Snap

Snap (SNAP) Q2 2025 Earnings

Reported Aug 5, 2025 at 4:13 PM ET · SEC Source

Q2 25 EPS

$-0.16

MISS 1,132.26%

Est. $0.02

Q2 25 Revenue

$1.34B

MISS 0.05%

Est. $1.35B

vs S&P Since Q2 25

-60.2%

TRAILING MARKET

SNAP -41.4% vs S&P +18.8%

Market Reaction

Did SNAP Beat Earnings? Q2 2025 Results

Snap delivered a disappointing second quarter, missing on both the top and bottom lines as an ad platform error compounded already fragile monetization trends. The company posted a loss of $0.16 per share, falling far short of the $0.02 consensus est… Read more Snap delivered a disappointing second quarter, missing on both the top and bottom lines as an ad platform error compounded already fragile monetization trends. The company posted a loss of $0.16 per share, falling far short of the $0.02 consensus estimate, while revenue of $1.34 billion came in just below the $1.35 billion expectation, representing 8.8% growth year-over-year. The most material drag was an advertising platform glitch in which a configuration change caused campaigns to clear auctions at substantially reduced prices, limiting ad revenue growth to just 4% and pushing average eCPM down 10%. Analysts noted that average revenue per user remained flat and that reduced spending from Chinese brands added further pressure, with at least one estimate cut citing persistent weakness in Snap's monetization engine. Bright spots included Snapchat+ nearing 16 million subscribers and Other Revenue surging 64% year-over-year to $171 million. Looking ahead, Snap guided Q3 revenue of $1.48 billion to $1.50 billion with Adjusted EBITDA of $110 million to $135 million, signaling management's expectation of a meaningful sequential recovery.

Key Takeaways

  • DR advertising revenue growth of 5% YoY driven by Pixel Purchase and App Purchase optimizations
  • SMBs were the largest contributor to ad revenue growth in Q2
  • Snapchat+ subscribers approaching 16 million, up 42% YoY
  • Purchase volume increased 39% YoY for commerce advertisers
  • Total purchase-related ad revenue grew more than 25% YoY
  • Spotlight time spent grew 23% YoY, now over 40% of total content time
  • Total impressions growth of 15% YoY
  • Sponsored Snaps delivering up to 22% increase in incremental conversions
24/7 Wall St

SNAP YoY Financials

Q2 2025 vs Q2 2024, 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

“Our global community continued to grow in Q2, reaching 932 million Monthly Active Users as we continued to invest in AI and augmented reality. With meaningful inventory and conversions growth this quarter, including the broader rollout of Sponsored Snaps, we're excited about the opportunity to translate improved advertiser performance into topline acceleration.”

— Evan Spiegel, Q2 2025 Earnings Press Release