Snap Inc (SNAP)
NYSE:SNAP
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Snap
(NYSE:SNAP)
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Rating:53Neutral
Price Target:
$4.50
▼(-9.09% Downside)
Action:ReiteratedDate:04/01/26
The score is driven mainly by improving fundamentals and cash generation (positive and growing free cash flow), reinforced by constructive earnings-call guidance and margin/profitability progress. These positives are tempered by a weak technical setup, ongoing net losses (negative P/E), and balance-sheet leverage/regulatory risks.
Positive Factors
Free cash flow generation
Sustained positive free cash flow despite accounting losses is a durable strength: it funds operations, buybacks and product investments without near-term financing, improves liquidity, and provides a runway to execute AR and AI initiatives while limiting dilution risk.
Negative Factors
Elevated leverage and negative ROE
High leverage and negative ROE indicate capital structure risk: interest costs and debt principal constrain flexibility for M&A or heavy R&D, and persistent negative returns signal equity erosion that could limit strategic optionality if earnings volatility resurfaces.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Sustained positive free cash flow despite accounting losses is a durable strength: it funds operations, buybacks and product investments without near-term financing, improves liquidity, and provides a runway to execute AR and AI initiatives while limiting dilution risk.
Read all positive factors
Snap (SNAP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.99B
Dividend YieldN/A
Average Volume (3M)45.43M
Price to Earnings (P/E)―
Beta (1Y)1.43
Revenue Growth11.75%
EPS Growth49.19%
CountryUS
Employees5,061
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.03
Shares Outstanding1,434,801,800
10 Day Avg. Volume63,340,836
30 Day Avg. Volume45,430,684
Financial Highlights & Ratios
PEG Ratio0.84
Price to Book (P/B)6.05
Price to Sales (P/S)2.33
P/FCF Ratio31.57
Enterprise Value/Market Cap1.51
Enterprise Value/Revenue2.03
Enterprise Value/Gross Profit3.69
Enterprise Value/Ebitda-71.06
Forecast
1Y Price Target
$7.81Price Target Upside57.78% Upside
Rating ConsensusHold
Number of Analyst Covering25
EPS Forecast (FY)-0.18
Revenue Forecast (FY)$6.71B
Snap Business Overview & Revenue Model
Company Description
Snap Inc. operates as a camera company in North America, Europe, and internationally. The company offers Snapchat, a camera application with various functionalities, such as Camera, Communication, Snap Map, Stories, and Spotlight that enable peopl...
How the Company Makes Money
Snap primarily makes money from advertising sold across Snapchat. Its main revenue stream is advertising revenue generated by delivering paid ads to users in formats such as Snap Ads (full-screen video), Story ads, Collection and Dynamic ads for c...
Snap Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlySnap Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Positive
The call emphasized strong progress on profitability and revenue diversification: double-digit revenue growth (full year +11%), robust subscription expansion (+71% YoY subscribers) and margin improvement (59% adjusted gross margin, positive net income of $45M in Q4). Advertising fundamentals showed improved advertiser counts (+28% YoY), impression growth (+14% YoY) and meaningful ad-product performance gains (DPA and app advertising). Key operational accomplishments (adjusted EBITDA expansion, free cash flow generation and a $500M buyback authorization) support a positive financial trajectory. Offsetting items include a modest decline in DAU, continued eCPM pressure (~-8% YoY), regulatory risks (Australia age-verification removal of ~400k accounts), elevated legal/regulatory expenses, and some weakness in the North America large advertiser segment. Overall, the highlights — notably profitability, margin expansion, subscription revenue acceleration and advertiser growth — materially outweigh the lowlights.Positive Updates
Revenue Growth and Scale
Total revenue of $1.72B in Q4, up 10% year-over-year; full year 2025 revenue of $5.93B, up 11% year-over-year, reflecting strength in SMB advertising and rapid subscription growth.
Negative Updates
Daily Active Users Slight Decline
Global DAU declined by 3 million quarter-over-quarter to 474 million in Q4, reflecting in part a deliberate reduction in community growth marketing spend to prioritize more profitable growth.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth and Scale
Total revenue of $1.72B in Q4, up 10% year-over-year; full year 2025 revenue of $5.93B, up 11% year-over-year, reflecting strength in SMB advertising and rapid subscription growth.
Read all positive updates
Company Guidance
Management's 2026 guidance centers on calibrating investments to revenue growth: full‑year infrastructure costs of $1.6–$1.65 billion (flat at the low end vs. 2025), the remaining components of adjusted cost of revenue at ~16–17% of revenue each quarter (a 1–2 point improvement vs. 2025), and full‑year adjusted operating expenses of ~ $3.0 billion with stock‑based compensation around $1.2 billion and headcount growth roughly in line with ~7%; Q1 revenue is guided to $1.50–$1.53 billion (excluding any Perplexity rollout) with Q1 adjusted EBITDA of $170–$190 million. They reiterated a near‑term gross margin target above 60% after achieving 59% in Q4, plan incremental Specs and product investments, authorized a $500 million share repurchase, and highlighted a strong liquidity position (~$2.9 billion cash and marketable securities, $47 million convertible notes maturing in FY2026) alongside recent cash flow trends (Q4 free cash flow $206 million; trailing‑12‑month FCF $437 million, operating cash flow $656 million).Snap Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
42
Neutral
Cash Flow
73
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.93B | 5.36B | 4.61B | 4.60B | 4.12B |
| Gross Profit | 3.26B | 2.89B | 2.49B | 2.79B | 2.37B |
| EBITDA | -169.31M | -492.60M | -1.10B | -1.18B | -337.55M |
| Net Income | -460.49M | -697.86M | -1.32B | -1.43B | -487.95M |
Balance Sheet | |||||
| Total Assets | 7.68B | 7.94B | 7.97B | 8.03B | 7.54B |
| Cash, Cash Equivalents and Short-Term Investments | 2.94B | 3.38B | 3.54B | 3.94B | 3.69B |
| Total Debt | 4.70B | 4.24B | 4.34B | 4.18B | 2.63B |
| Total Liabilities | 5.40B | 5.49B | 5.55B | 5.45B | 3.75B |
| Stockholders Equity | 2.28B | 2.45B | 2.41B | 2.58B | 3.79B |
Cash Flow | |||||
| Free Cash Flow | 437.19M | 218.65M | 34.79M | 55.31M | 223.00M |
| Operating Cash Flow | 656.17M | 413.48M | 246.52M | 184.61M | 292.88M |
| Investing Cash Flow | 173.12M | -717.08M | 570.95M | -1.06B | 90.23M |
| Financing Cash Flow | -848.13M | -428.62M | -458.79M | 306.71M | 1.07B |
Snap Technical Analysis
Neutral
4.95
Price Trends
5.06
Negative
6.46
Negative
7.34
Negative
Market Momentum
-0.11
Negative
53.99
Neutral
83.80
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNAP, the sentiment is Neutral. The current price of 4.95 is above the 20-day moving average (MA) of 4.54, below the 50-day MA of 5.06, and below the 200-day MA of 7.34, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 53.99 is Neutral, neither overbought nor oversold. The STOCH value of 83.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SNAP.
Snap Risk Analysis
Snap disclosed 65 risk factors in its most recent earnings report. Snap reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Snap Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.59T | 27.52 | 30.56% | 0.32% | 22.17% | -2.66% | |
72 Outperform | $27.70B | 80.88 | 20.89% | ― | 69.71% | ― | |
71 Outperform | $3.84T | 28.69 | 35.00% | 0.26% | 15.22% | 34.19% | |
68 Neutral | $11.60B | 41.90 | 8.74% | ― | 16.79% | 819.94% | |
65 Neutral | $100.16B | 45.90 | 30.51% | ― | 14.10% | 102.32% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | $7.99B | ― | -20.72% | ― | 11.75% | 49.19% |
* Communication Services Sector Average
SNAP
Snap
4.95
-2.88
-36.78%
META
Meta Platforms
628.39
83.80
15.39%
GOOGL
Alphabet Class A
318.49
166.20
109.13%
SPOT
Spotify
486.62
-66.40
-12.01%
PINS
Pinterest
17.94
-8.29
-31.61%
RDDT
Reddit Inc Class A
138.38
36.37
35.65%
Snap Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Snap Reports Strong Q4 2025 Results, Authorizes Buyback
Positive
Feb 4, 2026
On February 4, 2026, Snap Inc. reported fourth-quarter and full-year 2025 results that showed the company’s strategic shift toward profitable growth beginning to pay off, with Q4 revenue up 10% year-over-year to $1.72 billion, net income ris...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.