Why Every Snap Investor Is Looking At This One Number – Trefis

Investors buying Snap (SNAP) stock may be betting on a surprising part of the business: the subscriptions it sells directly to users. Most people still consider Snap an advertising company, but a growing portion of its revenue now comes straight from its audience. The stock lost 28% over the past twelve months, contrasting with a 17.0% return for the S&P 500. So, how many of Snapchat’s users actually pay for it? Image from Pixabay Less Than 3% Of Snap’s Monthly Users Pay Snapchat had 971 million monthly active users in the second quarter of fiscal 2026. Less than 3% of them were paying subscribers. Executives provided both figures on the company’s August earnings call. Subscriptions lead a business segment that already generates real money. Snap’s revenue outside advertising grew 85% to $316 million in the quarter. Executives said Snapchat+, Memory Storage, and the Lens+ subscription led that growth. Advertising is still the dominant business, but its expansion is much slower. Ad revenue rose 9% to $1.28 billion in the same quarter. So revenue outside advertising accounted for about a fifth of Snap’s $1.6 billion total, making it the faster-growing side of the company. Is Snap Getting Closer To A Profit?
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