Snap (NYSE:SNAP) Releases Earnings Results

Snap (NYSE:SNAP) announced its quarterly earnings data on Wednesday. The company reported $0.03 earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of $1.72 billion for the quarter, compared to analysts’ expectations of $1.73 billion. Snap had a negative return on equity of 14.61% and a negative net margin of 4.90%. The company’s revenue for the quarter was up 14.3% compared to the same quarter last year. During the same period last year, the firm earned ($0.06) earnings per share.

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

• Q3 revenue rose 14% year over year to $1.72 billion, while net income reached $56 million and adjusted EBITDA increased to $383 million. Gross margin expanded about 7 percentage points, and free cash flow rose 76% to $164 million.
• Advertising revenue grew just 4%, as declining upper-funnel brand spending—particularly from U.S. and Middle East consumer packaged goods advertisers—offset stronger direct-response growth. Management said direct response now represents about 77% of revenue and expects brand improvements to take hold over 2027.
• Direct-response campaigns showed improved results: app-purchase campaign revenue grew more than 54% as purchase volume more than doubled, while web-purchase campaign revenue increased 11%. Snap is betting that AI-powered ad tools, better measurement, and new placements will help turn these gains into larger advertiser budgets.
• For Q4, Snap guided to revenue of $1.950 billion–$1.985 billion and adjusted EBITDA of $490 million–$525 million. Other revenue, led by subscriptions, grew 84% in Q3, and Snap surpassed 30 million paid subscribers.
• Snap warned that evolving youth-related regulation could bring product changes, higher compliance and legal costs, and harm to user growth or engagement. It will also make global monthly active users, rather than daily active users, its primary audience metric starting in Q1 2027.

Snap Price Performance

Shares of Snap stock traded up $0.33 during trading on Wednesday, reaching $5.92. 78,639,640 shares of the stock were exchanged, compared to its average volume of 40,733,936. The company has a debt-to-equity ratio of 1.75, a quick ratio of 2.94 and a current ratio of 2.94. The stock’s fifty day moving average is $5.76 and its 200 day moving average is $5.42. Snap has a 1 year low of $3.81 and a 1 year high of $9.13.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on SNAP shares. Rosenblatt Securities dropped their target price on Snap from $6.40 to $6.00 and set a “neutral” rating for the company in a report on Tuesday, August 4th. Citizens Jmp reaffirmed a “market perform” rating on shares of Snap in a research note on Tuesday, August 4th. Barclays boosted their price objective on Snap from $15.00 to $16.00 and gave the company an “overweight” rating in a research report on Tuesday, August 4th. Royal Bank Of Canada reissued a “sector perform” rating and set a $8.00 price objective on shares of Snap in a research note on Thursday, September 17th. Finally, Sanford C. Bernstein restated a “market perform” rating and issued a $5.00 target price on shares of Snap in a report on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, twenty-two have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $7.71.

Insiders Place Their Bets

In related news, CAO Rebecca Morrow sold 20,000 shares of the business’s stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $5.35, for a total transaction of $107,000.00. Following the transaction, the chief accounting officer owned 578,105 shares in the company, valued at $3,092,861.75. The trade was a 3.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Ajit Mohan sold 6,797 shares of the company’s stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $5.82, for a total value of $39,558.54. Following the transaction, the insider directly owned 4,965,300 shares of the company’s stock, valued at $28,898,046. The trade was a 0.14% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 445,926 shares of company stock valued at $2,326,930 over the last three months. Company insiders own 22.68% of the company’s stock.

Snap Company Profile

Snap Inc is a technology and social media company best known for Snapchat, a visual messaging and social networking application. Snapchat enables users to communicate through photos, videos, messages and Stories, while offering creative tools such as augmented reality (AR) Lenses and filters. The platform also includes features such as Snap Map, Spotlight and content from publishers and creators.

Snap generates most of its revenue from digital advertising, including video, augmented reality and other advertising formats delivered across Snapchat.