Snap Swings to Q3 Profit as EPS Beats at $0.03, but Revenue Misses at $1.72B
EPS beat and net income turned positive at $56 million, and adjusted EBITDA topped guidance at $383 million, but revenue came in just below the estimate and shares fell after hours.
Snap (SNAP) reported third-quarter 2026 revenue of $1.722 billion, up 14% from a year earlier but just below the $1.73 billion estimate, while EPS of $0.03 beat the $0.00 estimate as net income reached $56 million. Adjusted EBITDA of $383 million topped the high end of the company's $300 million to $350 million guidance.
Shares fell about 10% in after-hours trading, to $5.33 from a $5.92 close that was up 5.8% on the day.
Q3 scorecard
| Parameters | Expected | Actual | Beat/Miss |
|---|---|---|---|
| EPS (GAAP diluted) | $0.00 | $0.03 | Beat by 3 cents |
| Revenue | $1.73B | $1.722B | Miss by 0.5% |
| Adjusted EBITDA (guidance midpoint) | $325M | $383M | Beat by 18% |
| Change | YoY | QoQ |
|---|---|---|
| GAAP diluted EPS | ▲ $0.09 better | ▲ $0.13 better |
| Revenue | ▲ 14.3% | ▲ 7.7% |
| Adjusted EBITDA | ▲ 110.4% | ▲ 53.2% |
EPS beat the estimate by 3 cents, and revenue missed it by about $8 million. Adjusted EBITDA finished $33 million above the high end of guidance. Third-quarter 2025 revenue was $1.507 billion and GAAP EPS was -$0.06. Second-quarter 2026 revenue was $1.599 billion and GAAP EPS was -$0.10.
Users and monetization
- Daily active users. Daily active users (DAU) reached 495 million, up 3.8% from 477 million a year earlier and up from 493 million in the second quarter.
- ARPU. Average revenue per user (ARPU) was $3.48, up 10.1% from $3.16 a year earlier and up from $3.25 in the second quarter.
Profit and cash flow
- Net income. Net income was $56 million, against a net loss of $103.5 million a year earlier and $164 million in the second quarter.
- Adjusted EBITDA. Adjusted EBITDA was $383 million, up from $182 million a year earlier and $250 million in the second quarter.
- Free cash flow. Free cash flow was $164 million, up from $93.4 million a year earlier and $121 million in the second quarter.
Specs
- Augmented reality glasses. Snap launched Specs for augmented reality. The company announced the consumer version in June at a price of $2,195.
What to watch
- Revenue. Whether revenue growth holds near 14% after a result just under the estimate and inside the $1.70 billion to $1.74 billion guidance range.
- Users. Whether DAU keeps rising from 495 million after adding 2 million in the quarter.
- Profit. Whether net income stays positive and adjusted EBITDA stays above $300 million.
- Related coverage. See our reports on Fastly and Ibotta.
Sources: Results are from Snap's third-quarter 2026 report. Estimates are consensus figures. Guidance, second-quarter 2026 and third-quarter 2025 comparison figures are from the company's earlier releases. This article is informational only and is not investment advice.
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