Snap, the company behind Snapchat, made money in the third quarter, reporting net income of $56 million on revenue of $1.72 billion, up 14% from a year earlier, according to results filed with the SEC Wednesday afternoon. A year ago it lost $104 million in the same quarter.
Snapchat averaged 495 million daily users. Monthly users reached 977 million. Starting with its first-quarter 2027 results, Snap says monthly users, not daily users, will become the main audience number it reports.
What changed in the business
Advertising revenue grew 4%, while "Other Revenue," led by subscriptions, jumped 84%, according to the company's prepared remarks. Snap said it passed 30 million paying subscribers across Snapchat+, Memories Storage and Lens+, the paid tier for AI-powered camera effects.
| Measure | Q3 2026 | Q3 2025 |
|---|---|---|
| Revenue | $1.72 billion | $1.51 billion |
| Net income (loss) | $56 million | ($104 million) |
| Adjusted EBITDA | $383 million | $182 million |
| Free cash flow | $164 million | $93 million |
North America brought in $1.01 billion of the quarter's revenue, up 13%. Europe grew 22% to $363 million.
For the fourth quarter, Snap expects revenue of $1.95 billion to $1.985 billion and adjusted EBITDA of $490 million to $525 million. That outlook includes spending on Specs, its augmented reality glasses. A "Specs First Look" pop-up where people can try them is open at Westfield Century City in Los Angeles.
What Snap said
"In Q3, we generated positive net income as revenue grew 14% year-over-year to $1.72 billion, reflecting the progress we are making to build a more profitable business," co-founder and CEO Evan Spiegel said in the release.
On the switch away from daily users, Snap wrote that daily engagement has been steady as a share of monthly use, "but we do not intend to optimize Snapchat around daily use at the expense of long-term value for our community." From 2027 it will also redefine monthly users to count people who use any Snapchat-branded product, and it will measure revenue per user on a monthly basis.
Snap said it expects to finish its current stock buyback this quarter and then aims to keep its fully diluted share count stable in 2027. It also repeated that changing U.S. and international rules, including closer scrutiny of youth-related issues, could materially affect its business.
