Snap Inc

Previous wording

•Daily Active Users, or DAUs, increased 9% year-over-year to 460 million.

Current wording

•Daily Active Users, or DAUs, increased 9% year-over-year to 469 million.

Previous wording

•Average revenue per user, or ARPU, was $2.96, compared to $2.83 in the prior year.

Current wording

•Average revenue per user, or ARPU, was $2.87, compared to $2.86 in the prior year.

Previous wording

•Revenue was $1,363.2 million, compared to $1,194.8 million in the prior year, an increase of 14% year-over-year.

Current wording

•Revenue was $1,344.9 million, compared to $1,236.8 million in the prior year, an increase of 9% year-over-year.

Previous wording

•Total costs and expenses were $1,557.1 million, compared to $1,528.0 million in the prior year.

Current wording

•Total costs and expenses were $1,604.6 million, compared to $1,490.7 million in the prior year.

Previous wording

•Diluted net loss per share was$(0.08), compared to$(0.19) in the prior year.

Current wording

•Diluted net loss per share was$(0.16), compared to$(0.15) in the prior year.

Previous wording

•Cash, cash equivalents, and marketable securities were $3.2 billion as of March 31, 2025.

Current wording

•Cash, cash equivalents, and marketable securities were $2.9 billion as of June 30, 2025.

Previous wording

We calculate average DAUs for a particular quarter by adding the number of DAUs on each day of that quarter and dividing that sum by the number of days in that quarter. DAUs are broken out by geography because markets have different characteristics. We had 460 million DAUs on average in the first quarter of 2025, an increase of 38 million, or 9%, from the first quarter of 2024.

Current wording

We calculate average DAUs for a particular quarter by adding the number of DAUs on each day of that quarter and dividing that sum by the number of days in that quarter. DAUs are broken out by geography because markets have different characteristics. We had 469 million DAUs on average in the second quarter of 2025, an increase of 37 million, or 9%, from the second quarter of 2024.

Previous wording

(2)In the first quarter of 2025, we refined our processes and controls to allow us to more accurately record user activity that would not otherwise be recorded during such period due to delays in receiving user metric information resulting from carrier or other user connectivity issues during the measurement period. For additional information concerning these refinements, see the “Note Regarding User Metrics and Other Data.” As a result of such refinements, our DAUs may not be directly comparable to those in prior periods, including in this table and the following tables below as they reflect a comparison to previously reported numbers. For example, had such refinements not been made in the first quarter of 2025, the year-over-year increase in such quarter for Rest of World would have been 15% instead of 16% given that the refinements primarily affected this region.

Current wording

(2)In the first quarter of 2025, we refined our processes and controls to allow us to more accurately record user activity that would not otherwise be recorded during such period due to delays in receiving user metric information resulting from carrier or other user connectivity issues during the measurement period. For additional information concerning these refinements, see the “Note Regarding User Metrics and Other Data.” As a result of such refinements, our DAUs may not be directly comparable to those in prior periods, including in this table and the following tables below as they reflect a comparison to previously reported numbers.

Previous wording

We recorded revenue of $1,363.2 million for the three months ended March 31, 2025, compared to revenue of $1,194.8 million for the same period in 2024, an increase of 14% year-over-year. We monetize our business primarily through advertising. Our advertising products include Snap Ads and AR Ads.

Current wording

We recorded revenue of $1,344.9 million for the three months ended June 30, 2025, compared to revenue of $1,236.8 million for the same period in 2024, an increase of 9% year-over-year. We monetize our business primarily through advertising. Our advertising products include Snap Ads and AR Ads.

Previous wording

We measure our business using ARPU because it helps us understand the rate at which we are monetizing our daily user base. ARPU was $2.96 in the first quarter of 2025, compared to $2.83 in the first quarter of 2024. For purposes of calculating ARPU, revenue by user geography is apportioned to each region based on a determination of the geographic location in which advertising impressions are delivered, as this approximates revenue based on user activity. This differs from the presentation of our revenue by geography in the notes to our consolidated financial statements, where revenue is based on the billing address of the advertising customer.

Current wording

We measure our business using ARPU because it helps us understand the rate at which we are monetizing our daily user base. ARPU was $2.87 in the second quarter of 2025, compared to $2.86 in the second quarter of 2024. For purposes of calculating ARPU, revenue by user geography is apportioned to each region based on a determination of the geographic location in which advertising impressions are delivered, as this approximates revenue based on user activity. This differs from the presentation of our revenue by geography in the notes to our consolidated financial statements, where revenue is based on the billing address of the advertising customer.

Previous wording

Three Months Ended March 31, 2025 and 2024

Current wording

Three and Six Months Ended June 30, 2025 and 2024

Previous wording

Revenue for the three months ended March 31, 2025 increased $168.4 million compared to the same period in 2024. The increase was driven by a $103.0 million increase in advertising revenue, which is due to an increase in global advertising impressions volume of approximately 17% compared to the prior year, partially offset by a decrease in the cost per advertising impression of approximately 7%. The increase in global advertising impressions volume was driven by expanded advertising delivery within Spotlight and Creator Stories and the decrease in the cost per advertising impression was due to inventory growth exceeding advertising demand growth. The increase was also driven by a $65.4 million increase in other revenue, which is due to higher subscription revenue due to growth in the number of subscribers.

Current wording

Revenue for the three and six months ended June 30, 2025 increased $108.2 million and $276.6 million, respectively, compared to the same periods in 2024. The increase was driven by a $41.5 million and $144.5 million increase in advertising revenue for the three and six months ended June 30, 2025, respectively. The increase in advertising revenue is due to a year-over-year increase in global advertising impressions volume of approximately 15% and 16% for the three and six months ended June 30, 2025, respectively, which is driven by expanded advertising delivery within Spotlight and Creator Stories. The increase in advertising revenue was partially offset by a year-over-year decrease in the cost per advertising impression of approximately 10% and 8% for the three and six months ended June 30, 2025, respectively, which is driven by inventory growth exceeding advertising demand growth. The increase in total revenue was also driven by a $66.7 million and $132.1 million increase in other revenue for the three and six months ended June 30, 2025, respectively, which is due to higher subscription revenue due to growth in the number of subscribers.

Previous wording

Cost of revenue for the three months ended March 31, 2025 increased $64.8 million compared to the same period in 2024. The increase was primarily driven by a $39.1 million increase in infrastructure costs, attributable to DAU growth of 9% compared to the prior year as well as investments in machine learning and AI.

Current wording

Cost of revenue for the three and six months ended June 30, 2025 increased $64.4 million and $129.2 million, respectively, compared to the same periods in 2024. The increase in both periods was primarily driven by a $43.5 million and $82.5 million increase in infrastructure costs for the three and six months ended June 30, 2025, respectively, attributable to DAU growth as well as investments in machine learning and AI.

Previous wording

Research and development expenses for the three months ended March 31, 2025 decreased $25.6 million compared to the same period in 2024. The decrease was primarily driven by $39.0 million in restructuring charges recognized in the prior year. The decrease was partially offset by higher employee compensation due to an increase in research and development headcount compared to the prior year.

Current wording

Research and development expenses for the three and six months ended June 30, 2025 increased $37.1 million and $11.5 million, respectively, compared to the same periods in 2024. The increase in both periods was primarily due to investments in product development, including higher employee compensation due to additional research and development headcount. The increase for the six months ended June 30, 2025 was partially offset by $38.8 million in restructuring charges primarily recognized in the first quarter of 2024.

Previous wording

Sales and marketing expenses for the three months ended March 31, 2025 decreased $18.1 million compared to the same period in 2024. The decrease was primarily driven by $19.5 million in restructuring charges recognized in the prior year as well as decreased marketing investments compared to the prior year. The decrease was partially offset by higher employee compensation due to an increase in sales and marketing headcount compared to the prior year.

Current wording

Sales and marketing expenses for the three and six months ended June 30, 2025 decreased $8.5 million and $26.5 million, respectively, compared to the same periods in 2024. The decrease in both periods was primarily driven by lower advertising costs compared to the prior year, partially offset by higher employee compensation due to additional sales and marketing headcount. The decrease for the six months ended June 30, 2025 was further driven by $19.9 million in restructuring charges primarily recognized in the first quarter of 2024.

Previous wording

General and administrative expenses for the three months ended March 31, 2025 increased $7.9 million compared to the same period in 2024. The increase was primarily driven by higher spend on external professional services, including legal-related expenses. The increase was partially offset by $8.7 million in restructuring charges recognized in the prior year.

Current wording

General and administrative expenses for the three and six months ended June 30, 2025 increased $20.8 million and $28.7 million, respectively, compared to the same periods in 2024. The increase in both periods was primarily driven by higher spend on external professional services, including legal-related expenses. The increase for the six months ended June 30, 2025 was partially offset by $10.3 million in restructuring charges primarily recognized in the first quarter of 2024.

Previous wording

Interest income for the three months ended March 31, 2025 decreased $2.9 million compared to the same period in 2024. The decrease was primarily driven by lower interest rates.

Current wording

Interest income for the three and six months ended June 30, 2025 decreased $3.3 million and $6.1 million, respectively, compared to the same periods in 2024. The decrease was primarily driven by lower interest rates.

Previous wording

Interest expense for the three months ended March 31, 2025 increased $18.7 million compared to the same period in 2024. The increase was primarily driven by additional interest expense on our 2033 Notes which were issued in February 2025.

Current wording

Interest expense for the three and six months ended June 30, 2025 increased $22.5 million and $41.2 million, respectively, compared to the same periods in 2024. The increase in both periods was primarily driven by additional interest expense on our 2033 Notes which were issued in February 2025.

Previous wording

Other expense, net for the prior year was primarily a result of $6.3 million in net losses on strategic investments and $2.7 million in unrealized losses on publicly traded securities classified as marketable securities, partially offset by a $8.8 million gain on extinguishment associated with the February 2024 Note Repurchases, which is discussed within Note 6 to our consolidated financial statements included elsewhere in this Quarterly Report.

Current wording

Other expense, net for the three months ended June 30, 2025 was not material. Other expense, net for the three months ended June 30, 2024 was primarily a result of a $15.5 million loss on extinguishment associated with the May 2024 Note Repurchases and $2.0 million in unrealized losses on publicly traded securities classified as marketable securities.

Previous wording

Other income, net for the three months ended March 31, 2025 was primarily driven by a $66.9 million gain on extinguishment associated with the 2025 Note Repurchases, which is discussed within Note 6 to our consolidated financial statements included elsewhere in this Quarterly Report, partially offset by $11.6 million in net losses on strategic investments and $4.2 million in unrealized losses on publicly traded securities classified as marketable securities.

Current wording

Other income, net for the six months ended June 30, 2025 was primarily driven by a $66.9 million gain on extinguishment associated with the 2025 Note Repurchases recognized in the first quarter of 2025, which is discussed within Note 7 to our consolidated financial statements included elsewhere in this Quarterly Report, partially offset by $12.8 million in net losses on strategic investments. Other expense, net for the six months ended June 30, 2024 was primarily a result of a $6.7 million net loss on extinguishment associated with the 2024 Note Repurchases, $4.7 million in unrealized losses on publicly traded securities classified as marketable securities, and $6.8 million in net losses on strategic investments.

Previous wording

Income tax expense for the three months ended March 31, 2025 was $8.4 million, compared to an income tax expense of $6.9 million for the same period in 2024. Our effective tax rate differs from the U.S. statutory tax rate primarily due to valuation allowances on our deferred tax assets as it is more likely than not that some or all of our deferred tax assets will not be realized.

Current wording

Income tax expense for the three and six months ended June 30, 2025 was $7.7 million and $16.1 million, respectively, compared to an income tax expense of $5.2 million and $12.1 million, respectively, for the same periods in 2024. Our effective tax rate differs from the U.S. statutory tax rate primarily due to valuation allowances on our deferred tax assets as it is more likely than not that some or all of our deferred tax assets will not be realized.

Previous wording

Net loss for the three months ended March 31, 2025 was $139.6 million, compared to $305.1 million for the same period in 2024. The decrease in net loss was primarily the result of the changes in revenues and expenses discussed above.

Current wording

Net loss for the three and six months ended June 30, 2025 was $262.6 million and $402.2 million, respectively, compared to $248.6 million and $553.7 million, respectively, for the same periods in 2024. The fluctuations in net loss for both periods were primarily the result of the changes in revenues and expenses discussed above.

Previous wording

Adjusted EBITDA for the three months ended March 31, 2025 was $108.4 million, compared to $45.7 million for the same period in 2024. The increase was primarily attributable to increased revenue, lower research and development expenses, and lower sales and marketing expenses, partially offset by higher cost of revenue and general and administrative expenses.

Current wording

Adjusted EBITDA for the three and six months ended June 30, 2025 was $41.3 million and $149.7 million, respectively, compared to $55.0 million and $100.6 million, respectively, for the same periods in 2024. The fluctuations for both periods were primarily attributable to increased revenue and lower sales and marketing expenses, partially offset by higher cost of revenue, research and development expenses, and general and administrative expenses.

Previous wording

Cash, cash equivalents, and marketable securities were $3.2 billion as of March 31, 2025, primarily consisting of cash on deposit with banks and highly liquid investments in U.S. government and agency securities, money market funds, corporate debt securities, certificates of deposit, commercial paper, and publicly traded equity securities. Our primary source of liquidity is cash generated through financing activities. Our primary uses of cash include operating costs such as personnel-related costs and the infrastructure costs of the Snapchat application, facility-related capital spending, and acquisitions and investments. There are no known material subsequent events that could have a material impact on our cash or liquidity. We may contemplate and engage in merger and acquisition activity that could materially impact our liquidity and capital resource position.

Current wording

Cash, cash equivalents, and marketable securities were $2.9 billion as of June 30, 2025, primarily consisting of cash on deposit with banks and highly liquid investments in U.S. government and agency securities, money market funds, corporate debt securities, certificates of deposit, commercial paper, and publicly traded equity securities. Our primary source of liquidity is cash generated through financing activities. Our primary uses of cash include operating costs such as personnel-related costs and the infrastructure costs of the Snapchat application, facility-related capital spending, and acquisitions and investments. There are no known material subsequent events that could have a material impact on our cash or liquidity. We may contemplate and engage in merger and acquisition activity that could materially impact our liquidity and capital resource position.

Previous wording

As of March 31, 2025, approximately 6.7% of our cash, cash equivalents, and marketable securities was held by our foreign subsidiaries, primarily in the United Kingdom. Cash held by our foreign subsidiaries is utilized to fund our foreign operations and may be repatriated, subject to certain limitations. Upon repatriation, these funds would be available to fund our domestic operations, but repatriation may result in additional tax liabilities. We maintain substantially all of our cash, cash equivalents, and marketable securities in accounts with major United States and multi-national financial institutions. We believe our existing cash balance is sufficient to fund our working capital needs.

Current wording

As of June 30, 2025, approximately 4.0% of our cash, cash equivalents, and marketable securities was held by our foreign subsidiaries, primarily in the United Kingdom. Cash held by our foreign subsidiaries is utilized to fund our foreign operations and may be repatriated, subject to certain limitations. Upon repatriation, these funds would be available to fund our domestic operations, but repatriation may result in additional tax liabilities. We maintain substantially all of our cash, cash equivalents, and marketable securities in accounts with major United States and multi-national financial institutions. We believe our existing cash balance is sufficient to fund our working capital needs.

Previous wording

As of March 31, 2025, we had $1.05 billion of revolving credit facilities, of which $250.0 million expires in May 2027 and $800.0 million expires in February 2030. The interest rates for all credit facilities are determined based on a formula using certain market rates, as described in Note 6 to our consolidated financial statements included elsewhere in this Quarterly Report. The Credit Facility also contains an annual commitment fee of 0.10%on the daily undrawn balance of the facility. As of March 31, 2025, we had $80.6 million in the form of outstanding standby letters of credit, with no amounts outstanding under the Credit Facility.

Current wording

As of June 30, 2025, we had $1.05 billion of revolving credit facilities, of which $250.0 million expires in May 2027 and $800.0 million expires in February 2030. The interest rates for all credit facilities are determined based on a formula using certain market rates, as described in Note 7 to our consolidated financial statements included elsewhere in this Quarterly Report. The Credit Facility also contains an annual commitment fee of 0.10%on the daily undrawn balance of the facility. As of June 30, 2025, we had $80.2 million in the form of outstanding standby letters of credit, with no amounts outstanding under the Credit Facility.

Previous wording

As of March 31, 2025, we had outstanding debt in the form of senior unsecured notes and senior convertible notes for an aggregate principal amount of $3.5 billion, which mature from 2025 through 2033. Short-term and long-term future interest payments obligations as of March 31, 2025 were $113.6 million and $741.3 million, respectively.

Current wording

As of June 30, 2025, we had outstanding debt in the form of senior unsecured notes and senior convertible notes for an aggregate principal amount of $3.5 billion, which mature from 2026 through 2033. Short-term and long-term future interest payment obligations as of June 30, 2025 were $113.6 million and $739.4 million, respectively.

Previous wording

Under certain circumstances, holders of the Convertible Notes may convert all or a portion of their notes prior to the applicable maturity date. Upon conversion, the notes may be settled in cash, shares of our Class A common stock, or a combination of cash and shares of our Class A common stock, at our election. As of March 31, 2025 the Convertible Notes will not be eligible for optional conversion during the second quarter of 2025, other than the 2025 Notes, which are eligible for optional conversion as of February 1, 2025.

Current wording

Under certain circumstances, holders of the Convertible Notes may convert all or a portion of their notes prior to the applicable maturity date. Upon conversion, the notes may be settled in cash, shares of our Class A common stock, or a combination of cash and shares of our Class A common stock, at our election. As of June 30, 2025 the Convertible Notes will not be eligible for optional conversion during the third quarter of 2025.

Previous wording

We have non-cancelable contractual agreements primarily related to the hosting of our data processing, storage, and other computing services, as well as lease, content and developer partner, and other commitments. We had $4.6 billion in commitments, as of March 31, 2025, primarily due within three years. For additional discussion on our leases, see Note 8 to our consolidated financial statements.

Current wording

We have non-cancelable contractual agreements primarily related to the hosting of our data processing, storage, and other computing services, as well as lease, content and developer partner, and other commitments. We had $4.3 billion in commitments, as of June 30, 2025, primarily due within three years. For additional discussion on our leases, see Note 9 to our consolidated financial statements.

Previous wording

In October 2024, our board of directors authorized a stock repurchase program of up to $500.0 million of our Class A common stock. For the three months ended March 31, 2025, we repurchased and retired 27.3 million shares of our Class A common stock for $257.1 million, including costs associated with the repurchases. As of March 31, 2025, the remaining availability under the stock repurchase authorization was $243.2 million.

Current wording

In October 2024, our board of directors authorized a stock repurchase program of up to $500.0 million of our Class A common stock. We completed this program in May 2025. For the six months ended June 30, 2025, we repurchased and retired 57.3 million shares of our Class A common stock for $500.6 million, including costs associated with the repurchases.

Previous wording

The following table sets forth the major components of our consolidated statements of cash flows for the three months ended March 31, 2025 and 2024:

Current wording

The following table sets forth the major components of our consolidated statements of cash flows for the three and six months ended June 30, 2025 and 2024:

Previous wording

Net cash provided by operating activities was $151.6 million for the three months ended March 31, 2025, compared to $88.4 million for the same period in 2024, resulting primarily from our net loss, adjusted for non-cash items, including stock-based compensation expense of $247.3 million, a gain on debt extinguishment of $66.9 million, and depreciation and amortization expense of $37.7 million. Net cash provided by operating activities for the three months ended March 31, 2025 was also driven by a $194.2 million decrease in accounts receivable due to higher collections and a reduction in billings in the period, partially offset by a $162.6 million decrease in accrued expenses and other current liabilities primarily due to the timing of payments.

Current wording

Net cash provided by operating activities was $240.1 million for the six months ended June 30, 2025, compared to $67.0 million for the same period in 2024, resulting primarily from our net loss, adjusted for non-cash items, including stock-based compensation expense of $499.2 million, a gain on debt extinguishment of $66.9 million, and depreciation and amortization expense of $77.7 million. Net cash provided by operating activities for the six months ended June 30, 2025 was also driven by a $191.1 million decrease in accounts receivable due to higher collections and a reduction in billings in the period, partially offset by a $59.9 million decrease in accounts payable and a $14.9 million decrease in accrued expenses and other current liabilities primarily due to the timing of payments.

Previous wording

Net cash provided by investing activities was $2.8 million for the three months ended March 31, 2025, compared to net cash used in investing activities of $131.2 million for the same period in 2024. Our investing activities for the three months ended March 31, 2025 primarily consisted of maturities of marketable securities of $263.8 million and sales of marketable securities of $12.0 million, partially offset by purchases of marketable securities of $235.8 million and purchases of property and equipment of $37.2 million. Our investing activities for the three months ended March 31, 2024 primarily consisted of purchases of marketable securities of $465.7 million and purchases of property and equipment of $50.4 million, partially offset by maturities of marketable securities of $384.9 million.

Current wording

Net cash provided by investing activities was $218.2 million for the six months ended June 30, 2025, compared to net cash used in investing activities of $345.5 million for the same period in 2024. Our investing activities for the six months ended June 30, 2025 primarily consisted of maturities of marketable securities of $565.1 million and sales of marketable securities of $437.2 million, partially offset by purchases of marketable securities of $626.7 million and purchases of property and equipment of $101.9 million. Our investing activities for the six months ended June 30, 2024 primarily consisted of purchases of marketable securities of $1.2 billion and purchases of property and equipment of $102.5 million, partially offset by maturities of marketable securities of $832.1 million and sales of marketable securities of $166.6 million.

Previous wording

Net cash used in financing activities was $288.5 million for the three months ended March 31, 2025, compared to net cash used in financing activities of $675.8 million for the same period in 2024. Our financing activities for the three months ended March 31, 2025 primarily consisted of the 2025 Note Repurchases for $1.4 billion, repurchases of our Class A common stock for $257.1 million, and deferred payments for acquisitions of $58.0 million, partially offset by the issuance of the 2033 Notes for net proceeds of $1.5 billion. Our financing activities for the three months ended March 31,

Current wording

Net cash used in financing activities was $579.6 million for the six months ended June 30, 2025, compared to net cash used in financing activities of $438.9 million for the same period in 2024. Our financing activities for the sixmonths ended June 30, 2025 primarily consisted of the 2025 Note Repurchases for $1.4 billion, repurchases of our Class A common stock for $500.6 million, deferred payments for acquisitions of $67.5 million, and the repayment of the 2025 Notes for $36.2 million, partially offset by the issuance of the 2033 Notes for net proceeds of $1.5 billion. Our financing activities for the six months ended June 30, 2024 primarily consisted of the 2024 Note Repurchases for$859.0 million, repurchases of our Class A common stock for $311.1 million, and the purchase of the 2030 Capped Call Transactions for $68.9 million, partially offset by the issuance of the 2030 Notes for net proceeds of $740.4 million and the termination of the 2025 Capped Call Transactions for proceeds of $62.7 million.

Previous wording

Free Cash Flow was $114.4 million for the three months ended March 31, 2025, compared to $37.9 million for the same period in 2024. Free Cash Flow in all periods was composed of net cash provided by (used in) operating activities, resulting primarily from net loss, adjusted for non-cash items and changes in working capital. Free Cash Flow also included purchases of property and equipment of $37.2 million for the three months ended March 31, 2025, compared to $50.4 million for the same period in 2024. Purchases of property and equipment in all periods are primarily related to improvements to our leased facilities to support our team workspaces. See “Non-GAAP Financial Measures.”

Current wording

Free Cash Flow was $138.2 million for the six months ended June 30, 2025, compared to $(35.5) million for the same period in 2024. Free Cash Flow in all periods was composed of net cash provided by (used in) operating activities, resulting primarily from net loss, adjusted for non-cash items and changes in working capital. Free Cash Flow also included purchases of property and equipment of $101.9 million for the six months ended June 30, 2025, compared to

Previous wording

(1)Restructuring charges during 2024 primarily include $68.2 million of cash severance, stock-based compensation expense, and other charges associated with the 2024 restructuring. These charges are not reflective of underlying trends in our business. Refer to Note 13 in our consolidated financial statements.

Current wording

(1)Restructuring charges during 2024 primarily include $70.2 million of cash severance, stock-based compensation expense, and other charges associated with the 2024 restructuring. These charges are not reflective of underlying trends in our business. Refer to Note 14 in our consolidated financial statements.