Snap (SNAP) Q1 2026 earnings summary

Executive summary

• Revenue grew 12% year-over-year to $1.53 billion in Q1 2026, with daily active users reaching 483 million and monthly active users at 956 million, both up 5% year-over-year.

• Net loss narrowed to $89 million from $140 million a year ago, with diluted net loss per share improving to $(0.05) from $(0.08).

• Adjusted EBITDA more than doubled to $233 million, and free cash flow rose to $286 million.

• Strong engagement in AR Lenses and creator ecosystem, with over 400,000 Lenses submitted in Q1, up 150% year-over-year.

• Strategic focus remains on growing the community, accelerating and diversifying revenue, and building a more profitable core business.

Financial highlights

• Advertising revenue grew 3% year-over-year to $1.24 billion, while other revenue surged 87% to $285 million, driven by subscriptions and new offerings.

• Adjusted gross margin improved to 57%, and GAAP gross margin reached 56%.

• Free cash flow was $286 million, and operating cash flow reached $327 million in Q1.

• ARPU rose to $3.17 from $2.96 year-over-year.

• Share repurchases totaled $350 million in Q1, with $2.8 billion in cash and marketable securities at quarter end.

Outlook and guidance

• Q2 2026 revenue guidance is $1.52–$1.55 billion, with adjusted EBITDA expected between $175 million and $200 million, and restructuring charges of $95–$130 million anticipated.

• Annualized cost structure expected to be reduced by over $500 million in the second half of 2026.

• Management expects continued macroeconomic, geopolitical, and competitive pressures to impact advertising demand and revenue growth.

• Existing cash balance is considered sufficient to fund ongoing requirements for at least the next 12 months.