> ## Content Index
> Fetch the complete content index at: https://www.bullished.co/llms.txt
> Use this file to discover other available public pages before exploring further.

# Snap Posts $56 Million Quarterly Profit, But Ad Revenue Grew Only 4%
- URL: https://www.bullished.co/snap-posts-56-million-quarterly-profit-but-ad-revenue-grew-only-4-4f8ebb22/
- Published: 2026-11-04T21:28:03.000Z
- Updated: 2026-11-04T21:28:03.000Z
- Description: Revenue rose 14% to $1,722 million as Other Revenue grew 84%, while the CEO said ad growth "remains below our ambitions."
- Author: Matteo Parrino
- Tags: Earnings, SNAP, Industry: Communication Services

Snap, the parent of Snapchat, [earned $56 million](https://www.sec.gov/Archives/edgar/data/0001564408/000156440826000063/snap-20261104xexx991pressr.htm?ref=bullished.co) in the third quarter, against a net loss of $104 million a year earlier, on revenue that rose 14% to $1,722 million. The company's advertising business, its core, grew just 4%, and CEO Evan Spiegel said ad growth "remains below our ambitions."

## Subscriptions carry the growth

Chief Financial Officer Doug Hott said in [prepared remarks](https://www.sec.gov/Archives/edgar/data/0001564408/000156440826000063/snapincq32026preparedrem.htm?ref=bullished.co) that advertising revenue grew 4% while Other Revenue grew 84%, led by Snapchat+, Memories Storage and Lens+. Spiegel said Snap passed 30 million paid subscribers across those products, which he described as still a small share of its monthly community.

Chief Commercial Officer Ronan Harris said direct response advertising grew strongly, but upper-funnel brand advertising fell year over year and weighed on overall growth.

Snap makes Snapchat, the camera-first messaging app, and sells ads, subscriptions and storage plans, along with Spectacles, wearable AR glasses for developers.

## Profit margins widen sharply

Adjusted EBITDA, a profit measure that excludes items such as stock pay, [rose to $383 million](https://www.businesswire.com/news/home/20261104908953/en/Snap-Inc.-Announces-Third-Quarter-2026-Financial-Results?ref=bullished.co) from $182 million. Hott said about 93% of incremental revenue flowed through to it, for a margin of 22%.

[Operating cash flow rose 44%](https://www.businesswire.com/news/home/20261104908953/en/Snap-Inc.-Announces-Third-Quarter-2026-Financial-Results?ref=bullished.co) to $210 million and free cash flow rose 76% to $164 million. Hott said total costs grew just 1%. For the first nine months, Snap still reports a net loss of $196 million, after $128.5 million of restructuring charges. Full-time headcount was 4,540, down 13% from a year earlier.

Snap ended the quarter with about $2.77 billion in cash, cash equivalents and marketable securities.

## Fourth-quarter outlook and a new yardstick

For the fourth quarter, Snap guided to revenue of $1.950 billion to $1.985 billion and Adjusted EBITDA of $490 million to $525 million, a range that includes planned investment in its SPECS glasses.

Snap expects to finish its current share repurchase program in the fourth quarter, then pursue a multi-year approach to offset dilution and hold the fully diluted share count stable in 2027.

Starting with first-quarter 2027 results, global monthly active users will replace daily active users as the primary audience metric. Monthly users reached 977 million in the third quarter, up 4%, and daily users 495 million.

Snap hosts its earnings call at 5:00 p.m. Eastern on Wednesday to discuss the fourth-quarter outlook.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — Snap Inc (SNAP)](https://www.sec.gov/Archives/edgar/data/0001564408/000156440826000063/snap-20261104.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit snap-20261104xexx991pressr.htm — Snap Inc 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001564408/000156440826000063/snap-20261104xexx991pressr.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit snapincq32026preparedrem.htm — Snap Inc 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001564408/000156440826000063/snapincq32026preparedrem.htm?ref=bullished.co) — SEC EDGAR
- [Snap Inc. Announces Third Quarter 2026 Financial Results](https://www.businesswire.com/news/home/20261104908953/en/Snap-Inc.-Announces-Third-Quarter-2026-Financial-Results?ref=bullished.co) — businesswire.com