SNAP · Snap Inc.

Snap Inc. disclosed Q1 2026 preliminary results via an Investor Update posted on its IR website, guiding revenue to $1.529 billion with 12% year-over-year growth and adjusted EBITDA to $233 million, signaling continued top-line momentum amid cost discipline. Concurrently, under Item 2.05, the company announced a significant restructuring to reduce global full-time headcount by approximately 16%, affecting around 1,000 employees and closing over 300 open roles, as detailed in CEO Evan Spiegel's letter (Exhibit 99.1). This move aims to streamline operations, reallocate resources to high-priority initiatives, and leverage AI for efficiency gains, with small teams already driving progress in Snapchat+, ad platform, and Snap Lite. Pre-tax charges are estimated at $95-130 million, primarily severance and impairments, with most cash outlays ($75-100 million) in Q2 2026, though local laws may delay some into Q3 or later. The restructuring supports updated FY2026 guidance (Exhibit 99.2), slashing adjusted operating expenses to $2.75 billion (down $250 million from prior) and stock-based compensation to $1.05 billion (down $150 million), while reiterating infrastructure at $1.6-1.65 billion and other adjusted cost of revenue at 16-17% of revenue. This positions Snap for over $500 million in annualized cost savings by H2 2026, enhancing operating leverage and path to net-income profitability. All Item 2.02 and 7.01 disclosures are furnished, not filed.