Snap(US:SNAP)2025-11-06 00:39Financial Performance - Snap Inc. reported a net loss of $103,541,000 for the three months ended September 30, 2025, compared to a net loss of $153,247,000 for the same period in 2024, representing a 32.5% improvement[31]. - Revenue for the third quarter of 2025 was $1,506,839,000, an increase of 9.7% from $1,372,574,000 in the third quarter of 2024[31]. - Operating loss for the three months ended September 30, 2025, was $128,362,000, compared to an operating loss of $173,210,000 in the same period of 2024, indicating a 26.0% reduction in operating losses[31]. - Snap Inc. reported a total comprehensive loss of $102,371,000 for Q3 2025, compared to a total comprehensive loss of $127,180,000 in Q3 2024, reflecting a 19.5% improvement[34]. - The net loss attributable to common stockholders for the three months ended September 30, 2025, was $88.0 million, resulting in a basic net loss per share of $(0.06)[63]. - The diluted net loss per share attributable to common stockholders for the three months ended September 30, 2025, was also $(0.06)[63]. - The company reported a net loss of $505.7 million for the nine months ended September 30, 2025, an improvement from a net loss of $707.0 million in the same period of 2024[211]. Revenue Breakdown - Advertising revenue for the three months ended September 30, 2025, was $1,317,119, compared to $1,249,322 in 2024, an increase of approximately 5.4%[56]. - Other revenue for the three months ended September 30, 2025, was $189,720, up from $123,252 in 2024, reflecting an increase of approximately 53.8%[56]. - For the nine months ended September 30, 2025, total revenue reached $4,214,986, compared to $3,804,115 in 2024, marking an increase of approximately 10.8%[56]. - North America generated $870,030 in revenue for the three months ended September 30, 2025, compared to $826,179 in 2024, an increase of approximately 5.3%[57]. - Revenue from Europe for the three months ended September 30, 2025, was $285,800, up from $241,342 in 2024, representing an increase of approximately 18.4%[57]. - Revenue from the Rest of World for the three months ended September 30, 2025, was $351,009, compared to $305,053 in 2024, an increase of approximately 15.1%[57]. Cash Flow and Liquidity - Cash flows from operating activities generated $146,488,000 in Q3 2025, up from $115,872,000 in Q3 2024, reflecting a 26.4% increase[29]. - Cash, cash equivalents, and marketable securities totaled $3.0 billion as of September 30, 2025[144]. - Cash paid for interest was $58.1 million for Q3 2025 and $62.7 million for the nine months ended September 30, 2025, compared to $2.3 million and $8.1 million for the same periods in 2024[98]. - Free Cash Flow for the third quarter of 2025 was $93.4 million, compared to $71.8 million in the prior year[144]. - Net cash provided by operating activities was $386.6 million for the nine months ended September 30, 2025, a 111% increase from $182.8 million in the same period of 2024[201]. - Net cash provided by investing activities was $110.3 million for the nine months ended September 30, 2025, compared to a net cash used of $568.3 million in 2024, indicating a significant turnaround[202]. Expenses and Costs - Total costs and expenses for the third quarter of 2025 were $1,635.2 million, compared to $1,545.8 million in the prior year[144]. - Cost of revenue for the three months ended September 30, 2025, increased to $674,220, a 6% increase from $638,907 in 2024[177]. - Research and development expenses for the three months ended September 30, 2025, were $453,418, a 10% increase from $412,791 in 2024[178]. - Sales and marketing expenses for the three months ended September 30, 2025 decreased by $16.9 million (6%) compared to the same period in 2024, totaling $256.2 million[179]. - General and administrative expenses for the three months ended September 30, 2025 increased by $30.4 million (14%) compared to the same period in 2024, totaling $251.3 million[180]. Debt and Financing - As of September 30, 2025, total debt amounted to $3.54 billion, with a net carrying amount of $3.54 billion after accounting for debt issuance costs and discounts[97]. - The company issued $550.0 million principal amount of senior notes due in 2034, with net proceeds of $541.1 million after debt issuance costs of $8.9 million[75]. - In February 2025, the company issued $1.50 billion principal amount of senior notes due in 2033, with net proceeds of $1.47 billion after $26.9 million in debt issuance costs[79]. - The company repurchased and retired 57.3 million shares of Class A common stock for $500.6 million during the nine months ended September 30, 2025[70]. - The company had $3.9 billion in non-cancelable commitments primarily related to data processing and storage services, due within three years as of September 30, 2025[105]. Legal and Regulatory Matters - The company was named as a defendant in a federal securities class action lawsuit related to misleading statements about the impact of Apple's App Tracking Transparency framework[227]. - The lawsuit seeks monetary damages and other relief, and while a settlement has been reached, it is subject to court approval[227]. - If the settlement is not approved, the company will continue to litigate the case, which poses a risk to its business[227]. User Metrics - Daily Active Users (DAUs) increased 8% year-over-year to 477 million[144]. - Average Revenue Per User (ARPU) was $3.16, compared to $3.10 in the prior year[144].