Snap Reports Q1 Revenue Up 12%, Returns to DAU Growth and Strong Free Cash Flow

Snap shares dropped about 4% in extended trading on May 6, 2026, after the company reported first-quarter earnings on Wednesday and issued cautious sales guidance while revealing it no longer has a deal with the generative AI startup Perplexity. 53 billion according to LSEG. The company's earnings per share showed a loss of 5 cents, a figure not comparable to analysts' estimates.

6 million according to StreetAccount. 20 according to StreetAccount. First-quarter sales rose 12% year-over-year.

6 million in the previous year. Large advertisers in North America remained a headwind to advertising growth in Q1, Snap said in an investor letter. " Global daily active users rose 5% year-over-year in Q1.

Snap attributed its DAU growth to new product updates related to its Lenses digital filters and Snap Map feature, among others. The company said in February 2026 that its global DAU declined by 3 million quarter-over-quarter as of February 2026 due to reduced marketing spending and the impact of Australia's social media minimum age act.

"In Q1, we returned to growth in daily active users, accelerated revenue growth, expanded margins, and generated strong free cash flow," Snap CEO Evan Spiegel said in a statement.

55 billion. 54 billion. Snap's Q2 revenue guidance assumes no contribution from Perplexity as the company amicably ended the relationship in Q1 2026.

Snap had announced a $400 million deal with Perplexity in November 2025. Revenue from the Perplexity partnership was expected to begin contributing in 2026. The company's Q2 revenue guidance assumes that the operating environment in the Middle East region remains consistent relative to the magnitude of the headwinds experienced in March and April 2026.

Snap cautioned that the trajectory of the geopolitical situation in the Middle East is uncertain. The company said in April 2026 that it would lay off about 16% of its workforce and no longer hire for 300 open positions while pushing further into an AI-driven transformation. Cnbc reported that Pinterest reported its latest quarterly earnings on Monday, May 4, 2026.

Pinterest's finance chief Julia Donnelly told analysts that large retailers remained a headwind to growth. Reddit revealed its first-quarter earnings last Thursday, April 30, 2026. Reddit's Q1 revenue was $663 million, which soared 69% year-over-year.

Reddit marked seven straight quarters in which sales growth was over 60%, CEO Steve Huffman told analysts. Meta and Alphabet reported their most recent quarterly earnings on Wednesday, April 29, 2026. Both companies beat on sales in those earnings.