Snap (SNAP) Q4 2025 earnings

explode Shares rose more than 5 percent in after-hours trading Wednesday after Snapchat’s parent company reported fourth-quarter earnings that beat sales. The company also announced a $500 million share buyback program.

Here’s how the company performs compared to Wall Street’s expectations:

• earnings per share: 3 cents. This figure is not comparable to analysts’ forecasts.
• Revenues: $1.72 billion instead of the expected $1.70 billion, according to LSEG
• Global daily active users: 478 million versus the expected 474 million, according to StreetAccount
• Global average revenue per user (ARPU): $3.56 instead of the expected $3.62, according to StreetAccount

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

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

Snap said fourth-quarter adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, were $358 million, above the $300 million StreetAccount had forecast.

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

According to a letter sent to investors, Snap’s global DAU in the fourth quarter fell 3 million from the previous quarter; The company attributed this to a reduction in marketing spend “to focus on more profitable growth.”

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

The company said DAU for the North America region was 94 million, lower than the 97 million Wall Street had predicted.

“Obviously, there’s some work going on right now going into the court system that would further restrict the use of Snapchat for our community,” Snap CEO Evan Spiegel told analysts during an earnings call on the regulatory environment. he said. Still, he said the company’s global ad sales from users under 18 were “not significant.”

“As we look at the revenue-generating potential of the business going forward, we’re not too concerned about the changing regulatory environment,” Spiegel said.

Snap said in a letter to investors that it plans to focus on growing subscription offerings like Snapchat+ and the recently launched Memories Storage Plans. The number of subscribers to these services reached 24 million in the fourth quarter, up 71% from the previous year, the company said.

“Certainly memory storage plans were a big driver of the subscriber growth we’ve seen recently,” Spiegel told analysts during the earnings call.

Last week, Snap announced the acquisition of Specs Inc., which will develop and market the company’s augmented reality glasses. announced that it has established a wholly owned subsidiary called.

“What’s in store for us this year with the launch of Specs, and we’ll transition from the R&D phase of Specs to broader consumer adoption,” Spiegel said of the company’s AR glasses, which are scheduled to be released later in the year.

WRISTWATCH: Snap CEO Evan Spiegel uses AR glasses.