Snap reports upbeat fourth-quarter revenue as holiday season boosts ad spending

Snap beat Wall Street estimates for fourth-quarter revenue, ‍as more advertisers turned to the social media platform during the ​holiday season, sending its shares up over 5% in extended ‌trading.

The Snapchat-parent said total active advertisers on ​the platform rose 28% in the fourth quarter, underscoring strength in direct response ads and growth in new ad formats such as Sponsored Snaps and Promoted Places.

The results come as a relief for investors as advertisers increasingly rely on platforms such as Meta and TikTok, which are preferred due to their larger user ​base.

The social media company faced major hiccups ranging ⁠from U.S. President Donald Trump’s changing trade policies and a technical issue in its advertising platform last year, dragging its shares down around 25% in 2025.

Snap said ​on Monday it implemented ⁠platform-level age verification in Australia to comply with a new law requiring users to be at least 16, resulting in the removal of over 400,000 accounts.

Revenue rose 10% from a year ‌earlier to $1.72 billion in the quarter ended December 31, exceeding ‌analysts’ average estimate of $1.70 billion according to data compiled by LSEG.

It expects first-quarter revenue to be between $1.50 ‍billion and $1.53 billion, slightly below estimates of $1.55 billion.

The forecast does not include revenue from the Perplexity integration, a $400 million deal announced last ‍year, as Snap said the companies “have yet to mutually agree on a path to a broader roll out”.

The company’s current-quarter outlook for adjusted earnings before interest, taxes, depreciation and amortization of $170 million to $190 million was above estimates of $177.9 million, as it pivots toward profitable growth by tighter cost control.

It reported net income of $45 million in the fourth quarter, compared with $9 million a year earlier. Its 2025 ⁠net loss narrowed to $460 million from $698 million in 2024.

The company has been doubling down on augmented reality smart ​glasses with the launch of independent unit, Specs, last month, and also ⁠diversifying its revenue stream by focusing on its subscription service Snapchat+.

Subscribers for Snapchat+ rose 71% to 24 million in the fourth quarter. Daily active users of Snapchat rose 5% from a year earlier to 474 million, but fell ⁠by 3 million from the prior quarter.