Snap Inc - Class A
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did SNAP Beat Earnings? Q3 2025 Results
Snap delivered a stronger-than-expected third quarter, posting a loss of $0.06 per share against a consensus estimate of $0.12 and growing revenue 9.8% year-over-year to $1.51 billion, edging past the $1.49 billion Wall Street had anticipated. The headline beat was underpinned by two accelerating engines: Snapchat+ subscriptions, which surged 54% year-over-year to $190 million in Other Revenue, and a rebound in international advertising, with Europe and Rest of World growing 12% and 13% respectively, compensating for near-flat North America ad revenue. Net loss narrowed to $103.54 million from $153.25 million a year ago, while Adjusted EBITDA climbed 38% to $182.04 million, reflecting meaningful cost discipline that management now expects to keep full-year Adjusted Operating Expenses near the low end of the $2.65 to $2.70 billion range. Snap's stock jumped more than 10% following the report. Looking ahead, the company guided Q4 revenue of $1.68 to $1.71 billion, though it cautioned that daily active users, currently at 477 million, may dip modestly due to age verification mandates and infrastructure recalibrations in lower-monetization markets.
- Direct Response advertising revenue accelerated to 8% YoY growth, up 3 percentage points from prior quarter
- Purchase-related ad revenue grew over 30% YoY from higher attribution accuracy and better campaign performance
- SMB advertiser segment grew more than 25% in North America in Q3
- Snapchat+ subscribers grew 35% YoY to approach 17 million
- Global impression volume grew approximately 22% YoY
- Adjusted Gross Margin expanded to 55% from 52% in Q2 and 54% in prior year Q3
- Significant acceleration in European advertising revenue growth (12% YoY, up 6pp sequentially) and Rest of World (13% YoY, up 10pp sequentially)
“Our focus on performance, creativity, and simplicity is helping advertisers achieve stronger results while giving our community more ways to communicate.”
Snap CEO, on the earnings call
Forward Guidance & Outlook
Snap guided Q4 2025 revenue of $1.68 billion to $1.71 billion, implying 8%-10% year-over-year growth. Adjusted EBITDA is expected between $280 million and $310 million. Infrastructure costs are expected to rise modestly to $420-$435 million in Q4. Other Cost of Revenue is expected at 18%-19% of revenue. Full-year Adjusted Operating Expenses are expected near the low end of the reduced $2.65-$2.70 billion range. SBC is further reduced to $1.08-$1.10 billion for the full year. The company warned that overall DAU may decline in Q4 due to platform-level age verification rollouts, Australia's Social Media Minimum Age bill, government restrictions on internet services in certain countries, and deliberate infrastructure cost recalibrations in lower-monetization regions. Perplexity AI partnership revenue of $400 million over one year is expected to begin contributing in 2026. The consumer launch of next-generation Specs is planned for 2026.
SNAP YoY Financials
SNAP Revenue by Segment
SNAP Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.