Snap (SNAP) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 14% year-over-year to $1.363 billion, driven by direct response advertising, SMB performance, and Snapchat+ subscription growth, with DAU up 9% to 460 million and MAU surpassing 900 million.

• Net loss narrowed to $139.6 million from $305.1 million a year ago, a 54% improvement; adjusted EBITDA rose to $108 million from $46 million.

• Free cash flow increased 202% year-over-year to $114 million, with cash, cash equivalents, and marketable securities totaling $3.2 billion at quarter-end.

• Engagement deepened with significant growth in Snap Star Spotlight posts, My AI daily active users, and a 60% year-over-year increase in active advertisers.

Financial highlights

• Total revenue: $1.363 billion, up 14% year-over-year; advertising revenue: $1.211 billion, up 9%; Snapchat+ revenue rose 75% to $152 million with nearly 15 million subscribers.

• Adjusted gross margin improved to 53% from 52% year-over-year; operating margin improved to -14% from -28% year-over-year.

• Adjusted operating expenses were $618 million, up 7% year-over-year; R&D expenses fell 6% to $424.2 million.

• Net loss per share improved to $(0.08) from $(0.19) a year ago; adjusted EBITDA margin rose to 8% from 4% year-over-year.

• Free cash flow for Q1 was $114 million; trailing 12-month free cash flow was $295 million.

Outlook and guidance

• No formal Q2 financial guidance due to macroeconomic uncertainty and evolving advertising demand; Q2 DAU expected at 468 million.

• Full-year infrastructure cost per DAU guidance maintained at $0.82-$0.87; adjusted operating expense guidance lowered to $2.65-$2.7 billion.

• Strategic focus remains on user growth, engagement, revenue diversification, and AR/AI investments.