Snap’s losses set to shrink as revenue growth and cost cuts take hold

Snap Inc. (NYSE: SNAP), the parent company of Snapchat, is moving towards profitability as aggressive cost cuts combine with double-digit revenue growth and a growing subscription business.

Visible Alpha consensus shows Snap’s GAAP net loss is expected to narrow to $94.6 million in 2026 from $461 million in 2025, before the company swings to a $229.7 million GAAP net profit in 2027. The improving trajectory reflects both stronger revenue growth and a lower cost base following Snap’s April restructuring, which eliminated 16% of its full-time workforce and more than 300 open positions.

Revenue is forecast to rise 15% year-on-year to $6.8 billion in 2026, with advertising remaining the core growth engine. Advertising revenue is expected to increase 9% to $5.5 billion, while Snapchat+ revenue is forecast to surge 69% to $1.3 billion.

The shift towards subscriptions is giving Snap a second monetization engine alongside advertising. Snapchat+ revenue is expected to account for 18% of total revenue in 2026, up from 13% in 2025 and just 9% in 2024. Analysts expect Snapchat+ subscribers to increase 25% to 30 million in 2026, with average revenue per user (ARPU) rising 14% to $47.2.

 This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.