Snap (SNAP) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue grew 10% year-over-year to $1.72 billion, with net income rising to $45 million from $9 million a year ago and full-year revenue up 11% to $5.93 billion.

• Monthly active users reached 946 million, up 6% year-over-year, and daily active users increased by 5% year-over-year.

• Strategic focus on monetizable markets, AI-driven ad platform, and subscription growth underpinned results, with engagement deepened by new AR and AI-powered features.

• Adjusted EBITDA for Q4 was $358 million, up 30% year-over-year, with margin expanding to 21%.

• Board authorized a $500 million stock repurchase program to offset dilution from employee stock awards.

Financial highlights

• Q4 gross margin expanded to 59%, up from 57% in Q4 2024.

• Q4 operating income was $50 million, reversing a loss of $27 million in Q4 2024.

• Q4 free cash flow was $206 million, up from $182 million a year ago; cash and marketable securities ended at $2.9 billion.

• Q4 average revenue per user was $3.62, up from $3.44 in the prior year.

• Full-year net loss narrowed to $460 million from $698 million; full-year adjusted EBITDA was $689 million (12% margin), up from $509 million (9% margin) in 2024.

Outlook and guidance

• Q1 2026 revenue guidance is $1.5–$1.53 billion, excluding Perplexity integration.

• Adjusted EBITDA for Q1 2026 expected between $170–$190 million.

• Full-year 2026 infrastructure costs guided at $1.6–$1.65 billion; adjusted operating expenses estimated at $3 billion.

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

• Focus remains on accelerating top-line growth, diversifying revenue, and expanding gross margins.