Snap Inc. (SNAP) shares fell roughly 11% in after-hours trading Wednesday and more than 10% in premarket Thursday after the Snapchat parent reported third-quarter 2026 revenue and user numbers that missed Wall Street expectations.
Revenue came in at $1.72 billion, up 14% year over year but just below the $1.73 billion consensus estimate. Net income improved to $56 million from a $104 million loss a year earlier. Adjusted EBITDA was $383 million versus the $337 million expected, and free cash flow rose 76% to $164 million.
Daily active users reached 495 million, below the roughly 499 million analysts expected. Average revenue per user was $3.48. The company also said monthly active users will become its primary audience metric beginning in Q1 2027; Snap reported 977 million MAUs for Q3 2026.
Snap guided fourth-quarter revenue to $1.95 billion to $1.99 billion and adjusted EBITDA of $490 million to $525 million. Advertising revenue grew 4% year over year, below the 6% growth analysts expected. Chief Commercial Officer Ronan Harris cited lower consumer packaged goods spending and macro pressures in the U.S. and Middle East, while noting positive growth in U.S. financial services.
Snap also highlighted its new Specs smart glasses, priced from $2,195 and available for preorder, along with the AI assistant Specs Intelligence. Paid subscriptions across Snapchat+, Memories Storage and Lens+ surpassed 30 million. Regulatory risks around youth safety and social media use by teenagers remain a concern. Cantor Fitzgerald maintained a Neutral rating and lowered its price target to $5 from $6.
Despite the earnings miss and stock drop, the news has no direct impact on cryptocurrency markets.
