Snap Inc. has reported a strong second quarter for 2025, with both revenue and user growth continuing on an upward trajectory.
The company posted $1.345 billion in revenue for the quarter ending June 30, a 9 per cent increase compared to the same period last year. Daily active users (DAUs) also grew 9 per cent year-on-year, reaching 469 million, while monthly active users (MAUs) rose 7 per cent to hit 932 million globally.
“Our global community continued to grow in Q2, reaching 932 million Monthly Active Users as we continued to invest in AI and augmented reality,” said Snap Evan Spiegel, CEO. “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.”
Despite the growth in users and revenue, Snap recorded a net loss of $263 million, slightly higher than the $249 million loss from Q2 2024. Adjusted EBITDA also fell from $55 million to $41 million. However, operating cash flow improved significantly, jumping from a negative $21 million to a positive $88 million.
Snap highlighted deeper user engagement across its ecosystem with its TikTok rival, Spotlight, now reaching over 550 million MAUs and accounting for more than 40 per cent of total content watch time. Snap Map’s usage also grew to more than 400 million MAUs, and time spent on video chat increased 30 per cent year-over-year.
On the revenue side, Snap credited the introduction and broader rollout of Sponsored Snaps, ads that appear within users’ chat feeds, for boosting conversions. These ads now drive an 18 per cent increase in unique converters across app installs and purchases. Sponsored Snaps from creators have also been introduced, and the “First Snap” ad format gives brands a single-day takeover of the top spot in the chat feed.
Snap continues to invest in augmented reality. On average, 350 million users interacted with AR lenses daily in Q2, with 8 billion lens uses per day. The company also announced it will launch its first consumer-ready AR glasses, Specs, in 2026.
The AR platform now includes tools powered by OpenAI and Google’s Gemini, real-time voice transcription in over 40 languages, and spatial intelligence features for app developers.
While Snap Inc. continues to operate at a net loss, the company is betting big on AI, augmented reality and creator monetisation to fuel its next phase of growth. With steady user gains, rising cash flow, and strong engagement across features like Spotlight, Sponsored Snaps and Snap Map, the platform is firmly positioning itself for a strong 2026.
