Snap Inc. Class A Common Stock (SNAP)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I seek durable earning power and a margin of safety. Snap owns a popular visual messaging app, Snapchat, with 5,261 employees, but the financial record does not yet show consistent owner earnings. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.6B and net loss was $164.0M, or diluted EPS -$0.10. For fiscal year 2025, ended 2025-12-31, revenue was $5.9B and net loss was $460.5M, or diluted EPS -$0.27. That loss is narrower than fiscal year 2024, ended 2024-12-31, net loss of $697.9M and fiscal year 2023, ended 2023-12-31, net loss of $1.3B, and trailing free cash flow is $705.5M, a 6.5% yield on the $10.8B market cap. Still, GAAP profits are absent; ROE is -15.58%, ROCE is -2.72%, and the Altman Z-Score of -1.02 suggests financial risk. Debt/equity is 2.19. The P/B of 5.64 is not a Graham bargain for a loss-making firm, while EV/EBITDA of 1419.61 says EBITDA is negligible. Piotroski is 5/9, mixed. A moat may exist through Snapchat's network effects and subscription offerings, but it has not produced durable profits. Revenue rose from fiscal year 2023, ended 2023-12-31, $4.6B to fiscal year 2024, ended 2024-12-31, $5.4B to fiscal year 2025, ended 2025-12-31, $5.9B, yet losses persist. At the $6.49 close on 2026-10-13, FairStock Score is 39/100. Until cash generation after all costs and GAAP earnings become consistent, I see more speculation than value.

In plain English: Snap runs Snapchat, a visual messaging app, and makes money from advertising and subscription services. Revenue is growing and it generates cash after day-to-day costs, but it still reports losses and carries a lot of debt. At $6.49 a share, the price looks speculative compared with its current profits rather than clearly cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer