Evercore ISI upheld a Mixed rating on Snap Inc., lowering its 12-month price target from $13 to $9 in response to a cautious outlook on monetization and user growth dynamics. In contrast, B. Riley upgraded its view to Buy following the company’s latest quarterly results, citing improved revenue per user trends and early signs of cost discipline. These divergent views reflect ongoing debate over Snap’s ability to balance investment in growth with a path to sustained profitability.

In its fourth quarter, Snap delivered adjusted earnings of $0.03 per share, outperforming consensus expectations for a small loss. Revenue rose by 10.2% year-over-year to $1.72 billion, surpassing the Zacks Consensus Estimate by 1%. Average Revenue Per User climbed 5% to $3.62, while subscription and other revenue categories, including Snapchat+ and Memories storage plans, grew 62% to $232 million, driven by a 71% jump in subscriber count to 24 million.

Snap’s board authorized a $500 million share repurchase program, signaling confidence in the company’s cash flow generation and capital structure flexibility. As of December 31, 2025, Snap held $2.9 billion in cash, cash equivalents and marketable securities. Operating cash flow for the full year increased 59% to $656 million, while free cash flow doubled to $437 million, underpinned by disciplined spending and improvements in adjusted EBITDA, which rose 36% to $689 million.

North America, representing approximately 60% of total revenues, grew 6% year-over-year to $1.03 billion in Q4, reflecting stable ad spend from key brand advertisers. European revenue, accounting for roughly 20% of the total, surged 19% to $341 million, driven by strong uptake of dynamic ad solutions and improved ARPU. Rest-of-world revenues increased at a mid-teens rate as Snap continued to expand its user base and monetization across emerging markets.