Snap (SNAP) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 14% YoY to $1,722.5M; GAAP net income was $56.5M versus a $103.5M loss, and Adjusted EBITDA reached $382.6M.

• Average MAUs and DAUs each grew 4% YoY to 977M and 495M; ARPU was $3.48, up 10%.

• Daily messages sent increased 8% YoY; priorities include community safety, faster advertising growth, and stronger relationships, while advertising growth remained below ambitions.

Financial highlights

• Q3 revenue was $1,722.5M, up 14% YoY; total costs and expenses were $1.65B versus $1.64B.

• Q3 operating income was $76.7M versus an operating loss of $128.4M; net income was $56.5M versus a net loss of $103.5M.

• Q3 operating cash flow was $210.5M and Free Cash Flow was $164.5M, versus $146.5M and $93.4M YoY; 9M Free Cash Flow was $571.0M.

• 9M revenue increased to $4,850.3M from $4,210M; net loss narrowed to $196.4M from $505.7M.

• Cash, cash equivalents, and marketable securities totaled $2.77B at quarter-end.

Outlook and guidance

• Q4 revenue guidance is $1.950B–$1.985B; Adjusted EBITDA guidance is $490M–$525M.

• FY infrastructure cost outlook narrowed to $1.65B–$1.66B from $1.65B–$1.70B; Q4 infrastructure costs are expected to grow modestly YoY.

• FY all other cost of revenue, excluding infrastructure, is expected to be 16%–17% of revenue.

• SPECS investment is included in guidance and will be paced against product, ecosystem, and economic milestones.

• Management cited cautious optimism about Q4 advertising acceleration; brand recovery initiatives are expected to gain traction during 2027.