Evan Spiegel, CEO of Snap Inc., attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 9, 2025.
Snap shares climbed as much as 25% on Wednesday after the company issued its third-quarter earnings, reporting revenue that beat analysts expectations and a $500 million stock repurchase program.
Here is how the company did compared with Wall Street's expectations:
Earnings per share: Loss of 6 cents. That figure is not comparable to analysts' estimates.
Loss of 6 cents. That figure is not comparable to analysts' estimates. Revenue: $1.51 billion vs. $1.49 billion expected, according to LSEG
$1.51 billion vs. $1.49 billion expected, according to LSEG Global daily active users: 477 million vs. 476 million expected, according to StreetAccount
477 million vs. 476 million expected, according to StreetAccount Global average revenue per user (ARPU): $3.16 vs. $3.13 expected, according to StreetAccount
Snap also announced that it is partnering with the startup Perplexity AI, which "will integrate its conversational search directly into Snapchat." The feature is set to appear in Snapchat starting in early 2026, Snap said.
"Perplexity will pay Snap $400 million over one year, through a combination of cash and equity, as we achieve global rollout," Snap said in the letter. "Revenue from the partnership is expected to begin contributing in 2026."
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