Companies /Communication Services

Snap Inc - Class A

NYSE: SNAP Internet Content & Information
$5.84
▲ $0.16 (+2.82%) today
Markets closed · 3:00am ET

Q2 2025 Earnings

Reported Aug 5, 2025, 4:13pm ET · SEC source
$-0.16
Miss −1,132.26%
EPS · est. $0.02
$1.3B
Miss −0.05%
Revenue · est. $1.3B
−9.7%
Trailing market
SNAP vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%0+8%+16%Aug 5Aug 6report 4:13pm ETearnings+0.8%−1.8%
−8%0+8%+16%Aug 5Aug 6earnings+0.8%−1.8%
SNAP −1.8%S&P 500 +0.8%
−8%0+8%+16%Aug 5Aug 6report 4:13pm ETearnings+1.3%−1.8%
−8%0+8%+16%Aug 5Aug 6earnings+1.3%−1.8%
SNAP −1.8%NASDAQ +1.3%
−9%0+9%+18%Aug 4Aug 13report 4:13pm ETearnings+2.7%−8.7%
−9%0+9%+18%Aug 4Aug 13earnings+2.7%−8.7%
SNAP −8.7%S&P 500 +2.7%
−9%0+9%+18%Aug 4Aug 13report 4:13pm ETearnings+3.7%−8.7%
−9%0+9%+18%Aug 4Aug 13earnings+3.7%−8.7%
SNAP −8.7%NASDAQ +3.7%
−17.15%
Day of report
−3.08%
Next session
−5.91%
One week
−7.20%
30 days

S&P 500 over the same 30 days: +2.54%.

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 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

“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.”

Snap CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2025, Snap guides revenue of $1.475 billion to $1.505 billion with DAU of approximately 476 million and Adjusted EBITDA of $110 million to $135 million. Full-year 2025 guidance: Infrastructure cost per DAU of $0.82 to $0.87 per quarter (expected in top half of range in Q3), other cost of revenue at 19% to 20% of revenue, Adjusted Operating Expenses of $2.650 to $2.700 billion, and stock-based compensation lowered to $1.10 to $1.13 billion (a $30 million midpoint reduction from prior guidance). Management expects Sponsored Snaps to become increasingly accretive to topline growth over time as demand builds. The company anticipates continued community growth and plans to launch consumer Specs AR glasses in 2026.

SNAP YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$500.0M$1.0B$1.2B$1.3BRevenue$647.9M$691.6MGross Profit$-265,626,023$-259,676,000Operating Income$-278,175,654$-262,570,000Net Income
$0$500.0M$1.0BRevenueGross ProfitOperating IncomeNet Income

SNAP Revenue by Segment

Advertising Revenue$1.2B+4.0%
Other Revenue$171.0M+64.0%

SNAP Revenue by Geography

North America$820.6M+7.0%
Europe$265.3M+15.0%
Rest of World$259.0M+8.0%

Figures from SEC filings and company reports. Not investment advice.