Evan Spiegel, co-founder and CEO of Snap Inc., at the Axios Media Trends Live event on Thursday, September 18, 2025 in New York, USA.
Michael Nagle | Bloomberg | Getty Images
snap Shares fell more than 10% after Snapchat’s parent company missed revenue and daily active user numbers in its third-quarter earnings report on Wednesday.
Here’s how the company performed compared to analyst expectations:
Earnings per share: 3 cents. This number cannot be compared to analyst expectations. Revenue: $1.72 billion vs. $1.73 billion expected, according to LSEG Global daily active users: 495 million vs. 499 million expected, according to StreetAccount Global average revenue per user, or ARPU: $3.48 vs. $3.48 expected, according to StreetAccount
Snap’s third-quarter revenue increased 14% year-over-year, with net income of $56 million, compared to a net loss of $104 million a year earlier.
Snap’s third-quarter adjusted profit came in at $383 million, beating analysts’ estimates of $337 million, according to Street Accounts.
Snapchat’s parent company said fourth-quarter revenue will be between $1.95 billion and $1.99 billion. The midpoint of this figure is higher than Wall Street’s estimate of $1.95 billion.
Adjusted profit for the fourth quarter is expected to be between $490 million and $525 million. Analysts had expected the figure to be $498 million.
Snap executives said in a letter to investors that the company plans to use global monthly active users as its “key audience metric” starting in the first quarter of 2027. The company also said its MAUs for the quarter were 977.
“While daily engagement has been historically stable as a percentage of monthly engagement, we do not intend to optimize Snapchat around daily use at the expense of the long-term value of our community,” the letter to investors said. “By taking a longer-term view and better aligning product and safety decisions with the metrics we report, we strengthen relationships, create lasting utility, and support broader and more sustainable audience growth.”
Ronan Harris, Snap’s chief commercial officer, told analysts on an earnings call that lower spending at unspecified consumer packaged goods (CPG) companies impacted third-quarter sales. Harris blamed the restraint on consumer goods spending on “macro pressures in the United States and the Middle East.”
“As we look to the future, we see very positive signs of growth in a variety of sectors, including financial services in the United States,” Harris said. “So part of our strategy here is to look outside of the CPG pressure and find traction in these other verticals.”
Video: Jim Cramer discusses his outlook for capital spending in 2027.
