Snap Q4 Revenue Up 10% with $45M Net Income and $500M Buyback
Snap’s Q4 revenue rose 10% year-over-year to $1.72 billion while net income surged to $45.2 million from $9.1 million, driven by reduced marketing spend and a 62% jump in subscription revenue to $232 million. The board authorized a $500 million share repurchase and forecasted Q1 revenue of $1.50–$1.53 billion, below analysts’ $1.55 billion estimates.
1. Daily Active Users Decline Following Marketing Reductions
Snap’s fourth-quarter daily active users fell by 3 million to 474 million as the company sharply curtailed marketing spend to drive profitability. In North America, DAUs came in at 94 million, below the 97 million expected by analysts. The drop also reflects compliance with Australia’s new minimum-age verification law, which led to the removal of approximately 400,000 ineligible accounts.
2. Net Income and Revenue Mix Show Material Improvement
Net income jumped to $45.2 million from $9.1 million a year earlier, while quarterly revenue climbed 10% to $1.72 billion. Advertising revenue rose 5% to $1.48 billion, and subscription revenue surged 62% to $232 million, driven by a 71% year-over-year increase in Snapchat+ and Memories Storage Plan subscribers to 24 million. Adjusted EBITDA expanded meaningfully, reaching $358 million in Q4, up from $276 million in the prior year period.
3. Accelerating AR Engagement and Specs Inc. Launch
Engagement with generative AI Lenses has now surpassed 17 billion uses by more than 700 million Snapchatters, and the Imagine Lens alone has been used nearly 2 billion times since its September debut. Over 450,000 creators worldwide have built more than 5 million AR Lenses. To capitalize on this momentum, Snap established Specs Inc. as a standalone subsidiary, preparing for a public launch of its next-generation AR glasses in 2026.