Snap Inc. is set to release its third-quarter financial results for 2025 on November 5. According to the Zacks Consensus Estimate, the company’s expected revenue for the quarter is projected at $447.59 million, reflecting a slight increase of 0.24% compared to the same quarter last year.
For earnings, the consensus estimate remains at 17 cents per share, indicating a significant turnaround with a 154% increase from a loss of 31 cents per share recorded in the same period last year. Notably, Snap has surpassed earnings expectations in three of its past four quarters, achieving an average positive surprise of 20.2%.
Despite these promising figures, Snap faces ongoing challenges that may influence its upcoming results. The company entered the third quarter still grappling with issues from a tough second quarter, where revenue growth slowed to 9% year-on-year and advertising revenues modestly increased by only 4%. An ad platform issue caused campaigns to underperform, impacting advertisers’ returns and auction dynamics, although corrective actions were taken in the previous quarter.
User engagement trends in North America are anticipated to remain weak, with an expected drop in daily active users (DAUs) following a 2% decline in the second quarter. Snap’s strategic shift from friend-based stories to a broader content-sharing approach may have further impacted engagement within this key market. The model estimates a global DAU count of 476.46 million for Q3 2025, reflecting slight sequential growth from 469 million in the previous quarter. North American DAUs are expected to be around 98 million, down from 100 million last year, while international markets show strength with Rest of World DAUs estimated at 277.31 million.
The introduction of Sponsored Snaps may also exert pressure on ad pricing, as the increased inventory may surpass advertiser demand. The effective cost per thousand impressions (eCPM) has already experienced a 10% decline year-on-year in the second quarter and is expected to remain under pressure. While measures to maintain user experience, such as strict frequency caps, could hinder immediate monetization, other stabilizing factors may offer some support to the third-quarter results.
Overall, the projected total revenue for the third quarter stands at approximately $1.48 billion, suggesting a modest 5% growth year-over-year. Revenue from North America is estimated at $900.18 million, Europe at $284.20 million, and Rest of World at $309.73 million, demonstrating moderate momentum across various regions. Despite the challenges, Snap’s ability to adapt and find growth opportunities could bode well for its future.