How does Snap (SNAP) make money?

Snap (SNAP) generates revenue primarily from Advertising Revenue, which accounted for 85.6% of total revenue in TTM through Q1 2026. The company reported $6.1B in revenue and converted -6.7% of it into net profit, equivalent to roughly -$410M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Snap (SNAP)?

Snap (SNAP) reported a gross profit margin of 55.8% in TTM through Q1 2026, equivalent to $3.4B in gross profit on $6.1B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Snap (SNAP)?

Snap (SNAP) reported an operating profit margin of -6.8% in TTM through Q1 2026, equivalent to -$413M in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Snap (SNAP)?

Snap (SNAP) reported a net profit margin of -6.7% in TTM through Q1 2026, equivalent to -$410M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Snap (SNAP) profitable?

Snap (SNAP) reported a net loss of $410M for TTM through Q1 2026, a net profit margin of -6.7%. Combined operating expenses, interest, and income taxes exceeded revenue, so the period closed in the red on a reported basis.

How much does Snap (SNAP) invest in research and development?

Snap (SNAP) invested $1.83B in research and development during TTM through Q1 2026, roughly 29.9% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Snap (SNAP) spend on capital expenditures?

Snap (SNAP) spent $223M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 3.6% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Snap (SNAP) generate?

Snap (SNAP) generated $609M in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 10.0%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What are the main business segments of Snap (SNAP)?

Snap (SNAP) reports revenue across 2 reportable product segments, led by Advertising Revenue at 85.6% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Snap (SNAP) generate most of its revenue?

North America is the largest geographic market for Snap (SNAP), accounting for 57.3% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Snap Makes Money: 2026 Visual Revenue Map

Snap (SNAP) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 7, 2026).

Snap (SNAP) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Snap (SNAP), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Advertising Revenue	$5.22B	85.6%
Other Revenue	$878M	14.4%
Total	$6.1B	100%

Advertising Revenue$5.22B
Other Revenue$878M
Total$6.1B

Snap (SNAP) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Snap (SNAP), TTM through Q1 2026
Region	Revenue (USD)	% of total
North America	$3.49B	57.3%
Rest Of World	$1.42B	23.3%
Europe	$1.18B	19.4%
Total	$6.1B	100%

North America
Rest Of World
Europe
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Snap (SNAP) reports revenue across 2 reportable product segments; the largest segment was Advertising Revenue at 85.6%, followed by Other Revenue (14.4%). Geographically, North America accounted for 57.3% of revenue, followed by Rest Of World (23.3%) and Europe (19.4%).

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