By Khadija Saeed
Publication Date: 2026-05-06 21:25:00
Santa Monica, May 6, 2026, 14:01 PDT
- Snap reported a 12% jump in revenue to $1.53 billion. Still, the stock dropped in after-hours trading, following a guarded outlook for the second quarter.
- Daily active users ticked back up, hitting 483 million, though North America numbers stayed sluggish.
- The $400 million Perplexity AI agreement is off the table, with the company citing Middle East uncertainty as a short-term headwind.
Snap Inc. dropped roughly 5% in after-hours action Wednesday. The Snapchat parent posted stronger first-quarter revenue, but its guidance for the second quarter landed on the cautious side. Snap also confirmed it has terminated a $400 million AI agreement with Perplexity.
Investors still aren’t buying it—Snap needs to do more than just boost users if it wants to convince the market it can deliver consistent profits. Activist investors have been pushing, and Snap has slashed costs. Back in April, the company said it’s moving to become “faster, more focused, and more efficient,” with plans to trim at least $500 million off its annual cost base by the second half of 2026. Q4 Capital
Snap posted a 12% gain in first-quarter revenue, hitting $1.529 billion. Net loss improved, coming in at $89 million versus $140 million last year. Adjusted EBITDA jumped, more than doubling to $233 million. Free cash flow reached $286 million, reflecting cash from operations after property and equipment outlays.
“In Q1, we…
