Company $SNAP Announces Q1 2026 Results

- Revenue = $1.529 billion (beats expectations of $1.52 billion) with +12% annual growth
- Advertising revenue = $1.244 billion with only +3% annual growth
- Subscription and new product revenue = $285 million with +87% annual growth
- Earnings per share = a loss of $0.05 (beats expected loss of $0.07)
- Net loss = $89 million (improved +36% from a $140 million loss a year ago)
- Operating loss = $74 million (improved from a $194 million loss)
- Adjusted EBITDA = $233 million (more than doubled +116% from $108 million) with a 15.2% margin
- Operating cash flow = $327 million with +115% annual growth
- Free cash flow = $286 million with +150% annual growth
- Free cash flow for the last 12 months = $609 million
- Capital expenditures = only $41 million

User metrics:
- Monthly active users = 956 million with +5% annual growth (+43 million)
- Daily active users = 483 million with +5% annual growth
- Spotlight publishers grew by +74% in the U.S. and +61% worldwide
- Middle East tensions affected advertising revenue by $20-25 million in March

Balance sheet and dividends:
- Cash + securities = $2.8 billion
- Share repurchases during the quarter = $350 million
- Remaining share buyback program = $400 million

Guidance for Q2 2026:
- Revenue = $1.52 - $1.55 billion
- Targeting a +$500 million annual cost reduction in the second half of 2026

Full-year 2026 outlook:
- Earnings per share = $0.57 - $0.60
- Revenue = $6.68 - $7.34 billion

I highly doubt the company will be profitable in 2027 if growth rates continue and the $500 million annual cost reduction is achieved.