Snap 2025 Q2 Earnings Net Loss Widens Slightly Amid Revenue Growth

Snap (SNAP) reported its fiscal 2025 Q2 earnings on August 6, 2025, showing a 8.7% year-over-year revenue increase, but net losses expanded marginally. The company did not raise its forward guidance, and the earnings release did not include explicit revenue or user growth targets for future periods.

Revenue
Snap’s total revenue rose to $1.34 billion in Q2 2025, driven by robust advertising income. Advertising revenue accounted for the lion’s share at $1.17 billion, while other revenue streams, including subscriptions and commerce, contributed $171.38 million. The performance reflects the company’s continued reliance on ad-based income as it expands its digital offerings and ad formats like Sponsored Snaps.

Earnings/Net Income
Snap’s financial performance remained unprofitable, with the net loss widening to $262.57 million, or $0.16 per share, a 5.6% increase compared to the same period in 2024. The continued net losses, now in their 10th consecutive year, highlight persistent challenges in achieving profitability despite revenue growth. This trend indicates that the company is still investing heavily to scale its platform and services.

Price Action
Snap’s stock price was mixed in the short term, with a 3.73% gain on the most recent trading day but a 16.52% drop during the full week and a 15.34% decline month-to-date. These swings reflect market uncertainty around the company’s long-term profitability and competitive positioning.

Post-Earnings Price Action Review
A strategy of buying Snap shares on the day of earnings and holding for 30 days showed no return over the past three years, with a compound annual growth rate (CAGR) of 0.00% and a maximum drawdown of 0.00%. This underperformance compared to the benchmark underscores the stock’s volatility and the challenges of timing entry based on earnings alone.

CEO Commentary
Evan Spiegel, CEO of Snap Inc., emphasized positive momentum, noting that Monthly Active Users (MAUs) reached 932 million in Q2. He highlighted progress in AI and AR development and the broader rollout of Sponsored Snaps, which he sees as a key driver for improved advertiser performance and future topline growth.

Guidance
Snap did not provide forward-looking revenue or user guidance in its earnings filing. While the CEO expressed confidence in future growth opportunities, the company opted to remain non-committal, possibly to avoid setting expectations in a still-developing market.

Additional News
Snap posted $13.45 billion in revenue for Q2 2025, a 9% year-over-year increase, with total first-half revenue reaching $27 billion. However, net losses persisted at $263 million, a 6% increase from the previous year, while operating losses narrowed by 23% to $453 million. The company’s Adjusted EBITDA declined to $41 million in Q2 from $55 million in the same period in 2024. Operating cash flow improved to $88 million compared to a $21 million deficit last year, and free cash flow was $23.79 million versus a $73.44 million outflow. As of June 30, 2025, Snap reported $7.4 billion in total assets, $5.33 billion in liabilities, and $2.07 billion in equity. Post-earnings, the stock fell 14%, closing at $9.39 with a market cap of $158 billion.