Snap (NYSE:SNAP) Announces Quarterly Earnings Results, Misses Estimates By $0.14 EPS

Snap (NYSE:SNAP) posted its quarterly earnings data on Wednesday. The company reported ($0.05) EPS for the quarter, missing the consensus estimate of $0.09 by ($0.14), FiscalAI reports. Snap had a negative net margin of 7.76% and a negative return on equity of 20.72%. The firm had revenue of $1.53 billion during the quarter, compared to analysts’ expectations of $1.53 billion.

Here are the key takeaways from Snap’s conference call:

• Snap reported a return to user growth and higher engagement, with DAUs at 483M and MAUs at 956M (both +5% YoY) driven by Spotlight, AR Lenses, Games and Snap Map improvements.
• Financials showed meaningful progress — Q1 revenue $1.53B (+12% YoY), other revenue +87%, adjusted EBITDA $233M, free cash flow $286M, and adjusted gross margin expanded to 57%, moving toward the 60% FY goal.
• Ad product and measurement gains are accelerating monetization: AI automation is used on ~70% of ad spend, DPA revenue +30% YoY, app ad conversions improved, and third‑party measurement (Measured) showed median iROAS up ~104% in recent tests; new inventory like Sponsored Snaps and Promoted Places show promising early performance.
• Near-term headwinds remain — large North America advertisers are still pressured, total eCPMs declined ~12%, the Middle East conflict caused a ~$20–25M impact in March, the Perplexity relationship ended (no Q2 contribution), and Snap expects $95–130M of Q2 restructuring charges despite a plan to cut >$500M of annualized costs H2‑2026.

Snap Price Performance

Shares of SNAP traded up $0.04 during midday trading on Wednesday, hitting $6.15. 73,297,005 shares of the company traded hands, compared to its average volume of 53,174,938. The stock has a 50-day moving average of $5.09 and a 200-day moving average of $6.60. Snap has a one year low of $3.81 and a one year high of $10.41. The firm has a market cap of $10.38 billion, a P/E ratio of -22.77 and a beta of 1.05. The company has a debt-to-equity ratio of 1.53, a current ratio of 3.56 and a quick ratio of 3.56.

Key Stories Impacting Snap

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Q1 revenue and DAU recovery — Snap reported first-quarter revenue of $1.53B (up ~12% YoY) and said daily active users returned to growth outside North America/Europe, a clear sign advertising demand and user engagement are improving. Snap’s quarterly revenue rises, daily active users return to growth
• Positive Sentiment: AI-driven ad partnerships — Snap’s AI ad push continues: a partnership with Experian to bring financial data into AI-powered ads could enhance ad targeting and CPMs if adoption scales. A Peek Into Snap Inc (SNAP)’s AI-Driven Advertising Strategy
• Positive Sentiment: Elevated bullish options activity — Unusually high call buying (roughly 183k calls, ~47% above average) signals short-term speculative bullish positioning that can amplify upside momentum.
• Neutral Sentiment: Wall Street repositioning ahead of results — Several analyst teams updated forecasts and price targets ahead of Q1, reflecting differing views on Snap’s ad recovery and AI monetization timeline; keep an eye on consensus revisions. Top Wall Street Forecasters Revamp Snap Expectations Ahead Of Q1 Earnings
• Neutral Sentiment: Analyst metric scrutiny — Commentary from research outlets highlights focus on metrics beyond revenue/EPS (ARPU, ad pricing, retention), meaning headline numbers may be less important than underlying trend lines. Exploring Analyst Estimates for Snap (SNAP) Q1 Earnings
• Negative Sentiment: Perplexity deal ended — Snap disclosed the previously announced ~$400M integration deal with generative-AI startup Perplexity was “amicably ended,” and management’s guidance assumes no contribution from Perplexity, removing a potential near-term revenue/AI-product catalyst. Snap says its $400M deal with Perplexity ‘amicably ended’
• Negative Sentiment: Mixed/soft bottom-line and cautious guidance — Though revenue met expectations, reported GAAP loss per share was worse than some estimates and management issued cautious sales guidance citing geopolitical uncertainty and no Perplexity contribution; that tempered investor reaction. Snap (NYSE:SNAP) Reports Q1 CY2026 In Line With Expectations But Stock Drops
• Negative Sentiment: Activist pressure — Randian Capital’s campaign urging a Specs review, governance changes and board refresh introduces near-term strategic uncertainty that could be disruptive even if it aims to unlock value. Randian Activist Push Puts Snap Specs Review And Valuation In Focus

Insider Activity

In other news, CTO Robert C. Murphy sold 1,000,000 shares of the business’s stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $5.36, for a total transaction of $5,360,000.00. Following the completion of the transaction, the chief technology officer owned 49,313,775 shares of the company’s stock, valued at approximately $264,321,834. The trade was a 1.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Rebecca Morrow sold 16,499 shares of the business’s stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $4.70, for a total value of $77,545.30. Following the transaction, the chief accounting officer directly owned 466,682 shares of the company’s stock, valued at $2,193,405.40. The trade was a 3.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 2,565,573 shares of company stock valued at $13,329,781.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of SNAP. Alyeska Investment Group L.P. purchased a new position in shares of Snap during the third quarter worth about $176,697,000. AQR Capital Management LLC boosted its stake in Snap by 874.3% in the fourth quarter. AQR Capital Management LLC now owns 10,066,852 shares of the company’s stock worth $81,239,000 after buying an additional 9,033,644 shares in the last quarter. Voloridge Investment Management LLC boosted its stake in Snap by 53.3% in the third quarter. Voloridge Investment Management LLC now owns 10,300,911 shares of the company’s stock worth $79,420,000 after buying an additional 3,582,223 shares in the last quarter. Holocene Advisors LP boosted its stake in Snap by 895.9% in the third quarter. Holocene Advisors LP now owns 3,560,234 shares of the company’s stock worth $27,449,000 after buying an additional 3,202,737 shares in the last quarter. Finally, Deutsche Bank AG boosted its stake in Snap by 63.8% in the fourth quarter. Deutsche Bank AG now owns 4,799,998 shares of the company’s stock worth $38,736,000 after buying an additional 1,870,151 shares in the last quarter. Hedge funds and other institutional investors own 47.52% of the company’s stock.

Analyst Ratings Changes

Several equities analysts recently commented on SNAP shares. Guggenheim reiterated a “neutral” rating and issued a $6.50 price objective on shares of Snap in a research note on Thursday, April 16th. Loop Capital set a $8.00 price objective on Snap in a research note on Monday, February 23rd. Mizuho lowered their price objective on Snap from $9.00 to $7.00 and set a “neutral” rating on the stock in a research note on Thursday, February 5th. Weiss Ratings restated a “sell (e+)” rating on shares of Snap in a research note on Monday, April 20th. Finally, BMO Capital Markets boosted their price objective on Snap from $13.00 to $15.00 and gave the company an “outperform” rating in a research note on Wednesday, April 15th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, twenty have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $7.93.

Snap Company Profile

Snap Inc is a camera and social media company best known for developing and operating Snapchat, a multimedia messaging application that allows users to send photos, videos and messages that disappear after being viewed. In addition to its core messaging service, Snap offers a suite of augmented reality (AR) tools, including custom Lenses and Filters, that enable users and third-party developers to create interactive and immersive experiences. The company also provides advertising solutions that allow brands to engage audiences through Snap Ads, Sponsored Lenses and Discover content on the platform.

Founded in 2011 by Evan Spiegel and Bobby Murphy, Snap has continually focused on innovation in camera technology and AR.