SNAP Q3 2025 Earnings

Call Details

• Call Title: Snap Q3 2025 Earnings Call
• Date: November 5, 2025 at 10:00 PM UTC
• Management Team:
  • David Ometer (Head of Investor Relations)
  • Evan Spiegel (Chief Executive Officer)
  • Derek Andersen (Chief Financial Officer)

Call Summary

Financial Performance

• Daily active users were 477 million in Q3, an increase of 34 million or 8% year over year.
• Monthly active users were 943 million in Q3, an increase of 60 million or 7% year over year.
• Total revenue was $1.51 billion in Q3, up 10% year over year, with advertising revenue of $1.32 billion, up 5% year over year.
• Other revenue was $190 million in Q3, up 54% year over year, driven primarily by Snapchat Plus subscriptions approaching 17 million users, up 35% year over year.
• Direct response advertising revenue grew 8% year over year and 13% quarter over quarter in Q3.
• Adjusted gross margin was 55% in Q3, up from 52% in Q2 and 54% in Q3 of the prior year.
• Adjusted EBITDA was $182 million in Q3 and free cash flow was $93 million in Q3, with trailing 12-month free cash flow of $414 million.
• Net loss narrowed to $104 million in Q3 compared to $153 million in Q3 of the prior year, a reduction of more than 30% year over year.

Guidance

• Q4 revenue guidance is $1.68 billion to $1.71 billion, implying year-over-year revenue growth of 8% to 10%.
• Quarterly infrastructure cost guidance was 82 to 87 cents per DAU and the company reported hitting the midpoint of that range in Q3.
• Q4 infrastructure spending is expected to be between $420 million and $435 million.
• All other costs of revenue are expected to be in the 18% to 19% of revenue range in Q4.
• Full-year adjusted operating expenses were guided toward the low end of a reduced $2.65 billion to $2.7 billion range.
• Full-year stock-based compensation is now estimated at $1.08 billion to $1.1 billion after prior reductions.
• Q4 adjusted EBITDA is estimated to be between $280 million and $310 million.