# Snap (SNAP) Q2 2026 earnings

Results filed 2026-08-03 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/snap/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1564408/000156440826000047/0001564408-26-000047-index.htm
> Summaries and transcripts are machine-generated and can contain errors.

## In brief

Second quarter revenue increased 19% year-over-year to $1,599 million; operating cash flow was $176 million and Free Cash Flow was $121 million; net loss of $164 million and Adjusted EBITDA of $250 million.

Snap's second-quarter revenue rose 19% to $1,599 million. Advertising Revenue grew 9% to $1.28 billion, while subscription-led Other Revenue grew 85% to $316 million. A cost restructuring helped gross margin reach 58% and Adjusted EBITDA reach $250 million, up from $41 million a year earlier. The net loss narrowed to $164 million, and Free Cash Flow was $121 million. Monthly Active Users reached 971 million.
For Q3, management guides revenue of $1.70 billion to $1.74 billion and Adjusted EBITDA of $300 million to $350 million, and it expects further savings from the restructuring. It also raised its full-year Infrastructure Costs outlook for AI. Key tensions are weaker North America user counts, heavy reliance on subscriptions for growth, SPECS glasses spending, and youth-related legal and regulatory trials later this year that could change products and hurt user growth.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Revenue | $1,599 million | up 19% year-over-year | GAAP |
| Net loss | $164 million | compared to $263 million in the prior year | GAAP |
| Diluted net loss per share | $(0.10) | compared to $(0.16) in the prior year | GAAP |
| GAAP gross margin | 58% | compared to 51% in the prior year | GAAP |
| Operating loss | $(170,721) | compared to $(259,676) in the prior year | GAAP |
| Operating margin | (11)% | compared to (19)% in Q2 2025 | GAAP |
| Operating cash flow | $176 million | compared to $88 million in the prior year | GAAP |
| Free Cash Flow | $121 million | compared to $24 million in the prior year | non-GAAP |
| Adjusted EBITDA | $250 million | compared to $41 million in the prior year | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Advertising Revenue | $1.28 billion | grew 9% |
| Other Revenue | $316 million | grew 85% |
| Monthly Active Users | 971 million | up 4% year-over-year |
| Daily Active Users | 493 million | up 5% year-over-year |
| Average revenue per user | $3.25 | compared to $2.87 in the prior year |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Revenue | Q3 2026 | $1.70 billion to $1.74 billion |
| Adjusted EBITDA | Q3 2026 | $300 million and $350 million |
| Infrastructure Costs | full-year 2026 | $1.65 billion to $1.70 billion |
| All Other Cost of Revenue, excluding Infrastructure Costs, as share of revenue | full-year 2026 | 16% to 17% |
| Adjusted Operating Expenses | full-year 2026 | approximately $2.75 billion |
| Stock-based compensation | full-year 2026 | approximately $1.05 billion |

## Key takeaways

1. **Revenue growth accelerated to 19%** Revenue grew 19% year-over-year to $1,599 million, up from 12% in Q1 2026 and 9% in Q2 2025. Constant currency growth was 18%.
2. **Subscriptions are driving the growth mix** Other Revenue grew 85% to $316 million, led by Snapchat+, Memories Storage and Lens+, while Advertising Revenue grew 9% to $1.28 billion. Less than 3% of monthly active users pay.
3. **Restructuring lifted margins and Adjusted EBITDA** Gross margin expanded seven percentage points to 58% and Adjusted EBITDA rose to $250 million from $41 million. Restructuring charges of $128.5 million were excluded from Adjusted EBITDA.
4. **Free Cash Flow per share is the new goal** Free Cash Flow was $121 million, and $706 million over the past twelve months. Management expects a new multi-year dilution management program after the current repurchase program completes in Q4.
5. **North America users fall as legal risks loom** North America DAU was 92 million, down 7% year-over-year, while Rest of World DAU reached 303 million. Management warned that youth-related trials later this year could hurt products, costs and user growth.

## Questions

**What were Snap's key results in Q2 2026?** Revenue rose 19% to $1,599 million, net loss narrowed to $164 million, and Adjusted EBITDA was $250 million. Operating cash flow was $176 million and Free Cash Flow was $121 million.
**What is Snap's Q3 2026 guidance?** Snap guided Q3 revenue of $1.70 billion to $1.74 billion and Adjusted EBITDA of $300 million to $350 million. It also raised full-year Infrastructure Costs guidance to $1.65 billion to $1.70 billion.
**How are Snap's users trending?** Monthly Active Users reached 971 million and Daily Active Users 493 million, up 4% and 5% year-over-year. North America DAU fell 7% to 92 million, while Rest of World DAU grew 12% to 303 million.
**What drove Snap's revenue growth?** Advertising Revenue grew 9% to $1.28 billion on large North American advertisers, Smart Campaign Solutions and small and medium-sized businesses. Other Revenue, mainly subscriptions, grew 85% to $316 million.
**What are the main risks for Snap?** Management cited youth-related regulatory scrutiny and several U.S. trials later this year that could change products and raise legal costs. Snap is also still loss-making on a GAAP basis, though it expects sustained positive net income beginning in 2027.

## Slides and investor documents

- [Earnings Slides](https://s25.q4cdn.com/442043304/files/doc_financials/2026/q2/Q2-26-Earnings-Slides_Final.pdf) (Slide deck)
- [Prepared Remarks](https://s25.q4cdn.com/442043304/files/doc_financials/2026/q2/Q2-2026-Prepared-Remarks.pdf) (CFO commentary)
- [Earnings Call Transcript](https://s25.q4cdn.com/442043304/files/doc_financials/2026/q2/Q2-2026-Earnings-Call-Q-A-Transcript_Final.pdf) (Company's official transcript)
- [Webcast](https://events.q4inc.com/attendee/997870973) (Webcast replay)
- [Form 10-K & 10-Q](https://d18rn0p25nwr6d.cloudfront.net/CIK-0001564408/e090409c-510b-403e-b3b2-2bbeceb258c5.pdf) (Document)