Snap (NYSE:SNAP) Announces Earnings Results

Snap (NYSE:SNAP) issued its earnings results on Wednesday. The company reported ($0.05) earnings per share for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.14), FiscalAI reports. Snap had a negative return on equity of 20.72% and a negative net margin of 7.76%.The business had revenue of $1.53 billion during the quarter, compared to analysts’ expectations of $1.53 billion. During the same period last year, the firm posted ($0.08) EPS. Snap’s quarterly revenue was up 12.2% compared to the same quarter last year.

Here are the key takeaways from Snap’s conference call:

• Snap reported a return to user growth and higher engagement, with DAUs at 483M and MAUs at 956M (both +5% YoY) driven by Spotlight, AR Lenses, Games and Snap Map improvements.
• Financials showed meaningful progress — Q1 revenue $1.53B (+12% YoY), other revenue +87%, adjusted EBITDA $233M, free cash flow $286M, and adjusted gross margin expanded to 57%, moving toward the 60% FY goal.
• Ad product and measurement gains are accelerating monetization: AI automation is used on ~70% of ad spend, DPA revenue +30% YoY, app ad conversions improved, and third‑party measurement (Measured) showed median iROAS up ~104% in recent tests; new inventory like Sponsored Snaps and Promoted Places show promising early performance.
• Near-term headwinds remain — large North America advertisers are still pressured, total eCPMs declined ~12%, the Middle East conflict caused a ~$20–25M impact in March, the Perplexity relationship ended (no Q2 contribution), and Snap expects $95–130M of Q2 restructuring charges despite a plan to cut >$500M of annualized costs H2‑2026.

Snap Stock Performance

Shares of Snap stock traded up $0.04 during trading hours on Wednesday, reaching $6.15. 73,297,005 shares of the stock traded hands, compared to its average volume of 54,846,568. The company has a 50 day moving average price of $5.12 and a 200 day moving average price of $6.59. The firm has a market capitalization of $10.38 billion, a price-to-earnings ratio of -22.77 and a beta of 1.05. Snap has a one year low of $3.81 and a one year high of $10.41. The company has a quick ratio of 3.56, a current ratio of 3.56 and a debt-to-equity ratio of 1.53.

Key Stories Impacting Snap

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Q1 revenue and DAU recovery — Snap reported first-quarter revenue of $1.53B (up ~12% YoY) and said daily active users returned to growth outside North America/Europe, a clear sign advertising demand and user engagement are improving. Snap’s quarterly revenue rises, daily active users return to growth
• Positive Sentiment: AI-driven ad partnerships — Snap’s AI ad push continues: a partnership with Experian to bring financial data into AI-powered ads could enhance ad targeting and CPMs if adoption scales. A Peek Into Snap Inc (SNAP)’s AI-Driven Advertising Strategy
• Positive Sentiment: Elevated bullish options activity — Unusually high call buying (roughly 183k calls, ~47% above average) signals short-term speculative bullish positioning that can amplify upside momentum.
• Neutral Sentiment: Wall Street repositioning ahead of results — Several analyst teams updated forecasts and price targets ahead of Q1, reflecting differing views on Snap’s ad recovery and AI monetization timeline; keep an eye on consensus revisions. Top Wall Street Forecasters Revamp Snap Expectations Ahead Of Q1 Earnings
• Neutral Sentiment: Analyst metric scrutiny — Commentary from research outlets highlights focus on metrics beyond revenue/EPS (ARPU, ad pricing, retention), meaning headline numbers may be less important than underlying trend lines. Exploring Analyst Estimates for Snap (SNAP) Q1 Earnings
• Negative Sentiment: Perplexity deal ended — Snap disclosed the previously announced ~$400M integration deal with generative-AI startup Perplexity was “amicably ended,” and management’s guidance assumes no contribution from Perplexity, removing a potential near-term revenue/AI-product catalyst. Snap says its $400M deal with Perplexity ‘amicably ended’
• Negative Sentiment: Mixed/soft bottom-line and cautious guidance — Though revenue met expectations, reported GAAP loss per share was worse than some estimates and management issued cautious sales guidance citing geopolitical uncertainty and no Perplexity contribution; that tempered investor reaction. Snap (NYSE:SNAP) Reports Q1 CY2026 In Line With Expectations But Stock Drops
• Negative Sentiment: Activist pressure — Randian Capital’s campaign urging a Specs review, governance changes and board refresh introduces near-term strategic uncertainty that could be disruptive even if it aims to unlock value. Randian Activist Push Puts Snap Specs Review And Valuation In Focus

Insider Buying and Selling at Snap

In other Snap news, CFO Derek Andersen sold 92,956 shares of the business’s stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $4.59, for a total transaction of $426,668.04. Following the completion of the sale, the chief financial officer directly owned 3,799,661 shares in the company, valued at $17,440,443.99. The trade was a 2.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CTO Robert C. Murphy sold 1,000,000 shares of the business’s stock in a transaction dated Tuesday, February 10th. The shares were sold at an average price of $5.36, for a total value of $5,360,000.00. Following the sale, the chief technology officer owned 49,313,775 shares of the company’s stock, valued at approximately $264,321,834. This represents a 1.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 2,565,573 shares of company stock worth $13,329,781. 22.68% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Snap

Large investors have recently made changes to their positions in the company. Corient Private Wealth LLC grew its stake in shares of Snap by 14.2% during the 4th quarter. Corient Private Wealth LLC now owns 56,092 shares of the company’s stock valued at $451,000 after acquiring an additional 6,956 shares during the period. Alberta Investment Management Corp bought a new position in shares of Snap during the 4th quarter valued at approximately $1,434,000. Vident Advisory LLC grew its stake in shares of Snap by 2.8% during the 4th quarter. Vident Advisory LLC now owns 180,761 shares of the company’s stock valued at $1,459,000 after acquiring an additional 4,947 shares during the period. EP Wealth Advisors LLC bought a new position in shares of Snap during the 4th quarter valued at approximately $458,000. Finally, Mackenzie Financial Corp grew its stake in shares of Snap by 178.4% during the 4th quarter. Mackenzie Financial Corp now owns 76,945 shares of the company’s stock valued at $620,000 after acquiring an additional 49,307 shares during the period. 47.52% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on SNAP. Rosenblatt Securities reissued a “neutral” rating and issued a $6.40 target price on shares of Snap in a research report on Thursday, April 16th. Citizens Jmp reissued a “market perform” rating on shares of Snap in a research report on Thursday, February 5th. Guggenheim reissued a “neutral” rating and issued a $6.50 target price on shares of Snap in a research report on Thursday, April 16th. Stifel Nicolaus boosted their target price on Snap from $4.50 to $5.25 and gave the stock a “hold” rating in a research report on Tuesday, April 21st. Finally, Sanford C. Bernstein lowered Snap from a “market perform” rating to a “market perform” rating in a research report on Monday, April 27th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, twenty have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Snap has a consensus rating of “Hold” and a consensus target price of $7.93.

Snap Company Profile

Snap Inc is a camera and social media company best known for developing and operating Snapchat, a multimedia messaging application that allows users to send photos, videos and messages that disappear after being viewed. In addition to its core messaging service, Snap offers a suite of augmented reality (AR) tools, including custom Lenses and Filters, that enable users and third-party developers to create interactive and immersive experiences. The company also provides advertising solutions that allow brands to engage audiences through Snap Ads, Sponsored Lenses and Discover content on the platform.

Founded in 2011 by Evan Spiegel and Bobby Murphy, Snap has continually focused on innovation in camera technology and AR.