Snap Q2 revenue beats expectations as user growth continues; shares soar

Snap

03/08/2026 21:20

Overview
US social media firm's Q2 revenue grew 19% yr/yr, beating analyst expectations, fastest growth in over a year
Q2 adjusted EBITDA rose sharply and beat analyst estimates
Company's net loss narrowed compared to last year
Monthly active users grow to 971 million, up from 956 million last quarter
Shares of the company were up about 11.7% in extended trading

Outlook
Company did not provide specific guidance in the press release

Result Drivers
ADVERTISING PERFORMANCE - Co said improved advertising performance contributed to revenue growth and margin expansion
DIRECT REVENUE - Co cited rapid growth in its direct revenue business as a driver of results
DISCIPLINED INVESTMENT - CEO said disciplined investment helped increase free cash flow per share

Company press release: ID:nBw8L17TMa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.60 bln
$1.54 bln (35 Analysts)
Q2 Loss Per Share
 
$0.10
 
Q2 Net Loss
 
$163.96 mln
 
Q2 Adjusted EBITDA
Beat
$249.62 mln
$188.79 mln (34 Analysts)
Q2 Free Cash Flow
 
$120.54 mln
 
Q2 Operating Income
 
-$170.72 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 32 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Snap Inc is $7.00, about 49.3% above its July 31 closing price of $4.69
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 10 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)