Snap Shares Drop Following Third-Quarter Revenue Shortfall

Snap recorded a decline of more than 10% in its equity valuation after delivering third-quarter financial results that fell short of analyst projections for revenue and daily active users. Despite the miss against consensus expectations, the social media firm reported total quarterly revenue growth of 14% year over year and posted net income of $56 million, reversing a net loss of $104 million reported during the identical period of the previous year.

For the fourth quarter, company leadership projected revenue between $1.95 billion and $1.99 billion, alongside adjusted earnings ranging from $490 million to $525 million. In an accompanying communication to shareholders, executives revealed plans to transition toward global monthly active users as their core audience reporting standard beginning in the first quarter of 2027, explaining that the business seeks to prioritize enduring ecosystem value over short-term daily engagement gains.