Snap reported fourth-quarter revenue of $1.72 billion, a 10 percent increase year-over-year driven by both advertising and non-advertising streams. Advertising revenue reached $1.48 billion, up 5 percent, supported by continued strength in small- and medium-business spending and newer ad formats. Other revenue, which includes subscriptions such as Snapchat+ and memory storage plans, jumped 62 percent to $232 million. Subscriber count rose 71 percent year-over-year to 24 million in Q4, reflecting robust uptake of paid features.

Net income surged to $45.2 million in the quarter, compared with $9.1 million a year earlier, representing nearly a 400 percent increase. Adjusted EBITDA (excluding stock-based compensation, depreciation and amortization) reached $358 million, up 30 percent year-over-year. Operating cash flow rose 17 percent to $270 million, while free cash flow increased 13 percent to $206 million. Gross margin improved to 59 percent as the revenue mix shifted toward higher-margin offerings and infrastructure costs were optimized.

Global monthly active users climbed by 51 million quarter-over-quarter to 946 million, a 6 percent year-over-year gain. Daily active users—an indicator of engagement—declined by 3 million to 474 million as Snap intentionally curtailed marketing investments to prioritize profitable growth. In Australia, implementation of an age-verification requirement led to the removal of approximately 400,000 under-age accounts. Management emphasized that the marketing pullback was calibrated to improve long-term return on ad spend.

Snap has embedded artificial intelligence across its ad platform to enhance creative development, campaign setup and optimization. Internal testing showed a 55 percent reduction in cost per action for dynamic product ads with zero-conversion targets and a 45 percent reduction for one-conversion targets, contributing to 19 percent year-over-year growth in that ad category. On the augmented reality front, more than 700 million users have engaged with generative AI Lenses over 17 billion times, and over 450,000 AR creators have built more than 5 million Lenses. The company also established Specs Inc. as a subsidiary to commercialize next-generation AR glasses in 2026.