Snap Inc. expects Q3 revenue to be between $1.475B and $1.505B. The company's CEO, Evan Spiegel, highlighted the progress in its long-term strategy, including a 64 million or 7% year-over-year increase in monthly active users to 932 million. The company is moving closer to its goal of serving 1 billion Snapchatters.
Snap Inc. (SNAP) has provided its third-quarter revenue forecast, expecting earnings to fall between $1.475 billion and $1.505 billion. The company's CEO, Evan Spiegel, highlighted the progress in its long-term strategy, including a 64 million or 7% year-over-year increase in monthly active users (MAU) to 932 million [2].
The company is moving closer to its goal of serving 1 billion Snapchatters. This growth is driven by increased user engagement and the introduction of new features such as the Snapchat app on Apple Watch, enhanced creator tools, and AR Lenses. Snap Inc. has also seen improvements in its advertising platform, with purchase volume increasing 39% year-over-year for commerce advertisers and total purchase-related ad revenue growing more than 25% [2].
Snap Inc. reported a net loss of $263 million in the second quarter of 2025, a decrease of 6% from the previous year. Adjusted EBITDA was $41 million, and operating cash flow was $88 million. Free Cash Flow was $24 million, indicating a significant improvement from the previous year's negative $73.439 million [2].
The company's stock has witnessed a change of -2.4% in the past month, contrasting with the Zacks S&P 500 composite's +0.6% move. Despite this, SNAP is expected to outperform the overall market performance in the near term, with a Zacks Rank #2 (Buy) [1].
Snap Inc. continues to focus on accelerating and diversifying its revenue growth, with Sponsored Snaps proving effective in driving incremental conversions. The company's augmented reality platform has seen significant engagement, with over 350 million Snapchatters engaging with AR every day on average in Q2 2025 [2].
References:
[1] https://www.nasdaq.com/articles/countdown-snap-snap-q2-earnings-look-estimates-beyond-revenue-and-eps
[2] https://investor.snap.com/news/news-details/2025/Snap-Inc--Announces-Second-Quarter-2025-Financial-Results/default.aspx
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