Snapchat Parent’s Stock Plummets as Ad Platform Issue Hits Results

Snap (SNAP) shares snapped 20% lower Wednesday, a day after the operator of the Snapchat social media site posted a higher net loss and adjusted earnings missed forecasts as it dealt with an ad platform glitch.

The company reported a net loss of $262.6 million, 6% more than a year ago, and GAAP loss per share of $0.16 was also more than anticipated by analysts surveyed by Visible Alpha. Adjusted EBITDA slumped 25% to $41.3 million, well below the Visible Alpha estimates, while revenue of $1.34 billion was basically in line with expectations.

Daily active users increased 9% to 469 million. However, average revenue per user of $2.87 was just $0.01 higher than in 2024, and was down $0.09 from the first quarter. Total costs and expenses jumped nearly 8% year-over-year to $1.60 billion.

In a letter to shareholders, CEO Evan Spiegel wrote that revenue growth was “impacted by a number of factors in Q2, including an issue related to our ad platform,” which he explained happened because “in our efforts to improve advertiser performance, we shipped a change that caused some campaigns to clear the auction at substantially reduced prices.”

Spiegel added that revenue was also hurt by the timing of the Muslim holy month of Ramadan, along with the Trump administration’s changes to tax rules for purchases of lower-priced imported products.

Shares of Snap have lost about a third of their value this year.