Snap Posts First Quarterly Profit After Losses

The Tip Desk · November 5, 2026 · 2 min read

Third-quarter revenue reached $1,722 million, up 14% from a year earlier, as the company reported $56 million of net income.

Snap Inc. (SNAP) swung to a quarterly profit in the three months ended September 30, 2026, after two consecutive periods of net losses, as revenue growth slowed and the company posted $1,722 million of sales.

The technology company reported net income of $56 million, or $0.03 a share, compared with a net loss of $104 million a year earlier. Operating income was $77 million. In the prior quarter, Snap had posted a $164 million net loss and a $171 million operating loss.

Adjusted EBITDA rose to $383 million from $182 million a year earlier. Operating cash flow was $210 million and free cash flow was $164 million.

Co-founder and Chief Executive Officer Evan Spiegel said the company generated positive net income as revenue grew 14% year-over-year, “reflecting the progress we are making to build a more profitable business.” He said AI is becoming a significant advantage for the teams and advertising platform and that Snap continues to invest in augmented reality with the launch of SPECS.

Revenue growth accelerated from 12% in the first quarter to 19% in the second quarter, then slowed to 14% in the third. Cost of revenue fell to $649 million from $674 million a year earlier. Research and development rose to $478 million and sales and marketing to $298 million. General and administrative expense was $221 million.

For the nine months ended September 30, revenue was $4.85 billion, up 15% from a year earlier. Net loss for the nine months was $196 million, and adjusted EBITDA was $866 million. Restructuring charges of $128.5 million were recorded in the nine-month period and excluded from adjusted EBITDA.

Cash, cash equivalents, and restricted cash ended the quarter at $1.02 billion. Common shares outstanding were 1,718 million as of September 30, 2026.

Snap said it will discuss its fourth-quarter 2026 outlook on its earnings call and in an investor letter.

The company also said that beginning with its quarterly report for the first quarter of 2027, it plans to transition to global monthly active users as its primary audience metric, replacing global daily active users and discontinuing regional DAU and regional ARPU. It will introduce global MAU-based ARPU as its primary monetization metric. Snap said the planned changes to the MAU definition would have resulted in a less than 1% change to historical MAU in the third quarter of 2026.