Revenue growth accelerated to 18.9% YoY in Q2 2026, with gross margin improving to 58.2% from 51.4% a year earlier, yet operating margin remains negative at -10.7%.
Snap Inc. (SNAP) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Sales/Revenue | 6.35B | 5.93B | 5.36B | 4.61B | 4.6B | 4.12B | 2.51B | 1.72B | 1.18B | 824.95M | 404.48M | 58.66M |
| Revenue Growth % | 12.65% | 10.63% | 16.4% | 0.09% | 11.78% | 64.25% | 46.11% | 45.33% | 43.09% | 103.95% | 589.5% | - |
| Cost of Goods Sold | 2.71B | 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 | 3.64B | 3.26B | 2.89B | 2.49B | 2.79B | 2.37B | 1.32B | 819.7M | 381.58M | 107.49M | -47.18M | -123.68M |
| Gross Margin % | 57.31% | 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 | 3.96B | 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 | 2.02B | 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 | 1.92B | 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 | -323.81M | -532.17M | -787.29M | -1.4B | -1.4B | -702.07M | -862.07M | -1.1B | -1.27B | -3.49B | -520.38M | -381.73M |
| Operating Margin % | -5.1% | -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 | -150.85M | -372.33M | -629.22M | -1.23B | -1.19B | -582.93M | -775.33M | -1.02B | -1.18B | -3.42B | -491.27M | -366.42M |
| EBITDA Margin % | -2.38% | -6.28% | -11.74% | -26.7% | -25.93% | -14.16% | -30.93% | -59.23% | -99.69% | -415.09% | -121.46% | -624.62% |
| EBITDA Growth % | 69.67% | 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) | 126.79M | 159.83M | 158.07M | 168.44M | 202.17M | 119.14M | 86.74M | 87.25M | 91.65M | 61.29M | 29.11M | 15.31M |
| EBIT | -167.63M | -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 | 3.38M | 45.16M | 131.91M | 146.37M | 37.14M | -12.48M | -79.1M | 11.05M | 23.33M | 17.64M | 3.23M | 1.4M |
| Interest Income | 115.07M | 134.16M | 153.47M | 168.39M | 58.6M | 5.2M | 18.13M | 36.04M | 27.23M | 21.1M | 4.65M | 1.4M |
| Interest Expense | 111.69M | 89M | 21.55M | 22.02M | 21.46M | 17.68M | 97.23M | 24.99M | 3.89M | 3.46M | 1.42M | 0 |
| Other Income/Expense | 19.85M | 89.39M | 115.07M | 103.96M | -5.39M | 227.7M | -64.11M | 70.06M | 15.09M | 22.17M | -1.34M | 1.25M |
| Pretax Income | -303.96M | -442.78M | -672.23M | -1.29B | -1.4B | -474.37M | -926.18M | -1.03B | -1.25B | -3.46B | -521.72M | -380.48M |
| Pretax Margin % | -4.79% | -7.46% | -12.54% | -28.1% | -30.44% | -11.52% | -36.95% | -60.23% | -106.18% | -419.83% | -128.99% | -648.59% |
| Income Tax | 7.28M | 17.71M | 25.63M | 28.06M | 28.96M | 13.58M | 18.65M | 393K | 2.55M | -18.34M | -7.08M | -7.59M |
| Effective Tax Rate % | -2.4% | -4% | -3.81% | -2.17% | -2.07% | -2.86% | -2.01% | -0.04% | -0.2% | 0.53% | 1.36% | 1.99% |
| Net Income | -311.24M | -460.49M | -697.86M | -1.32B | -1.43B | -487.95M | -944.84M | -1.03B | -1.26B | -3.45B | -514.64M | -372.89M |
| Net Margin % | -4.9% | -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 % | 43.03% | 34.01% | 47.23% | 7.5% | -192.99% | 48.36% | 8.59% | 17.7% | 63.54% | -569.41% | -38.01% | - |
| Net Income (Continuing) | -311.24M | -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) | -0.19 | -0.27 | -0.42 | -0.82 | -0.89 | -0.31 | -0.65 | -0.75 | -0.97 | -2.95 | -0.44 | -0.37 |
| EPS Growth % | 43.07% | 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 | 1.68B | 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 | 1.68B | 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 | - | - | - | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Persistent GAAP losses and leverage
Metrics are mathematically derived from official filings.
Revenue Growth Reaccelerates on Ad Improvements
Snap's revenue growth accelerated to 18.9% YoY in Q2 2026, up from 8.7% a year earlier, according to the latest quarterly report, suggesting the ad platform turnaround is gaining traction.
The sequential acceleration from 12.1% in Q1 2026 to 18.9% in Q2 2026 indicates that the direct-response advertising improvements and brand advertising recovery are taking hold. However, this growth is still below the 20.9% seen in Q1 2024, implying that the company has not yet fully regained its pre-ATT growth trajectory. The durability of this acceleration will depend on whether it can sustain double-digit growth while expanding margins.
Gross Margin Ceiling Persists at 58%
Gross margin improved to 58.2% in Q2 2026, up from 51.4% in Q2 2025, as reported in financial statements, but remains well below peers like Meta's 82%, reflecting structural cloud cost pressures.
The 680 basis point year-over-year expansion in gross margin is encouraging, but the absolute level remains capped by the reliance on third-party cloud infrastructure. Even with improved ad leverage, the gross margin has not exceeded 59% in the past ten quarters, suggesting a structural ceiling. This implies that SNAP's cost of revenue will continue to scale with user engagement and AR features, limiting the potential for gross margin to approach that of more vertically integrated peers.
Operating Leverage Emerges as Losses Narrow
Operating margin improved from -19.3% in Q2 2025 to -10.7% in Q2 2026, per the income statement, as revenue growth outpaced fixed cost growth, but SBC still consumes 16.5% of revenue.
The operating loss narrowed by $89 million year-over-year despite a $300 million increase in revenue, indicating that operating leverage is beginning to materialize. However, the improvement is partly offset by a sequential increase in R&D and SG&A expenses, which rose 13% and 22% respectively from Q1 2026. The persistent high level of stock-based compensation, which remains above $250 million per quarter, continues to weigh on operating income and dilutes the impact of revenue growth on the bottom line.
SBC Masks Underlying Cash Flow Progress
Net loss narrowed to -$164 million in Q2 2026 from -$262.6 million a year earlier, but stock-based compensation of $263.2 million exceeded the net loss, as per the income statement, highlighting earnings quality concerns.
The reported net loss is significantly influenced by non-cash stock-based compensation, which alone exceeds the net loss, suggesting that the company's cash operations are closer to breakeven than GAAP results imply. The positive free cash flow mentioned in recent context flags supports this interpretation, but investors should monitor the dilution from SBC and the potential for convertible note conversions. The tax rate appears minimal, with net income closely tracking operating income, which may not persist if the company becomes profitable.
R&D and SBC Remain Cost Drags
R&D expenses rose to $542.1 million in Q2 2026, up 22% year-over-year, while SG&A grew 10%, as reported in the income statement, indicating continued investment in AR and product innovation.
The increase in R&D spending, which now represents 33.9% of revenue, underscores SNAP's commitment to maintaining its AR leadership, but it also delays profitability. SG&A, while growing slower than revenue, still consumes 35% of revenue, suggesting that overhead efficiency has not yet become a primary focus. The combined R&D and SG&A of $1.1 billion exceeds gross profit of $931 million, meaning the company cannot cover its operating expenses without continued revenue growth or cost cuts.
Q4 2025 Marks a Turning Point
Q4 2025 was the only quarter in the past ten with positive operating income ($49.7M) and net income ($45.2M), as per the income statement, signaling a potential inflection toward profitability.
The positive quarter was driven by a combination of seasonal strength and cost discipline, with operating margin reaching 2.9%. However, the subsequent quarters returned to losses, indicating that the inflection was not sustained. The Q2 2026 results show a narrowing loss, but the company remains far from consistent profitability. This suggests that while the cost structure is improving, the business is still vulnerable to seasonal and macroeconomic fluctuations.
Growth May Not Outpace Cost Absorption
Despite 18.9% revenue growth, operating margin remains -10.7% and net margin -10.3%, as per the income statement, suggesting that the cost structure may still be too heavy for sustained profitability.
Short-sellers would argue that the revenue acceleration is not translating into meaningful bottom-line improvement, with operating losses still exceeding $170 million. The high debt-to-equity ratio of 2.06 and persistent cash burn, despite a positive free cash flow print, raise concerns about the company's ability to fund its operations without further dilution. The reliance on stock-based compensation to attract talent may also indicate that cash compensation costs would be even higher, making the path to GAAP profitability more challenging.