Snap swings to $56M profit in Q3 2026 earnings
Snap expects full-year Infrastructure Costs of $1.65 billion to $1.66 billion, compared with prior guidance of $1.65 billion to $1.70 billion.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Snap Inc. reported Q3 2026 revenue of $1,722 million, up 14% year over year, and net income of $56 million, compared with a $104 million net loss a year earlier. Adjusted EBITDA was $383 million versus $182 million; operating cash flow was $210 million, up 44%, and Free Cash Flow was $164 million, up 76%. Average daily active users were 495 million and monthly active users were 977 million.
Advertising revenue increased 4%, while Other Revenue rose 84%, led by Snapchat+, Memories Storage and Lens+. For Q4, Snap guided to revenue of $1.950 billion to $1.985 billion and Adjusted EBITDA of $490 million to $525 million. Snap also reported approximately 1.93 billion common shares outstanding plus shares underlying stock-based awards, up 3.8% year over year.
Beginning with Q1 2027 results, Snap plans to make global MAU its primary audience metric, replacing global DAU and discontinuing regional DAU and regional ARPU. Global MAU-based ARPU will become its primary monetization metric.
5 points · 0 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointRevenue rose 14% to $1,722 million in Q3 2026.
- Moderate pointSnap reported $56 million net income versus a $104 million loss.
- Moderate pointAdjusted EBITDA increased 110% to $383 million.
- Moderate pointOperating cash flow rose 44% to $210 million.
- Moderate pointFree Cash Flow increased 76% to $164 million.
Negative
- None.
Filing Explained
The 2027 audience-metric change shifts MAU to a quarter-end count; Snap estimates the revised definition would change Q3 2026 MAU by less than one percent.
Alongside its Q3 results, Snap says its current repurchase program is expected to finish in
Beginning with
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $1,722 million
Net income: $56 million
Adjusted EBITDA: $383 million
+4 more
7 metrics
Revenue
$1,722 million
Q3 2026; up 14% year over year
Net income
$56 million
Q3 2026; compared with a $104 million net loss a year earlier
Adjusted EBITDA
$383 million
Q3 2026; up 110% year over year
Operating cash flow
$210 million
Q3 2026; up 44% year over year
Free Cash Flow
$164 million
Q3 2026; up 76% year over year
Q4 revenue guidance
$1.950 billion to $1.985 billion
Q4 2026
Q4 Adjusted EBITDA guidance
$490 million to $525 million
Q4 2026
Key Terms
Adjusted EBITDA, Free Cash Flow, Average Revenue Per User (ARPU), Operating leverage, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA is defined as net income (loss), excluding"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free Cash Flow financial
"Free Cash Flow is defined as net cash provided by"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Average Revenue Per User (ARPU) financial
"Average Revenue Per User (ARPU) is defined as quarterly revenue"
Average revenue per user (ARPU) measures how much money a company earns, on average, from each of its customers or users over a specific period. It helps investors understand how effectively a company is generating income from its customer base, serving as an indicator of its overall revenue performance and potential growth. Higher ARPU generally suggests that a company is successfully providing valuable services or products that customers are willing to pay for.
Operating leverage financial
"Operating leverage is a non-GAAP measure"
Operating leverage measures how much a company's profits are affected by changes in sales volume. When a business has high operating leverage, small increases in sales can lead to much larger increases in profit, much like a lever amplifies force. It matters to investors because it indicates how sensitive a company's earnings are to fluctuations in sales, affecting risk and potential returns.
Third-Party Web Optimization technical
"Third-Party Web Optimization, now in open beta"
Earnings Snapshot
Revenue: $1,722 million · Guidance included
Q3 2026
Revenue
$1,722 million
Up 14% year over year
Net income
$56 million
Compared with a $104 million net loss a year earlier
Adjusted EBITDA
$383 million
Up 110% year over year
Operating cash flow
$210 million
Up 44% year over year
Free Cash Flow
$164 million
Up 76% year over year
Guidance
Q4 2026 revenue of $1.950 billion to $1.985 billion and Adjusted EBITDA of $490 million to $525 million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did SNAP report for Q3 2026?
Snap reported Q3 2026 revenue of $1,722 million, up 14% year over year. Net income was $56 million, compared with a $104 million net loss a year earlier.
What is SNAP's Q4 2026 outlook?
Snap guided to Q4 2026 revenue of $1.950 billion to $1.985 billion and Adjusted EBITDA of $490 million to $525 million.
When will SNAP make MAU its primary audience metric?
Snap plans to make global MAU its primary audience metric beginning with Q1 2027 results, replacing global DAU and discontinuing regional DAU and regional ARPU. It also plans to use global MAU-based ARPU as its primary monetization metric.
What is SNAP's full-year Infrastructure Costs outlook?
Snap anticipates full-year Infrastructure Costs of $1.65 billion to $1.66 billion, compared with prior guidance of $1.65 billion to $1.70 billion.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________________________
FORM 8-K
________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 4, 2026
________________________
(Exact name of Registrant as Specified in Its Charter)
________________________
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||
| (Address of Principal Executive Offices) | (Zip Code) | ||||||||||
Registrant’s Telephone Number, Including Area Code: (310 ) 399-3339
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On November 4, 2026, Snap Inc. reported financial results for the three and nine months ended September 30, 2026. A copy of the press release and the prepared remarks are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and incorporated by reference.
The press release and prepared remarks are furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission made by Snap Inc., whether made before or after today’s date, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number | Description | |||||||
99.1 | Press release dated November 4, 2026. | |||||||
| 99.2 | Prepared remarks dated November 4, 2026. | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SNAP INC. | ||||||||
Date: November 4, 2026 | By: | /s/ Douglas Hott | ||||||
| Douglas Hott | ||||||||
| Chief Financial Officer | ||||||||
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Exhibit 99.1
Snap Inc. Announces Third Quarter 2026 Financial Results
Third quarter revenue increased 14% year-over-year to $1,722 million
Third quarter net income of $56 million and Adjusted EBITDA of $383 million
Third quarter operating cash flow was $210 million and Free Cash Flow was $164 million
SANTA MONICA, Calif. – November 4, 2026 – Snap Inc. (NYSE: SNAP) today announced financial results for the quarter ended September 30, 2026.
“In Q3, we generated positive net income as revenue grew 14% year-over-year to $1.72 billion, reflecting the progress we are making to build a more profitable business,” said Evan Spiegel, co-founder and CEO. “AI is becoming a significant advantage for our teams and advertising platform, and we continue to strengthen our business while investing in our long-term vision for augmented reality with the launch of SPECS.”
Q3 2026 Financial Summary
•Revenue was $1,722 million, compared to $1,507 million in the prior year, an increase of 14% year-over-year.
•Net income was $56 million, compared to net loss of $104 million in the prior year.
•Adjusted EBITDA was $383 million, compared to $182 million in the prior year.
•Operating cash flow was $210 million, compared to $146 million in the prior year.
•Free Cash Flow was $164 million, compared to $93 million in the prior year.
•Common shares outstanding was 1,718 million as of September 30, 2026, compared to 1,711 million as of September 30, 2025.
•Total common shares outstanding plus shares underlying stock-based awards was 1,932 million as of September 30, 2026, compared to 1,861 million as of September 30, 2025.
Three Months Ended September 30, | Percent Change | Nine Months Ended September 30, | Percent Change | ||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||
| (Unaudited) | (dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||
| Revenue | $ | 1,722,471 | $ | 1,506,839 | 14 | % | $ | 4,850,255 | $ | 4,214,986 | 15 | % | |||||||||||||||||||||||
| Operating income (loss) | $ | 76,716 | $ | (128,362) | 160 | % | $ | (168,454) | $ | (581,884) | 71 | % | |||||||||||||||||||||||
| Net income (loss) | $ | 56,498 | $ | (103,541) | 155 | % | $ | (196,413) | $ | (505,698) | 61 | % | |||||||||||||||||||||||
Adjusted EBITDA (1) | $ | 382,647 | $ | 182,038 | 110 | % | $ | 865,595 | $ | 331,733 | 161 | % | |||||||||||||||||||||||
| Net cash provided by operating activities | $ | 210,484 | $ | 146,488 | 44 | % | $ | 713,477 | $ | 386,592 | 85 | % | |||||||||||||||||||||||
Free Cash Flow (2) | $ | 164,453 | $ | 93,444 | 76 | % | $ | 570,998 | $ | 231,633 | 147 | % | |||||||||||||||||||||||
| Diluted net income (loss) per share | $ | 0.03 | $ | (0.06) | 150 | % | $ | (0.12) | $ | (0.30) | 60 | % | |||||||||||||||||||||||
(1)See page 9 for a reconciliation of net income (loss) to Adjusted EBITDA. Total restructuring charges included in our consolidated statement of operations for the nine months ended September 30, 2026 and excluded from Adjusted EBITDA were $128.5 million.
(2)See page 9 for a reconciliation of net cash provided by operating activities to Free Cash Flow.
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Q4 2026 Outlook
Snap Inc. will discuss its Q4 2026 outlook during its Q3 2026 Earnings Call (details below) and in its investor letter available at investor.snap.com.
Conference Call Information
Snap Inc. will host a conference call to discuss the results at 2:00 p.m. Pacific / 5:00 p.m. Eastern today. The live audio webcast along with supplemental information will be accessible at investor.snap.com. A recording of the webcast will also be available following the conference call.
Snap Inc. uses its websites (including snap.com and investor.snap.com) as means of disclosing material non-public information and for complying with its disclosure obligation under Regulation FD.
Definitions
Free Cash Flow is defined as net cash provided by (used in) operating activities, reduced by purchases of property and equipment.
Common shares outstanding plus shares underlying stock-based awards includes common shares outstanding, restricted stock units, restricted stock awards, and outstanding stock options.
Adjusted EBITDA is defined as net income (loss), excluding interest income; interest expense; other income (expense), net; income tax benefit (expense); depreciation and amortization; stock-based compensation expense; payroll and other tax expense related to stock-based compensation; and certain other items impacting net income (loss) from time to time.
Constant Currency Revenue is defined as GAAP revenue in the current period translated using the prior period average monthly exchange rates for revenue transactions in currencies other than the U.S. dollar. We calculate the Constant Currency Revenue percentage change using current period Constant Currency Revenue and prior period GAAP revenue.
A Daily Active User (DAU) is defined as a registered and logged-in Snapchat user who visits Snapchat through our applications or websites at least once during a defined 24-hour period. We calculate average DAUs for a particular quarter by adding the number of DAUs on each day of that quarter and dividing that sum by the number of days in that quarter.
Average Revenue Per User (ARPU) is defined as quarterly revenue divided by the average DAUs.
A Monthly Active User (MAU) is defined as a registered and logged-in Snapchat user who visits Snapchat through our applications or websites at least once during the 30-day period ending on the calendar month-end. We calculate average Monthly Active Users for a particular quarter by calculating the average of the MAUs as of each calendar month-end in that quarter.
Note: For adjustments and additional information regarding the non-GAAP financial measures and other items discussed, please see “Non-GAAP Financial Measures,” “Reconciliation of GAAP to Non-GAAP Financial Measures,” and “Supplemental Financial Information and Business Metrics.”
About Snap Inc.
Snap Inc. is a technology company. We believe the camera presents the greatest opportunity to improve the way people live and communicate. Snap contributes to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together.
Snap Inc. operates Snapchat, a visual messaging app that enhances your relationships with friends, family, and the world, and Specs Inc., a wholly-owned subsidiary dedicated to making computing more human, in addition to Bitmoji, Saturn, and other digital services. For more information, visit snap.com.
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Contact
Investors and Analysts:
ir@snap.com
Press:
press@snap.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release, including statements regarding guidance, our future results of operations or financial condition, future stock repurchase programs or stock dividends, business strategy and plans, user growth and engagement, product initiatives, objectives of management for future operations, and advertiser and partner offerings, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “going to,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. We caution you that the foregoing may not include all of the forward-looking statements made in this press release.
You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this press release primarily on our current expectations and projections about future events and trends, including our financial outlook, macroeconomic uncertainty, and geo-political events and conflicts, that we believe may continue to affect our business, financial condition, results of operations, and prospects. These forward-looking statements are subject to risks and uncertainties related to: our financial performance; our ability to attain and sustain profitability; our ability to generate and sustain positive cash flow; our ability to attract and retain users, partners, and advertisers; competition and new market entrants; managing our growth and future expenses; compliance with new laws, regulations, and executive actions; our ability to maintain, protect, and enhance our intellectual property; our ability to succeed in existing and new market segments; our ability to attract and retain qualified team members and key personnel; our ability to repay or refinance outstanding debt, or to access additional financing; future acquisitions, divestitures, or investments; and the potential adverse impact of climate change, natural disasters, health epidemics, macroeconomic conditions, and war or other armed conflict, as well as risks, uncertainties, and other factors described in “Risk Factors” and elsewhere in our most recent periodic report filed with the U.S. Securities and Exchange Commission, or SEC, which is available on the SEC’s website at www.sec.gov. Additional information will be made available in our periodic report that will be filed with the SEC for the period covered by this press release and other filings that we make from time to time with the SEC. In addition, any forward-looking statements contained in this press release are based on assumptions that we believe to be reasonable as of the date of this press release. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, including future developments related to geo-political events and conflicts and macroeconomic conditions, except as required by law.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We use the non-GAAP financial measure of Free Cash Flow, which is defined as net cash provided by (used in) operating activities, reduced by purchases of property and equipment. We believe Free Cash Flow is an important liquidity measure of the cash that is available, after capital expenditures, for operational expenses and investment in our business and is a key financial indicator used by management. Additionally, we believe that Free Cash Flow is an important measure since we use third-party infrastructure partners to host our services and therefore we do not incur significant capital expenditures to support revenue generating activities. Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.
3
We use the non-GAAP financial measure of Adjusted EBITDA, which is defined as net income (loss), excluding interest income; interest expense; other income (expense), net; income tax benefit (expense); depreciation and amortization; stock-based compensation expense; payroll and other tax expense related to stock-based compensation; and certain other items impacting net income (loss) from time to time. We believe that Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude in Adjusted EBITDA.
We use the non-GAAP financial measure of Constant Currency Revenue, which is defined as GAAP revenue in the current period translated using the prior period average monthly exchange rates for revenue transactions in currencies other than the U.S. dollar. We calculate the Constant Currency Revenue percentage change using current period Constant Currency Revenue and prior period GAAP revenue. We report revenue on a constant-currency basis in order to facilitate period-to-period comparisons of our results without regard to the impact of fluctuating foreign currency exchange rates, which we believe is helpful to investors. However, Constant Currency Revenue is a non-GAAP financial measure, may be calculated differently from similarly titled measures used by other companies, and is not meant to be considered as an alternative or substitute for comparable measures prepared in accordance with GAAP.
We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to key metrics used by our management for financial and operational decision-making. We are presenting these non-GAAP measures to assist investors in seeing our financial performance through the eyes of management, and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.
For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see “Reconciliation of GAAP to Non-GAAP Financial Measures.”
Snap Inc., “Snapchat,” and our other registered and common law trade names, trademarks, and service marks are the property of Snap Inc. or our subsidiaries.
Note Regarding User Metrics and Other Data
Beginning with our Quarterly Report on Form 10-Q to be filed for the first quarter of 2027, we plan to transition to global MAU as our primary audience metric. This change will include the replacement of global DAU with global MAU, as well as the discontinuation of regional DAU and regional ARPU. While DAU remains an important measure of engagement, we no longer believe it is the best primary measure of long-term value. MAU represents the scale of our community, while engagement and monetization metrics reflect the depth and value of our service. Daily engagement has historically been stable as a percentage of monthly engagement, but we do not intend to optimize Snapchat around daily use at the expense of long-term value for our community. A longer-term horizon better aligns our reported metrics with the product and safety decisions that strengthen relationships, create lasting utility, and support broader, more durable audience growth. Alongside global MAU, we are introducing global MAU-based ARPU as our primary monetization metric. The following describes these user metrics both prior to and after our planned transition.
We define a Daily Active User, or DAU, as a registered and logged-in Snapchat user who visits Snapchat through our applications or websites at least once during a defined 24-hour period. We calculate average DAUs for a particular quarter by adding the number of DAUs on each day of that quarter and dividing that sum by the number of days in that quarter. DAUs are broken out by geography because markets have different characteristics.
We define a Monthly Active User, or MAU, as a registered and logged-in Snapchat user who visits Snapchat through our applications or websites at least once during the 30-day period ending on the calendar month-end. We calculate average MAUs for a particular quarter by calculating the average of the MAUs as of each calendar month-end in that quarter. Beginning in the first quarter of 2027, we plan to update the definition of MAU to include any registered and logged-in Snapchat user who visits at least one Snapchat-branded product through our applications or websites, which under the updated definition will include users who access our products through Apple Watch. Historically, MAU attributable to Apple Watch users has not been material. Additionally, beginning in the first quarter of 2027, MAU will be calculated using activity during the last 30 days of the quarter. Accordingly, reported quarterly MAU will represent the number of active users as of quarter end rather than an average of monthly active users during the quarter. We believe this measurement period provides a more current view of our trajectory and improves comparability with peers. The impact of these changes to our historical MAU definition would have resulted in a less than 1% change to our historical MAU in the
4
third quarter of 2026 and would have resulted in similarly immaterial changes in our historical MAUs in each quarter from the first quarter of 2024 to the second quarter of 2026.
We define average revenue per user, or ARPU, as quarterly revenue divided by the average DAUs. For purposes of calculating ARPU, revenue by user geography is apportioned to each region based on our determination of the geographic location in which advertising impressions are delivered, as this approximates revenue based on user activity. This allocation differs from our components of revenue disclosure in the notes to our consolidated financial statements, where revenue is based on the billing address of the customer. Beginning in the first quarter of 2027, we plan to define ARPU as quarterly revenue divided by global MAU reported for the quarter. We will also no longer report regional ARPU. Any adjustments to historical MAUs discussed above would have a commensurate immaterial impact on our calculations of historical ARPU under the updated definition. For information concerning these metrics as measured by us, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
Unless otherwise stated, statistical information regarding our users and their activities is determined using the applicable measurement period and calculation method described above.
While these metrics are determined based on what we believe to be reasonable estimates of our user base for the applicable period of measurement, there are inherent challenges in measuring how our products are used across large populations globally. For example, there may be individuals who attempt to create accounts for malicious purposes, including at scale, even though we forbid that in our Terms of Service and Community Guidelines. We implement measures in our user registration process and through other technical measures to prevent, detect, and suppress that behavior, although we have not determined the number of such accounts.
Changes in our products, infrastructure, mobile operating systems, or metric tracking system, or the introduction of new products, may impact our ability to accurately determine active users or other metrics and we may not determine such inaccuracies promptly. We also believe that we don’t capture all data regarding each of our active users. Technical issues may result in data not being recorded from every user’s application. For example, because some Snapchat features can be used without internet connectivity, we may not count a DAU or MAU because we don’t receive timely notice that a user has opened the Snapchat application. This undercounting may increase as we grow in Rest of World markets where users may have poor connectivity. We do not adjust our reported metrics to reflect this underreporting. We believe that we have adequate controls to collect user metrics; however, there is no uniform industry standard. We continually seek to identify these technical issues and improve both our accuracy and precision, including ensuring that our investors and others can understand the factors impacting our business, but these technical issues and new issues may continue in the future, including if there continues to be no uniform industry standard.
Some of our demographic data may be incomplete or inaccurate. For example, although we take steps to understand our users’ ages, including requiring new users to self-report their dates of birth, our age-demographic data may differ from our users’ actual ages. And because users who signed up for Snapchat before June 2013 were not asked to supply their date of birth, we may exclude those users from our age demographics or estimate their ages based on a sample of the age data that we do have. If our active users provide us with incorrect or incomplete information regarding their age or other attributes, then our estimates may prove inaccurate and fail to meet investor expectations.
We count a DAU or MAU only once during the applicable measurement period. We believe this methodology more accurately measures our user engagement. We have multiple pipelines of user data that we use to determine whether a user has visited Snapchat through our applications or websites during the applicable measurement period. This provides redundancy in the event one pipeline of data were to become unavailable for technical reasons, and also gives us redundant data to help measure how users interact with our applications and websites.
If we fail to maintain an effective analytics platform, our metrics calculations may be inaccurate. We regularly review, have adjusted in the past, and are likely in the future to adjust our processes for calculating our internal metrics to improve their accuracy. As a result of any such adjustments, including the adjustments that are part of our planned transition described above, our DAUs, MAUs, ARPU, or other metrics may not be directly comparable to those in prior periods. Our measures of DAUs or MAUs may differ from estimates published by third parties or from similarly titled metrics of our competitors due to differences in methodology or data used.
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SNAP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Cash flows from operating activities | |||||||||||||||||||||||
| Net income (loss) | $ | 56,498 | $ | (103,541) | $ | (196,413) | $ | (505,698) | |||||||||||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||||||||
| Depreciation and amortization | 44,625 | 42,514 | 136,266 | 120,252 | |||||||||||||||||||
| Stock-based compensation | 254,789 | 260,363 | 768,018 | 759,587 | |||||||||||||||||||
| Amortization of debt issuance costs and debt discount (premium) | (1,014) | 686 | (2,912) | 7,778 | |||||||||||||||||||
| Losses (gains) on debt and equity securities, net | (440) | 1,182 | 276 | 15,774 | |||||||||||||||||||
| Gain on extinguishment of debt | — | (29,795) | — | (96,734) | |||||||||||||||||||
| Other | 6,832 | 2,985 | 22,867 | 14,542 | |||||||||||||||||||
| Change in operating assets and liabilities, net of effect of acquisitions: | |||||||||||||||||||||||
| Accounts receivable, net of allowance | (14,348) | (89,096) | 92,673 | 102,032 | |||||||||||||||||||
| Prepaid expenses and other current assets | (27,092) | (16,313) | (57,822) | (46,199) | |||||||||||||||||||
| Operating lease right-of-use assets | 16,920 | 14,909 | 47,768 | 42,829 | |||||||||||||||||||
| Other assets | (3,421) | 161 | (3,502) | 7,054 | |||||||||||||||||||
| Accounts payable | (103,688) | 38,125 | (141,389) | (21,818) | |||||||||||||||||||
| Accrued expenses and other current liabilities | (6,252) | 23,926 | 81,698 | 9,053 | |||||||||||||||||||
| Operating lease liabilities | (13,512) | 1,325 | (34,978) | (24,160) | |||||||||||||||||||
| Other liabilities | 587 | (943) | 927 | 2,300 | |||||||||||||||||||
| Net cash provided by operating activities | 210,484 | 146,488 | 713,477 | 386,592 | |||||||||||||||||||
| Cash flows from investing activities | |||||||||||||||||||||||
| Purchases of property and equipment | (46,031) | (53,044) | (142,479) | (154,959) | |||||||||||||||||||
| Purchases of strategic investments | (1,000) | — | (6,934) | (20,000) | |||||||||||||||||||
| Sales of strategic investments | — | 11,050 | — | 11,050 | |||||||||||||||||||
| Cash paid for acquisitions, net of cash acquired | — | — | (65,048) | (35,499) | |||||||||||||||||||
| Purchases of marketable securities | (279,851) | (388,652) | (796,009) | (1,015,317) | |||||||||||||||||||
| Sales of marketable securities | 16,333 | 102,530 | 303,790 | 539,688 | |||||||||||||||||||
| Maturities of marketable securities | 208,595 | 220,203 | 638,333 | 785,317 | |||||||||||||||||||
| Other | — | — | (500) | — | |||||||||||||||||||
| Net cash provided by (used in) investing activities | (101,954) | (107,913) | (68,847) | 110,280 | |||||||||||||||||||
| Cash flows from financing activities | |||||||||||||||||||||||
| Proceeds from issuance of notes, net of issuance costs | — | 541,110 | — | 2,014,193 | |||||||||||||||||||
| Repurchases of Class A non-voting common stock | — | — | (600,964) | (500,573) | |||||||||||||||||||
| Deferred payments for acquisitions | (250) | — | (2,892) | (67,539) | |||||||||||||||||||
| Repurchases of convertible notes | — | (549,924) | — | (1,994,550) | |||||||||||||||||||
| Repayment of convertible notes | (47,013) | — | (47,013) | (36,240) | |||||||||||||||||||
| Other | (1,000) | (3,199) | (4,400) | (6,898) | |||||||||||||||||||
| Net cash used in financing activities | (48,263) | (12,013) | (655,269) | (591,607) | |||||||||||||||||||
| Change in cash, cash equivalents, and restricted cash | 60,267 | 26,562 | (10,639) | (94,735) | |||||||||||||||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 960,491 | 928,937 | 1,031,397 | 1,050,234 | |||||||||||||||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 1,020,758 | $ | 955,499 | $ | 1,020,758 | $ | 955,499 | |||||||||||||||
6
SNAP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts, unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenue | $ | 1,722,471 | $ | 1,506,839 | $ | 4,850,255 | $ | 4,214,986 | |||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||
| Cost of revenue | 649,413 | 674,220 | 1,982,539 | 1,967,132 | |||||||||||||||||||
| Research and development | 477,678 | 453,418 | 1,498,066 | 1,320,908 | |||||||||||||||||||
| Sales and marketing | 298,036 | 256,215 | 835,446 | 772,025 | |||||||||||||||||||
| General and administrative | 220,628 | 251,348 | 702,658 | 736,805 | |||||||||||||||||||
| Total costs and expenses | 1,645,755 | 1,635,201 | 5,018,709 | 4,796,870 | |||||||||||||||||||
| Operating income (loss) | 76,716 | (128,362) | (168,454) | (581,884) | |||||||||||||||||||
| Interest income | 26,859 | 32,255 | 77,990 | 102,472 | |||||||||||||||||||
| Interest expense | (37,290) | (34,494) | (110,987) | (85,500) | |||||||||||||||||||
| Other income (expense), net | (36) | 27,570 | 20,452 | 75,816 | |||||||||||||||||||
| Income (loss) before income taxes | 66,249 | (103,031) | (180,999) | (489,096) | |||||||||||||||||||
| Income tax expense | (9,751) | (510) | (15,414) | (16,602) | |||||||||||||||||||
| Net income (loss) | $ | 56,498 | $ | (103,541) | $ | (196,413) | $ | (505,698) | |||||||||||||||
| Net income (loss) per share attributable to Class A, Class B, and Class C common stockholders: | |||||||||||||||||||||||
| Basic | $ | 0.03 | $ | (0.06) | $ | (0.12) | $ | (0.30) | |||||||||||||||
| Diluted | $ | 0.03 | $ | (0.06) | $ | (0.12) | $ | (0.30) | |||||||||||||||
| Weighted average shares used in computation of net income (loss) per share: | |||||||||||||||||||||||
| Basic | 1,693,497 | 1,696,542 | 1,681,559 | 1,689,251 | |||||||||||||||||||
| Diluted | 1,700,192 | 1,696,542 | 1,681,559 | 1,689,251 | |||||||||||||||||||
7
SNAP INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except par value)
| September 30, 2026 | December 31, 2025 | ||||||||||
| (unaudited) | |||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 1,019,215 | $ | 1,030,435 | |||||||
| Marketable securities | 1,751,432 | 1,910,137 | |||||||||
| Accounts receivable, net of allowance | 1,243,746 | 1,372,237 | |||||||||
| Prepaid expenses and other current assets | 306,648 | 272,065 | |||||||||
| Total current assets | 4,321,041 | 4,584,874 | |||||||||
| Property and equipment, net | 618,149 | 578,075 | |||||||||
| Operating lease right-of-use assets | 509,344 | 506,216 | |||||||||
| Intangible assets, net | 86,423 | 66,613 | |||||||||
| Goodwill | 1,779,086 | 1,720,769 | |||||||||
| Other assets | 252,330 | 221,255 | |||||||||
| Total assets | $ | 7,566,373 | $ | 7,677,802 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 76,030 | $ | 219,793 | |||||||
| Operating lease liabilities | 54,428 | 48,479 | |||||||||
| Accrued expenses and other current liabilities | 1,050,879 | 971,627 | |||||||||
| Short-term debt, net | 106,202 | 46,969 | |||||||||
| Total current liabilities | 1,287,539 | 1,286,868 | |||||||||
| Long-term debt, net | 3,380,216 | 3,489,860 | |||||||||
| Operating lease liabilities, noncurrent | 587,118 | 557,823 | |||||||||
| Other liabilities | 81,257 | 61,756 | |||||||||
| Total liabilities | 5,336,130 | 5,396,307 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders’ equity | |||||||||||
Class A non-voting common stock, $0.00001 par value. 3,000,000 shares authorized, 1,506,092 shares issued, 1,463,365 shares outstanding at September 30, 2026, and 3,000,000 shares authorized, 1,502,073 shares issued, 1,457,403 shares outstanding at December 31, 2025. | 15 | 15 | |||||||||
Class B voting common stock, $0.00001 par value. 700,000 shares authorized, 22,519 shares issued and outstanding at September 30, 2026, and 700,000 shares authorized, 22,523 shares issued and outstanding at December 31, 2025. | — | — | |||||||||
Class C voting common stock, $0.00001 par value. 260,888 shares authorized, 231,627 shares issued and outstanding at September 30, 2026 and December 31, 2025. | 2 | 2 | |||||||||
Treasury stock, at cost. 42,727 and 44,670 shares of Class A non-voting common stock at September 30, 2026 and December 31, 2025, respectively. | (416,774) | (435,722) | |||||||||
| Additional paid-in capital | 17,390,584 | 16,637,324 | |||||||||
| Accumulated deficit | (14,744,193) | (13,946,816) | |||||||||
| Accumulated other comprehensive income | 609 | 26,692 | |||||||||
| Total stockholders’ equity | 2,230,243 | 2,281,495 | |||||||||
| Total liabilities and stockholders’ equity | $ | 7,566,373 | $ | 7,677,802 | |||||||
8
SNAP INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Free Cash Flow reconciliation: | |||||||||||||||||||||||
| Net cash provided by operating activities | $ | 210,484 | $ | 146,488 | $ | 713,477 | $ | 386,592 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Purchases of property and equipment | (46,031) | (53,044) | (142,479) | (154,959) | |||||||||||||||||||
| Free Cash Flow | $ | 164,453 | $ | 93,444 | $ | 570,998 | $ | 231,633 | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Adjusted EBITDA reconciliation: | |||||||||||||||||||||||
| Net income (loss) | $ | 56,498 | $ | (103,541) | $ | (196,413) | $ | (505,698) | |||||||||||||||
| Add (deduct): | |||||||||||||||||||||||
| Interest income | (26,859) | (32,255) | (77,990) | (102,472) | |||||||||||||||||||
| Interest expense | 37,290 | 34,494 | 110,987 | 85,500 | |||||||||||||||||||
| Other (income) expense, net | 36 | (27,570) | (20,452) | (75,816) | |||||||||||||||||||
| Income tax expense | 9,751 | 510 | 15,414 | 16,602 | |||||||||||||||||||
Depreciation and amortization (1) | 44,597 | 42,514 | 134,892 | 120,252 | |||||||||||||||||||
Stock-based compensation expense (1) | 255,227 | 260,363 | 741,947 | 759,587 | |||||||||||||||||||
| Payroll and other tax expense related to stock-based compensation | 6,107 | 7,523 | 28,705 | 33,778 | |||||||||||||||||||
Restructuring charges (2) | — | — | 128,505 | — | |||||||||||||||||||
| Adjusted EBITDA | $ | 382,647 | $ | 182,038 | $ | 865,595 | $ | 331,733 | |||||||||||||||
(1)Stock-based compensation expense and depreciation and amortization expense may not agree to reported GAAP amounts due to restructuring charges.
(2)Restructuring charges primarily include cash severance, stock-based compensation expense, depreciation expense and other charges associated with the restructuring. These charges are not reflective of underlying trends in our business.
Total depreciation and amortization expense by function:
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Depreciation and amortization expense (1): | |||||||||||||||||||||||
| Cost of revenue | $ | 1,365 | $ | 1,016 | $ | 4,212 | $ | 3,941 | |||||||||||||||
| Research and development | 31,051 | 27,127 | 91,826 | 74,963 | |||||||||||||||||||
| Sales and marketing | 7,938 | 5,487 | 22,284 | 15,418 | |||||||||||||||||||
| General and administrative | 4,271 | 8,884 | 17,944 | 25,930 | |||||||||||||||||||
| Total | $ | 44,625 | $ | 42,514 | $ | 136,266 | $ | 120,252 | |||||||||||||||
(1)Depreciation and amortization expense for the three and nine months ended September 30, 2026 includes restructuring charges.
9
SNAP INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(in thousands, except per share amounts, unaudited)
Total stock-based compensation expense by function:
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Stock-based compensation expense (1): | |||||||||||||||||||||||
| Cost of revenue | $ | 1,407 | $ | 2,327 | $ | 5,804 | $ | 5,417 | |||||||||||||||
| Research and development | 176,447 | 171,649 | 543,864 | 495,146 | |||||||||||||||||||
| Sales and marketing | 54,421 | 51,236 | 147,095 | 154,386 | |||||||||||||||||||
| General and administrative | 22,514 | 35,151 | 71,255 | 104,638 | |||||||||||||||||||
| Total | $ | 254,789 | $ | 260,363 | $ | 768,018 | $ | 759,587 | |||||||||||||||
(1)Stock-based compensation expense for the three and nine months ended September 30, 2026 includes restructuring charges.
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Constant Currency Revenue reconciliation: | |||||||||||||||||||||||
| GAAP revenue | $ | 1,722,471 | $ | 1,506,839 | $ | 4,850,255 | $ | 4,214,986 | |||||||||||||||
| Effect of using prior period foreign exchange rates on current period revenue | 2,403 | (33,955) | |||||||||||||||||||||
| Constant Currency Revenue | $ | 1,724,874 | $ | 4,816,300 | |||||||||||||||||||
| GAAP revenue percentage change | 14 | % | 15 | % | |||||||||||||||||||
| Constant Currency Revenue percentage change | 14 | % | 14 | % | |||||||||||||||||||
10
SNAP INC.
SUPPLEMENTAL FINANCIAL INFORMATION AND BUSINESS METRICS
(dollars and shares in thousands, except per user amounts, unaudited)
| Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Q3 2026 | ||||||||||||||||||||||||||||||
| Cash Flows and Shares | |||||||||||||||||||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 88,494 | $ | 146,488 | $ | 269,578 | $ | 326,779 | $ | 176,214 | $ | 210,484 | |||||||||||||||||||||||
| Net cash provided by (used in) operating activities - YoY (year-over-year) | 514 | % | 26 | % | 17 | % | 116 | % | 99 | % | 44 | % | |||||||||||||||||||||||
| Net cash provided by (used in) operating activities - TTM (trailing twelve months) | $ | 586,609 | $ | 617,225 | $ | 656,170 | $ | 831,339 | $ | 919,059 | $ | 983,055 | |||||||||||||||||||||||
| Purchases of property and equipment | $ | (64,701) | $ | (53,044) | $ | (64,022) | $ | (40,772) | $ | (55,676) | $ | (46,031) | |||||||||||||||||||||||
| Purchases of property and equipment - YoY | 24 | % | 20 | % | 33 | % | 10 | % | (14) | % | (13) | % | |||||||||||||||||||||||
| Purchases of property and equipment - TTM | $ | (194,231) | $ | (203,234) | $ | (218,981) | $ | (222,539) | $ | (213,514) | $ | (206,501) | |||||||||||||||||||||||
| Free Cash Flow | $ | 23,793 | $ | 93,444 | $ | 205,556 | $ | 286,007 | $ | 120,538 | $ | 164,453 | |||||||||||||||||||||||
| Free Cash Flow - YoY | 132 | % | 30 | % | 13 | % | 150 | % | 407 | % | 76 | % | |||||||||||||||||||||||
| Free Cash Flow - TTM | $ | 392,378 | $ | 413,991 | $ | 437,189 | $ | 608,800 | $ | 705,545 | $ | 776,554 | |||||||||||||||||||||||
| Common shares outstanding | 1,682,350 | 1,710,909 | 1,711,554 | 1,697,270 | 1,682,281 | 1,717,511 | |||||||||||||||||||||||||||||
| Common shares outstanding - YoY | 2 | % | 2 | % | 1 | % | 1 | % | — | % | — | % | |||||||||||||||||||||||
| Shares underlying stock-based awards | 144,011 | 150,460 | 168,060 | 189,878 | 198,569 | 214,151 | |||||||||||||||||||||||||||||
| Shares underlying stock-based awards - YoY | — | % | 13 | % | 24 | % | 40 | % | 38 | % | 42 | % | |||||||||||||||||||||||
| Total common shares outstanding plus shares underlying stock-based awards | 1,826,361 | 1,861,369 | 1,879,614 | 1,887,148 | 1,880,850 | 1,931,662 | |||||||||||||||||||||||||||||
| Total common shares outstanding plus shares underlying stock-based awards - YoY | 1.6 | % | 3.1 | % | 3.0 | % | 3.5 | % | 3.0 | % | 3.8 | % | |||||||||||||||||||||||
| Results of Operations | |||||||||||||||||||||||||||||||||||
| Revenue | $ | 1,344,930 | $ | 1,506,839 | $ | 1,716,461 | $ | 1,528,791 | $ | 1,598,993 | $ | 1,722,471 | |||||||||||||||||||||||
| Revenue - YoY | 9 | % | 10 | % | 10 | % | 12 | % | 19 | % | 14 | % | |||||||||||||||||||||||
| Revenue - TTM | $ | 5,638,004 | $ | 5,772,269 | $ | 5,931,447 | $ | 6,097,021 | $ | 6,351,084 | $ | 6,566,716 | |||||||||||||||||||||||
| Constant Currency Revenue | $ | 1,334,606 | $ | 1,494,999 | $ | 1,695,488 | $ | 1,500,374 | $ | 1,591,052 | $ | 1,724,874 | |||||||||||||||||||||||
| Constant Currency Revenue - YoY | 8 | % | 9 | % | 9 | % | 10 | % | 18 | % | 14 | % | |||||||||||||||||||||||
Revenue by region (1) | |||||||||||||||||||||||||||||||||||
| North America | $ | 820,600 | $ | 897,814 | $ | 1,025,498 | $ | 851,253 | $ | 942,883 | $ | 1,014,320 | |||||||||||||||||||||||
| North America - YoY | 7 | % | 5 | % | 6 | % | 2 | % | 15 | % | 13 | % | |||||||||||||||||||||||
| North America - TTM | $ | 3,478,855 | $ | 3,519,048 | $ | 3,575,603 | $ | 3,595,165 | $ | 3,717,448 | $ | 3,833,954 | |||||||||||||||||||||||
| Europe | $ | 265,343 | $ | 297,950 | $ | 341,134 | $ | 323,852 | $ | 353,806 | $ | 362,850 | |||||||||||||||||||||||
| Europe - YoY | 15 | % | 20 | % | 19 | % | 45 | % | 33 | % | 22 | % | |||||||||||||||||||||||
| Europe - TTM | $ | 1,025,291 | $ | 1,074,339 | $ | 1,128,442 | $ | 1,228,279 | $ | 1,316,742 | $ | 1,381,642 | |||||||||||||||||||||||
| Rest of World | $ | 258,987 | $ | 311,075 | $ | 349,829 | $ | 353,686 | $ | 302,304 | $ | 345,301 | |||||||||||||||||||||||
| Rest of World - YoY | 8 | % | 17 | % | 16 | % | 15 | % | 17 | % | 11 | % | |||||||||||||||||||||||
| Rest of World - TTM | $ | 1,133,858 | $ | 1,178,882 | $ | 1,227,402 | $ | 1,273,577 | $ | 1,316,894 | $ | 1,351,120 | |||||||||||||||||||||||
| Operating income (loss) | $ | (259,676) | $ | (128,362) | $ | 49,717 | $ | (74,449) | $ | (170,721) | $ | 76,716 | |||||||||||||||||||||||
| Operating income (loss) - YoY | (2) | % | 26 | % | 285 | % | 62 | % | 34 | % | 160 | % | |||||||||||||||||||||||
| Operating income (loss) - Margin | (19) | % | (9) | % | 3 | % | (5) | % | (11) | % | 4 | % | |||||||||||||||||||||||
| Operating income (loss) - TTM | $ | (653,609) | $ | (608,761) | $ | (532,167) | $ | (412,770) | $ | (323,815) | $ | (118,737) | |||||||||||||||||||||||
| Net income (loss) | $ | (262,570) | $ | (103,541) | $ | 45,209 | $ | (88,951) | $ | (163,960) | $ | 56,498 | |||||||||||||||||||||||
| Net income (loss) - YoY | (6) | % | 32 | % | 397 | % | 36 | % | 38 | % | 155 | % | |||||||||||||||||||||||
| Net income (loss) - Margin | (20) | % | (7) | % | 3 | % | (6) | % | (10) | % | 3 | % | |||||||||||||||||||||||
| Net income (loss) - TTM | $ | (546,303) | $ | (496,597) | $ | (460,489) | $ | (409,853) | $ | (311,243) | $ | (151,204) | |||||||||||||||||||||||
| Adjusted EBITDA | $ | 41,270 | $ | 182,038 | $ | 357,746 | $ | 233,333 | $ | 249,615 | $ | 382,647 | |||||||||||||||||||||||
| Adjusted EBITDA - YoY | (25) | % | 38 | % | 30 | % | 115 | % | 505 | % | 110 | % | |||||||||||||||||||||||
Adjusted EBITDA - Margin (2) | 3 | % | 12 | % | 21 | % | 15 | % | 16 | % | 22 | % | |||||||||||||||||||||||
| Adjusted EBITDA - TTM | $ | 557,664 | $ | 607,740 | $ | 689,479 | $ | 814,387 | $ | 1,022,732 | $ | 1,223,341 | |||||||||||||||||||||||
(1)Total revenue for geographic reporting is apportioned to each region based on our estimate of where revenue-generating activities occur, which is generally determined by the billing address of the customer. For advertising revenue, we allocate revenue based on the geographic location where advertising impressions are delivered, as this approximates revenue based on user activity. This allocation is consistent with how we determine ARPU.
(2)We define Adjusted EBITDA margin as Adjusted EBITDA divided by GAAP revenue.
11
SNAP INC.
SUPPLEMENTAL FINANCIAL INFORMATION AND BUSINESS METRICS (continued)
(dollars and shares in thousands, except per user amounts, unaudited)
| Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Q3 2026 | ||||||||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||||||||||
DAU (in millions) (1) | 469 | 477 | 474 | 483 | 493 | 495 | |||||||||||||||||||||||||||||
| DAU - YoY | 9 | % | 8 | % | 5 | % | 5 | % | 5 | % | 4 | % | |||||||||||||||||||||||
| DAU by region (in millions) | |||||||||||||||||||||||||||||||||||
| North America | 98 | 98 | 94 | 92 | 92 | 92 | |||||||||||||||||||||||||||||
| North America - YoY | (2) | % | (3) | % | (5) | % | (7) | % | (7) | % | (6) | % | |||||||||||||||||||||||
| Europe | 100 | 100 | 98 | 97 | 98 | 98 | |||||||||||||||||||||||||||||
| Europe - YoY | 3 | % | 1 | % | (1) | % | (2) | % | (2) | % | (1) | % | |||||||||||||||||||||||
| Rest of World | 271 | 280 | 282 | 294 | 303 | 305 | |||||||||||||||||||||||||||||
| Rest of World - YoY | 15 | % | 15 | % | 11 | % | 12 | % | 12 | % | 9 | % | |||||||||||||||||||||||
MAU (in millions) | 932 | 943 | 946 | 956 | 971 | 977 | |||||||||||||||||||||||||||||
| MAU - YoY | 7 | % | 7 | % | 6 | % | 5 | % | 4 | % | 4 | % | |||||||||||||||||||||||
| ARPU | $ | 2.87 | $ | 3.16 | $ | 3.62 | $ | 3.17 | $ | 3.25 | $ | 3.48 | |||||||||||||||||||||||
| ARPU - YoY | — | % | 2 | % | 5 | % | 7 | % | 13 | % | 10 | % | |||||||||||||||||||||||
| ARPU by region | |||||||||||||||||||||||||||||||||||
| North America | $ | 8.33 | $ | 9.20 | $ | 10.88 | $ | 9.23 | $ | 10.26 | $ | 11.07 | |||||||||||||||||||||||
| North America - YoY | 9 | % | 8 | % | 12 | % | 10 | % | 23 | % | 20 | % | |||||||||||||||||||||||
| Europe | $ | 2.65 | $ | 2.99 | $ | 3.47 | $ | 3.34 | $ | 3.62 | $ | 3.69 | |||||||||||||||||||||||
| Europe - YoY | 13 | % | 19 | % | 20 | % | 48 | % | 36 | % | 23 | % | |||||||||||||||||||||||
| Rest of World | $ | 0.96 | $ | 1.11 | $ | 1.24 | $ | 1.20 | $ | 1.00 | $ | 1.13 | |||||||||||||||||||||||
| Rest of World - YoY | (6) | % | 2 | % | 5 | % | 3 | % | 4 | % | 2 | % | |||||||||||||||||||||||
| Employees (full-time; excludes part-time, contractors, and temporary personnel) | 5,206 | 5,194 | 5,261 | 5,381 | 4,723 | 4,540 | |||||||||||||||||||||||||||||
| Employees - YoY | 10 | % | 8 | % | 7 | % | 6 | % | (9) | % | (13) | % | |||||||||||||||||||||||
| Depreciation and amortization expense | |||||||||||||||||||||||||||||||||||
| Cost of revenue | $ | 1,505 | $ | 1,016 | $ | 1,818 | $ | 1,463 | $ | 1,384 | $ | 1,365 | |||||||||||||||||||||||
| Research and development | 24,849 | 27,127 | 26,568 | 28,160 | 32,615 | 31,051 | |||||||||||||||||||||||||||||
| Sales and marketing | 5,108 | 5,487 | 5,945 | 6,635 | 7,711 | 7,938 | |||||||||||||||||||||||||||||
| General and administrative | 8,561 | 8,884 | 9,050 | 8,438 | 5,235 | 4,271 | |||||||||||||||||||||||||||||
| Total | $ | 40,023 | $ | 42,514 | $ | 43,381 | $ | 44,696 | $ | 46,945 | $ | 44,625 | |||||||||||||||||||||||
| Depreciation and amortization expense - YoY | 6 | % | 9 | % | 10 | % | 19 | % | 17 | % | 5 | % | |||||||||||||||||||||||
| Stock-based compensation expense | |||||||||||||||||||||||||||||||||||
| Cost of revenue | $ | 1,656 | $ | 2,327 | $ | 2,009 | $ | 1,586 | $ | 2,811 | $ | 1,407 | |||||||||||||||||||||||
| Research and development | 166,809 | 171,649 | 185,456 | 173,916 | 193,501 | 176,447 | |||||||||||||||||||||||||||||
| Sales and marketing | 48,710 | 51,236 | 43,627 | 45,332 | 47,342 | 54,421 | |||||||||||||||||||||||||||||
| General and administrative | 34,711 | 35,151 | 26,146 | 29,206 | 19,535 | 22,514 | |||||||||||||||||||||||||||||
| Total | $ | 251,886 | $ | 260,363 | $ | 257,238 | $ | 250,040 | $ | 263,189 | $ | 254,789 | |||||||||||||||||||||||
| Stock-based compensation expense - YoY | (3) | % | — | % | — | % | 1 | % | 4 | % | (2) | % | |||||||||||||||||||||||
(1)Numbers may not foot due to rounding.
12
Exhibit 99.2
Evan Spiegel, Co-Founder and Chief Executive Officer Q3 demonstrated the growing earnings power of Snap's business. Revenue increased 14% year-over-year to $1.72 billion, and we generated positive net income. Gross Margin expanded by approximately 7 percentage points, while Net Income margin and Adjusted EBITDA margin each expanded by approximately 10 percentage points. Daily Active Users grew to 495 million and Monthly Active Users grew to 977 million. As I shared in my 15-year letter in September, our priorities are clear: keep our community safe, grow our advertising business faster, and strengthen the relationships at the heart of Snapchat. Communication between friends and family remains the foundation of Snapchat. In Q3, average daily messages sent increased 8% year-over-year, and the number of people engaging in two-way communication increased 6% year-over-year. Our camera, Spotlight, Map, and games give people more to share and more reasons to connect. Spotlight is becoming an increasingly important part of that experience, with content that sparks conversations and inspires creativity. Globally, the number of people posting to Spotlight grew 130% year-over-year, while daily active viewers increased 40% year-over-year. We continue to invest in creators and AI-powered recommendations to help Snapchatters discover content they enjoy and want to share with friends. AI is becoming a meaningful advantage for Snap, helping us improve our products faster, serve our community more effectively, and work more efficiently. For example, in Q3, our engineering teams more than doubled the number of merged pull requests year-over-year, while the defect rate per merged pull request declined over 71%. For advertisers, AI search now resolves over 92% of help-center sessions, while support cases declined 35% year-over-year. While advertising revenue growth remains below our ambitions, advertisers are seeing the benefits of our performance improvements. Our focus now is to turn these improvements into broader adoption, more meaningful share of advertiser budgets, and more durable growth. Other Revenue grew 84% year-over-year, and we surpassed 30 million paid subscribers across Snapchat+, Memories Storage, and Lens+. Innovative AI-powered features have helped Lens+ exceed our expectations, demonstrating how new creative experiences can drive demand for our paid products. Paid subscribers still represent a small share of our monthly community, giving us room to grow through broader adoption and new premium experiences. We delivered substantial operating leverage, with approximately 93% of incremental revenue flowing through to Adjusted EBITDA. As revenue grew faster than our cost base, we expanded margins and generated stronger cash flow. This strengthens our ability to invest in our business, offset dilution, and create long-term value on a per-share basis. SPECS represent our ambition to bring computing into the world around us. By combining see-through augmented reality with AI, we see an opportunity for computers to understand more of what we are experiencing and provide useful information and assistance in the moment. SPECS can help people learn, create, and get things done while staying present with those around them. Our years of investment in augmented reality and our developer ecosystem give us a strong foundation to lead this transition. SPECS bring those capabilities together across hardware, software, and AI to make computing a more natural part of everyday life. A golfer can receive personalized guidance on their swing through a Lens developed with input from PGA Professionals, while someone working on the go can edit documents on a virtual display. Through our enterprise SNAP INC. | Q3 2026 | PREPARED REMARKS 1
partnerships, we are also exploring how technicians can receive visual guidance from remote experts directly in their field of view while keeping their hands free. We are excited by the positive feedback we have already received as people experience SPECS firsthand. Our SPECS First Look pop-up is now open at Westfield Century City in Los Angeles, where visitors are trying SPECS, meeting our team, and learning more about augmented reality. The pop-up gives us an opportunity to learn directly from our community as we refine the experience and bring a more natural, human way of computing to life. Ronan Harris, Chief Commercial Officer Snapchat is woven through how our community lives throughout their day. People use the camera to share what’s happening, use chat to talk with close friends, they explore the Map, and discover content about where to go, what to do, and what to buy. They come to Snapchat as themselves, with the people who matter to them. That is what makes Snapchat different: it’s the real you, in the real world. Real relationships, real-world context, and authentic self-expression give us a distinctive foundation for advertising. AI can help us build on that understanding while protecting privacy, making recommendations more useful and advertising more effective. Our ambition is to help businesses create demand before people start searching and turn discovery into purchases. Our priorities are improving advertiser performance, making results easier to measure, and expanding the ways businesses can reach our community. Across these priorities, our focus is on turning stronger outcomes into greater advertiser demand, larger budgets, and sustained revenue growth. In Q3, direct response advertising grew strongly, supported by improved purchase outcomes. However, upper funnel brand advertising declined year-over-year, weighing on our overall growth. In Q3, purchase volume for campaigns optimized for app purchases more than doubled year-over-year, while average cost per purchase declined approximately 24% and revenue grew over 54%. For web purchase campaigns, purchases increased over 31% year-over-year, average cost per purchase declined 15%, and revenue grew 11%. For example, skincare brand DRMTLGY used WorkMagic to measure Snapchat’s incremental impact on sales. The brand scaled its Snapchat investment 6.2x while improving incremental return on ad spend by 45%, driving 9x incremental revenue. New customers accounted for 73% of incremental orders, up from 54%, highlighting Snapchat’s role in efficient customer acquisition. AI is helping us extend that progress through innovations like Dynamic Product Ads Generative Retrieval and Agentic Recommendations. These capabilities help connect products in an advertiser’s catalog with a Snapchatter’s interests and activity to identify products they may value. Together with improvements that recognize people’s multiple interests, these innovations have already contributed to an over 2.5% increase in Pixel Purchase conversions. Ahead of the holiday shopping season, we introduced Commerce Power Pack to help advertisers turn discovery into purchases and optimize for business value. Dynamic Product Ads for Sponsored Snaps brings personalized catalog ads into Chat and is available globally. Third-Party Web Optimization, now in open beta, combines Snap’s signals with third-party measurement signals to optimize toward advertisers’ preferred sources of measurement. For example, after switching to Third-Party Web Optimization for its Snapchat campaigns in France, Foot Locker recorded a 53% higher return on ad spend and a 38% lower cost per acquisition, measured through its third-party measurement platform. SNAP INC. | Q3 2026 | PREPARED REMARKS 2
For app advertisers, Unified Attribution became generally available across AppsFlyer and Adjust in August, extending support to measurement partners representing over 75% of app advertising revenue. It helps align campaign optimization with purchase outcomes reported by advertisers’ mobile measurement partners. Our third priority is expanding the ways businesses can reach our community. Advertising within Chat, Spotlight, and the Map connects businesses with the conversations, content, and places that matter to Snapchatters. These experiences give advertisers more ways to build awareness, create demand, and drive purchases. Sponsored Snaps revenue grew 56% sequentially, with Chat’s share of total revenue increasing approximately 8 percentage points year-over-year. Our launch of auction-based Sponsored Snaps in Europe is an exciting step in bringing this format to more advertisers. Adding personalized product ads through Commerce Power Pack further expands its potential to turn conversations and discovery into action. Spotlight’s growing audience creates more opportunities for brands to reach our community through full-screen vertical video. Average Spotlight eCPM increased 22% year-over-year, and we continue to strengthen the creative, buying, and measurement capabilities that help advertisers achieve their goals. Promoted Places brings this opportunity into the real world, helping businesses connect with people exploring where to go and what to do on Snap Map. Revenue and advertiser adoption each more than doubled sequentially in Q3, and we expanded the product to 14 countries. This early momentum demonstrates advertiser interest in reaching our community at moments of discovery, with opportunities spanning restaurants, retailers, and other local businesses. Across these priorities, success means helping more advertisers achieve their goals, return to Snapchat, and grow their investment. By delivering results they can trust and build upon, we believe we can earn lasting relationships, a larger share of their budgets, and sustained advertising revenue growth. Doug Hott, Chief Financial Officer In Q3, revenue increased 14% year-over-year to $1.72 billion, within our prior guidance range of $1.70 to $1.74 billion, while our total cost structure grew just 1% year-over-year. Advertising Revenue grew 4% and Other Revenue grew 84%, led by Snapchat+, Memories Storage, and Lens+. We delivered substantial operating leverage, with approximately 93% of incremental revenue flowing through to Adjusted EBITDA. Gross Margin reached 62%, Net Income reached $56 million, an improvement of $160 million year-over-year, and Adjusted EBITDA increased by approximately $201 million to $383 million year-over-year, representing a margin of 22%. Margin expansion reflected revenue growth, a greater contribution from direct revenue, and efficiencies across our cost base. Our focus is on sustaining disciplined cost growth while investing in the products and capabilities that support revenue growth. Operating Cash Flow increased 44% year-over-year to $210 million, and Free Cash Flow increased 76% to $164 million. On a trailing-twelve-month basis, Operating Cash Flow reached $983 million, up 59%, and Free Cash Flow reached $777 million, up 88%. This growth in cash generation strengthens our ability to invest in the business, manage dilution, and maintain a strong balance sheet. We ended Q3 with approximately 1.93 billion shares outstanding including shares underlying stock-based awards, an increase of 3.8% year-over-year. Managing dilution remains an important part of translating stronger earnings and cash generation into sustained growth in Free Cash Flow per share. SNAP INC. | Q3 2026 | PREPARED REMARKS 3
We ended the quarter with approximately $2.77 billion in cash, cash equivalents, and marketable securities, an increase of approximately $111 million from the end of Q2. Financial Outlook As we move into Q4, we remain focused on accelerating top-line growth, growing our community, deepening engagement, and improving financial efficiency. Our guidance range for Q4 revenue is $1.950 billion to $1.985 billion. We expect Infrastructure Costs to grow modestly year-over-year in Q4 and now anticipate full-year Infrastructure Costs of $1.65 billion to $1.66 billion, compared with our prior guidance of $1.65 billion to $1.70 billion, as we have been able to increase our investments in AI and ML without increasing our overall infrastructure costs. We continue to expect All Other Cost of Revenue, excluding Infrastructure Costs, to represent 16% to 17% of revenue for the full year. Our guidance range for Adjusted EBITDA is $490 million to $525 million in Q4. Our outlook includes our planned investment in SPECS, which we continue to pace against product, ecosystem, and economic milestones. Following the expected completion of our current repurchase program in Q4, we intend to pursue a multi-year approach to dilution management, with the goal of offsetting future dilution and supporting a stable fully diluted share count in 2027. Beginning with our Q1 2027 results, global monthly active users (MAU) will become our primary audience metric. Snapchat is approaching one billion people each month, and we believe MAU provides the most complete view of the community we serve and our revenue opportunity over time. MAU represents the scale of our community, while engagement and monetization metrics reflect the depth and value of our service. Daily engagement has historically been stable as a percentage of monthly engagement, but we do not intend to optimize Snapchat around daily use at the expense of long-term value for our community. A longer-term horizon better aligns our reported metrics with the product and safety decisions that strengthen relationships, create lasting utility, and support broader, more durable audience growth. Alongside global MAU, we are introducing global MAU-based Average Revenue per User (ARPU) as our primary monetization metric. Together, global MAU, ARPU, and Free Cash Flow per share provide a clearer scorecard for Snap: the scale of our community, our progress monetizing that community, and our ability to translate that progress into long-term shareholder value. As discussed last quarter, we continue to monitor the evolving legal and regulatory landscape in the United States and internationally that could materially impact our business and financial results, including increased regulatory scrutiny on youth-related issues. While outcomes remain uncertain, they may result in significant changes to our products and business practices, increased compliance requirements and legal costs, increased payments for legal judgments and settlements, and negative impacts to user growth and engagement. SNAP INC. | Q3 2026 | PREPARED REMARKS 4
SNAP INC. | Q3 2026 | PREPARED REMARKS 5
Forward Looking Statements The prepared remarks contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in these prepared remarks, including statements regarding guidance, our future results of operations or financial condition, future stock repurchase programs or stock dividends, business strategy and plans, user growth and engagement, product initiatives, objectives of management for future operations, and advertiser and partner offerings, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “going to,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. We caution you that the foregoing may not include all of the forward-looking statements made in these prepared remarks. You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in these prepared remarks primarily on our current expectations and projections about future events and trends, including our financial outlook, macroeconomic uncertainty, and geo-political events and conflicts, that we believe may continue to affect our business, financial condition, results of operations, and prospects. These forward-looking statements are subject to risks and uncertainties related to: our financial performance; our ability to attain and sustain profitability; our ability to generate and sustain positive cash flow; our ability to attract and retain users, partners, and advertisers; competition and new market entrants; managing our growth and future expenses; compliance with new laws, regulations, and executive actions; our ability to maintain, protect, and enhance our intellectual property; our ability to succeed in existing and new market segments; our ability to attract and retain qualified team members and key personnel; our ability to repay or refinance outstanding debt, or to access additional financing; future acquisitions, divestitures, or investments; and the potential adverse impact of climate change, natural disasters, health epidemics, macroeconomic conditions, and war or other armed conflict, as well as risks, uncertainties, and other factors described in “Risk Factors” and elsewhere in our most recent periodic report filed with the U.S. Securities and Exchange Commission, or SEC, which is available on the SEC’s website at www.sec.gov. Additional information will be made available in Snap Inc.’s periodic report that will be filed with the SEC for the period covered by these prepared remarks and other filings that we make from time to time with the SEC. In addition, any forward-looking statements contained in these prepared remarks are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of these prepared remarks or to reflect new information or the occurrence of unanticipated events, including future developments related to geo-political events and conflicts and macroeconomic conditions, except as required by law. Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use the non-GAAP financial measure of Free Cash Flow, which is defined as net cash provided by (used in) operating activities, reduced by purchases of property and equipment. We believe Free Cash Flow is an important liquidity measure of the cash that is available, after capital expenditures, for operational expenses and investment in our business and is a key financial indicator used by management. Additionally, we believe that Free Cash Flow is an important measure since we use third-party infrastructure partners to host our services and therefore we do not incur significant capital expenditures to support revenue generating activities. Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth. We use the non-GAAP financial measure of Adjusted EBITDA, which is defined as net income (loss), excluding interest income; interest expense; other income (expense), net; income tax benefit (expense); depreciation and amortization; stock-based compensation expense; payroll and other tax expense related to stock-based compensation; and certain other items impacting net income (loss) from time to time. We believe that Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude in Adjusted EBITDA. We use other non-GAAP financial measures such as Adjusted Cost of Revenue and Adjusted Operating Expenses. These measures are defined as their respective GAAP expense line items, excluding interest income; interest expense; other income (expense), net; income tax benefit (expense); depreciation and amortization; stock-based compensation expense; payroll and other tax expense related to stock-based compensation; and certain other items impacting net income (loss) from time to time. We use the non-GAAP financial measure of Adjusted Gross Profit, which we define as GAAP revenue less Adjusted Cost of Revenue. We use the non-GAAP financial measure of Adjusted Gross Margin, which we define as GAAP revenue less Adjusted Cost of Revenue divided by GAAP revenue. Similar to Adjusted EBITDA, we believe these measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses we exclude in the measure. We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to key metrics used by our management for financial and operational decision-making. We are presenting these non-GAAP measures to assist investors in seeing our financial performance through the eyes of management, and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see “Reconciliation of GAAP to Non-GAAP Financial Measures” included as an Appendix to these prepared remarks Snap Inc., “Snapchat,” and our other registered and common law trade names, trademarks, and service marks are the property of Snap Inc. or our subsidiaries. SNAP INC. | Q3 2026 | PREPARED REMARKS 6
Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, unaudited) 1. Adjusted Gross Profit is a non-GAAP measure, which we define as GAAP revenue less Adjusted Cost of Revenue. Adjusted Cost of Revenue is a non-GAAP measure and excludes stock-based compensation expense, payroll and other tax expense related to stock-based compensation, depreciation and amortization, and certain other items impacting net income (loss) from time to time. Adjusted Gross Margin is a non-GAAP measure, which we define as GAAP revenue less Adjusted Cost of Revenue divided by GAAP revenue. 2. GAAP Operating Expenses is defined as total costs and expenses, as reported on our consolidated statements of operations, minus GAAP cost of revenue. 3. Adjusted Operating Expenses is a non-GAAP measure and excludes stock-based compensation expense, payroll and other tax expense related to stock-based compensation, depreciation and amortization, and certain other items impacting net income (loss) from time to time. 4. Operating leverage is a non-GAAP measure, which we define as the change in Adjusted EBITDA year-over-year divided by the change in revenue year-over-year. Operating leverage is a measure of how much incremental revenue flows through to Adjusted EBITDA. SNAP INC. | Q3 2026 | PREPARED REMARKS 7
Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, unaudited) 1. Adjusted EBITDA is a non-GAAP measure, which we define as net income (loss), excluding interest income; interest expense; other income (expense), net; income tax benefit (expense); depreciation and amortization; stock-based compensation expense; payroll and other tax expense related to stock-based compensation; and certain other items impacting net income (loss) from time to time. 2. Free Cash Flow is a non-GAAP measure, which we define as net cash provided by (used in) operating activities, reduced by purchases of property and equipment. SNAP INC. | Q3 2026 | PREPARED REMARKS 8