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Snap Inc. Announces Second Quarter 2026 Financial Results
Second quarter revenue increased 19% year-over-year to $1,599 million
Second quarter operating cash flow was $176 million and Free Cash Flow was $121 million
Second quarter net loss of $164 million and Adjusted EBITDA of $250 million
SANTA MONICA, Calif. – August 3, 2026 – Snap Inc. (NYSE: SNAP) today announced financial results for the quarter ended June 30, 2026.
“Q2 reflects the progress we are making to strengthen our core business and build a more durable financial foundation for Snap,” said Evan Spiegel, co-founder and CEO. “We grew revenue by 19%, expanded margins, and generated positive free cash flow while improving advertising performance and rapidly growing our direct revenue business. We remain focused on serving our 971 million monthly active users, delivering measurable value for advertisers, and investing with discipline to increase free cash flow per share over time.”
Q2 2026 Financial Summary
•Revenue was $1,599 million, compared to $1,345 million in the prior year, an increase of 19% year-over-year.
•Net loss was $164 million, compared to $263 million in the prior year.
•Adjusted EBITDA was $250 million, compared to $41 million in the prior year.
•Operating cash flow 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.
Three Months Ended
June 30,
Percent
Change
Six Months Ended
June 30,
Percent
Change
2026202520262025
(Unaudited)
(dollars in thousands, except per share amounts)
Revenue$1,598,993 $1,344,930 19 %$3,127,784 $2,708,147 15 %
Operating loss$(170,721)$(259,676)34 %$(245,170)$(453,522)46 %
Net loss$(163,960)$(262,570)38 %$(252,911)$(402,157)37 %
Adjusted EBITDA (1)
$249,615 $41,270 505 %$482,948 $149,695 223 %
Net cash provided by operating activities$176,214 $88,494 99 %$502,993 $240,104 109 %
Free Cash Flow (2)
$120,538 $23,793 407 %$406,545 $138,189 194 %
Diluted net loss per share attributable to common stockholders$(0.10)$(0.16)38 %$(0.15)$(0.24)38 %
(1)See page 8 for a reconciliation of net loss to Adjusted EBITDA. Total restructuring charges included in our consolidated statement of operations for the three and six months ended June 30, 2026 and excluded from Adjusted EBITDA were $128.5 million.
(2)See page 8 for a reconciliation of net cash provided by operating activities to Free Cash Flow.
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Q3 2026 Outlook
Snap Inc. will discuss its Q3 2026 outlook during its Q2 2026 Earnings Call (details below) and in its investor letter available at investor.snap.com.
Conference Call Information
Snap Inc. will host a conference call to discuss the results at 2:00 p.m. Pacific / 5:00 p.m. Eastern today. The live audio webcast along with supplemental information will be accessible at investor.snap.com. A recording of the webcast will also be available following the conference call.
Snap Inc. uses its websites (including snap.com and investor.snap.com) as means of disclosing material non-public information and for complying with its disclosure obligation under Regulation FD.
Definitions
Free Cash Flow is defined as net cash provided by (used in) operating activities, reduced by purchases of property and equipment.
Common shares outstanding plus shares underlying stock-based awards includes common shares outstanding, restricted stock units, restricted stock awards, and outstanding stock options.
Adjusted EBITDA is defined as net income (loss), excluding interest income; interest expense; other income (expense), net; income tax benefit (expense); depreciation and amortization; stock-based compensation expense; payroll and other tax expense related to stock-based compensation; and certain other items impacting net income (loss) from time to time.
Constant Currency Revenue is defined as GAAP revenue in the current period translated using the prior period average monthly exchange rates for revenue transactions in currencies other than the U.S. dollar. We calculate the Constant Currency Revenue percentage change using current period Constant Currency Revenue and prior period GAAP revenue.
A Daily Active User (DAU) is defined as a registered and logged-in Snapchat user who visits Snapchat through our applications or websites at least once during a defined 24-hour period. We calculate average DAUs for a particular quarter by adding the number of DAUs on each day of that quarter and dividing that sum by the number of days in that quarter.
Average Revenue Per User (ARPU) is defined as quarterly revenue divided by the average DAUs.
A Monthly Active User (MAU) is defined as a registered and logged-in Snapchat user who visits Snapchat through our applications or websites at least once during the 30-day period ending on the calendar month-end. We calculate average Monthly Active Users for a particular quarter by calculating the average of the MAUs as of each calendar month-end in that quarter.
Note: For adjustments and additional information regarding the non-GAAP financial measures and other items discussed, please see “Non-GAAP Financial Measures,” “Reconciliation of GAAP to Non-GAAP Financial Measures,” and “Supplemental Financial Information and Business Metrics.”
About Snap Inc.
Snap Inc. is a technology company. We believe the camera presents the greatest opportunity to improve the way people live and communicate. Snap contributes to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together.
Snap Inc. operates Snapchat, a visual messaging app that enhances your relationships with friends, family, and the world, and Specs Inc., a wholly-owned subsidiary dedicated to making computing more human, in addition to Bitmoji, Saturn, and other digital services. For more information, visit snap.com.
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Contact
Investors and Analysts:
ir@snap.com
Press:
press@snap.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release, including statements regarding guidance, our future results of operations or financial condition, future stock repurchase programs or stock dividends, business strategy and plans, user growth and engagement, product initiatives, objectives of management for future operations, and advertiser and partner offerings, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “going to,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. We caution you that the foregoing may not include all of the forward-looking statements made in this press release.
You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this press release primarily on our current expectations and projections about future events and trends, including our financial outlook, macroeconomic uncertainty, and geo-political events and conflicts, that we believe may continue to affect our business, financial condition, results of operations, and prospects. These forward-looking statements are subject to risks and uncertainties related to: our financial performance; our ability to attain and sustain profitability; our ability to generate and sustain positive cash flow; our ability to attract and retain users, partners, and advertisers; competition and new market entrants; managing our growth and future expenses; compliance with new laws, regulations, and executive actions; our ability to maintain, protect, and enhance our intellectual property; our ability to succeed in existing and new market segments; our ability to attract and retain qualified team members and key personnel; our ability to repay or refinance outstanding debt, or to access additional financing; future acquisitions, divestitures, or investments; and the potential adverse impact of climate change, natural disasters, health epidemics, macroeconomic conditions, and war or other armed conflict, as well as risks, uncertainties, and other factors described in “Risk Factors” and elsewhere in our most recent periodic report filed with the U.S. Securities and Exchange Commission, or SEC, which is available on the SEC’s website at www.sec.gov. Additional information will be made available in our periodic report that will be filed with the SEC for the period covered by this press release and other filings that we make from time to time with the SEC. In addition, any forward-looking statements contained in this press release are based on assumptions that we believe to be reasonable as of the date of this press release. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, including future developments related to geo-political events and conflicts and macroeconomic conditions, except as required by law.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We use the non-GAAP financial measure of Free Cash Flow, which is defined as net cash provided by (used in) operating activities, reduced by purchases of property and equipment. We believe Free Cash Flow is an important liquidity measure of the cash that is available, after capital expenditures, for operational expenses and investment in our business and is a key financial indicator used by management. Additionally, we believe that Free Cash Flow is an important measure since we use third-party infrastructure partners to host our services and therefore we do not incur significant capital expenditures to support revenue generating activities. Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.
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We use the non-GAAP financial measure of Adjusted EBITDA, which is defined as net income (loss), excluding interest income; interest expense; other income (expense), net; income tax benefit (expense); depreciation and amortization; stock-based compensation expense; payroll and other tax expense related to stock-based compensation; and certain other items impacting net income (loss) from time to time. We believe that Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude in Adjusted EBITDA.
We use the non-GAAP financial measure of Constant Currency Revenue, which is defined as GAAP revenue in the current period translated using the prior period average monthly exchange rates for revenue transactions in currencies other than the U.S. dollar. We calculate the Constant Currency Revenue percentage change using current period Constant Currency Revenue and prior period GAAP revenue. We report revenue on a constant-currency basis in order to facilitate period-to-period comparisons of our results without regard to the impact of fluctuating foreign currency exchange rates, which we believe is helpful to investors. However, Constant Currency Revenue is a non-GAAP financial measure, may be calculated differently from similarly titled measures used by other companies, and is not meant to be considered as an alternative or substitute for comparable measures prepared in accordance with GAAP.
We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to key metrics used by our management for financial and operational decision-making. We are presenting these non-GAAP measures to assist investors in seeing our financial performance through the eyes of management, and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.
For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see “Reconciliation of GAAP to Non-GAAP Financial Measures.”
Snap Inc., “Snapchat,” and our other registered and common law trade names, trademarks, and service marks are the property of Snap Inc. or our subsidiaries.
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SNAP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026202520262025
Cash flows from operating activities
Net loss$(163,960)$(262,570)$(252,911)$(402,157)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization46,945 40,023 91,641 77,738 
Stock-based compensation263,189 251,886 513,229 499,224 
Amortization of debt issuance costs and debt discount (premium)(967)(550)(1,898)7,092 
Losses (gains) on debt and equity securities, net(129)(1,208)716 14,592 
Gain on extinguishment of debt— — — (66,939)
Other10,909 12,362 16,035 11,557 
Change in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable, net of allowance(67,614)(3,088)107,021 191,128 
Prepaid expenses and other current assets(14,460)(7,058)(30,730)(29,886)
Operating lease right-of-use assets15,734 13,797 30,848 27,920 
Other assets159 (2,117)(81)6,893 
Accounts payable(59,745)(94,203)(37,701)(59,943)
Accrued expenses and other current liabilities155,599 147,695 87,950 (14,873)
Operating lease liabilities(9,011)(8,492)(21,466)(25,485)
Other liabilities(435)2,017 340 3,243 
Net cash provided by operating activities176,214 88,494 502,993 240,104 
Cash flows from investing activities
Purchases of property and equipment(55,676)(64,701)(96,448)(101,915)
Purchases of strategic investments— (20,000)(5,934)(20,000)
Cash paid for acquisitions, net of cash acquired(25,678)(35,499)(65,048)(35,499)
Purchases of marketable securities(213,798)(390,866)(516,158)(626,665)
Sales of marketable securities55,359 425,157 287,457 437,158 
Maturities of marketable securities216,138 301,348 429,738 565,114 
Other(500)— (500)— 
Net cash provided by (used in) investing activities(24,155)215,439 33,107 218,193 
Cash flows from financing activities
Proceeds from issuance of notes, net of issuance costs— — — 1,473,083 
Repurchases of Class A non-voting common stock(250,465)(243,473)(600,964)(500,573)
Deferred payments for acquisitions(2,642)(9,562)(2,642)(67,539)
Repurchases of convertible notes— — — (1,444,626)
Repayment of convertible notes— (36,240)— (36,240)
Other(1,799)(1,800)(3,400)(3,699)
Net cash used in financing activities(254,906)(291,075)(607,006)(579,594)
Change in cash, cash equivalents, and restricted cash(102,847)12,858 (70,906)(121,297)
Cash, cash equivalents, and restricted cash, beginning of period1,063,338 916,079 1,031,397 1,050,234 
Cash, cash equivalents, and restricted cash, end of period$960,491 $928,937 $960,491 $928,937 
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SNAP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts, unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2026202520262025
Revenue$1,598,993 $1,344,930 $3,127,784 $2,708,147 
Costs and expenses:
Cost of revenue667,885 653,333 1,333,126 1,292,912 
Research and development542,092 443,325 1,020,388 867,490 
Sales and marketing298,399 257,853 537,410 515,810 
General and administrative261,338 250,095 482,030 485,457 
Total costs and expenses1,769,714 1,604,606 3,372,954 3,161,669 
Operating loss(170,721)(259,676)(245,170)(453,522)
Interest income24,672 33,199 51,131 70,217 
Interest expense(36,941)(27,607)(73,697)(51,006)
Other income (expense), net21,502 (823)20,488 48,246 
Loss before income taxes(161,488)(254,907)(247,248)(386,065)
Income tax expense(2,472)(7,663)(5,663)(16,092)
Net loss$(163,960)$(262,570)$(252,911)$(402,157)
Net loss per share attributable to Class A, Class B, and Class C common stockholders:
Basic$(0.10)$(0.16)$(0.15)$(0.24)
Diluted$(0.10)$(0.16)$(0.15)$(0.24)
Weighted average shares used in computation of net loss per share:
Basic1,663,4491,674,8541,675,4831,685,544
Diluted1,663,4491,674,8541,675,4831,685,544
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SNAP INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except par value)
June 30,
2026		December 31,
2025
(unaudited)
Assets
Current assets
Cash and cash equivalents$958,848 $1,030,435 
Marketable securities1,700,910 1,910,137 
Accounts receivable, net of allowance1,237,338 1,372,237 
Prepaid expenses and other current assets309,533 272,065 
Total current assets4,206,629 4,584,874 
Property and equipment, net586,268 578,075 
Operating lease right-of-use assets562,091 506,216 
Intangible assets, net94,306 66,613 
Goodwill1,780,133 1,720,769 
Other assets240,733 221,255 
Total assets$7,470,160 $7,677,802 
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable$177,419 $219,793 
Operating lease liabilities47,823 48,479 
Accrued expenses and other current liabilities1,054,528 971,627 
Short-term debt, net153,159 46,969 
Total current liabilities1,432,929 1,286,868 
Long-term debt, net3,381,448 3,489,860 
Operating lease liabilities, noncurrent643,317 557,823 
Other liabilities85,378 61,756 
Total liabilities5,543,072 5,396,307 
Commitments and contingencies
Stockholders’ equity
Class A non-voting common stock, $0.00001 par value. 3,000,000 shares authorized, 1,471,658 shares issued, 1,428,131 shares outstanding at June 30, 2026, and 3,000,000 shares authorized, 1,502,073 shares issued, 1,457,403 shares outstanding at December 31, 2025.
15 15 
Class B voting common stock, $0.00001 par value. 700,000 shares authorized, 22,523 shares issued and outstanding at June 30, 2026 and December 31, 2025.
— — 
Class C voting common stock, $0.00001 par value. 260,888 shares authorized, 231,627 shares issued and outstanding at June 30, 2026 and December 31, 2025.
2 2 
Treasury stock, at cost. 43,527 and 44,670 shares of Class A non-voting common stock at June 30, 2026 and December 31, 2025, respectively.
(424,577)(435,722)
Additional paid-in capital17,143,598 16,637,324 
Accumulated deficit(14,800,691)(13,946,816)
Accumulated other comprehensive income8,741 26,692 
Total stockholders’ equity1,927,088 2,281,495 
Total liabilities and stockholders’ equity$7,470,160 $7,677,802 
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SNAP INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026202520262025
Free Cash Flow reconciliation:
Net cash provided by operating activities$176,214 $88,494 $502,993 $240,104 
Less:
Purchases of property and equipment(55,676)(64,701)(96,448)(101,915)
Free Cash Flow$120,538 $23,793 $406,545 $138,189 
Three Months Ended
June 30,
Six Months Ended
June 30,
2026202520262025
Adjusted EBITDA reconciliation:
Net loss$(163,960)$(262,570)$(252,911)$(402,157)
Add (deduct):
Interest income(24,672)(33,199)(51,131)(70,217)
Interest expense36,941 27,607 73,697 51,006 
Other expense (income), net(21,502)823 (20,488)(48,246)
Income tax expense2,472 7,663 5,663 16,092 
Depreciation and amortization45,599 40,023 90,295 77,738 
Stock-based compensation expense236,680 251,886 486,720 499,224 
Payroll and other tax expense related to stock-based compensation9,552 9,037 22,598 26,255 
Restructuring charges (1)
128,505 — 128,505 — 
Adjusted EBITDA$249,615 $41,270 $482,948 $149,695 
(1)Restructuring charges primarily include cash severance, stock-based compensation expense, and other charges associated with the restructuring. These charges are not reflective of underlying trends in our business.
Total depreciation and amortization expense by function:
Three Months Ended
June 30,
Six Months Ended
June 30,
2026202520262025
Depreciation and amortization expense (1):
Cost of revenue$1,384 $1,505 $2,847 $2,925 
Research and development32,615 24,849 60,775 47,836 
Sales and marketing7,711 5,108 14,346 9,931 
General and administrative5,235 8,561 13,673 17,046 
Total$46,945 $40,023 $91,641 $77,738 
(1)Depreciation and amortization expense for the three and six months ended June 30, 2026 includes restructuring charges.

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SNAP INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(in thousands, except per share amounts, unaudited)
Total stock-based compensation expense by function:
Three Months Ended
June 30,
Six Months Ended
June 30,
2026202520262025
Stock-based compensation expense (1):
Cost of revenue$2,811 $1,656 $4,397 $3,090 
Research and development193,501 166,809 367,417 323,497 
Sales and marketing47,342 48,710 92,674 103,150 
General and administrative19,535 34,711 48,741 69,487 
Total$263,189 $251,886 $513,229 $499,224 
(1)Stock-based compensation expense for the three and six months ended June 30, 2026 includes restructuring charges.
Three Months Ended
June 30,
Six Months Ended
June 30,
2026202520262025
Constant Currency Revenue reconciliation:
GAAP revenue$1,598,993 $1,344,930 $3,127,784 $2,708,147 
Effect of using prior period foreign exchange rates on current period revenue(7,941)(36,358)
Constant Currency Revenue$1,591,052 $3,091,426 
GAAP revenue percentage change19 %15 %
Constant Currency Revenue percentage change18 %14 %
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SNAP INC.
SUPPLEMENTAL FINANCIAL INFORMATION AND BUSINESS METRICS
(dollars and shares in thousands, except per user amounts, unaudited)
Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026
Cash Flows and Shares
Net cash provided by (used in) operating activities$151,610 $88,494 $146,488 $269,578 $326,779 $176,214 
Net cash provided by (used in) operating activities - YoY (year-over-year)72 %514 %26 %17 %116 %99 %
Net cash provided by (used in) operating activities - TTM (trailing twelve months)$476,738 $586,609 $617,225 $656,170 $831,339 $919,059 
Purchases of property and equipment$(37,214)$(64,701)$(53,044)$(64,022)$(40,772)$(55,676)
Purchases of property and equipment - YoY(26)%24 %20 %33 %10 %(14)%
Purchases of property and equipment - TTM$(181,592)$(194,231)$(203,234)$(218,981)$(222,539)$(213,514)
Free Cash Flow$114,396 $23,793 $93,444 $205,556 $286,007 $120,538 
Free Cash Flow - YoY202 %132 %30 %13 %150 %407 %
Free Cash Flow - TTM$295,146 $392,378 $413,991 $437,189 $608,800 $705,545 
Common shares outstanding1,686,678 1,682,350 1,710,909 1,711,554 1,697,270 1,682,281 
Common shares outstanding - YoY3 %2 %2 %1 %1 %— %
Shares underlying stock-based awards136,044 144,011 150,460 168,060 189,878 198,569 
Shares underlying stock-based awards - YoY(7)%— %13 %24 %40 %38 %
Total common shares outstanding plus shares underlying stock-based awards1,822,722 1,826,361 1,861,369 1,879,614 1,887,148 1,880,850 
Total common shares outstanding plus shares underlying stock-based awards - YoY1.9 %1.6 %3.1 %3.0 %3.5 %3.0 %
Results of Operations
Revenue$1,363,217 $1,344,930 $1,506,839 $1,716,461 $1,528,791 $1,598,993 
Revenue - YoY14 %9 %10 %10 %12 %19 %
Revenue - TTM$5,529,842 $5,638,004 $5,772,269 $5,931,447 $6,097,021 $6,351,084 
Constant Currency Revenue$1,370,500 $1,334,606 $1,494,999 $1,695,488 $1,500,374 $1,591,052 
Constant Currency Revenue - YoY15 %8 %9 %9 %10 %18 %
Revenue by region (1)
North America$831,691 $820,600 $897,814 $1,025,498 $851,253 $942,883 
North America - YoY12 %7 %5 %6 %2 %15 %
North America - TTM$3,425,815 $3,478,855 $3,519,048 $3,575,603 $3,595,165 $3,717,448 
Europe$224,015 $265,343 $297,950 $341,134 $323,852 $353,806 
Europe - YoY14 %15 %20 %19 %45 %33 %
Europe - TTM$989,783 $1,025,291 $1,074,339 $1,128,442 $1,228,279 $1,316,742 
Rest of World$307,511 $258,987 $311,075 $349,829 $353,686 $302,304 
Rest of World - YoY20 %8 %17 %16 %15 %17 %
Rest of World - TTM$1,114,244 $1,133,858 $1,178,882 $1,227,402 $1,273,577 $1,316,894 
Operating income (loss)$(193,846)$(259,676)$(128,362)$49,717 $(74,449)$(170,721)
Operating income (loss) - YoY42 %(2)%26 %285 %62 %34 %
Operating income (loss) - Margin(14)%(19)%(9)%3 %(5)%(11)%
Operating income (loss) - TTM$(647,908)$(653,609)$(608,761)$(532,167)$(412,770)$(323,815)
Net income (loss)$(139,587)$(262,570)$(103,541)$45,209 $(88,951)$(163,960)
Net income (loss) - YoY54 %(6)%32 %397 %36 %38 %
Net income (loss) - Margin(10)%(20)%(7)%3 %(6)%(10)%
Net income (loss) - TTM$(532,353)$(546,303)$(496,597)$(460,489)$(409,853)$(311,243)
Adjusted EBITDA$108,425 $41,270 $182,038 $357,746 $233,333 $249,615 
Adjusted EBITDA - YoY137 %(25)%38 %30 %115 %505 %
Adjusted EBITDA - Margin (2)
8 %3 %12 %21 %15 %16 %
Adjusted EBITDA - TTM$571,371 $557,664 $607,740 $689,479 $814,387 $1,022,732 
(1)Total revenue for geographic reporting is apportioned to each region based on our estimate of where revenue-generating activities occur, which is generally determined by the billing address of the customer. For advertising revenue, we allocate revenue based on the geographic location where advertising impressions are delivered, as this approximates revenue based on user activity. This allocation is consistent with how we determine ARPU.
(2)We define Adjusted EBITDA margin as Adjusted EBITDA divided by GAAP revenue.
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SNAP INC.
SUPPLEMENTAL FINANCIAL INFORMATION AND BUSINESS METRICS (continued)
(dollars and shares in thousands, except per user amounts, unaudited)
Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026
Other
DAU (in millions) (1)
460 469 477 474 483 493 
DAU - YoY9 %9 %8 %5 %5 %5 %
DAU by region (in millions)
North America99 98 98 94 92 92 
North America - YoY(1)%(2)%(3)%(5)%(7)%(7)%
Europe99 100 100 98 97 98 
Europe - YoY3 %3 %1 %(1)%(2)%(2)%
Rest of World262 271 280 282 294 303 
Rest of World - YoY16 %15 %15 %11 %12 %12 %
MAU (in millions)
913 932 943 946 956 971 
MAU - YoY7 %7 %7 %6 %5 %4 %
ARPU$2.96 $2.87 $3.16 $3.62 $3.17 $3.25 
ARPU - YoY5 %— %2 %5 %7 %13 %
ARPU by region
North America$8.41 $8.33 $9.20 $10.88 $9.23 $10.26 
North America - YoY13 %9 %8 %12 %10 %23 %
Europe$2.26 $2.65 $2.99 $3.47 $3.34 $3.62 
Europe - YoY11 %13 %19 %20 %48 %36 %
Rest of World$1.17 $0.96 $1.11 $1.24 $1.20 $1.00 
Rest of World - YoY4 %(6)%2 %5 %3 %4 %
Employees (full-time; excludes part-time, contractors, and temporary personnel)5,0615,2065,1945,2615,3814,723
Employees - YoY5 %10 %8 %7 %6 %(9)%
Depreciation and amortization expense
Cost of revenue$1,420 $1,505 $1,016 $1,818 $1,463 $1,384 
Research and development22,987 24,849 27,127 26,568 28,160 32,615 
Sales and marketing4,823 5,108 5,487 5,945 6,635 7,711 
General and administrative8,485 8,561 8,884 9,050 8,438 5,235 
Total$37,715 $40,023 $42,514 $43,381 $44,696 $46,945 
Depreciation and amortization expense - YoY(10)%6 %9 %10 %19 %17 %
Stock-based compensation expense
Cost of revenue$1,434 $1,656 $2,327 $2,009 $1,586 $2,811 
Research and development156,688 166,809 171,649 185,456 173,916 193,501 
Sales and marketing54,440 48,710 51,236 43,627 45,332 47,342 
General and administrative34,776 34,711 35,151 26,146 29,206 19,535 
Total$247,338 $251,886 $260,363 $257,238 $250,040 $263,189 
Stock-based compensation expense - YoY(6)%(3)%— %— %1 %4 %
(1)Numbers may not foot due to rounding.
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