Snap's third quarter 2026 North American revenue beat expectations as net income turned positive

Snap reported third quarter 2026 results that demonstrated significant progress toward sustainable profitability, highlighted by a shift to positive GAAP net income and a robust beat in its core North American market. While total revenue slightly missed the consensus estimate, the company saw a massive 110% surge in Adjusted EBITDA and maintained healthy free cash flow generation.

Key Highlights

• Return to Profitability: Generated positive net income of $56 million, a substantial recovery from the $104 million net loss reported in the same period last year.
• North American Strength: Revenue in North America reached $1.01 billion, growing 13% year-over-year and surpassing the $976 million anticipated by analysts despite a decline in regional users.
• Operational Efficiency: Adjusted EBITDA surged to $383 million with a margin of 22%, driven by disciplined expense management and ad platform optimizations.
• User Growth Divergence: Global Daily Active Users (DAUs) grew 4% year-over-year to 495 million, though North American DAUs continued to face pressure, declining 6% to 92 million.