Snap Inc. reported second-quarter revenue of $1.6 billion Monday, a 19% increase from a year earlier, as the Snapchat parent company posted a narrower net loss and its highest free cash flow performance to date for a second quarter.
The Santa Monica-based technology company said revenue for the three months ended June 30 totaled $1,598,993,000, up from $1,344,930,000 in the same period last year, according to a news release. Revenue for the first six months of 2026 reached $3.13 billion, a 15% increase from $2.71 billion during the same period in 2025.
Snap posted a net loss of $163,960,000 for the quarter, or 10 cents per diluted share, an improvement from a net loss of $262,570,000, or 16 cents per diluted share, a year earlier. Operating loss also narrowed to $170,721,000 from $259,676,000.
Adjusted EBITDA, a non-GAAP measure the company uses to gauge underlying business performance, rose to $249,615,000 from $41,270,000 in the prior-year quarter, a 505% increase. The company said its results included $128.5 million in restructuring charges that were excluded from the adjusted figure.
Net cash provided by operating activities was $176,214,000 for the quarter, compared with $88,494,000 a year earlier. Free cash flow, defined as operating cash flow minus spending on property and equipment, was $120,538,000, up from $23,793,000 in the same quarter last year.
"Q2 reflects the progress we are making to strengthen our core business and build a more durable financial foundation for Snap," co-founder and CEO Evan Spiegel said in the release. Spiegel said the company grew revenue by 19%, expanded margins and generated positive free cash flow while improving advertising performance and growing its direct revenue business. He said Snap remains focused on serving its 971 million monthly active users, delivering value for advertisers and investing with discipline to increase free cash flow per share over time.
The company reported 493 million average daily active users for the quarter, a 5% increase year-over-year, and 971 million average monthly active users, up 4%. Average revenue per user was $3.25, a 13% increase from a year earlier.
By region, North America generated $942,883,000 in revenue, up 15% from a year ago. Europe revenue rose 33% to $353,806,000, while revenue from the rest of the world grew 17% to $302,304,000, according to the release.
Common shares outstanding totaled 1,682,281,000 as of June 30, essentially flat compared with the same date in 2025. The company had 4,723 full-time employees as of quarter's end, a 9% decrease from a year earlier.
Snap's balance sheet showed total assets of $7.47 billion as of June 30, down from $7.68 billion at the end of 2025. Cash and cash equivalents stood at $958,848,000, compared with $1,030,435,000 at the end of last year. Total stockholders' equity was $1,927,088,000, down from $2,281,495,000 six months earlier.
During the quarter, the company repurchased $250,465,000 of Class A non-voting common stock, according to the cash flow statement in the release.
Snap did not issue specific financial guidance for the third quarter of 2026 in the release, saying it would discuss its outlook during an earnings call and investor letter. The company hosted a conference call Monday at 2 p.m. Pacific time to discuss the results, with an audio webcast made available on its investor relations website.
Snap Inc., headquartered in Santa Monica, operates the Snapchat visual messaging app along with Specs Inc., a subsidiary focused on computing hardware, in addition to Bitmoji, Saturn and other digital services, according to the release.