Snap Reports Q4 Revenue Growth Amid Declining Daily Users

Snap Inc. reported $1.7 billion in revenue for Q4 2025 a 10% increase year-over-year, according to the company’s earnings release on the 4th of February. Average revenue per user rose slightly to $3.62 from $3.44, and the company posted a net income of $45 million, up from $9 million in the same quarter the previous year.

The growth was driven in part by Snap+, the platform’s paid subscription service launched in 2022, which saw subscribers increase 71% year-over-year to 24 million. Snap has been actively diversifying revenue beyond advertising, including new paid features like Memories storage and continued investment in augmented reality hardware.

Despite the revenue gains, daily active users (DAUs) declined slightly from 477 million to 474 million. The drop occurred primarily in North America and Europe, while the rest of the world saw modest growth. Snap cited increased competition from Meta platforms (Instagram, Facebook) and TikTok as a factor in advertising softness, and the company guided for Q1 2026 revenue below analyst expectations.

CEO Evan Spiegel used the earnings call to emphasize long-term diversification, particularly around augmented reality. Snap is preparing to launch Specs, its next-generation AR glasses, later in 2026 – the first public-facing version since the 2019 Spectacles. To support the effort, Snap recently established Specs Inc., a standalone subsidiary dedicated to the hardware.