Snap’s Q2 growth tops forecasts

Snap (SNAP) generated $1.60 billion in revenue in the second quarter of 2026, a 19% increase from $1.34 billion a year earlier. The performance exceeded Wall Street expectations, which had been in the range of about $1.53 billion to $1.54 billion. Management highlighted improving momentum with large advertisers in North America and incremental spending tied to the World Cup as contributors to the top-line gain. The results prompted a positive reaction in extended trading, with the stock rising after the release.

The company reported a GAAP net loss of about $163.9 million for the quarter, narrowing from a loss of $262.6 million in the prior-year period. On a per-share basis, Snap (SNAP) recorded a loss of $0.10. The improvement in the bottom line reflects both higher revenue and ongoing cost discipline following prior restructuring actions.

Snap (SNAP)’s adjusted loss per share was $0.10 in the second quarter of 2026, better than the consensus estimate of a $0.12 loss per share. Adjusted earnings amounted to approximately $250 million, ahead of a $192 million estimate cited in market data. This translated into a sharp year-over-year increase in Adjusted EBITDA, underscoring improved operating leverage on the back of higher revenue and cost controls.

For the three and six months ended June 30, 2026, Snap recorded total restructuring charges of $128.5 million. These charges were included in the company’s GAAP results but excluded from Adjusted EBITDA, as outlined in its financial reconciliations. Management expects personnel-cost savings from an April restructuring to be more fully reflected starting in the third quarter, which could further influence profitability metrics going forward.

Global daily active users reached 493 million in the second quarter, surpassing analyst expectations of 487 million. Global average revenue per user came in at $3.25, also ahead of forecasts of $3.16. These metrics indicate that Snap is not only expanding its user base but also generating more revenue per user than anticipated.

Other Revenue, a category that includes the Snapchat+ subscription service and related direct-revenue products, grew 85% year over year to $316 million in the quarter. This rapid expansion highlights the growing contribution of subscriptions and other direct monetization streams alongside the company’s core advertising business.

For the third quarter of 2026, Snap guided revenue to a range of $1.70 billion to $1.74 billion. The company also projected Adjusted EBITDA between $300 million and $350 million. Both guidance ranges are above prior analyst revenue expectations of $1.7 billion, signaling management’s confidence in continued demand from advertisers and ongoing operational execution.

Snap increased its full-year infrastructure cost guidance by $50 million, now expecting to spend between $1.65 billion and $1.70 billion. The higher outlook reflects additional investment in artificial intelligence and machine learning infrastructure. Management framed these outlays as supporting product and ad-system improvements, building on several quarters of work to enhance ad products and go-to-market execution.