Snap Inc.

SNAP
Financial Analysis · Updated May 18, 2026 · Coverage 2026-Q2

Financial Snapshot

ticker: SNAP step: 04 generated: 2026-05-13 source: quick-research

Snap Inc. (SNAP) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $4.60B $4.61B $5.36B +16.3%
Adj. EBITDA $0.23B $0.16B $0.51B +216%
Net Income -$1.43B -$1.32B -$0.70B improving
EPS (diluted) -$0.89 -$0.82 -$0.43 improving

FY2025: Q4 2025 showed first positive GAAP EPS of $0.03, signaling approaching profitability. Q1 2026: Revenue $1.53B (+12% YoY). April 2026: 16% workforce reduction (~$500M annualized cost savings) targeting full-year GAAP profitability by 2027.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$0.4B
Free Cash Flow $0.22B
Capital Expenditures ~$0.2B
Cash & Equivalents ~$3.4B
Total Debt ~$3.7B

FCF turned positive in 2022 ($78M) and has grown: $35M (2023) → $219M (2024). Cash and equivalents ($3.4B) roughly equal total debt ($3.7B). Adj. EBITDA tripled in FY2024 to $509M.

Key Ratios (approximate)

  • P/E: NM (GAAP losses, approaching breakeven) | EV/EBITDA: ~30x (Adj.) | FCF Yield: ~1.5%
  • Revenue Growth (TTM): ~12–16% | Adj. EBITDA Margin: ~9.5% (FY2024)

Growth Profile

Snap's revenue was essentially flat in 2022–2023 ($4.6B each year) as Meta/TikTok competition and the ATT privacy change crushed digital advertising. FY2024 showed a decisive recovery: +16% revenue growth, +216% adj. EBITDA growth, and FCF turning meaningfully positive ($219M). Q1 2026 grew 12%. The financial narrative is transitioning from "how long until Snap runs out of cash" to "what is Snap worth when it achieves sustainable profitability." Snapchat+ is the non-advertising diversification catalyst that reduces dependency on ad market cycles.

Forward Estimates

  • FY2026/2027: First full-year GAAP profitability targeted (aided by $500M workforce cost reduction)
  • Snapchat+: 25M subscribers × $3.99/month = $1.2B annualized; growing 71% YoY
  • AR Spectacles: $3B investment; consumer launch 2026 — hardware revenue/platform strategic option
  • Analyst range: $10 bear / $48 bull; stock at ~$9 near-lower-end of bear range

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $SNAP.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/snap/financials/md · → thesis · → memo