Snap (SNAP) Q4 2025 earnings

Snap shares were up over 5 percent in after-hours trading on Wednesday after the Snapchat-parent released fourth-quarter earnings that beat on sales. The company also announced a $500 million stock repurchase program.

Here is how the company did compared with Wall Street’s expectations:

• Earnings per share: 3 cents. That figure is not comparable to analysts’ estimates.
• Revenue: $1.72 billion vs. $1.70 billion expected, according to LSEG 
• Global daily active users: 474 million vs. 478 million expected, according to StreetAccount
• Global average revenue per user (ARPU): $3.62 vs. $3.56 expected, according to StreetAccount

The social media company said first-quarter revenue will be in the range of $1.50 billion to $1.53 billion, which is below analyst estimates of $1.55 billion.

Sales in Snap’s fourth quarter rose 10% year over year, while net income was $45.2 million, which was up nearly 400% from the $9.1 million it reported a year ago.

Snap said that fourth-quarter adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, was $358 million, topping the $300 million that StreetAccount was projecting.

The company also said that its adjusted EBITDA for the first quarter will be between $170 million and $190 million. That midpoint is higher than StreetAccount’s estimates of $178 million.

Snap’s fourth-quarter global DAU dropped by 3 million quarter-over-quarter, which the company attributed to a reduction in marketing spending “in order to focus on more profitable growth,” according to a letter to investors.

Additionally, Snap said that due to Australia’s social media minimum age act, the company “implemented platform-level age verification” in that country during the fourth quarter that resulted “in the removal of approximately 400,000 accounts.”

The company said that DAU for the North American region was 94 million, lower than the 97 million that Wall Street was projecting. 

Snap said in a letter to investors that it plans to focus on growing its subscription-related offerings, like Snapchat+ and the recently debuted Memories Storage Plans. The company said overall subscribers to those services grew 71% year-over-year to 24 million in the fourth quarter.

“We are excited about our plans to accelerate topline growth, diversify our revenue streams, and build a more financially efficient business in the year ahead,” the company said.

Last week, Snap announced that it had created a wholly owned subsidiary named Specs Inc. that will develop and market the company’s augmented reality glasses.

“We’re super excited about what’s ahead this year with the launch of Specs, and obviously graduating from the R and D phase of Specs to broader consumer adoption,” Snap CEO Evan Spiegel told analysts during an earnings call about the company’s upcoming AR glasses slated to debut later in the year.

WATCH: Snap CEO Evan Spiegel on AR glasses.