The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 56 | — | 20.8x | Around median | |
Growth | 82 | 10.3% | 6.1% | Top tier | |
Quality | 34 | -8.4% | 6.6% | Bottom tier | |
Safety | 37 | — | 0.7x | Bottom tier | |
Capital Return | 86 | — | 2.02% | Top tier | |
Momentum | 9 | -29.9% | 4.1% | Bottom tier | |
Sentiment | 41 | 26 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Snap Inc. is a social technology company that operates the Snapchat app, and its model is centered on visual communication among friends and family through messaging, the camera, Lenses, Spotlight, and Snap Map. The company generates most of its revenue from advertising inside Snapchat, including direct-response ads, Dynamic Product Ads, Sponsored Snaps, and Promoted Places, while other revenue comes from subscriptions and direct products such as Snapchat+, Memories Storage, Lens+, and Creator Subscriptions. Snap also invests in the Specs smart glasses platform through Lens Studio and Snap OS, which management describes as a long-term bet on augmented computing and artificial intelligence.
In the first quarter of fiscal 2026, Snap reported revenue of $1.53 billion, up 12% year over year, with daily active users returning to growth at 483 million users and monthly active users growing to 956 million users. Advertising revenue was $1.24 billion, up 3% year over year, while other revenue was $285 million, up 87% year over year, meaning that advertising accounted for about 81% of quarterly revenue and other revenue accounted for about 19%. According to EDGAR data for the same quarter, gross profit was $863.5 million, equivalent to a gross margin of about 56%, while the company recorded a net loss of $89.0 million and a loss per share of $0.05.
Management showed a clear improvement in cash flow and adjusted profitability despite the continued GAAP loss, as operating cash flow reached $327 million, free cash flow reached $286 million, and Adjusted EBITDA was about $233 million in the first quarter. The company also said that adjusted gross margin rose 3 percentage points to 57%, and that it is targeting an adjusted gross margin of 60% or more in fiscal 2026. However, the company remains unprofitable on a net income basis over the last 12 months, as TTM revenue was about $5.7 billion and net loss was $594.6 million.
The analyst consensus places SNAP stock at a neutral rating, with an average price target of $7.91, a high target of $15, and a low target of $5.25. Since the live price is displayed outside this text and changes constantly, the valuation reading should be made by comparing it automatically with the stated average target, while noting that the company does not have a positive P/E multiple because net income remains negative. The 52-week range between $3.81 and $10.41 reflects wide volatility in the market’s valuation between optimism about subscription growth and cash flows and concern about GAAP losses and slowing advertising from large customers.
Figures in the text are as of 2026-07-06; the live price is shown at the top of the page.
Snap Inc. operates Snapchat, an app focused on visual communication among friends and family through messaging, the camera, Lenses, Spotlight, and Snap Map. The company generates most of its revenue from advertising, and advertising revenue was $1.24 billion in the first quarter of 2026. It also generates direct revenue from products such as Snapchat+, Memories Storage, Lens+, and Creator Subscriptions, and other revenue was $285 million in the same quarter. In addition, Snap invests in Specs, Snap OS, and Lens Studio as a long-term platform for smart glasses and augmented reality.
The results were mixed, but they showed an important financial improvement compared with the prior year. Revenue reached $1.53 billion, up 12% year over year, and gross profit according to EDGAR was about $863.5 million. In contrast, the company remained loss-making under GAAP, as it recorded a net loss of $89.0 million and a loss per share of $0.05. The most notable strength was cash flow, as operating cash flow reached $327 million and free cash flow reached $286 million.
Those products are important because they drive growth in other revenue, which is less tied to the advertising cycle than the core advertising business. In the first quarter of 2026, other revenue grew 87% year over year to $285 million, and management said Memories Storage was an important driver of this acceleration. Management also said Lens+ contributes to raising subscription ARPU and expanding gross margin through exclusive features and AI-powered features. Management also explained that Creator Subscriptions were launched in the first quarter to deepen creators’ relationships with their audiences and diversify revenue sources.
Automated analysis for informational purposes only — not investment advice.
Management said that large advertisers in North America continued to pressure advertising growth in the first quarter of 2026. Although total advertising revenue reached $1.24 billion, its growth was only 3% year over year, far below the growth in other revenue. In contrast, there were signs of improvement among small and medium-sized customers, as SMB spending in North America grew by more than 30% year over year and SMBs accounted for more than 30% of global advertising revenue. The company also said that 2026 upfront commitments in North America grew about 10% year over year, but it described the recovery among large customers as early and uneven.
Specs is Snap’s long-term bet on smart glasses and augmented reality, and the company links it to the Lens Studio and Snap OS ecosystem and the developer community. Management said on the May 6, 2026 call that it expects the commercial launch later in 2026, and that it will share more details at Augmented World Expo on June 16. It also stated that the number of Lenses submitted for Specs increased 28% year over year, with examples such as Fossils, Artel, and The Heist. But the market showed sensitivity to this bet, as the June 17, 2026 news indicated that the stock fell 9.6% as pricing concerns around the new SPECS glasses escalated.
Management says the company is moving toward a clearer path to net profitability, but the financial statements still show GAAP losses. In the first quarter of 2026, net loss was $89.0 million, compared with a loss of $140 million in the same period of the prior year, meaning an improvement of $51 million. Adjusted EBITDA was also about $233 million and improved by $125 million year over year, an indicator of improved adjusted operating profitability. However, Snap expects pre-tax restructuring charges of between $95 and $130 million in the second quarter, even though it is targeting a reduction in its annual cost structure of more than $500 million in the second half of 2026.