SNAP · Snap Inc.

Snap Inc. delivered a strong Q1 2026, marking a return to DAU growth at 483 million (+5% YoY) and MAU at 956 million (+5% YoY), fueled by enhanced engagement via Topic Chats, Games reaching 255 million MAU, Spotlight content growth, and AR Lenses used 9 billion times daily by 75% of users. Revenue rose 12% to $1.53 billion, with Advertising Revenue up 3% to $1.24 billion driven by Dynamic Product Ads (+30% YoY), Sponsored Snaps (CTR +226%, conversions +59%), and Promoted Places delivering foot traffic lifts like 18% for Carl’s Jr. Other Revenue accelerated 87% to $285 million from subscriptions including Snapchat+ and new Lens+. CEO Evan Spiegel highlighted disciplined execution amid investments in Specs eyewear, with partnerships like Qualcomm and developer Lens submissions up 28% YoY. Profitability improved markedly: operating loss shrank 62% to $74 million, net loss 36% to $89 million, Adjusted EBITDA tripled to $233 million. Cash generation was robust at $327 million operating cash flow and $286 million Free Cash Flow. Management emphasized closing the engagement-monetization gap, SMB ad growth (+30% YoY), and early large advertiser recovery signals like 10% higher NA upfronts, positioning for durable profitability while advancing intelligent eyewear via Specs launches and AR experiences.