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A maker of Snapchat, the visual messaging app built around disappearing photos and videos, plus augmented-reality Lenses, the Snap Map, and an advertising platform that lets brands reach its users. It also sells Spectacles AR glasses and subscription tiers like Snapchat+. Founded in 2011 by Stanford students Evan Spiegel, Bobby Murphy, and Reggie Brown, the app first launched as "Picaboo" — a playful nod to peek-a-boo — before a trademark dispute forced the name change to Snapchat.
Snap Q2 2026 revenue rose 18.9% to $1.60B while a $128.5M restructuring charge weighed on operating results
Snap took a $128.5M this quarter as it reshapes after a 16% workforce cut. rose 18.9% to $1.60B and rose 6.8 points to 58.2%, driven by a 10% increase in average cost per ad impression and $145.1M of subscription growth, while the narrowed to $170.7M from $259.7M. The business is growing but carrying one-off costs from a major reorganization.
Key takeaways
The company recorded $128.5M in across R&D, sales, and G&A as part of the April 2026 16% headcount reduction, leaving at $170.7M versus $259.7M a year earlier.
rose 18.9% to $1.60B, with a 10% increase in average cost per ad impression and a $145.1M rise in other revenue from subscription growth as the drivers.
Daily active users increased 5% to 493M and global rose to $3.25 from $2.87, extending user and monetization gains.
Section summaries
Management's Discussion and Analysis
Revenue rose 19% to $1.60B on ad pricing and subscription growth, while restructuring charges weighed on costs.
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Total grew 19% to $1.60B, driven by a 10% increase in average cost per ad impression and a $145.1M rise in other revenue from subscription growth.
rose to $249.6M from $41.3M in Q2 2025, primarily from higher despite increased infrastructure and R&D costs.
improved to $120.5M from $23.8M a year earlier, supported by stronger and a $9.0M reduction in .
Cash and marketable securities stood at $2.7B; the company used $601.0M to 98.5M shares under authorized buyback programs.
What changed
Q2 2026 against the $3.1B combined cloud commitments: Q1 printed $286.0M and this quarter was $120.5M, down 57.9% QoQ but up from $23.8M a year earlier.
Q2 2026 to see if the Q1 $233.3M print sustains: it printed $249.6M, above both Q1 and the Q2 2025 $41.3M level.
and as Google Android privacy changes and the February 2024 headcount reduction play out: revenue rose 18.9% and ARPU rose to $3.25, with ad pricing up 10%.
Bellwether youth-harm JCCP trials: Snap settled the first two bellwether trials and a school district case, with additional bellwether trials scheduled for Oct 2026 and Feb 2027.
The 2021 ATT securities class action, flagged as pending for years, was settled and dismissed with final court approval on April 24, 2026, removing that overhang.
The April 2026 16% workforce reduction is now reflected in $128.5M of Q2 , a new cost item versus the Q1 filing.
What to watch
Q3 2026 and as the 16% April 2026 workforce reduction fully takes effect against $3.1B cloud commitments
Additional JCCP bellwether trials scheduled for Oct 2026 and Feb 2027 and any damages or settlements from them
Outcome of the European Commission DSA proceeding opened March 2026 and any DOJ action on the FTC referral over
Q3 2026 to see if the $249.6M print sustains after the clear
DAUs increased 5% to 493M, and global rose to $3.25 from $2.87.
Operating loss narrowed to $170.7M from $259.7M, but results included $128.5M in across R&D, sales, and G&A.
surged to $249.6M from $41.3M, primarily due to higher and despite increased infrastructure and R&D costs.
improved to $120.5M from $23.8M, supported by stronger and a $9.0M reduction in .
Cash and marketable securities stood at $2.7B, with $601.0M used to 98.5M shares under authorized buyback programs.
Quantitative and Qualitative Disclosures About Market Risk
Interest rate, foreign currency, and investment valuation risks are disclosed, with interest rate sensitivity quantified and FX exposure deemed immaterial.
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A hypothetical 100 rate increase would decrease the of cash equivalents and marketable securities by $16.2 million as of June 30, 2026.
The $3.5 billion in fixed-rate debt is carried at , so interest rate changes do not impact the financial statements, though fluctuates.
and operating expenses are predominantly in U.S. dollars, making foreign currency risk immaterial for the periods presented, with no hedging contracts used.
Strategic investments in private companies ($185.9 million) are adjusted to only upon observable transactions or , carrying inherent liquidity and commercialization risks.
Publicly traded equity securities ($7.3 million) are marked to market, exposing the company to valuation declines from adverse financial market conditions.
Snap faces multiple material lawsuits over platform safety, youth mental health, and securities disclosures, with trials and regulatory probes ongoing.
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A securities class action alleging misleading statements about an ad platform change was voluntarily dismissed in Dec 2025 but may be refiled.
Platform-related cases consolidated in federal MDL and California JCCP allege is addictive and harmful, especially to minors; JCCP bellwether trials began Jan 2026.
Snap settled the first two JCCP bellwether trials and a school district case; additional bellwether trials are scheduled for Oct 2026 and Feb 2027.
State attorneys general lawsuits allege harmful content, child safety failures, and deceptive practices, with Nevada and New Mexico trials set for Aug 2027.
The European Commission opened a DSA proceeding in Mar 2026 investigating Snap's systemic risk assessments and minor protections, with potential significant fines.
Snap is suing its insurers over coverage for bodily injury claims, while insurers deny any .
Snap’s Q2 FY2026 risk factors emphasize threats to its advertising-dependent model from privacy changes, AI risks, intense competition, and a major 2026 restructuring.
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Apple’s iOS privacy changes and potential similar moves by Google continue to impair ad targeting and measurement, directly reducing advertising demand and pricing.
A 16% global headcount reduction announced in April 2026 aims to streamline operations but risks harming morale, retention, and the ability to attract key talent.
The company faces multiple lawsuits alleging platform design is addictive and harmful to minors, with recent jury verdicts against competitors like Meta and YouTube highlighting potential liability.
Snap’s heavy reliance on Google Cloud and AWS for computing infrastructure means any service disruption or unfavorable contract change could severely disrupt operations.
Co-founders Evan Spiegel and Robert Murphy control over 99% of voting power, enabling them to control all stockholder decisions and potentially deter a change of control.
New and evolving regulations on AI, teen safety, and data protection (including an active EU DSA investigation) could force costly product changes and limit key streams.