Snap Falls 35% YTD Despite $1.53 Billion Q1 Revenue and $437 Million 2025 Free Cash Flow
Updated
Updated · tikr.com · Jun 15
Snap Falls 35% YTD Despite $1.53 Billion Q1 Revenue and $437 Million 2025 Free Cash Flow
1 articles · Updated · tikr.com · Jun 15
Summary
$5.65 Snap shares are down more than 35% this year even after Q1 2026 revenue rose 12% to $1.53 billion and adjusted EBITDA more than doubled to $233 million.
$437 million in 2025 free cash flow, up from $219 million in 2024 and $35 million in 2023, underscored improving operations as Q1 gross margin reached 57% and EBITDA margin 15%.
Advertising remains the key drag: large North American advertisers pulled back, geopolitical uncertainty cut an estimated $20 million to $25 million in March revenue, and a Perplexity AI content deal collapsed.
JPMorgan cut its price target to $6 on weak Q2 guidance, even as Snap+ revenue jumped 87% to $285 million and the company pushed diversification through AR, subscriptions and Spectacles.