technology
Snap Reports Q1 Revenue Up 12%, Returns to DAU Growth and Strong Free Cash Flow
Snap reported first-quarter revenue of $1.53 billion and 483 million daily active users on May 6, 2026, beating user expectations while matching sales forecasts. The company disclosed it had amicably ended its relationship with Perplexity, a generative AI startup, and issued Q2 sales guidance assuming no contribution from that partnership. Shares dropped about 4% in extended trading.
May 6, 4:13 PM·2m read1 source
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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.
