38 % |
| Common shares outstandingother | 1,682 million | – | – |
| Monthly active usersother | 971 million | – | – |
| Six-month revenueGAAP | $ 3,127,784 (dollars in thousands) | – | 15 % |
| Six-month operating lossGAAP | $ (245,170) (dollars in thousands) | – | 46 % |
| Six-month net lossGAAP | $ (252,911) (dollars in thousands) | – | 37 % |
| Six-month Adjusted EBITDAnon-GAAP | $ 482,948 (dollars in thousands) | – | 223 % |
| Six-month net cash provided by operating activitiesGAAP | $ 502,993 (dollars in thousands) | – | 109 % |
| Six-month Free Cash Flownon-GAAP | $ 406,545 (dollars in thousands) | – | 194 % |
| Six-month diluted net loss per share attributable to common stockholdersGAAP | $ (0.15) | – | 38 % |
What drove it
- Revenue increased 19% year-over-year.
- The company cited improving advertising performance and rapid growth in its direct revenue business.
- The company stated that it expanded margins and invested with discipline.
- Adjusted EBITDA was $250 million, compared to $41 million in the prior year.
Concerns
- Snap reported a net loss of $164 million.
- Snap reported an operating loss of $170,721 (dollars in thousands).
- Total restructuring charges included in the consolidated statement of operations for the three and six months ended June 30, 2026 and excluded from Adjusted EBITDA were $128.5 million.
- No quantitative Q3 2026 outlook was included in the provided filing text.
What to watch
- Q3 2026 outlook to be discussed during the Q2 2026 Earnings Call and in the investor letter.
- Advertising performance and the growth of the direct revenue business.
- Progress toward generating free cash flow per share over time.
- The effect of restructuring charges on reported operating results.
Balance sheet and cash flow
- Net cash provided by operating activities was $176 million, compared to $88 million in the prior year.
- Free Cash Flow was $121 million, compared to $24 million in the prior year.
- Common shares outstanding was 1,682 million as of June 30, 2026, compared to 1,682 million as of June 30, 2025.
Analysis
Snap reported a stronger second quarter, with revenue of $ 1,598,993 (dollars in thousands), up 19 % from $ 1,344,930 (dollars in thousands). Management attributed the period to improving advertising performance and rapid growth in its direct revenue business. Evan Spiegel also said the company remained focused on serving its 971 million monthly active users and delivering measurable value for advertisers.
Profitability and cash generation improved sharply from the prior year, although the company remained loss-making on a GAAP basis. Operating loss was $ (170,721) (dollars in thousands), versus $ (259,676) (dollars in thousands), and net loss was $ (163,960) (dollars in thousands), versus $ (262,570) (dollars in thousands). Adjusted EBITDA increased to $ 249,615 (dollars in thousands) from $ 41,270 (dollars in thousands).
Cash flow was a principal positive in the release. Net cash provided by operating activities rose to $ 176,214 (dollars in thousands) from $ 88,494 (dollars in thousands), while Free Cash Flow rose to $ 120,538 (dollars in thousands) from $ 23,793 (dollars in thousands). Common shares outstanding were unchanged at 1,682 million as of June 30, 2026 compared with June 30, 2025. The release did not report repurchases or dividends.
Reported GAAP results include restructuring costs, while Adjusted EBITDA excludes them. Total restructuring charges excluded from Adjusted EBITDA were $128.5 million for the three and six months ended June 30, 2026. This distinction is important when assessing the difference between the reported operating loss and positive Adjusted EBITDA.
The provided press release did not include quantitative Q3 2026 guidance. Snap said it would discuss its Q3 2026 outlook during its Q2 2026 Earnings Call and in its investor letter. The next items to assess are the disclosed outlook, advertising performance, direct revenue growth, and whether operating cash flow and Free Cash Flow remain positive.
Management, verbatim
Q2 reflects the progress we are making to strengthen our core business and build a more durable financial foundation for Snap.
Evan Spiegel, co-founder and CEO
Not in the filing
stated, not guessed- Quantitative Q3 2026 revenue guidance
- Q3 2026 gross margin guidance
- Q3 2026 operating expenses guidance
- Q3 2026 tax-rate guidance
- Q3 2026 other quantitative guidance
- Prior-quarter comparisons for reported Q2 metrics
- GAAP gross profit and gross margin
- Non-GAAP gross margin
- Operating expenses
- GAAP operating income
- Non-GAAP EPS
- Segment revenue and segment comparisons
- Cash balance
- Debt balance
- Share repurchases
- Dividends
- Prior outlook for comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.