Snap (SNAP) Q2 2026 earnings summary

Executive summary

• Revenue grew 19% year-over-year to $1.6 billion in Q2 2026, driven by strong advertising, subscription, and direct revenue growth, with ARPU rising to $3.25.

• Net loss narrowed to $164 million from $263 million year-over-year, and Adjusted EBITDA surged to $250 million from $41 million.

• Daily Active Users reached 493 million (up 5% YoY), and Monthly Active Users reached 971 million (up 4% YoY).

• Free Cash Flow improved to $121 million in Q2 2026, up from $24 million year-over-year.

• The company executed significant restructuring, including a 16% global headcount reduction and continued major stock repurchases.

Financial highlights

• Q2 2026 revenue: $1.6 billion (+19% YoY); advertising revenue grew 9% to $1.28 billion, other revenue surged 85% to $316 million.

• Gross margin expanded to 58%, up from 51% year-over-year; adjusted EBITDA margin reached 16%.

• Operating cash flow was $176 million, and Free Cash Flow reached $121 million in Q2 2026.

• Diluted net loss per share improved to $(0.10) from $(0.16) year-over-year.

• Cash, cash equivalents, and marketable securities totaled $2.7 billion at quarter-end.

Outlook and guidance

• Q3 2026 revenue guidance is $1.70–$1.74 billion; adjusted EBITDA expected between $300 million and $350 million.

• Full-year infrastructure costs expected at $1.65–$1.70 billion, with adjusted operating expenses projected at $2.75 billion.

• Management highlights macroeconomic and geopolitical uncertainties that may impact future results.

• Multi-year dilution management program to launch in 2027, funded by free cash flow.

• Sustained positive net income anticipated beginning in 2027.