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Los Angeles, CA – July 26, 2025 – Snap Inc. reported second-quarter 2025 revenue of $1.345 billion, a 9% increase year-over-year from $1.237 billion, but together announced a net loss of $263 million, widening from teh $249 million loss reported in Q2 2024. The results, released after market close today, signal a slowdown in growth amidst intensifying competition.
This marks the slowest revenue growth rate for Snap in over a year, directly attributable to increased competition, particularly from Meta’s Instagram reels and TikTok. Snapchat currently holds an estimated 38% market share among 13-34 year olds in the US, down from 42% in Q2 2024, according to data from eMarketer.
Advertising revenue continued to be the primary driver of income, with significant contributions from small and medium-sized businesses (SMBs). The subscription service, Snapchat+, launched in August 2022, remains a key component of Snap’s diversification strategy, currently boasting over 7 million subscribers globally as of June 30, 2025, a 20% increase from the previous quarter.
The company highlighted a 39% increase in advertisement volume driven by the implementation of AI-powered ad solutions. Specifically, Snap’s AI-driven ad targeting saw a 15% betterment in click-through rates compared to traditional methods. Sponsored Snaps, a key advertising format, demonstrated a 22% campaign outperformance rate, exceeding internal expectations. Snap’s advertising sales team, led by VP of sales, luke Lindemann, focused on securing partnerships with brands in the fashion, beauty, and consumer packaged goods sectors.
Snap reported a considerable improvement in operating cash flow, reaching $88 million, a significant turnaround from the negative cash flow experienced in Q2 2024. Free cash flow also rose considerably to $24 million, compared to a $73 million loss in the prior year. This improvement is partially attributed to stricter cost controls implemented in Q1 2025,resulting in a 12% reduction in operating expenses.
CEO Evan Spiegel,speaking on the earnings call,reiterated Snap’s commitment to long-term investments in augmented reality (AR),artificial intelligence (AI),and creator tools. The Snap Star program,offering financial incentives and resources to top content creators,has attracted over 50,000 participants since its launch in january 2025. Expanded analytics dashboards, providing creators with detailed insights into audience engagement, were also rolled out to all users.
“Our global community continued to grow in Q2, reaching 932 million monthly active users, with a particularly strong increase in users aged 25-34,” Spiegel stated. “We are focused on delivering value to both our users and advertisers, and we believe our investments in AI and AR will drive enduring growth in the years to come.” The majority of new user growth originated from India and Brazil,representing a 15% and 12% increase respectively.
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