Snap Inc. reported fourth-quarter earnings per share of $0.03, reversing a year-ago loss and exceeding consensus forecasts. Revenue rose 10.2% year-over-year to $1.72 billion, outpacing the Zacks Consensus Estimate by 1%. Average Revenue Per User climbed 5% to $3.62, while Snapchat+ and other subscription services generated $232 million in revenue, up 62% from Q4 2024. North American revenues, which account for 60% of total sales, increased 6% to $1.03 billion, and European revenues, representing 20% of the total, grew 19% to $341 million. The record 946 million global monthly active users and a 62% surge in Spotlight engagement further underscore Snap’s ability to monetize its community despite a modest 3 million decline in daily active users to 474 million.

Evercore ISI maintained a “Mixed” grade on Snap and reduced its 12-month price target from $13 to $9, citing caution over user growth trends and competitive pressures from larger platforms. By contrast, B. Riley upgraded its rating to Buy, reflecting optimism that recent operational improvements and margin expansion will drive a recovery. MarketBeat’s consensus of 32 analysts stands at a “Reduce” recommendation, with an average price objective near $9.83. Recent brokerage actions include Citigroup raising its target to $10 and Cantor Fitzgerald lifting its target to $9, underscoring the divergence of views on Snap’s near-term outlook.

In response to a slowdown in North American user growth and a breach of key trading support levels, Snap’s board authorized a $500 million share repurchase program to offset dilution from equity awards and signal confidence in long-term value. The program may be executed via open-market transactions or Rule 10b5-1 plans over the next 12 months. Snap ended 2025 with $2.9 billion in cash, cash equivalents, and marketable securities, and generated $437 million in free cash flow—up 100% year-over-year—while adjusted EBITDA climbed 36% to $689 million. These measures, coupled with disciplined marketing spend and an ongoing pivot toward higher-margin offerings, aim to strengthen profitability ahead of the planned public launch of its next-generation augmented-reality glasses, Specs, later this year.