Revenue growth has trended downward from 20.9% in 2024Q1 to 12.1% in 2026Q1, while gross margins remain constrained within a 51.4% to 59.0% range due to cloud infrastructure costs.
| Sales/Revenue | 6.1B | 5.93B | 5.36B | 4.61B | 4.6B | 4.12B | 2.51B | 1.72B | 1.18B | 824.95M | 404.48M | 58.66M |
| Revenue Growth % | 10.26% | 10.63% | 16.4% | 0.09% | 11.78% | 64.25% | 46.11% | 45.33% | 43.09% | 103.95% | 589.5% | - |
| Cost of Goods Sold | 2.7B | 2.67B | 2.47B | 2.11B | 1.82B | 1.75B | 1.18B | 895.84M | 798.87M | 717.46M | 451.66M | 182.34M |
| COGS % of Revenue | - | 45.03% | 46.15% | 45.9% | 39.45% | 42.51% | 47.18% | 52.22% | 67.67% | 86.97% | 111.66% | 310.83% |
| Gross Profit | 3.4B | 3.26B | 2.89B | 2.49B | 2.79B | 2.37B | 1.32B | 819.7M | 381.58M | 107.49M | -47.18M | -123.68M |
| Gross Margin % | 55.77% | 54.97% | 53.85% | 54.1% | 60.55% | 57.49% | 52.82% | 47.78% | 32.33% | 13.03% | -11.66% | -210.83% |
| Gross Profit Growth % | - | 12.93% | 15.86% | -10.57% | 17.73% | 78.75% | 61.54% | 114.82% | 255% | 327.83% | 61.85% | - |
| Operating Expenses | 3.81B | 3.79B | 3.67B | 3.89B | 4.18B | 3.07B | 2.19B | 1.92B | 1.65B | 3.59B | 473.21M | 258.05M |
| OpEx % of Revenue | - | 63.94% | 68.54% | 84.46% | 90.87% | 74.54% | 87.22% | 112.09% | 139.78% | 435.55% | 116.99% | 439.89% |
| Selling, General & Admin | 1.97B | 2.01B | 1.98B | 1.98B | 2.07B | 1.5B | 1.08B | 1.04B | 877.85M | 2.06B | 289.53M | 175.82M |
| SG&A % of Revenue | - | 33.86% | 36.98% | 42.98% | 45.03% | 36.52% | 43.27% | 60.59% | 74.37% | 249.49% | 71.58% | 299.71% |
| Research & Development | 1.83B | 1.77B | 1.69B | 1.91B | 2.11B | 1.57B | 1.1B | 883.51M | 772.18M | 1.53B | 183.68M | 82.23M |
| R&D % of Revenue | - | 29.86% | 31.55% | 41.49% | 45.85% | 38.02% | 43.95% | 51.5% | 65.41% | 186.06% | 45.41% | 140.18% |
| Other Operating Expenses | 1000K | 13.31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -412.77M | -532.17M | -787.29M | -1.4B | -1.4B | -702.07M | -862.07M | -1.1B | -1.27B | -3.49B | -520.38M | -381.73M |
| Operating Margin % | -6.77% | -8.97% | -14.68% | -30.36% | -30.32% | -17.05% | -34.39% | -64.31% | -107.46% | -422.52% | -128.65% | -650.72% |
| Operating Income Growth % | - | 32.41% | 43.7% | -0.22% | -98.74% | 18.56% | 21.87% | 13.02% | 63.61% | -569.81% | -36.32% | - |
| EBITDA | -290.65M | -372.33M | -629.22M | -1.23B | -1.19B | -582.93M | -775.33M | -1.02B | -1.18B | -3.42B | -491.27M | -366.42M |
| EBITDA Margin % | -4.77% | -6.28% | -11.74% | -26.7% | -25.93% | -14.16% | -30.93% | -59.23% | -99.69% | -415.09% | -121.46% | -624.62% |
| EBITDA Growth % | 41.14% | 40.83% | 48.84% | -3.08% | -104.68% | 24.82% | 23.69% | 13.66% | 65.63% | -597.03% | -34.07% | - |
| D&A (Non-Cash Add-back) | 122.12M | 159.83M | 158.07M | 168.44M | 202.17M | 119.14M | 86.74M | 87.25M | 91.65M | 61.29M | 29.11M | 15.31M |
| EBIT | -295.83M | -329.14M | -650.67M | -1.27B | -1.38B | -456.69M | -828.96M | -1.01B | -1.25B | -3.46B | -520.3M | -381.73M |
| Net Interest Income | 31.54M | 45.16M | 131.91M | 146.37M | 37.14M | -12.48M | -79.1M | 11.05M | 23.33M | 17.64M | 3.23M | 1.4M |
| Interest Income | 123.6M | 134.16M | 153.47M | 168.39M | 58.6M | 5.2M | 18.13M | 36.04M | 27.23M | 21.1M | 4.65M | 1.4M |
| Interest Expense | 28.84M | 89M | 21.55M | 22.02M | 21.46M | 17.68M | 97.23M | 24.99M | 3.89M | 3.46M | 1.42M | 0 |
| Other Income/Expense | 15.39M | 89.39M | 115.07M | 103.96M | -5.39M | 227.7M | -64.11M | 70.06M | 15.09M | 22.17M | -1.34M | 1.25M |
| Pretax Income | -397.38M | -442.78M | -672.23M | -1.29B | -1.4B | -474.37M | -926.18M | -1.03B | -1.25B | -3.46B | -521.72M | -380.48M |
| Pretax Margin % | -6.52% | -7.46% | -12.54% | -28.1% | -30.44% | -11.52% | -36.95% | -60.23% | -106.18% | -419.83% | -128.99% | -648.59% |
| Income Tax | 6.09M | 17.71M | 25.63M | 28.06M | 28.96M | 13.58M | 18.65M | 393K | 2.55M | -18.34M | -7.08M | -7.59M |
| Effective Tax Rate % | -1.53% | -4% | -3.81% | -2.17% | -2.07% | -2.86% | -2.01% | -0.04% | -0.2% | 0.53% | 1.36% | 1.99% |
| Net Income | -409.85M | -460.49M | -697.86M | -1.32B | -1.43B | -487.95M | -944.84M | -1.03B | -1.26B | -3.45B | -514.64M | -372.89M |
| Net Margin % | -6.72% | -7.76% | -13.02% | -28.71% | -31.07% | -11.85% | -37.69% | -60.25% | -106.39% | -417.61% | -127.24% | -635.65% |
| Net Income Growth % | 23.01% | 34.01% | 47.23% | 7.5% | -192.99% | 48.36% | 8.59% | 17.7% | 63.54% | -569.41% | -38.01% | - |
| Net Income (Continuing) | -409.85M | -460.49M | -697.86M | -1.32B | -1.43B | -487.95M | -944.84M | -1.03B | -1.26B | -3.45B | -514.64M | -372.89M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.24 | -0.27 | -0.42 | -0.82 | -0.89 | -0.31 | -0.65 | -0.75 | -0.97 | -2.95 | -0.44 | -0.37 |
| EPS Growth % | 23.34% | 35.71% | 48.78% | 7.87% | -187.1% | 52.31% | 13.33% | 22.68% | 67.12% | -570.45% | -18.92% | - |
| EPS (Basic) | - | -0.27 | -0.42 | -0.82 | -0.89 | -0.31 | -0.65 | -0.75 | -0.97 | -2.95 | -0.44 | -0.37 |
| Diluted Shares Outstanding | 1.69B | 1.72B | 1.66B | 1.61B | 1.61B | 1.56B | 1.46B | 1.38B | 1.3B | 1.17B | 1.16B | 1.02B |
| Basic Shares Outstanding | 1.69B | 1.71B | 1.66B | 1.61B | 1.61B | 1.56B | 1.46B | 1.38B | 1.3B | 1.17B | 1.16B | 1.02B |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
Cloud infrastructure cost dependency
According to the provided quarterly data, Snap's revenue growth has decelerated from a peak of 20.9% in 2024Q1 to 12.1% by 2026Q1, suggesting that the company is struggling to maintain its previous momentum in an increasingly competitive digital advertising landscape dominated by larger, more diversified social platforms.
The consistent decline in year-over-year growth rates indicates that Snap's core advertising model may be reaching a saturation point in its primary North American market. Investors should monitor whether the company can successfully pivot toward higher-margin subscription services to offset the slowing expansion of its core ad-supported user base.
As reported in financial statements, Snap's gross margins have fluctuated between 51.4% and 59.0% over the last ten quarters, a range that remains significantly below the 80%+ margins typically observed in the broader social media and internet content peer group, reflecting its heavy reliance on third-party cloud infrastructure.
This structural limitation suggests that Snap lacks the operating leverage inherent in self-hosted platforms, as every incremental unit of user engagement directly increases hosting costs. Unless the company can achieve significant economies of scale or shift its product mix toward higher-margin software, gross margin expansion will likely remain constrained.
Based on the income statement history, Snap's operating income has frequently remained in negative territory, with the company only achieving a positive operating margin of 2.9% in 2025Q4, highlighting the difficulty of scaling revenue faster than the associated research and development and administrative overhead costs.
The persistent gap between gross profit and operating income suggests that the company's heavy investment in R&D and personnel is not yet yielding the expected efficiency gains. This warrants further investigation into whether the current cost structure is fundamentally misaligned with the company's ability to generate sustainable operating cash flow.
Analysis of the provided figures reveals that stock-based compensation consistently exceeds $250 million per quarter, a significant expense that often obscures the company's underlying operational performance and complicates the assessment of true GAAP profitability for minority shareholders concerned about equity dilution.
The reliance on equity-based incentives appears to be a primary driver of the disconnect between reported net income and cash-generative capacity. Investors should be cautious, as the recurring nature of these grants suggests that the company's path to consistent, non-dilutive profitability remains highly speculative and dependent on future revenue scaling.
Quick answers to the most common questions about buying SNAP stock.
For fiscal year 2025, Snap Inc. (SNAP) reported total revenue of $5.93B. This represents a 10011.1% increase compared to $58.7M in 2015.
Snap Inc. (SNAP) reported a net loss of $460.5M for the fiscal year ending 2025.
Snap Inc. (SNAP) reported an operating income of $-532.2M, resulting in an operating profit margin of -9.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Snap Inc. (SNAP) generated $3.26B in gross profit for the year, representing a gross profit margin of 55.0%. This demonstrates the company's core pricing power and production efficiency.