Snap shares fall over 10% on third-quarter revenue miss

• Snap shares sank over 10% after the company missed on revenue and daily active users in its third-quarter earnings report Wednesday.
• The Snapchat parent said fourth-quarter revenue should come in between $1.95 billion and $1.99 billion. The midpoint of that figure is higher than Wall Street's estimates of $1.95 billion.
• Snap chief commercial officer Ronan Harris told analysts during an earnings call that lower spending by consumer packaged goods, or CPG, companies impacted third-quarter sales.

Evan Spiegel, co-founder and chief executive officer of Snap Inc., during the Axios Media Trends Live event in New York, US, on Thursday, Sept. 18, 2025.

Michael Nagle | Bloomberg | Getty Images

Snap shares sank over 10% when the Snapchat parent missed on revenue and daily active users in its third-quarter earnings report Wednesday.

Here's how the company did compared with analysts' expectations:

• Earnings per share: $0.19 adj. vs. $0.16 expected, according to LSEG
• Revenue: $1.72 billion vs. $1.73 billion expected, according to LSEG
• Global daily active users: 495 million vs. 499 million expected, according to StreetAccount
• Global average revenue per user, or ARPU: $3.48 vs. $3.48 expected, according to StreetAccount

Sales in Snap's third quarter jumped 14% year-over-year while net income came in at $56 million, compared to the $104 million net loss it logged the prior year.

Snap's third-quarter adjusted earnings came in at $383 million, topping the $337 million that analysts were projecting, according to StreetAccount.

The Snapchat parent said fourth-quarter revenue should come in between $1.95 billion and $1.99 billion. The midpoint of that figure is higher than Wall Street's estimates of $1.95 billion.

Fourth-quarter adjusted earnings are expected to come in between $490 million and $525 million. Analysts were expecting that figure to be $498 million.

Snap executives said in an investor letter that the company plans for globally monthly active users to become its "primary audience metric" starting in its first quarter for 2027. The company also said it has 977 MAU for the quarter.

"Daily engagement has historically been stable as a percentage of monthly engagement, but we do not intend to optimize Snapchat around daily use at the expense of long-term value for our community," the investor letter said. "A longer-term horizon better aligns our reported metrics with the product and safety decisions that strengthen relationships, create lasting utility, and support broader, more durable audience growth."

Snap chief commercial officer Ronan Harris told analysts during an earnings call that lower spending by unspecified consumer packaged goods, or CPG, companies impacted third-quarter sales. Harris attributed the curbed CPG spending to "macro pressures in the U.S. and also the Middle East."

"As we look ahead, we're seeing very positive signs of growth from diversified verticals like financial services in the U.S.," Harris said. "So part of our strategy here is to look outside of the pressures in CPG and find traction in these other verticals."

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