Snap Inc. Reports $1.6 Billion Q2 Revenue and Announces Specs AR Glasses

Snap Inc. reported second-quarter 2026 revenue of $1.6 billion, a 19% increase that surpassed analyst expectations of $1.54 billion. The company narrowed its net loss to $163.96 million, down from $262.57 million in the prior year, and achieved positive free cash flow. Growth was driven by a 9% rise in advertising revenue—fueled by FIFA World Cup spending and momentum among large North American advertisers—and an 85% surge in subscription revenue from Snapchat+ and Lens+.

Despite these gains, Snap faced mixed user growth. While monthly active users reached 971 million and global daily active users grew by 10 million to 493 million, the company saw declines in key markets, including a drop in U.S. users from 98 million to 92 million.

The company is pivoting toward AI-powered hardware with the upcoming commercial launch of Specs, augmented reality glasses priced at $2,195. Snap will share further details at a Los Angeles event on September 16. While these glasses represent a major long-term opportunity, they have faced some early criticism regarding design and cost.

Looking ahead, Snap provided a third-quarter revenue forecast between $1.70 billion and $1.74 billion and raised its 2026 infrastructure cost outlook to up to $1.70 billion. CEO Evan Spiegel has identified free cash flow per share as the primary financial objective moving forward, emphasizing a focus on durable growth and monetization scaling.