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Factual Summary
Snap Inc. reported Q2 2026 earnings on August 3, 2026, posting revenue of USD 1,598,993 thousand (+19% year-over-year) and a net loss of USD 163,960 thousand, an improvement from the prior-year period. Advertising revenue was approximately USD 1,280,000 thousand (+9%), and other revenue (including Snapchat+ subscriptions) was approximately USD 316,000 thousand (+85%). On August 10, 2026, the U.S. Court of Appeals for the Ninth Circuit rejected an early bid by Snap and other defendants for Section 230 immunity, allowing youth-addiction-related lawsuits to proceed in the lower courts.
Price-Change Context Note
The as-of date (2026-08-14) closing price was 5.41 USD, up +2.08% from the previous close, but stock price volatility subsequently increased amid the Section 230 appellate loss (8/10) and the CTO's disposal of 4 million shares (8/5-8/6). As-of-date trading volume (33,881,725 shares) was comparable to the 20-day average volume (37,624,023 shares).
Business Overview
Snap Inc. operates Snapchat, a camera, messaging, and content app, with its main business lines being Advertising and other revenue (including Snapchat+ subscriptions). In Q2 2026, advertising revenue was USD 1,280,000 thousand (+9% YoY) and other revenue was USD 316,000 thousand (+85% YoY) (cross-verified via secondary sources; the primary press release did not disclose the detailed breakdown). In 2026, Snap spun off its AR hardware business into the wholly owned subsidiary Specs Inc. and plans to hold a launch event for its AR glasses, Specs (list price USD 2,195), in Los Angeles on September 16 (per Snap Newsroom, confirmed around 2026-07-31).
5-Year Financial Trends
| Fiscal Year | Revenue (USD million) | Operating Income (USD million) | Net Income (USD million) | Total Equity (USD million) |
|---|---|---|---|---|
| 2021 | 4,117 | -702 | -488 | 3,790 |
| 2022 | 4,602 | -1,395 | -1,430 | 2,581 |
| 2023 | 4,606 | -1,398 | -1,322 | 2,414 |
| 2024 | 5,361 | -787 | -698 | 2,451 |
| 2025 | 5,931 | -532 | -460 | 2,281 |
H1 2026 cumulative revenue was USD 3,127,784 thousand (+15.5% from USD 2,708,147 thousand in the prior-year period), with a net loss of USD 252,911 thousand (narrowed from USD 402,157 thousand in the prior-year period) — based on the 10-Q (SEC EDGAR, filing number 0001564408-26-000052)(A).
Peer Comparison
| Company | Latest Quarter Revenue | User Metrics | As-of Date |
|---|---|---|---|
| Snap | USD 1,598,993 thousand | DAU 493M (+5%), MAU 971M | 2026-08-03 |
| Meta Platforms | USD 60.8 billion | DAP (Family) 3.60B (+3%) | Q2 2026 |
| USD 1.18 billion | MAU 640M (+11%) | Q2 2026 |
Snap's market cap (USD 9,336,621,280, as of 2026-08-14) is lower than Pinterest's market cap (approximately USD 11.72 billion, as of 2026-05-20; as-of dates differ). Snap's advertising revenue growth (+9%) trailed its total revenue growth (+19%), indicating that other revenue (such as subscriptions) drove overall revenue growth.
Valuation (Factual Multiples)
Short Interest & Trading Trends
Short interest declined for two consecutive settlement periods, falling by approximately 23.07 million shares from the 2026-06-30 settlement (113,125,166 shares) to the 2026-07-31 settlement (90,052,086 shares) (FINRA data, via stockanalysis.com/fintel.io). Institutional ownership figures vary widely across secondary sources (roughly 22-39%), making it difficult to cite a single definitive figure.
Insider Transactions (Form 4, SEC EDGAR)
| Date | Person/Title | Type | Shares | Price (Weighted Avg.) |
|---|---|---|---|---|
| 2026-07-16 | Ajit Mohan (CBO) | Sale | 24,263 shares | 4.55-4.80 USD |
| 2026-08-05 | Robert C. Murphy (CTO) | Sale | 2,000,000 shares | 5.555 USD |
| 2026-08-06 | Robert C. Murphy (CTO) | Sale | 2,000,000 shares | 5.2512 USD |
| 2026-08-06 | Robert C. Murphy (CTO) | Gift | 1,200,000 shares | — |
All transactions were disclosed as either pre-arranged Rule 10b5-1 plans or for RSU tax-withholding purposes (whether any were discretionary cannot be confirmed from the filings). Sources: SEC EDGAR Form 4, StockTitan, fool.com.
Governance & Capital Structure
| Class | Shares Outstanding (2025-06-27) | Votes per Share |
|---|---|---|
| Class A | 1,428,199,385 shares | None (generally) |
| Class B | 22,523,290 shares | 1 vote |
| Class C (founders only) | 231,626,943 shares | 10 votes |
Snap's two co-founders (CEO Evan Spiegel and CTO Robert Murphy) control more than 99% of voting power through Class C shares (10 votes per share), which represent a minority of total shares outstanding (per the 10-K, SEC EDGAR). Because of this structure, Snap files an Information Statement as an 8-K exhibit rather than soliciting proxies via a conventional DEF 14A. The board comprises 11 members, including Chairman Michael Lynton (per the 2025 Annual Meeting Information Statement); committee assignments and independent-director status are not available.
Macro Environment
| Factor | Value (As of) |
|---|---|
| U.S. Federal Reserve policy rate | 3.50-3.75% (held at 2026-07-29 FOMC meeting) |
| U.S. 10-Year Treasury yield | 4.69% (2026-08-17) |
| Nasdaq Composite | 26,729.16 (2026-08-14, -0.28%) |
| PHLX Semiconductor Index (SOX) | 12,417.05 (2026-08-14, -0.31%) |
| U.S. Dollar Index (DXY) | approximately 99.5 (2026-08-10) |
Approximately 41% of Snap's total revenue (22% Europe + 19% rest of world, Q2 2026) is generated outside the United States, giving it meaningful exposure to dollar exchange-rate movements. The Dollar Index weakened from 101.6 in late July 2026 to 99.5 in August (Vantage Markets, 2026-08-10 to 08-14).
Risk Factors
| Category | Fact |
|---|---|
| Competition | The 10-K names Alphabet, Apple, ByteDance (TikTok), Meta, Pinterest, and X, among others, as competitors; Q2 2026 advertising revenue growth (+9%) trailed total revenue growth (+19%). |
| Regulatory/Litigation | On 2026-08-10, the U.S. Court of Appeals for the Ninth Circuit rejected an early bid for Section 230 immunity, allowing more than 3,000 youth-addiction-related lawsuits to proceed in the lower courts. Multiple state attorneys general, including Arkansas, Texas, and Kansas, have filed separate lawsuits. |
| Financial | Snap recorded operating and net losses in each of the five years from 2021 to 2025 (though the losses have been narrowing), and total equity declined from USD 3.79 billion in 2021 to USD 2.28 billion in 2025. The debt-to-assets ratio has been in the 67-70% range since 2022. |
| Management changes | On 2026-04-15, Snap announced a workforce reduction of 16% of employees (approximately 1,000 people); CFO Derek Andersen departed around 2026-04-21, and Doug Hott became the new CFO on 2026-05-09. |
| Governance | Class A shareholders generally have no voting rights, limiting shareholders' ability to check the two founders' management decisions. |
Theme Exposure
Fact Highlights
Generated by FomoLog Agent · Data sources: NYSE · SEC EDGAR · FINRA · Toss Securities Open API