Snap Returns to Profit but Shares Fall as Users and Revenue Miss Estimates

Snap shares fell more than 10 percent in after hours trading on Wednesday, November 4, 2026, after the company reported third quarter revenue and daily users below estimates. Revenue was $1.72 billion, up 14 percent from a year earlier, and daily active users were 495 million.

The report mixed a return to profit with two misses on the figures investors track closest in the coverage. Revenue came in just below the $1.73 billion consensus estimate, and users came in four million below the 499 million estimate. Profit, cash flow and adjusted EBITDA all beat the estimates and guidance ranges in the same report.

Revenue and users below estimates

Third quarter revenue reached $1.72 billion, up 14 percent from a year earlier. The figure was just below the $1.73 billion consensus estimate, a gap of about $10 million on the published figures.

Daily active users reached 495 million. That was short of the 499 million estimate tracked by StreetAccount, according to CNBC reporting of the results carried in the coverage of the quarter.

Snap also said it will stop reporting daily users and shift to monthly active users as its primary audience metric, according to BigGo Finance reporting of the results. That change means the 495 million daily figure is among the last of its kind in this form, on the reporting in the package.

A return to profit

Net income was $56 million, reversing a $104 million loss in the same quarter of 2025. That is a swing of $160 million from loss to profit on the figures in the report.

GAAP earnings per share were $0.03, beating the roughly $0.00 estimate. The profit return and the earnings beat sat in the same report as the revenue and user misses, which is why the report reads two ways at once.

Adjusted EBITDA was $383 million. That was above the $337 million to $338 million analyst estimate and above the high end of Snap guidance of $300 million to $350 million. The adjusted EBITDA figure cleared the top of the company guidance range by $33 million.

Cash flow rose sharply

Operating cash flow climbed 44 percent to $210 million. Free cash flow jumped 76 percent to $164 million.

Those cash figures are part of the stronger side of the report, alongside net income of $56 million and adjusted EBITDA of $383 million. The weaker side is narrow and specific: revenue $10 million below the estimate at $1.72 billion, and daily users four million below the estimate at 495 million.

Fourth quarter guidance and the share fall

For the fourth quarter, Snap guided revenue to between $1.95 billion and $1.99 billion. The company also guided adjusted EBITDA to between $490 million and $525 million.

Shares fell more than 10 percent in after hours trading on Wednesday, and about 11 percent in reports from BigGo Finance and Seeking Alpha. Both descriptions of the move are reported here as the outlets stated them.

The fall followed a report in which the two headline figures missed and the profit figures beat. The fourth quarter ranges are now the next marks in the company own guidance: revenue of $1.95 billion to $1.99 billion and adjusted EBITDA of $490 million to $525 million.