Snap Stock Earnings Reports

Snap reported solid operational and financial progress in Q1 2026 as it advances a plan to reaccelerate user and revenue growth while moving toward GAAP profitability. Key metrics: Daily active users returned to growth (483 million, +5% YoY) and monthly active users reached 956 million; total revenue was $1.53 billion (+12% YoY) driven by a 3% increase in ad revenue to $1.24 billion and an 87% increase in other revenue to $285 million (subscriptions, Memories, Lens+). Adjusted EBITDA was $233 million, free cash flow $286 million, and net loss improved to $89 million. Product momentum includes growth in Spotlight sharing, AR Lens creation (400k+ lenses submitted in Q1), Snap Map engagement, and games (255M MAU). Advertising improvements were led by better direct-response performance, AI-driven ad automation (70%+ of spend uses AI tools), Dynamic Product Ads and app advertising gains, and early traction for new inventory like Sponsored Snaps and Promoted Places. SMBs remain a major growth driver (SMB spend +30% YoY in North America) while large North America advertisers are recovering unevenly. Other revenue diversification (Snapchat+ and Lens+) is a strategic priority. Cost discipline is emphasized: adjusted gross margin improved to 57%, adjusted operating expenses modestly up, and Snap expects >$500M of annualized cost reductions in H2 2026 following a restructuring; Q2 revenue guidance is $1.52–1.55B with adjusted EBITDA expected $175–200M and pretax restructuring charges of $95–130M in Q2. The company also reiterated its focus on launching Specs (AR glasses) later this year and continued monitoring of regulatory and geopolitical risks (Middle East impact noted).