$SNAP earnings report

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.

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.