# Snap (SNAP.US)

Canonical: https://gigainvestors.com/s/SNAP

Analysis as of: 2026-10-16T07:31:59.980Z. Financial observations: FY2015–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $6.44 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 10

- Operating margin variation: 1.63×

Chart: Operating margin; fiscal year observations.

- FY2017: -4.23×

- FY2018: -1.07×

- FY2019: -0.64×

- FY2020: -0.34×

- FY2021: -0.17×

- FY2022: -0.30×

- FY2023: -0.30×

- FY2024: -0.15×

- FY2025: -0.09×

- LTM to Jun 2026: -0.05×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -76.0%

- ROIC, second-lowest year: -240.7%

- Typical minus recent gross margin: -1.0 pp

- Typical gross margin (annual median): 54.0%

- Recent gross margin (lower of latest and 3-year median): 55.0%

- Years with nonpositive capital: 1

- Capital spending / revenue: 3.5%

- ROIC including acquisitions, ten-year median: -48.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -846.1%

- FY2018: -240.7%

- FY2019: -139.9%

- FY2020: -79.5%

- FY2021: -48.7%

- FY2022: -94.2%

- FY2023: -72.5%

- FY2024: -38.2%

- FY2025: -18.1%

- LTM to Jun 2026: -9.2%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$4.3B

- Net income, five-year total: -$4.4B

- Return on incremental invested capital: -10.5%

- Working capital / revenue, annual change: -1.4 pp

- Working capital / revenue, change between three-year averages: -9.3 pp

- Working capital / revenue, final three-year average: 21.0%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: -$439M

- FY2022: -$1.4B

- FY2023: -$1.4B

- FY2024: -$698M

- FY2025: -$460M

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -240.7% vs -38.2%

- Per-share earnings: -0.64 to -0.42 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 8.4%

- Ordinary dilution, 5-year annual growth: 3.1%

- Market cap gain: -$2.9B

- Cumulative retained earnings: -$9.3B

- Diluted shares, 10-year annual growth: 8.4%

- Diluted shares, 5-year annual growth: 3.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value change: $0.22

- Per-share value, starting three-year median: -$0.64

- Per-share value, ending three-year median: -$0.42

- Buybacks concentrated in cheaper years (correlation): 0.37

- Average buyback yield: 5.1%

- Buyback history: 6 years

- Debt-funded buybacks: Yes

- Acquisition spending: $1.2B

- Cumulative net income, 10 years: -$12B

- ROIC, first three-year median: -240.7%

- ROIC, last three-year median: -38.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.64

- FY2017: -$2.95

- FY2018: -$0.97

- FY2019: -$0.75

- FY2020: -$0.65

- FY2021: -$0.31

- FY2022: -$0.89

- FY2023: -$0.82

- FY2024: -$0.42

- FY2025: -$0.27

### accounting: fail

- restructuring or one-time charges in at least three of five years

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -14.5%

- Receivables to sales index (DSRI): 0.92×

- Restructuring years, last five: 3

- Stock compensation / operating cash flow: 155.0%

- Earnings backed by cash: Yes

- Accounting red flags: 2

- Goodwill and intangibles / equity: 0.78×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 5.6%

- FY2017: -79.2%

- FY2018: -20.9%

- FY2019: -18.2%

- FY2020: -15.5%

- FY2021: -10.4%

- FY2022: -20.1%

- FY2023: -19.7%

- FY2024: -14.0%

- FY2025: -14.5%

## Holders

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 88% since Oct 2021 · "Stock Market Today, June 16: Snap Falls After Launch of $2,195 AR Glasses" (nasdaq.com, Jun 2026) · sales +7.1%

Story as of 2026-10-16T09:59:36.269Z; price observation 2026-10-15.

- 2025-08-06: Snap stock plummets as ad platform glitch weighs on Q2 revenue, earnings ([finance.yahoo.com](https://finance.yahoo.com/news/snap-stock-plummets-as-ad-platform-glitch-weighs-on-q2-revenue-earnings-152825686.html))

- 2026-02-05: Snap Faces Mixed Outlook as Ad Rebound Stalls, Subscriptions Grow, RBC Says ([finance.yahoo.com](https://finance.yahoo.com/news/snap-faces-mixed-outlook-ad-170717039.html))

- 2026-03-31: Snap (SNAP) Is Down 10.9% After New Child-Safety Lawsuits Challenge Snapchat’s Core Design Choices ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/snap-snap-down-10-9-090742468.html))

- 2026-04-15: Snap to Cut 16% of Its Workforce in Quest for Profitability ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/snap-cut-16-workforce-quest-100500919.html))

- 2026-06-16: Stock Market Today, June 16: Snap Falls After Launch of $2,195 AR Glasses ([nasdaq.com](https://www.nasdaq.com/articles/stock-market-today-june-16-snap-falls-after-launch-2195-ar-glasses))

- 2026-08-04: Snap Q2 2026 earnings beat on improving ad sales ([finance.yahoo.com](https://finance.yahoo.com/media-advertising/articles/snap-q2-2026-earnings-beat-133318424.html))

### Sales · FY2025–2026

sales +7.1%; source https://www.sec.gov/Archives/edgar/data/1564408/000156440826000013/snap-20251231.htm; observed 2026-02-05.

- FY2017: $825M 

- FY2018: $1.2B 

- FY2019: $1.7B 

- FY2020: $2.5B 

- FY2021: $4.1B 

- FY2022: $4.6B 

- FY2023: $4.6B 

- FY2024: $5.4B 

- FY2025: $5.9B 

- FY2026: $6.4B 

### Gross margin · FY2026

gross margin 57.3%; source https://www.sec.gov/Archives/edgar/data/1564408/000156440826000013/snap-20251231.htm; observed 2026-02-05.

- FY2017: 13.0% 

- FY2018: 32.3% 

- FY2019: 47.8% 

- FY2020: 52.8% 

- FY2021: 57.5% 

- FY2022: 60.6% 

- FY2023: 54.1% 

- FY2024: 53.9% 

- FY2025: 55.0% 

- FY2026: 57.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in internet content & information; annual sales are USD 5.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1564408/000156440826000013/snap-20251231.htm (filed 2026-02-05); FY2025: revenue 5931447000; grossProfit 3260565990; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SNAP.US: Snap Inc. operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and snaps. It also provides Snapchat+, Lens+, and Snapchat Platinum, a subscription service that provides subscribers access to exclusive, experimental, and pre-release features; Spectacles, an augmented reality (AR) glasses; and advertising products, including AR ads and Snap ads comprises a single image or video ads, collection ads, dynamic ads, story ads, commercials, sponsored snaps, and promoted places. In addition, the company offers campaign management and delivery, an advertising platform that provides automated, sophisticated, and scalable ad buying and campaign management; and measuring advertising effectiveness solutions. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.

### Why customers stay

Margins ranged from 53.9% to 55% during 2023–25; it lost 76% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2023: grossProfit / revenue = 54.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2024: grossProfit / revenue = 53.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1564408/000156440826000013/snap-20251231.htm (filed 2026-02-05); FY2025: grossProfit / revenue = 55%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); 10-year return on capital observations [[2017,-8.46120176131318],[2018,-2.406717887627712],[2019,-1.3988860642477468],[2020,-0.7949398341338718],[2021,-0.4865970505946976],[2022,-0.9415422343324251],[2023,-0.7252598369884553],[2024,-0.38190159235610127],[2025,-0.18112553573551943],[2026,-0.0923053510751115]]; median -0.7600998355611636. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 1 of 10 years; bought back USD 2.7 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,1480490000],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1564408/000156440826000013/snap-20251231.htm (filed 2026-02-05); FY2025: cash repurchases 2745416000 USD.

### Are managers owners

Insiders own 23% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SNAP.US SharesStats.PercentInsiders = 22.983999999999998 percentage points; cache date 2026-10-16.

### What the price says

The price is 1.8 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); Closing price 6.44 USD; reporting-to-trading FX 1; FY2025 annual sales per share 3.5002088991017337; price multiple 1.8398901853122858. FY2025 cash earnings/share -0.27173937417605826. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2017-03: $22.53 per share

- 2017-04: $22.55 per share

- 2017-05: $21.21 per share

- 2017-06: $17.77 per share

- 2017-07: $13.67 per share

- 2017-08: $14.51 per share

- 2017-09: $14.54 per share

- 2017-10: $15.34 per share

- 2017-11: $13.78 per share

- 2017-12: $14.61 per share

- 2018-01: $13.52 per share

- 2018-02: $17.32 per share

- 2018-03: $15.87 per share

- 2018-04: $14.33 per share

- 2018-05: $11.39 per share

- 2018-06: $13.09 per share

- 2018-07: $12.50 per share

- 2018-08: $10.90 per share

- 2018-09: $8.48 per share

- 2018-10: $6.61 per share

- 2018-11: $6.51 per share

- 2018-12: $5.51 per share

- 2019-01: $6.68 per share

- 2019-02: $9.80 per share

- 2019-03: $11.02 per share

- 2019-04: $11.14 per share

- 2019-05: $11.89 per share

- 2019-06: $14.30 per share

- 2019-07: $16.80 per share

- 2019-08: $15.83 per share

- 2019-09: $15.80 per share

- 2019-10: $15.06 per share

- 2019-11: $15.25 per share

- 2019-12: $16.33 per share

- 2020-01: $18.38 per share

- 2020-02: $14.17 per share

- 2020-03: $11.89 per share

- 2020-04: $17.61 per share

- 2020-05: $18.94 per share

- 2020-06: $23.49 per share

- 2020-07: $22.42 per share

- 2020-08: $22.59 per share

- 2020-09: $26.11 per share

- 2020-10: $39.39 per share

- 2020-11: $44.42 per share

- 2020-12: $50.07 per share

- 2021-01: $52.94 per share

- 2021-02: $65.66 per share

- 2021-03: $52.29 per share

- 2021-04: $61.82 per share

- 2021-05: $62.12 per share

- 2021-06: $68.14 per share

- 2021-07: $74.42 per share

- 2021-08: $76.11 per share

- 2021-09: $73.87 per share

- 2021-10: $52.58 per share

- 2021-11: $47.61 per share

- 2021-12: $47.03 per share

- 2022-01: $32.54 per share

- 2022-02: $39.94 per share

- 2022-03: $35.99 per share

- 2022-04: $28.46 per share

- 2022-05: $14.11 per share

- 2022-06: $13.13 per share

- 2022-07: $9.88 per share

- 2022-08: $10.88 per share

- 2022-09: $9.82 per share

- 2022-10: $9.91 per share

- 2022-11: $10.31 per share

- 2022-12: $8.95 per share

- 2023-01: $11.56 per share

- 2023-02: $10.15 per share

- 2023-03: $11.21 per share

- 2023-04: $8.71 per share

- 2023-05: $10.20 per share

- 2023-06: $11.84 per share

- 2023-07: $11.36 per share

- 2023-08: $10.35 per share

- 2023-09: $8.91 per share

- 2023-10: $10.01 per share

- 2023-11: $13.83 per share

- 2023-12: $16.93 per share

- 2024-01: $15.89 per share

- 2024-02: $11.02 per share

- 2024-03: $11.48 per share

- 2024-04: $15.05 per share

- 2024-05: $15.02 per share

- 2024-06: $16.61 per share

- 2024-07: $13.32 per share

- 2024-08: $9.34 per share

- 2024-09: $10.70 per share

- 2024-10: $12.16 per share

- 2024-11: $11.81 per share

- 2024-12: $10.77 per share

- 2025-01: $11.29 per share

- 2025-02: $10.25 per share

- 2025-03: $8.71 per share

- 2025-04: $7.96 per share

- 2025-05: $8.25 per share

- 2025-06: $8.69 per share

- 2025-07: $9.43 per share

- 2025-08: $7.14 per share

- 2025-09: $7.71 per share

- 2025-10: $7.80 per share

- 2025-11: $7.68 per share

- 2025-12: $8.07 per share

- 2026-01: $6.93 per share

- 2026-02: $5.21 per share

- 2026-03: $4.60 per share

- 2026-04: $6.07 per share

- 2026-05: $5.71 per share

- 2026-06: $4.44 per share

- 2026-07: $4.69 per share

- 2026-08: $5.55 per share

- 2026-09: $5.40 per share

- 2026-10: $6.44 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1564408/000156440826000013/snap-20251231.htm); period 2025-12-31, filed 2026-02-05.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.