Snap shares surge after Q2 2026 earnings beat as subscription revenue climbs 85 percent
Snap $SNAP posted Q2 2026 revenue of $1.6 billion, up 19% year over year and beating estimates by $60 million. Net loss narrowed to $164 million from $262.6 million. Shares rose 17.3%. Most growth came from subscriptions and other revenue, up 85%; core advertising grew just 9%.
Snap $SNAP reported second quarter 2026 revenue of $1.6 billion on Monday, up 19 percent year over year and about $60 million above Wall Street's $1.54 billion consensus. The company's net loss narrowed sharply to $164 million from $262.6 million a year earlier, while adjusted EBITDA jumped to $249.6 million from $41.3 million. Gross margin expanded seven percentage points to 58 percent, and Snap logged its eighth consecutive quarter of positive free cash flow. Shares rose 17.3 percent following the announcement. The composition of that growth is notable: advertising, historically Snap's core business, rose just 9 percent to $1.28 billion, while subscriptions and other revenue including Snapchat+, Memory Storage and Lens+ jumped 85 percent to $316 million and now account for roughly a fifth of total sales. Snap guided third quarter revenue to between $1.7 billion and $1.74 billion, topping analyst estimates. The results suggest Snap's turnaround so far is being carried more by direct-to-consumer subscription products than by a rebound in the advertising business that made the company a public company in the first place.