Snap Stock Climbs 5.9%, Adding $558 Million, Before A Profit Swing And 84% Subscription Surge
Snap closed higher Wednesday, ahead of results that showed a $56 million profit and 84% Other Revenue growth against 4% for ads.
Snap shares closed Wednesday up 5.90% at $5.92, a $558 million gain in market value. After the bell, the company posted a $56 million profit for the third quarter, reversing a $104 million loss a year earlier, so the session's gain did not reflect the results.
Subscriptions outrun advertising
Sales reached $1,722 million, up 14%. Other Revenue, the subscription-style line, leapt 84%, while advertising grew only 4%.
Snap, which makes the Snapchat messaging app, earns most of its money from advertisers buying formats such as full-screen video ads, AR Lenses and sponsored messages. It also sells subscriptions, including Snapchat+, Lens+ and Snapchat Platinum, plus storage plans, and makes Spectacles, wearable AR glasses offered to developers.
Fourth-quarter outlook includes SPECS
Looking ahead, Snap expects fourth-quarter revenue between $1.950 billion and $1.985 billion, with Adjusted EBITDA between $490 million and $525 million. That EBITDA range includes planned spending on SPECS.
A rally after a deep slide
Wednesday was Snap's third straight daily gain and its biggest one-day gain since October 9. Even so, the shares were down about 31% for the year as of Tuesday's close, and 39% below their highest close of the past year, set on November 12, 2025.
On November 2, two days before opening arguments were due in Los Angeles, Snap settled a social media addiction lawsuit. More than 1,600 similar claims from families and school districts are still pending.
Thursday's session will be the first to trade on the results and the fourth-quarter outlook.
Sources
- Snap Settled a Social Media Addiction Suit. Here’s What Its November 4 Report Has to Prove — Yahoo Finance
- Snap (SNAP) Stock Trades Below Fair Value As Caution Lingers — Yahoo Finance
- Kellie Black v. Snap Inc. et al — law360.com
- Snap Likely To Report Higher Q3 Revenue; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call — benzinga.com
- Snap Q3 2026 earnings preview: Analysts see strong Y/Y revenue growth (NYSE:SNAP) — seekingalpha.com
- The company's filing (Snap Inc.) — SEC filing
- Snap Inc. — Form 10-Q for the quarter ended 2026-06-30 (quarterly results) — SEC EDGAR
