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Snap

Snap (SNAP) Q1 2026 Earnings

Reported May 6, 2026 at 4:11 PM ET · SEC Source

Q1 26 EPS

$-0.05

BEAT +29.38%

Est. $-0.07

Q1 26 Revenue

$1.53B

BEAT +0.08%

Est. $1.53B

vs S&P Since Q1 26

-26.3%

TRAILING MARKET

SNAP -23.5% vs S&P +2.8%

Market Reaction

Did SNAP Beat Earnings? Q1 2026 Results

Snap delivered a cleaner-than-expected first quarter for fiscal 2026, posting a loss of $0.05 per share against a consensus estimate of $0.07, a 29.38% beat, while revenue of $1.53 billion grew 12.2% year-over-year and edged just ahead of Wall Street… Read more Snap delivered a cleaner-than-expected first quarter for fiscal 2026, posting a loss of $0.05 per share against a consensus estimate of $0.07, a 29.38% beat, while revenue of $1.53 billion grew 12.2% year-over-year and edged just ahead of Wall Street's forecast. The most material driver behind the upside was a sharp acceleration in Snapchat+ subscriptions and adjacent offerings, which pushed the Other Revenue segment up 87% to $285 million and more than offset continued softness in advertising, where large North America brands and an estimated $20 to $25 million in geopolitical headwinds from the Middle East weighed on ad revenue growth. Adjusted EBITDA more than doubled to $233.33 million as free cash flow surged 150% to $286.01 million, signaling improving operating leverage. Still, North America daily active users fell 7% year-over-year to 92 million, a persistent concern that contributed to a notable after-hours stock decline. Looking ahead, Snap guided Q2 revenue of $1.52 billion to $1.55 billion and Adjusted EBITDA of $175 million to $200 million, with a restructuring expected to reduce annualized costs by more than $500 million in the second half of 2026.

Key Takeaways

  • • Other Revenue surged 87% YoY to $285 million driven by Snapchat+ subscriptions, Memories Storage, and Lens+
  • • Dynamic Product Ads revenue grew more than 30% year-over-year
  • • SMBs grew spend by more than 30% YoY in North America and accounted for over 30% of global ad revenue
  • • Adjusted EBITDA flow through of 75% on year-over-year revenue growth
  • • Adjusted Gross Margin improved 3 percentage points YoY to 57%
  • • App Purchases revenue grew 87% year-over-year
  • • Goal-based bidding revenue grew 27% year-over-year
  • • Nearly 70% of advertising spend uses at least one AI-powered automation solution

SNAP Forward Guidance & Outlook

For Q2 2026, Snap guided revenue of $1.52 billion to $1.55 billion and Adjusted EBITDA of $175 million to $200 million. The guidance assumes no contribution from Perplexity after amicably ending the relationship in Q1, and that the operating environment in the Middle East remains consistent with March/April headwinds. Infrastructure costs are expected to grow modestly year-over-year in Q2. The recently announced restructuring will have a partial period benefit in Q2, with full Adjusted Operating Expenses and SBC reductions more fully reflected in Q3 and beyond. Pre-tax restructuring charges of $95 million to $130 million are expected, primarily in Q2. The restructuring is expected to reduce annualized cost structure by more than $500 million in the second half of 2026. The company aims for Adjusted Gross Margin of 60% or better for fiscal 2026. The commercial launch of Specs is expected later in 2026.

24/7 Wall St

SNAP YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

SNAP Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26
24/7 Wall St

SNAP Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“In Q1, we returned to growth in daily active users, accelerated revenue growth, expanded margins, and generated strong free cash flow.”

— Evan Spiegel, Q1 2026 Earnings Press Release

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