Snap Inc. (NYSE: SNAP) boosts Q2 2026 cash flow and user base
Rhea-AI Filing Summary
Snap Inc. reported strong Q2 2026 results, with revenue up 19% year-over-year to $1,599 million. Net loss narrowed to $164 million, while Adjusted EBITDA jumped to $250 million. Operating cash flow was $176 million and Free Cash Flow reached $121 million, the eighth consecutive positive quarter.
The Snapchat ecosystem grew to 493 million daily active users and 971 million monthly active users, while Other Revenue, led by subscriptions such as Snapchat+, rose 85% to $316 million. Management is prioritizing Free Cash Flow per share and investing in AI and its SPECS smart glasses, ending Q2 with about $2.7 billion in cash and marketable securities. For Q3 2026, Snap guides to revenue of $1.70–$1.74 billion and Adjusted EBITDA of $300–$350 million, and targets sustained positive net income beginning in 2027.
Positive
- Q2 2026 revenue increased 19% year-over-year to $1,599 million, with Adjusted EBITDA rising to $250 million from $41 million and Free Cash Flow to $121 million from $24 million, indicating markedly stronger profitability and cash generation.
- Over the trailing twelve months, Snap generated $919 million of operating cash flow and $706 million of Free Cash Flow, while maintaining cash and marketable securities of about $2.7 billion and limiting fully diluted share-count growth to approximately 2% over five years.
Negative
- None.
Filing Explained
Snap’s replacement dilution-management program is planned after Q4, so its operation and effect on future share count remain unresolved.
This August 3 Form 8-K records Snap’s Q2 results disclosure and says the current repurchase program is expected to finish in
Form 8-K Item 2.02 is used for results-of-operations disclosures, and Snap furnished the press release and prepared remarks as exhibits with this report.
The filing expressly says those exhibits are furnished, not “filed” for purposes of Section 18, and are not incorporated by reference into other SEC filings.
The company says the future program will be funded primarily through Free Cash Flow and is designed to help offset future dilution and support a stable fully diluted share count, but its operation depends on the expected completion of the current program in Q4.
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, and exhibit attachments filed with this report.
Key Figures
Revenue Q2 2026: $1,598,993
Net loss Q2 2026: $(163,960)
Adjusted EBITDA Q2 2026: $249,615
+5 more
8 metrics
Revenue Q2 2026
$1,598,993
Revenue for the three months ended June 30, 2026 (dollars in thousands)
Net loss Q2 2026
$(163,960)
Net loss for the three months ended June 30, 2026 (dollars in thousands)
Adjusted EBITDA Q2 2026
$249,615
Adjusted EBITDA for the three months ended June 30, 2026 (dollars in thousands)
Free Cash Flow Q2 2026
$120,538
Free Cash Flow for the three months ended June 30, 2026 (dollars in thousands)
Operating cash flow TTM
$919,059
Trailing twelve months net cash provided by operating activities through Q2 2026 (dollars in thousands)
Daily Active Users
493 million
Global Daily Active Users during Q2 2026
Monthly Active Users
971 million
Global Monthly Active Users during Q2 2026
Cash and marketable securities
$2.7 billion
Approximate cash and marketable securities balance at end of Q2 2026
Key Terms
Adjusted EBITDA, Free Cash Flow, Constant Currency Revenue, Daily Active User, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA was $250 million, compared to $41 million in the prior year."
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 was $121 million, compared to $24 million in the prior year."
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.
Constant Currency Revenue financial
"Constant Currency Revenue is defined as GAAP revenue in the current period translated using the prior period average"
Revenue reported after removing the impact of changes in foreign exchange rates, so sales from overseas operations are measured using the same exchange rates as in a prior period. It matters to investors because it isolates a company's underlying sales performance from currency swings—like comparing two years using the same ruler—making it easier to see whether growth comes from business momentum or simply from favorable exchange-rate moves.
Daily Active User market
"A Daily Active User (DAU) is defined as a registered and logged-in Snapchat user who visits Snapchat"
SPECS technical
"Our largest long-term opportunity is SPECS, a new kind of computer built into see-through glasses."
Earnings Snapshot
Revenue: $1,598,993 (thousand) · Guidance included
Quarter ended June 30, 2026
Revenue
$1,598,993 (thousand)
up 19% year-over-year from $1,344,930 (thousand)
Net loss
$(163,960)
improved from $(262,570), a 38% year-over-year change
Adjusted EBITDA
$249,615
up from $41,270, a 505% year-over-year increase
Operating cash flow
$176,214
up 99% year-over-year from $88,494
Free Cash Flow
$120,538
up 407% year-over-year from $23,793
Guidance
For Q3 2026, Snap guides revenue to $1.70–$1.74 billion and estimates Adjusted EBITDA between $300 million and $350 million. For 2026, it expects Infrastructure Costs of $1.65–$1.70 billion, Adjusted Operating Expenses of about $2.75 billion, stock-based compensation of about $1.05 billion, and targets sustained positive net income beginning in 2027 while planning a new multi-year dilution management program after completing the current repurchase authorization.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Snap (SNAP) Q2 2026 revenue and net results?
Snap reported Q2 2026 revenue of $1,599 million, up 19% year-over-year, and a net loss of $164 million, improved from a $263 million loss a year earlier as margins expanded and restructuring charges were excluded from Adjusted EBITDA.
Did Snap (SNAP) generate positive free cash flow in Q2 2026?
Yes. Snap produced Q2 2026 Free Cash Flow of $121 million, up from $24 million a year earlier. Over the last twelve months, Free Cash Flow reached $706 million, marking eight consecutive quarters of positive Free Cash Flow generation.
What were Snap (SNAP) user metrics in Q2 2026?
In Q2 2026, Snap reported 493 million Daily Active Users and 971 million Monthly Active Users. DAUs grew 5% year-over-year, with Rest of World driving growth while North America and Europe DAUs were roughly stable to slightly declining.
What guidance did Snap (SNAP) provide for Q3 2026?
Snap guides Q3 2026 revenue to $1.70–$1.74 billion and expects Adjusted EBITDA of $300–$350 million. It anticipates 2026 Infrastructure Costs of $1.65–$1.70 billion, Adjusted Operating Expenses around $2.75 billion, and stock-based compensation of approximately $1.05 billion.
How is Snap (SNAP) using AI and SPECS in its strategy?
Snap highlights AI as central to improving recommendations, advertising performance, and internal efficiency. It is also developing SPECS, see-through AI-enabled glasses positioned as a long-term computing platform, with a launch event planned in Los Angeles on September 16.
What is Snap (SNAP)’s cash and debt position after Q2 2026?
Snap ended Q2 2026 with about $2.7 billion in cash and marketable securities. Over recent years it repaid more than $2 billion of convertible notes due in 2027 and 2028 and $47 million due in August 2026, while running a share repurchase program.
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): August 3, 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 August 3, 2026, Snap Inc. reported financial results for the three and six months ended June 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 August 3, 2026. | |||||||
| 99.2 | Prepared remarks dated August 3, 2026. | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
1
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: August 3, 2026 | By: | /s/ Douglas Hott | ||||||
| Douglas Hott | ||||||||
| Chief Financial Officer | ||||||||
2
Exhibit 99.1
Snap Inc. Announces Second Quarter 2026 Financial Results
Second quarter revenue increased 19% year-over-year to $1,599 million
Second quarter operating cash flow was $176 million and Free Cash Flow was $121 million
Second quarter net loss of $164 million and Adjusted EBITDA of $250 million
SANTA MONICA, Calif. – August 3, 2026 – Snap Inc. (NYSE: SNAP) today announced financial results for the quarter ended June 30, 2026.
“Q2 reflects the progress we are making to strengthen our core business and build a more durable financial foundation for Snap,” said Evan Spiegel, co-founder and CEO. “We grew revenue by 19%, expanded margins, and generated positive free cash flow while improving advertising performance and rapidly growing our direct revenue business. We remain focused on serving our 971 million monthly active users, delivering measurable value for advertisers, and investing with discipline to increase free cash flow per share over time.”
Q2 2026 Financial Summary
•Revenue was $1,599 million, compared to $1,345 million in the prior year, an increase of 19% year-over-year.
•Net loss was $164 million, compared to $263 million in the prior year.
•Adjusted EBITDA was $250 million, compared to $41 million in the prior year.
•Operating cash flow was $176 million, compared to $88 million in the prior year.
•Free Cash Flow was $121 million, compared to $24 million in the prior year.
•Common shares outstanding was 1,682 million as of June 30, 2026, compared to 1,682 million as of June 30, 2025.
Three Months Ended June 30, | Percent Change | Six Months Ended June 30, | Percent Change | ||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||
| (Unaudited) | (dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||
| Revenue | $ | 1,598,993 | $ | 1,344,930 | 19 | % | $ | 3,127,784 | $ | 2,708,147 | 15 | % | |||||||||||||||||||||||
| Operating loss | $ | (170,721) | $ | (259,676) | 34 | % | $ | (245,170) | $ | (453,522) | 46 | % | |||||||||||||||||||||||
| Net loss | $ | (163,960) | $ | (262,570) | 38 | % | $ | (252,911) | $ | (402,157) | 37 | % | |||||||||||||||||||||||
Adjusted EBITDA (1) | $ | 249,615 | $ | 41,270 | 505 | % | $ | 482,948 | $ | 149,695 | 223 | % | |||||||||||||||||||||||
| Net cash provided by operating activities | $ | 176,214 | $ | 88,494 | 99 | % | $ | 502,993 | $ | 240,104 | 109 | % | |||||||||||||||||||||||
Free Cash Flow (2) | $ | 120,538 | $ | 23,793 | 407 | % | $ | 406,545 | $ | 138,189 | 194 | % | |||||||||||||||||||||||
| Diluted net loss per share attributable to common stockholders | $ | (0.10) | $ | (0.16) | 38 | % | $ | (0.15) | $ | (0.24) | 38 | % | |||||||||||||||||||||||
(1)See page 8 for a reconciliation of net loss to Adjusted EBITDA. Total restructuring charges included in our consolidated statement of operations for the three and six months ended June 30, 2026 and excluded from Adjusted EBITDA were $128.5 million.
(2)See page 8 for a reconciliation of net cash provided by operating activities to Free Cash Flow.
1
Q3 2026 Outlook
Snap Inc. will discuss its Q3 2026 outlook during its Q2 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.
2
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.
4
SNAP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Cash flows from operating activities | |||||||||||||||||||||||
| Net loss | $ | (163,960) | $ | (262,570) | $ | (252,911) | $ | (402,157) | |||||||||||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||||||||||||||
| Depreciation and amortization | 46,945 | 40,023 | 91,641 | 77,738 | |||||||||||||||||||
| Stock-based compensation | 263,189 | 251,886 | 513,229 | 499,224 | |||||||||||||||||||
| Amortization of debt issuance costs and debt discount (premium) | (967) | (550) | (1,898) | 7,092 | |||||||||||||||||||
| Losses (gains) on debt and equity securities, net | (129) | (1,208) | 716 | 14,592 | |||||||||||||||||||
| Gain on extinguishment of debt | — | — | — | (66,939) | |||||||||||||||||||
| Other | 10,909 | 12,362 | 16,035 | 11,557 | |||||||||||||||||||
| Change in operating assets and liabilities, net of effect of acquisitions: | |||||||||||||||||||||||
| Accounts receivable, net of allowance | (67,614) | (3,088) | 107,021 | 191,128 | |||||||||||||||||||
| Prepaid expenses and other current assets | (14,460) | (7,058) | (30,730) | (29,886) | |||||||||||||||||||
| Operating lease right-of-use assets | 15,734 | 13,797 | 30,848 | 27,920 | |||||||||||||||||||
| Other assets | 159 | (2,117) | (81) | 6,893 | |||||||||||||||||||
| Accounts payable | (59,745) | (94,203) | (37,701) | (59,943) | |||||||||||||||||||
| Accrued expenses and other current liabilities | 155,599 | 147,695 | 87,950 | (14,873) | |||||||||||||||||||
| Operating lease liabilities | (9,011) | (8,492) | (21,466) | (25,485) | |||||||||||||||||||
| Other liabilities | (435) | 2,017 | 340 | 3,243 | |||||||||||||||||||
| Net cash provided by operating activities | 176,214 | 88,494 | 502,993 | 240,104 | |||||||||||||||||||
| Cash flows from investing activities | |||||||||||||||||||||||
| Purchases of property and equipment | (55,676) | (64,701) | (96,448) | (101,915) | |||||||||||||||||||
| Purchases of strategic investments | — | (20,000) | (5,934) | (20,000) | |||||||||||||||||||
| Cash paid for acquisitions, net of cash acquired | (25,678) | (35,499) | (65,048) | (35,499) | |||||||||||||||||||
| Purchases of marketable securities | (213,798) | (390,866) | (516,158) | (626,665) | |||||||||||||||||||
| Sales of marketable securities | 55,359 | 425,157 | 287,457 | 437,158 | |||||||||||||||||||
| Maturities of marketable securities | 216,138 | 301,348 | 429,738 | 565,114 | |||||||||||||||||||
| Other | (500) | — | (500) | — | |||||||||||||||||||
| Net cash provided by (used in) investing activities | (24,155) | 215,439 | 33,107 | 218,193 | |||||||||||||||||||
| Cash flows from financing activities | |||||||||||||||||||||||
| Proceeds from issuance of notes, net of issuance costs | — | — | — | 1,473,083 | |||||||||||||||||||
| Repurchases of Class A non-voting common stock | (250,465) | (243,473) | (600,964) | (500,573) | |||||||||||||||||||
| Deferred payments for acquisitions | (2,642) | (9,562) | (2,642) | (67,539) | |||||||||||||||||||
| Repurchases of convertible notes | — | — | — | (1,444,626) | |||||||||||||||||||
| Repayment of convertible notes | — | (36,240) | — | (36,240) | |||||||||||||||||||
| Other | (1,799) | (1,800) | (3,400) | (3,699) | |||||||||||||||||||
| Net cash used in financing activities | (254,906) | (291,075) | (607,006) | (579,594) | |||||||||||||||||||
| Change in cash, cash equivalents, and restricted cash | (102,847) | 12,858 | (70,906) | (121,297) | |||||||||||||||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 1,063,338 | 916,079 | 1,031,397 | 1,050,234 | |||||||||||||||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 960,491 | $ | 928,937 | $ | 960,491 | $ | 928,937 | |||||||||||||||
5
SNAP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts, unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenue | $ | 1,598,993 | $ | 1,344,930 | $ | 3,127,784 | $ | 2,708,147 | |||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||
| Cost of revenue | 667,885 | 653,333 | 1,333,126 | 1,292,912 | |||||||||||||||||||
| Research and development | 542,092 | 443,325 | 1,020,388 | 867,490 | |||||||||||||||||||
| Sales and marketing | 298,399 | 257,853 | 537,410 | 515,810 | |||||||||||||||||||
| General and administrative | 261,338 | 250,095 | 482,030 | 485,457 | |||||||||||||||||||
| Total costs and expenses | 1,769,714 | 1,604,606 | 3,372,954 | 3,161,669 | |||||||||||||||||||
| Operating loss | (170,721) | (259,676) | (245,170) | (453,522) | |||||||||||||||||||
| Interest income | 24,672 | 33,199 | 51,131 | 70,217 | |||||||||||||||||||
| Interest expense | (36,941) | (27,607) | (73,697) | (51,006) | |||||||||||||||||||
| Other income (expense), net | 21,502 | (823) | 20,488 | 48,246 | |||||||||||||||||||
| Loss before income taxes | (161,488) | (254,907) | (247,248) | (386,065) | |||||||||||||||||||
| Income tax expense | (2,472) | (7,663) | (5,663) | (16,092) | |||||||||||||||||||
| Net loss | $ | (163,960) | $ | (262,570) | $ | (252,911) | $ | (402,157) | |||||||||||||||
| Net loss per share attributable to Class A, Class B, and Class C common stockholders: | |||||||||||||||||||||||
| Basic | $ | (0.10) | $ | (0.16) | $ | (0.15) | $ | (0.24) | |||||||||||||||
| Diluted | $ | (0.10) | $ | (0.16) | $ | (0.15) | $ | (0.24) | |||||||||||||||
| Weighted average shares used in computation of net loss per share: | |||||||||||||||||||||||
| Basic | 1,663,449 | 1,674,854 | 1,675,483 | 1,685,544 | |||||||||||||||||||
| Diluted | 1,663,449 | 1,674,854 | 1,675,483 | 1,685,544 | |||||||||||||||||||
6
SNAP INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except par value)
| June 30, 2026 | December 31, 2025 | ||||||||||
| (unaudited) | |||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 958,848 | $ | 1,030,435 | |||||||
| Marketable securities | 1,700,910 | 1,910,137 | |||||||||
| Accounts receivable, net of allowance | 1,237,338 | 1,372,237 | |||||||||
| Prepaid expenses and other current assets | 309,533 | 272,065 | |||||||||
| Total current assets | 4,206,629 | 4,584,874 | |||||||||
| Property and equipment, net | 586,268 | 578,075 | |||||||||
| Operating lease right-of-use assets | 562,091 | 506,216 | |||||||||
| Intangible assets, net | 94,306 | 66,613 | |||||||||
| Goodwill | 1,780,133 | 1,720,769 | |||||||||
| Other assets | 240,733 | 221,255 | |||||||||
| Total assets | $ | 7,470,160 | $ | 7,677,802 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 177,419 | $ | 219,793 | |||||||
| Operating lease liabilities | 47,823 | 48,479 | |||||||||
| Accrued expenses and other current liabilities | 1,054,528 | 971,627 | |||||||||
| Short-term debt, net | 153,159 | 46,969 | |||||||||
| Total current liabilities | 1,432,929 | 1,286,868 | |||||||||
| Long-term debt, net | 3,381,448 | 3,489,860 | |||||||||
| Operating lease liabilities, noncurrent | 643,317 | 557,823 | |||||||||
| Other liabilities | 85,378 | 61,756 | |||||||||
| Total liabilities | 5,543,072 | 5,396,307 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders’ equity | |||||||||||
Class A non-voting common stock, $0.00001 par value. 3,000,000 shares authorized, 1,471,658 shares issued, 1,428,131 shares outstanding at June 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, 22,523 shares issued and outstanding at June 30, 2026 and December 31, 2025. | — | — | |||||||||
Class C voting common stock, $0.00001 par value. 260,888 shares authorized, 231,627 shares issued and outstanding at June 30, 2026 and December 31, 2025. | 2 | 2 | |||||||||
Treasury stock, at cost. 43,527 and 44,670 shares of Class A non-voting common stock at June 30, 2026 and December 31, 2025, respectively. | (424,577) | (435,722) | |||||||||
| Additional paid-in capital | 17,143,598 | 16,637,324 | |||||||||
| Accumulated deficit | (14,800,691) | (13,946,816) | |||||||||
| Accumulated other comprehensive income | 8,741 | 26,692 | |||||||||
| Total stockholders’ equity | 1,927,088 | 2,281,495 | |||||||||
| Total liabilities and stockholders’ equity | $ | 7,470,160 | $ | 7,677,802 | |||||||
7
SNAP INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Free Cash Flow reconciliation: | |||||||||||||||||||||||
| Net cash provided by operating activities | $ | 176,214 | $ | 88,494 | $ | 502,993 | $ | 240,104 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Purchases of property and equipment | (55,676) | (64,701) | (96,448) | (101,915) | |||||||||||||||||||
| Free Cash Flow | $ | 120,538 | $ | 23,793 | $ | 406,545 | $ | 138,189 | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Adjusted EBITDA reconciliation: | |||||||||||||||||||||||
| Net loss | $ | (163,960) | $ | (262,570) | $ | (252,911) | $ | (402,157) | |||||||||||||||
| Add (deduct): | |||||||||||||||||||||||
| Interest income | (24,672) | (33,199) | (51,131) | (70,217) | |||||||||||||||||||
| Interest expense | 36,941 | 27,607 | 73,697 | 51,006 | |||||||||||||||||||
| Other expense (income), net | (21,502) | 823 | (20,488) | (48,246) | |||||||||||||||||||
| Income tax expense | 2,472 | 7,663 | 5,663 | 16,092 | |||||||||||||||||||
| Depreciation and amortization | 45,599 | 40,023 | 90,295 | 77,738 | |||||||||||||||||||
| Stock-based compensation expense | 236,680 | 251,886 | 486,720 | 499,224 | |||||||||||||||||||
| Payroll and other tax expense related to stock-based compensation | 9,552 | 9,037 | 22,598 | 26,255 | |||||||||||||||||||
Restructuring charges (1) | 128,505 | — | 128,505 | — | |||||||||||||||||||
| Adjusted EBITDA | $ | 249,615 | $ | 41,270 | $ | 482,948 | $ | 149,695 | |||||||||||||||
(1)Restructuring charges primarily include cash severance, stock-based compensation 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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Depreciation and amortization expense (1): | |||||||||||||||||||||||
| Cost of revenue | $ | 1,384 | $ | 1,505 | $ | 2,847 | $ | 2,925 | |||||||||||||||
| Research and development | 32,615 | 24,849 | 60,775 | 47,836 | |||||||||||||||||||
| Sales and marketing | 7,711 | 5,108 | 14,346 | 9,931 | |||||||||||||||||||
| General and administrative | 5,235 | 8,561 | 13,673 | 17,046 | |||||||||||||||||||
| Total | $ | 46,945 | $ | 40,023 | $ | 91,641 | $ | 77,738 | |||||||||||||||
(1)Depreciation and amortization expense for the three and six months ended June 30, 2026 includes restructuring charges.
8
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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Stock-based compensation expense (1): | |||||||||||||||||||||||
| Cost of revenue | $ | 2,811 | $ | 1,656 | $ | 4,397 | $ | 3,090 | |||||||||||||||
| Research and development | 193,501 | 166,809 | 367,417 | 323,497 | |||||||||||||||||||
| Sales and marketing | 47,342 | 48,710 | 92,674 | 103,150 | |||||||||||||||||||
| General and administrative | 19,535 | 34,711 | 48,741 | 69,487 | |||||||||||||||||||
| Total | $ | 263,189 | $ | 251,886 | $ | 513,229 | $ | 499,224 | |||||||||||||||
(1)Stock-based compensation expense for the three and six months ended June 30, 2026 includes restructuring charges.
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Constant Currency Revenue reconciliation: | |||||||||||||||||||||||
| GAAP revenue | $ | 1,598,993 | $ | 1,344,930 | $ | 3,127,784 | $ | 2,708,147 | |||||||||||||||
| Effect of using prior period foreign exchange rates on current period revenue | (7,941) | (36,358) | |||||||||||||||||||||
| Constant Currency Revenue | $ | 1,591,052 | $ | 3,091,426 | |||||||||||||||||||
| GAAP revenue percentage change | 19 | % | 15 | % | |||||||||||||||||||
| Constant Currency Revenue percentage change | 18 | % | 14 | % | |||||||||||||||||||
9
SNAP INC.
SUPPLEMENTAL FINANCIAL INFORMATION AND BUSINESS METRICS
(dollars and shares in thousands, except per user amounts, unaudited)
| Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | ||||||||||||||||||||||||||||||
| Cash Flows and Shares | |||||||||||||||||||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 151,610 | $ | 88,494 | $ | 146,488 | $ | 269,578 | $ | 326,779 | $ | 176,214 | |||||||||||||||||||||||
| Net cash provided by (used in) operating activities - YoY (year-over-year) | 72 | % | 514 | % | 26 | % | 17 | % | 116 | % | 99 | % | |||||||||||||||||||||||
| Net cash provided by (used in) operating activities - TTM (trailing twelve months) | $ | 476,738 | $ | 586,609 | $ | 617,225 | $ | 656,170 | $ | 831,339 | $ | 919,059 | |||||||||||||||||||||||
| Purchases of property and equipment | $ | (37,214) | $ | (64,701) | $ | (53,044) | $ | (64,022) | $ | (40,772) | $ | (55,676) | |||||||||||||||||||||||
| Purchases of property and equipment - YoY | (26) | % | 24 | % | 20 | % | 33 | % | 10 | % | (14) | % | |||||||||||||||||||||||
| Purchases of property and equipment - TTM | $ | (181,592) | $ | (194,231) | $ | (203,234) | $ | (218,981) | $ | (222,539) | $ | (213,514) | |||||||||||||||||||||||
| Free Cash Flow | $ | 114,396 | $ | 23,793 | $ | 93,444 | $ | 205,556 | $ | 286,007 | $ | 120,538 | |||||||||||||||||||||||
| Free Cash Flow - YoY | 202 | % | 132 | % | 30 | % | 13 | % | 150 | % | 407 | % | |||||||||||||||||||||||
| Free Cash Flow - TTM | $ | 295,146 | $ | 392,378 | $ | 413,991 | $ | 437,189 | $ | 608,800 | $ | 705,545 | |||||||||||||||||||||||
| Common shares outstanding | 1,686,678 | 1,682,350 | 1,710,909 | 1,711,554 | 1,697,270 | 1,682,281 | |||||||||||||||||||||||||||||
| Common shares outstanding - YoY | 3 | % | 2 | % | 2 | % | 1 | % | 1 | % | — | % | |||||||||||||||||||||||
| Shares underlying stock-based awards | 136,044 | 144,011 | 150,460 | 168,060 | 189,878 | 198,569 | |||||||||||||||||||||||||||||
| Shares underlying stock-based awards - YoY | (7) | % | — | % | 13 | % | 24 | % | 40 | % | 38 | % | |||||||||||||||||||||||
| Total common shares outstanding plus shares underlying stock-based awards | 1,822,722 | 1,826,361 | 1,861,369 | 1,879,614 | 1,887,148 | 1,880,850 | |||||||||||||||||||||||||||||
| Total common shares outstanding plus shares underlying stock-based awards - YoY | 1.9 | % | 1.6 | % | 3.1 | % | 3.0 | % | 3.5 | % | 3.0 | % | |||||||||||||||||||||||
| Results of Operations | |||||||||||||||||||||||||||||||||||
| Revenue | $ | 1,363,217 | $ | 1,344,930 | $ | 1,506,839 | $ | 1,716,461 | $ | 1,528,791 | $ | 1,598,993 | |||||||||||||||||||||||
| Revenue - YoY | 14 | % | 9 | % | 10 | % | 10 | % | 12 | % | 19 | % | |||||||||||||||||||||||
| Revenue - TTM | $ | 5,529,842 | $ | 5,638,004 | $ | 5,772,269 | $ | 5,931,447 | $ | 6,097,021 | $ | 6,351,084 | |||||||||||||||||||||||
| Constant Currency Revenue | $ | 1,370,500 | $ | 1,334,606 | $ | 1,494,999 | $ | 1,695,488 | $ | 1,500,374 | $ | 1,591,052 | |||||||||||||||||||||||
| Constant Currency Revenue - YoY | 15 | % | 8 | % | 9 | % | 9 | % | 10 | % | 18 | % | |||||||||||||||||||||||
Revenue by region (1) | |||||||||||||||||||||||||||||||||||
| North America | $ | 831,691 | $ | 820,600 | $ | 897,814 | $ | 1,025,498 | $ | 851,253 | $ | 942,883 | |||||||||||||||||||||||
| North America - YoY | 12 | % | 7 | % | 5 | % | 6 | % | 2 | % | 15 | % | |||||||||||||||||||||||
| North America - TTM | $ | 3,425,815 | $ | 3,478,855 | $ | 3,519,048 | $ | 3,575,603 | $ | 3,595,165 | $ | 3,717,448 | |||||||||||||||||||||||
| Europe | $ | 224,015 | $ | 265,343 | $ | 297,950 | $ | 341,134 | $ | 323,852 | $ | 353,806 | |||||||||||||||||||||||
| Europe - YoY | 14 | % | 15 | % | 20 | % | 19 | % | 45 | % | 33 | % | |||||||||||||||||||||||
| Europe - TTM | $ | 989,783 | $ | 1,025,291 | $ | 1,074,339 | $ | 1,128,442 | $ | 1,228,279 | $ | 1,316,742 | |||||||||||||||||||||||
| Rest of World | $ | 307,511 | $ | 258,987 | $ | 311,075 | $ | 349,829 | $ | 353,686 | $ | 302,304 | |||||||||||||||||||||||
| Rest of World - YoY | 20 | % | 8 | % | 17 | % | 16 | % | 15 | % | 17 | % | |||||||||||||||||||||||
| Rest of World - TTM | $ | 1,114,244 | $ | 1,133,858 | $ | 1,178,882 | $ | 1,227,402 | $ | 1,273,577 | $ | 1,316,894 | |||||||||||||||||||||||
| Operating income (loss) | $ | (193,846) | $ | (259,676) | $ | (128,362) | $ | 49,717 | $ | (74,449) | $ | (170,721) | |||||||||||||||||||||||
| Operating income (loss) - YoY | 42 | % | (2) | % | 26 | % | 285 | % | 62 | % | 34 | % | |||||||||||||||||||||||
| Operating income (loss) - Margin | (14) | % | (19) | % | (9) | % | 3 | % | (5) | % | (11) | % | |||||||||||||||||||||||
| Operating income (loss) - TTM | $ | (647,908) | $ | (653,609) | $ | (608,761) | $ | (532,167) | $ | (412,770) | $ | (323,815) | |||||||||||||||||||||||
| Net income (loss) | $ | (139,587) | $ | (262,570) | $ | (103,541) | $ | 45,209 | $ | (88,951) | $ | (163,960) | |||||||||||||||||||||||
| Net income (loss) - YoY | 54 | % | (6) | % | 32 | % | 397 | % | 36 | % | 38 | % | |||||||||||||||||||||||
| Net income (loss) - Margin | (10) | % | (20) | % | (7) | % | 3 | % | (6) | % | (10) | % | |||||||||||||||||||||||
| Net income (loss) - TTM | $ | (532,353) | $ | (546,303) | $ | (496,597) | $ | (460,489) | $ | (409,853) | $ | (311,243) | |||||||||||||||||||||||
| Adjusted EBITDA | $ | 108,425 | $ | 41,270 | $ | 182,038 | $ | 357,746 | $ | 233,333 | $ | 249,615 | |||||||||||||||||||||||
| Adjusted EBITDA - YoY | 137 | % | (25) | % | 38 | % | 30 | % | 115 | % | 505 | % | |||||||||||||||||||||||
Adjusted EBITDA - Margin (2) | 8 | % | 3 | % | 12 | % | 21 | % | 15 | % | 16 | % | |||||||||||||||||||||||
| Adjusted EBITDA - TTM | $ | 571,371 | $ | 557,664 | $ | 607,740 | $ | 689,479 | $ | 814,387 | $ | 1,022,732 | |||||||||||||||||||||||
(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.
10
SNAP INC.
SUPPLEMENTAL FINANCIAL INFORMATION AND BUSINESS METRICS (continued)
(dollars and shares in thousands, except per user amounts, unaudited)
| Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | ||||||||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||||||||||
DAU (in millions) (1) | 460 | 469 | 477 | 474 | 483 | 493 | |||||||||||||||||||||||||||||
| DAU - YoY | 9 | % | 9 | % | 8 | % | 5 | % | 5 | % | 5 | % | |||||||||||||||||||||||
| DAU by region (in millions) | |||||||||||||||||||||||||||||||||||
| North America | 99 | 98 | 98 | 94 | 92 | 92 | |||||||||||||||||||||||||||||
| North America - YoY | (1) | % | (2) | % | (3) | % | (5) | % | (7) | % | (7) | % | |||||||||||||||||||||||
| Europe | 99 | 100 | 100 | 98 | 97 | 98 | |||||||||||||||||||||||||||||
| Europe - YoY | 3 | % | 3 | % | 1 | % | (1) | % | (2) | % | (2) | % | |||||||||||||||||||||||
| Rest of World | 262 | 271 | 280 | 282 | 294 | 303 | |||||||||||||||||||||||||||||
| Rest of World - YoY | 16 | % | 15 | % | 15 | % | 11 | % | 12 | % | 12 | % | |||||||||||||||||||||||
MAU (in millions) | 913 | 932 | 943 | 946 | 956 | 971 | |||||||||||||||||||||||||||||
| MAU - YoY | 7 | % | 7 | % | 7 | % | 6 | % | 5 | % | 4 | % | |||||||||||||||||||||||
| ARPU | $ | 2.96 | $ | 2.87 | $ | 3.16 | $ | 3.62 | $ | 3.17 | $ | 3.25 | |||||||||||||||||||||||
| ARPU - YoY | 5 | % | — | % | 2 | % | 5 | % | 7 | % | 13 | % | |||||||||||||||||||||||
| ARPU by region | |||||||||||||||||||||||||||||||||||
| North America | $ | 8.41 | $ | 8.33 | $ | 9.20 | $ | 10.88 | $ | 9.23 | $ | 10.26 | |||||||||||||||||||||||
| North America - YoY | 13 | % | 9 | % | 8 | % | 12 | % | 10 | % | 23 | % | |||||||||||||||||||||||
| Europe | $ | 2.26 | $ | 2.65 | $ | 2.99 | $ | 3.47 | $ | 3.34 | $ | 3.62 | |||||||||||||||||||||||
| Europe - YoY | 11 | % | 13 | % | 19 | % | 20 | % | 48 | % | 36 | % | |||||||||||||||||||||||
| Rest of World | $ | 1.17 | $ | 0.96 | $ | 1.11 | $ | 1.24 | $ | 1.20 | $ | 1.00 | |||||||||||||||||||||||
| Rest of World - YoY | 4 | % | (6) | % | 2 | % | 5 | % | 3 | % | 4 | % | |||||||||||||||||||||||
| Employees (full-time; excludes part-time, contractors, and temporary personnel) | 5,061 | 5,206 | 5,194 | 5,261 | 5,381 | 4,723 | |||||||||||||||||||||||||||||
| Employees - YoY | 5 | % | 10 | % | 8 | % | 7 | % | 6 | % | (9) | % | |||||||||||||||||||||||
| Depreciation and amortization expense | |||||||||||||||||||||||||||||||||||
| Cost of revenue | $ | 1,420 | $ | 1,505 | $ | 1,016 | $ | 1,818 | $ | 1,463 | $ | 1,384 | |||||||||||||||||||||||
| Research and development | 22,987 | 24,849 | 27,127 | 26,568 | 28,160 | 32,615 | |||||||||||||||||||||||||||||
| Sales and marketing | 4,823 | 5,108 | 5,487 | 5,945 | 6,635 | 7,711 | |||||||||||||||||||||||||||||
| General and administrative | 8,485 | 8,561 | 8,884 | 9,050 | 8,438 | 5,235 | |||||||||||||||||||||||||||||
| Total | $ | 37,715 | $ | 40,023 | $ | 42,514 | $ | 43,381 | $ | 44,696 | $ | 46,945 | |||||||||||||||||||||||
| Depreciation and amortization expense - YoY | (10) | % | 6 | % | 9 | % | 10 | % | 19 | % | 17 | % | |||||||||||||||||||||||
| Stock-based compensation expense | |||||||||||||||||||||||||||||||||||
| Cost of revenue | $ | 1,434 | $ | 1,656 | $ | 2,327 | $ | 2,009 | $ | 1,586 | $ | 2,811 | |||||||||||||||||||||||
| Research and development | 156,688 | 166,809 | 171,649 | 185,456 | 173,916 | 193,501 | |||||||||||||||||||||||||||||
| Sales and marketing | 54,440 | 48,710 | 51,236 | 43,627 | 45,332 | 47,342 | |||||||||||||||||||||||||||||
| General and administrative | 34,776 | 34,711 | 35,151 | 26,146 | 29,206 | 19,535 | |||||||||||||||||||||||||||||
| Total | $ | 247,338 | $ | 251,886 | $ | 260,363 | $ | 257,238 | $ | 250,040 | $ | 263,189 | |||||||||||||||||||||||
| Stock-based compensation expense - YoY | (6) | % | (3) | % | — | % | — | % | 1 | % | 4 | % | |||||||||||||||||||||||
(1)Numbers may not foot due to rounding.
11
Exhibit 99.2
Evan Spiegel, Co-Founder and Chief Executive Officer Snapchat is now one of the largest Internet communities in the world, approaching one billion people using our service every month. Over the past few years, we have worked intensely to rebuild our monetization platform and improve our go-to-market strategy, and those efforts are producing stronger results. Our objective now is to turn our scale into durable growth and stronger cash generation, while demonstrating the long-term value of our investment in SPECS. We are approaching this work with a more focused, AI-enabled operating model. AI is helping us improve our service faster, deepening engagement and improving outcomes for advertisers. That supports revenue growth, margin expansion, and Free Cash Flow. Free Cash Flow gives us the flexibility to continue investing in long-term opportunities, offset dilution, and strengthen our balance sheet. That is why Free Cash Flow per share will be our primary financial objective going forward. Our largest long-term opportunity is SPECS, a new kind of computer built into see-through glasses. SPECS are designed for a future in which AI does more work on our behalf and people spend less time operating screens. I believe we can pursue that future from a much stronger position by continuing to improve our core business and remaining disciplined about how we invest. Last fall, I outlined three priorities for Snap: strengthen our community and engagement, accelerate and diversify revenue growth, and build a more profitable, cash-generative core business. Q2 was a meaningful step forward across all three. Monthly Active Users grew to 971 million, and Daily Active Users reached 493 million. Revenue increased 19% year-over-year to $1.60 billion. Advertising Revenue grew 9% to $1.28 billion, while Other Revenue grew 85% to $316 million. Gross Margin reached 58%, Net Loss was $164 million, and Operating Cash Flow was $176 million. Adjusted EBITDA was $250 million, and Free Cash Flow was $121 million. At its core, Snapchat helps close friends and family stay connected. Over time, we have built Spotlight, Snap Map, and augmented reality around that foundation, giving our community more reasons to open Snapchat, discover something new, and share it with the people they care about. I think about this as a simple flywheel that drives the growth of Snapchat. Sharing starts conversations, conversations strengthen friendships, and stronger friendships lead to more sharing and creativity. Spotlight is becoming a more important part of that flywheel. In the United States, the number of people posting to Spotlight grew more than 115% year-over-year, while Spotlight daily active viewers grew more than 20%. This growth was supported by our investment in creators and AI-powered recommendations. We also saw improving momentum in our advertising business. After several quarters of improving our ad products and go-to-market approach, we saw better momentum with large advertisers in North America and stronger revenue growth internationally. World Cup-related spending contributed during the quarter, alongside continued strength among small and medium-sized businesses. Smart Campaign Solutions, our suite of AI-powered automation and optimization tools, is making it easier for advertisers to achieve better outcomes with less manual work. SNAP INC. | Q2 2026 | PREPARED REMARKS 1
Those outcomes continue to improve. For app advertisers, cost per install declined 8% year-over-year, cost per purchase declined 18%, and app purchase volume increased 128%. Greater adoption by retailers also drove 43% growth in Dynamic Product Ads revenue. Advertisers increased spending across native surfaces such as Sponsored Snaps, where roughly one-third of the Snapchatters reached were incremental to other surfaces on Snapchat. These results reflect the progress we are making across automation, optimization, measurement, and attribution. Our audience in the United States continues to broaden quarter-over-quarter, led by people aged 35 and older. That is increasing our relevance in categories such as automotive, healthcare, home goods, financial services, insurance, and business-to-business services, while helping us diversify our advertiser base. An independent third-party study from Measured also found that, for the brands in their portfolio, Snapchat delivered approximately 19.3% higher incremental return on ad spend than the blended incremental return from their social advertising overall. Taken together, these results give us confidence that advertisers are seeing more value on Snapchat and increasing their investment as we improve the platform across the full funnel. We have also built a meaningful second revenue stream. Snapchat+, Memories Storage, and Lens+ helped drive 85% year-over-year growth in Other Revenue to $316 million in Q2. Less than 3% of our monthly active users are paying subscribers, and we see substantial room to grow direct revenue over time through premium features, AI-powered creative tools, and additional subscription products. AI is transforming Snapchat and the way Snap operates. It powers better recommendations, more automated and performant advertising campaigns, and new creative tools for our community. Internally, it is helping our smaller, more focused team move faster and accomplish more. In Q2, code commits per engineer increased 75% year-over-year, while major reliability issues declined 57%. Our internal AI code reviewer now reviews 90% of pull requests across Snap and has saved an estimated 30,000 hours of code-review time. Our AI-powered support agent answers approximately 3.9 million questions from Snapchatters each month and has reduced support ticket volume by approximately 62% since the start of the year. In advertising, AI increased first-pass image-review automation from 40% in Q2 2025 to nearly 90% in Q2 2026, resulting in faster approvals for advertisers, stronger content safety, and lower operating costs. In addition to leveraging AI to improve how we operate today, we are building toward the future of computing with SPECS. I believe AI will fundamentally change our relationship with computers. We will spend less time operating them and more time supervising intelligent systems that understand context and complete work on our behalf. SPECS are built for that future. Unveiling SPECS in June was an important milestone after more than a decade of work. SPECS are a new kind of computer built into see-through glasses, more capable than today’s limited AI glasses and more wearable than bulky VR headsets. SPECS can understand the world around you and help with work, learning, entertainment, and shared experiences without pulling you away from the real world. SNAP INC. | Q2 2026 | PREPARED REMARKS 2
We are excited to share much more about how SPECS work and what they can do at our launch event in Los Angeles on September 16th. Doug Hott, Chief Financial Officer In Q2, revenue increased 19% year-over-year to $1.6 billion, including 9% growth in Advertising Revenue. This growth reflected progress with large advertisers in North America, broader adoption of our AI-powered Smart Campaign Solutions, continued SMB momentum, and 85% growth in Other Revenue, led by Snapchat+, Memories Storage, and our Lens+ subscription. In early Q2, we restructured our cost base so Snap can scale more efficiently, and those changes are increasingly visible in our results. Our total adjusted cost structure increased just 4% year-over-year, as operating efficiencies offset investments in long-term revenue drivers. Gross Margin expanded seven percentage points year-over-year to 58%, Net Loss improved by $99 million to $164 million, and Adjusted EBITDA increased by $208 million year-over-year to $250 million. Our focus is to sustain this operating leverage by maintaining disciplined cost growth as we scale revenue, expand margins, and increase Free Cash Flow. That operating leverage translates into stronger cash generation. In Q2, Operating Cash Flow was $176 million and Free Cash Flow was $121 million. Over the past twelve months, Operating Cash Flow reached $919 million and Free Cash Flow reached $706 million. We have now generated positive Free Cash Flow for eight consecutive quarters, while limiting fully diluted share-count growth to approximately 2% over the past five years through our share repurchase program. Over that period, we repaid more than $2 billion of convertible notes due in 2027 and 2028, as well as the $47 million in convertible notes that were due in August 2026, reducing future debt obligations and strengthening our balance sheet. We ended Q2 with approximately $2.7 billion in cash and marketable securities, giving us the capacity to invest in our core business and long-term opportunities while maintaining a healthy cash balance. Our planned investment in SPECS is included within our existing operating expense outlook. Over time, we intend to pace that investment based on product, ecosystem, and economic milestones, while preserving the improving profitability and cash generation of our core business and supporting a stable share count. Going forward, our financial objective is Free Cash Flow per share. We believe this is the right objective because it connects operating performance, disciplined capital allocation, and long-term shareholder value creation. Our goal is to generate enough Free Cash Flow to invest in Snap's long-term potential, offset stock-based compensation dilution, and strengthen our balance sheet. We support these objectives by growing revenue faster than costs, investing with discipline, and using our share repurchase program to offset dilution and compound per-share value. Financial Outlook As we move into Q3, we remain focused on accelerating top-line growth, growing our community, deepening engagement, improving financial efficiency, and advancing toward the commercial launch of SPECS later this fall. SNAP INC. | Q2 2026 | PREPARED REMARKS 3
Our guidance range for Q3 revenue is $1.70 billion to $1.74 billion. We expect Infrastructure Costs to grow modestly year-over-year in Q3 and now anticipate full-year Infrastructure Costs of $1.65 billion to $1.70 billion, compared with our prior guidance of $1.60 billion to $1.65 billion. The increase primarily reflects additional investment in the AI and machine learning infrastructure needed to support revenue growth. We continue to expect All Other Cost of Revenue, excluding Infrastructure Costs, to represent 16% to 17% of revenue for the full year. We also continue to expect full-year Adjusted Operating Expenses of approximately $2.75 billion and stock-based compensation of approximately $1.05 billion. The personnel-cost savings associated with our recently announced restructuring are expected to be more fully reflected in Q3 and beyond. As a result, we estimate that Adjusted EBITDA will be between $300 million and $350 million in Q3. Following the expected completion of our current repurchase program in Q4, we expect to implement a new multi-year dilution management program designed to help offset future dilution and support a stable fully diluted share count in 2027. The program will be funded primarily through Free Cash Flow, while maintaining a healthy cash balance and continuing to invest in our long-term growth. Looking beyond 2026, we believe the stronger near-term outlook reflects durable improvements in the business. We expect direct revenue to continue growing materially faster than the overall business, while maintaining disciplined growth in our non-GAAP operating expense base over the medium term. As we scale, the financial benefits of these trends should become increasingly meaningful, with continued gross margin improvement supporting further Adjusted EBITDA margin expansion and sustained positive net income beginning in 2027. Lastly, 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 and several trials scheduled in the United States later this year. 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. | Q2 2026 | PREPARED REMARKS 4
SNAP INC. | Q2 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. | Q2 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. SNAP INC. | Q2 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. | Q2 2026 | PREPARED REMARKS 8