Snap Posts Q3 Net Income of $56 Million on 14% Revenue Growth, Will Switch to MAU Metric
Revenue reached $1.72 billion and adjusted EBITDA more than doubled, while North America daily users fell 6%.
Snap reported third-quarter revenue of $1.72 billion on November 4, up 14% from a year earlier, and a net income of $56 million compared with a $104 million net loss in the same period of 2025.
Key figures
- Revenue: $1.72 billion, versus $1.51 billion a year earlier.
- Adjusted EBITDA: $383 million, up from $182 million, roughly a 22% margin.
- Free cash flow: $164 million, versus $93 million. Operating cash flow was $210 million.
- Daily active users: 495 million, up 4%.
- Monthly active users: 977 million, up 4%.
- ARPU: $3.48, up 10%.
CEO Evan Spiegel said the results reflect "the progress we are making to build a more profitable business."
Regional picture
- North America: revenue $1.01 billion (+13%); DAU 92 million (-6%).
- Europe: revenue $363 million (+22%); DAU 98 million (-1%).
- Rest of World: revenue $345 million (+11%); DAU 305 million (+9%).
User growth came entirely from outside the two largest advertising markets, where daily audiences declined.
Metric change
Starting in the first quarter of 2027, Snap said it will make global monthly active users its primary audience metric and replace regional DAU and ARPU measures with global MAU-based ones. The company did not repurchase Class A shares in the quarter; nine-month repurchases totaled about $601 million.
The release did not include fourth-quarter guidance, which Snap said it would discuss on its earnings call and in its investor letter.
Context
Snap's nine-month revenue was $4.85 billion, up 15%, though the company still reported a net loss of $196 million for that period.
