Snapchat parent company reports growth, but remains loss-making
Snapchat’s parent company Snap generated $1.345 billion in revenue for the second quarter of 2025, an increase of 9% compared to $1.237 billion in the same period last year. This was offset by a net loss of $263 million, even higher than the $249 million loss in 2024.
The revenue growth in the second quarter was the slowest in over a year, indicating increasing competition from the likes of Instagram.
Small and medium-sized businesses contributed the most to the rising advertising revenue, while the subscription service Snapchat+ continued to play an important role in Snap’s efforts to further diversify its revenue streams beyond advertising.
The revenue growth was mainly driven by improved advertising performance, with AI-based ads contributed to a 39% increase in volume of advertisements, while tools such as Sponsored Snaps seeing some campaigns outperform expectations in 22% of cases.
Operating cash flow improved significantly to $88 million, an improvement on last year where the company was in the red. Free cash flow rose to $24 million, compared to a loss of $73 million last year.
Snap CEO Evan Spiegel emphasised that Snap continues to invest in AR, AI, and creator tools to keep its user and advertiser base strong, with programs like Snap Star and expanded analytics for content creators.
“Our global community continued to grow in Q2, reaching 932 million monthly active users as we continued to invest in AI and augmented reality,” he said. “With meaningful inventory and conversions growth this quarter, including the broader rollout of Sponsored Snaps, we’re excited about the opportunity to translate improved advertiser performance into topline acceleration.”
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