Snap Inc. Reports Q2 2025 Revenue of $1.34 Billion, Net Loss of $262.6 Million

Snap Inc. reported its financial results for the second quarter of 2025, revealing a revenue of $1.34 billion, a 9% increase from $1.24 billion in the same period last year. The company experienced a net loss of $262.6 million, slightly higher than the $248.6 million loss reported in the prior year. The increase in revenue was primarily driven by a rise in advertising revenue, which reached $1.17 billion, up from $1.13 billion a year earlier, alongside a notable growth in daily active users (DAUs), which rose to 469 million, marking a 9% year-over-year increase.

Total costs and expenses for the quarter amounted to $1.60 billion, compared to $1.49 billion in the previous year. The increase in expenses was attributed to higher costs in research and development, which rose to $443.3 million from $406.2 million, and general and administrative expenses, which increased to $250.1 million from $229.3 million. The company also reported an adjusted EBITDA of $41.3 million, down from $55 million in the prior year, reflecting the challenges in maintaining profitability amid rising operational costs.

In terms of strategic developments, Snap Inc. completed a stock repurchase program in May 2025, having repurchased approximately 57.3 million shares for $500.6 million. The company also made acquisitions totaling $41.7 million during the first half of 2025, aimed at enhancing its technology and workforce. Additionally, Snap has been focusing on expanding its subscription service, Snapchat+, which has contributed to an increase in other revenue, which rose to $171.4 million from $104.7 million year-over-year.

Operationally, Snap Inc. has been navigating a competitive landscape, with increased pressure from rivals in the social media and advertising sectors. The company noted that macroeconomic factors, including inflation and supply chain disruptions, have impacted advertising spending on its platform. Despite these challenges, Snap remains committed to its strategic priorities of growing its user base and enhancing engagement through innovative product offerings, particularly in augmented reality.

Looking ahead, Snap Inc. anticipates continued fluctuations in its financial performance due to various external factors, including competition and regulatory changes. The company emphasized the importance of adapting its business model to sustain growth and profitability, while also managing the complexities associated with international expansion and evolving user expectations.