Snap (SNAP) Q3 2025 earnings summary

Executive summary

• Revenue grew 10% year-over-year to $1.51 billion in Q3 2025, with daily active users up 8% to 477 million and monthly active users up 7% to 943 million, progressing toward the 1 billion MAU goal.

• Net loss narrowed to $104 million from $153 million year-over-year, and adjusted EBITDA rose 38% to $182 million.

• Free cash flow improved to $93 million, and cash, cash equivalents, and marketable securities totaled $3.0 billion at quarter-end.

• Significant investments in AI, AR, and new monetization products, including Snapchat+, Lens+, and memory storage plans.

• A $500 million stock repurchase program was authorized, funded by $3.0 billion in cash and equivalents.

Financial highlights

• Q3 revenue was $1,507 million, up from $1,373 million year-over-year; ARPU increased to $3.16 from $3.10.

• Adjusted EBITDA margin improved to 12% in Q3; gross margin was 55%, up from 53% year-over-year.

• Free cash flow for the trailing 12 months was $414 million; operating cash flow was $146 million.

• Other revenue, mainly from Snapchat+ subscriptions, rose 54% year-over-year to $190 million.

• Ended Q3 with $3 billion in cash and marketable securities.

Outlook and guidance

• Q4 revenue guidance is $1.68–$1.71 billion, implying 8%–10% year-over-year growth.

• Adjusted EBITDA expected between $280 million and $310 million in Q4.

• Infrastructure costs per DAU expected to rise modestly in Q4; full-year adjusted operating expenses to be near the low end of $2.65–$2.7 billion.

• Anticipates DAU may decline in Q4 due to regulatory and internal changes.

• Management expects continued competition for advertising dollars and potential revenue headwinds from platform policy changes and macroeconomic factors.