Snap Reports Higher Profits and Revenue Growth Despite Falling User Numbers

Snap Inc., the company behind Snapchat, reported a 10% increase in fourth-quarter sales compared to the same period last year. Net income surged to $45.2 million, nearly five times more than the $9.1 million from a year earlier.

Despite the strong financial results, Snap's daily active users dropped by 3 million to 474 million during the fourth quarter. This decline followed the company's decision to reduce its marketing spending to focus more on profitable growth.

Looking forward, Snap expects first-quarter revenue to be between $1.50 billion and $1.53 billion, which is lower than what analysts had predicted. The company faces tough competition for advertising dollars from larger rivals like Facebook and Instagram.

Snap is working to diversify its revenue streams, aiming to rely less on ads and make more money from subscriptions and new products in the future.

Snap reduced its marketing spending, which led to fewer new users joining the platform in the fourth quarter.

Snap focused on cutting costs and aimed for profitable growth, which helped increase profits even as its user numbers dropped.

Snap is facing tough competition from bigger social media companies like Facebook and Instagram for advertising money.

Snap is looking to grow its business through things like paid subscriptions and new products, instead of relying only on advertising.

WSJ

The company behind Snapchat said its outlook excludes potential sales from the integration with Perplexity because Snap hasn't yet agreed on a path to a broader rollout of its deal with the AI company.

CNBC

Sales in Snap's fourth quarter rose 10% year over year, while net income was $45.2 million, which was up nearly 400% from the $9.1 million it reported a year ago. The social media company said first-quarter revenue will be in the range of $1.50 billion to $1.53 billion, which is below analyst estima...

Reuters

Snap forecast first-quarter revenue below Wall Street estimates on Wednesday, signaling tough competition for digital advertising dollars from bigger rivals such as Meta-owned Facebook and Instagram.

Business Wire

SANTA MONICA, Calif.--(BUSINESS WIRE)--Snap Inc. (NYSE: SNAP) today announced financial results for the quarter and full year ended December 31, 2025. “Our Q4 results began to reflect the impact of our strategic pivot toward profitable growth, translating into revenue diversification and meaningful...

Benzinga

Snap, Inc. (NYSE: SNAP) shares rallied in Wednesday's extended trading after the company released its fourth-quarter earnings report, beating estimates on the top and bottom lines.

Deadline

Snap saw its daily active users fall by 3 million to 474 million in the fourth quarter as the social media platform said it substantially reduced marketing investments “to focus on more profitable growth.” Net income surged to $45.2 million from the $9.1 million the year before.

Zacks Investment Research

Snap (SNAP) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.16 per share a year ago.

TechCrunch

Snap is on a mission to diversify its revenue sources—moving from a business model in which it largely chases ad revenue to one where it can also make money through subscriptions and, eventually, hardware. The company's latest quarterly earnings report shows that, so far, the firm is having moderate...

Zacks Investment Research

Although the revenue and EPS for Snap (SNAP) give a sense of how its business performed in the quarter ended December 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

PYMNTS

Snap positioned artificial intelligence (AI) as the core lever for improving advertiser performance and driving more profitable growth during the fourth-quarter earnings call.

Seeking Alpha

Snap Inc. (SNAP) Q4 2025 Earnings Call Transcript

Business Wire

KENOSHA, Wis.--(BUSINESS WIRE)--Snap-on today announced 2025 operating results for the fourth quarter and full year, including diluted EPS of $4.94 for the quarter.

Zacks Investment Research

SNAP beats Q4 earnings estimates as revenues rise 10% year over year on higher ARPU, Snapchat+ growth and stronger ads.

Zacks Investment Research

Snap-On (SNA) came out with quarterly earnings of $4.94 per share, beating the Zacks Consensus Estimate of $4.86 per share. This compares to earnings of $4.82 per share a year ago.

Invezz

The Snap stock price crashed to a record low and flipped a crucial support level for the first time ever. It dropped to an all-time low of $5.9 after the company published its financial results and launched a large share buyback, a sign that the management expects it to rebound.

Benzinga

Snap, Inc. (NYSE: SNAP) posted upbeat fourth-quarter results on Wednesday.

Zacks Investment Research

Although the revenue and EPS for Snap-On (SNA) give a sense of how its business performed in the quarter ended December 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.