Snap announces third-quarter results, partnership with Perplexity AI
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Snap Inc. announced financial results for the quarter ended Sept. 30, 2025. The company reported revenue was $1,507 million, compared to $1,373 million in the prior year, an increase of 10% year-over-year. The net loss was $104 million, compared to $153 million in the prior year.
“Our focus on performance, creativity, and simplicity is helping advertisers achieve stronger results while giving our community more ways to communicate,” said Evan Spiegel, CEO. “I’m proud of the team’s progress and confident that our discipline and innovation will support durable, long-term growth.”
Snap also announced its board of directors has authorized a stock repurchase program of up to $500 million of its Class A common stock. Repurchases of the Class A common stock may be made from time to time, either through open market transactions (including through Rule 10b5-1 trading plans) or through privately negotiated transactions in accordance with applicable securities laws. The timing and actual number of shares repurchased will depend on a variety of factors, including stock price, trading volume, market and economic conditions, and other general business considerations. Repurchases under the program have been authorized for 12 months but the program may be initiated, modified, suspended, or terminated at any time during such period.
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Three Months Ended September 30, |
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Percent Change |
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Nine Months Ended September 30, |
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Percent Change |
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2025 |
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2024 |
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2025 |
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2024 |
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(Unaudited) |
(dollars in thousands, except per share amounts) |
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Revenue |
$ |
1,506,839 |
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$ |
1,372,574 |
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10 |
% |
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$ |
4,214,986 |
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$ |
3,804,115 |
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11 |
% |
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Operating loss |
$ |
(128,362 |
) |
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$ |
(173,210 |
) |
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26 |
% |
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$ |
(581,884 |
) |
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$ |
(760,417 |
) |
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23 |
% |
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Net loss |
$ |
(103,541 |
) |
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$ |
(153,247 |
) |
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32 |
% |
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$ |
(505,698 |
) |
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$ |
(706,957 |
) |
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28 |
% |
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Adjusted EBITDA(1) |
$ |
182,038 |
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$ |
131,962 |
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38 |
% |
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$ |
331,733 |
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$ |
232,598 |
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43 |
% |
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Net cash provided by (used in) operating activities |
$ |
146,488 |
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$ |
115,872 |
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26 |
% |
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$ |
386,592 |
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$ |
182,847 |
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111 |
% |
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Free Cash Flow(2) |
$ |
93,444 |
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$ |
71,831 |
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30 |
% |
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$ |
231,633 |
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$ |
36,296 |
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538 |
% |
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Diluted net loss per share attributable to common stockholders |
$ |
(0.06 |
) |
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$ |
(0.09 |
) |
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33 |
% |
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$ |
(0.30 |
) |
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$ |
(0.43 |
) |
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30 |
% |
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(1) |
See page 11 for a reconciliation of net loss to Adjusted EBITDA. Total restructuring charges for the nine months ended September 30, 2024, and excluded from Adjusted EBITDA, was $72.0 million. No restructuring charges were incurred during the three and nine months ended September 30, 2025 and the three months ended September 30, 2024. |
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(2) |
See page 11 for a reconciliation of net cash provided by (used in) operating activities to Free Cash Flow. |
Snap Inc., also announced a partnership with Perplexity, an AI-powered answer engine provider,to bring conversational AI search capabilities to Snapchat. The integration will enable Snapchat’s global user base to access Perplexity’s answer engine directly within the app’s Chat interface. Starting in early 2026, Snapchat users will be able to ask questions and receive conversational answers from Perplexity, with responses sourced from verifiable information. According to Snap, this marks the first large-scale integration of an external AI partner within Snapchat, expanding the AI tools available to the platform’s nearly one billion monthly active users.
Snap stated that with over 943 million monthly active users and more than 75% of 13–34-year-olds in over 25 countries using Snapchat, it offers AI partners an opportunity to connect with its predominantly mobile-native audience “in creative and trusted ways.”
“Our goal is to make AI more personal, social, and fun – woven into the fabric of your friendships, Snaps, and conversations,” said Evan Spiegel, CEO, Snap Inc. “This partnership reflects our shared vision for the power of AI to enhance discovery and connection on Snapchat, and we look forward to collaborating with more innovative partners in the future.”
