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What changed in Snap Inc's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Snap Inc's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+467 added−415 removedSource: 10-K (2026-02-05) vs 10-K (2025-02-05)

Top changes in Snap Inc's 2025 10-K

467 paragraphs added · 415 removed · 353 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

25 edited+5 added−2 removed67 unchanged
Biggest changeThis report outlines our beliefs around the idea that an inclusive workplace and inclusive products are central to achieving that purpose. This report is excerpted in our broader CitizenSnap Report that details the work we’re doing to support our communities, our planet, and our team, and is available on our website at www.snap.com.
Biggest changeThis update is excerpted in our broader Citizen Snap Report that details the work we’re doing to support our communities, our planet, and our team, and is available on our website at www.snap.com. Human Capital : As part of our human capital resource objectives, we seek to recruit, retain, and incentivize our highly talented existing and future employees.
We seek to reward our partner ecosystem for their creativity, and continue to support them as they grow their audience and build their business on Snapchat. Developers are able to integrate with Snapchat and its core technologies, like Snap ’ s AR Camera and Bitmoji, through a variety of tools.
We seek to reward our partner ecosystem for their creativity, and continue to support them as they grow their audience and build their business on Snapchat. Developers are able to integrate with Snapchat and its core technologies, like Snap ’ s Camera, AR technology, and Bitmoji, through a variety of tools.
Government Regulation We are subject to many federal, state, local, and foreign laws and regulations, including those related to advertising, algorithms, anti-money laundering, competition, consumer protection, content regulation, data protection, electronic funds transfers, employment, encryption, gift cards, health and safety, import and export restrictions, intellectual property, communication, money transmission, privacy, protection of minors, rights of publicity, and taxation.
Government Regulation We are subject to many federal, state, local, and foreign laws and regulations, including those related to advertising, algorithms, anti-money laundering, artificial intelligence, competition, consumer protection, content regulation, data protection, electronic funds transfers, employment, encryption, gift cards, health and safety, import and export restrictions, intellectual property, communication, money transmission, privacy, protection of minors, rights of publicity, and taxation.
Measuring Advertising Effectiveness : We offer first-party measurement solutions and we support our advertising partners preferred third-party measurement solutions to provide a vast array of analytics on campaign attributes like reach, frequency, demographics, and viewability; changes in perceptions like brand favorability or purchase intent; and lifts in actual behavior like purchases, foot traffic, app installs, and online purchases.
Measuring Advertising Effectiveness : We offer first-party measurement solutions and we support our advertising partners' preferred third-party measurement solutions to provide a vast array of analytics on campaign attributes like reach, frequency, demographics, and viewability; changes in perceptions like brand favorability or purchase intent; and lifts in actual behavior like purchases, foot traffic, app installs, and online purchases.
We provide monetizable opportunities through programs like the Snap Lens Network and Spectacles Lens Fund, which provide grants to support AR product development across many industries. We recognize and reward top performing Lenses through our Lens Creator Rewards program.
We provide monetizable opportunities through programs like the Snap Lens Network and Spectacles Lens Fund, which provide grants to support AR product development across many industries. We recognize and reward top performing Lenses on Snapchat through our Lens Creator Rewards program.
Given the breadth of our product offerings, we also compete with companies that develop products or otherwise operate in the mobile, camera, communication, content, and advertising industries that offer, or will offer, products and services that may compete with Snapchat features or offerings.
Given the breadth of our product offerings, we also compete with companies that develop products or otherwise operate in the mobile, camera, consumer hardware, communication, content, and advertising industries that offer, or will offer, products and services that may compete with Snapchat features or offerings.
These ads appear within Snapchat’s curated content. • Sponsored Snaps: Sponsored Snaps allow advertisers to communicate visually with the Snapchat community through sponsored messages within the chat tab. • Promoted Places: Promoted Places allow businesses to use the Snap Map to suggest sponsored places of interest to Snapchatters by highlighting the brand’s locations on the Snap Map with a promoted pin.
These ads appear within Snapchat’s curated content. • Sponsored Snaps: Sponsored Snaps allow advertisers to communicate visually with the Snapchat community through sponsored messages within the visual messaging tab. • Promoted Places: Promoted Places allow businesses to use the Snap Map to suggest sponsored places of interest to Snapchatters by highlighting the brand’s locations on the Snap Map with a promoted pin.
Intellectual Property Our success depends in part on our ability to protect our intellectual property and proprietary technologies. To protect our proprietary rights, we rely on a combination of intellectual property rights in the United States and other jurisdictions, including patents, trademarks, copyrights, trade secret laws, license agreements, internal procedures, and contractual provisions.
Intellectual Property Our success depends in part on our ability to protect our intellectual property and proprietary technologies. To protect our proprietary rights, we rely on a combination of intellectual property rights in the United States and other jurisdictions, including patents, trademarks, copyrights, trade secret laws, license agreements, internal procedures, and 10 Table of Contents contractual provisions.
Many of these companies, such as Alphabet (including Google and YouTube), Apple, ByteDance (including TikTok), Meta (including Facebook, Instagram, Threads, and WhatsApp), Pinterest, and X (formerly Twitter), may have greater financial and human resources and, in some cases, larger user bases.
Many of these companies, such as Alphabet (including Google and YouTube), Apple, ByteDance (TikTok and affiliated joint ventures), Meta (including Facebook, Instagram, Threads, and WhatsApp), Pinterest, Reddit and X (formerly Twitter), may have greater financial and human resources and, in some cases, larger user bases.
Creative Kit gives developers and their communities a seamless sharing experience from their app directly to Snapchat. Through Camera Kit, our partners can embed Snap’s AR platform directly into their application, extending the use of AR beyond self-expression and communication use cases.
Creative Kit gives developers a seamless visual sharing experience from their app directly to Snapchat. Through Camera Kit, our partners can embed Snap’s AR technology directly into their application, extending the use of AR beyond Snapchat’s self-expression and communication use cases.
We also enter into confidentiality and invention assignment agreements with our employees and 10 Table of Contents contractors and sign confidentiality agreements with third parties. Our internal controls are designed to restrict access to proprietary technology.
We also enter into confidentiality and invention assignment agreements with our employees and contractors and sign confidentiality agreements with third parties. Our internal controls are designed to restrict access to proprietary technology.
Overall advertising spend tends to be strongest in the fourth quarter of the calendar year, and we have observed a similar pattern in our historical revenue. We have also experienced seasonality in our user engagement, generally seeing lower engagement during summer months and higher engagement in December.
Overall advertising spend tends to be strongest in the fourth quarter of the calendar year, and we have observed a similar pattern in our historical revenue. We have also experienced seasonality in our user engagement, and at times may see lower engagement during summer months and higher engagement in December.
We may not be able to obtain protection for our intellectual property, and our existing and future patents, trademarks, and other intellectual property rights may not provide us with competitive advantages or distinguish our products and services from those of our competitors.
Our issued patents will expire between 2026 and 2050. We may not be able to obtain protection for our intellectual property, and our existing and future patents, trademarks, and other intellectual property rights may not provide us with competitive advantages or distinguish our products and services from those of our competitors.
As of December 31, 2024, we had 4,911 full-time employees, of whom approximately 52% are in engineering roles involved in the design, development, support, and manufacture of new and existing products and processes. Climate Change: Our commitment to combating climate change remains unchanged.
As of December 31, 2025, we had 5,261 full-time employees, of whom approximately 54% are in engineering roles involved in the design, development, support, and manufacture of new and existing products and processes. Climate Change: Our commitment to combating climate change remains unchanged.
We also provide developers a turnkey suite of tools and services that enable them to create AR Lenses and track the performance of those through analytics. Finally, developers can bring an inclusive mode of identity and expression to their apps and games with our Bitmoji for Developers APIs.
We also provide developers a turnkey suite of tools and services that enable them to create AR Lenses with Lens Studio creation suite. Finally, developers can bring an inclusive mode of identity and expression to their apps and games by integrating Bitmojis through our Bitmoji for Developers APIs.
Human Capital : As part of our human capital resource objectives, we seek to recruit, retain, and incentivize our highly talented existing and future employees. We believe that creating an inclusive environment where team members can grow, develop, and be their true selves is critical to attracting and retaining talent. Our compensation philosophies also align to that belief.
We believe that creating an inclusive environment where team members can grow, develop, and be their true selves is critical to attracting and retaining talent. Our compensation philosophies also align to that belief.
As of December 31, 2024, we had approximately 4,169 issued patents and approximately 3,263 filed patent applications in the United States and foreign countries relating to our Snapchat, Lens Studio, Spectacles and Snap OS products, augmented reality, AI and machine learning, and other technologies. Our issued patents will expire between 2025 and 2047.
As of December 31, 2025, we had approximately 5,927 issued patents and approximately 3,526 filed patent applications in the United States and foreign countries relating to our products and platforms—including Snapchat, Bitmoji, Lens Studio, Spectacles and Snap OS—and proprietary technologies spanning augmented reality, hardware, spatial computing, computer vision, generative AI, machine learning, and other technologies.
Snapchat+ offers a variety of features from allowing Snapchatters to customize the look and feel of their app to giving special insights into their friendships. We also offer Snapchat for Web, a browser-based product that brings Snapchat’s signature capabilities to the web.
Snapchat+ offers a variety of features from allowing Snapchatters to customize the look and feel of their app to giving special insights into their friendships.
Technology Our research and development efforts focus on product development, advertising technology, and large-scale infrastructure. Product Development : We work relentlessly and invest deliberately to create and improve products for our community and our partners. We develop a wide range of products related to visual messaging and storytelling that are powered by a variety of new technologies.
Technology Our research and development efforts focus on product development, advertising technology, and large-scale infrastructure. Product Development : We work relentlessly and invest deliberately to create and improve products for our community and our partners.
Diversity, Equity, and Inclusion : Snap has long supported Diversity, Equity and Inclusion, or DEI, so that every team member uses their unique backgrounds, experiences, and abilities to build products that uplift the lived experiences of Snapchatters globally. To aid in our mission, we publish a Diversity Annual Report that discusses our diversity, equity, and inclusion strategy.
Inclusion and Belonging : Snap has long supported inclusion and belonging, so that every team member uses their unique backgrounds, experiences, and abilities to build products that uplift the lived experiences of Snapchatters globally. We publish an annual update that discusses how we inspire empathy, design inclusively, and cultivate belonging, which are central to achieving that purpose.
Spectacles are available to professional and hobbyist developers through our Spectacle Developer Program to create AR experiences through Lens Studio, our free AR development and distribution tool. Our Partner Ecosystem Many elements and features of Snapchat are enhanced by our expansive partner ecosystem that includes developers, creators, publishers, and advertisers, among others.
Our Partner Ecosystem Many elements and features of Snapchat are enhanced by our expansive partner ecosystem that includes developers, creators, publishers, and advertisers, among others.
Here we surface the most entertaining Snaps from our community all in one place, which becomes tailored to each Snapchatter over time based on their preferences and favorites. The Trending page allows Snapchatters to discover and engage with popular topics and genres.
Here we surface the most entertaining Snaps from our community all in one place, which becomes tailored to each Snapchatter over time based on their preferences and favorites. In addition to our core Snapchat product, we offer Snapchat+, Lens+, and Snapchat Platinum, our subscription services that provide subscribers access to exclusive, experimental, and pre-release features.
Spectacles are our wearable AR glasses, which overlay computing over the world and extend the immersive AR Lenses experience beyond Snapchat. Spectacles are powered by Snap OS, a new purpose-built operating system with a natural interface that uses your hands and voice without the need for physical controllers.
Spectacles are powered by Snap OS, a new purpose-built operating system with a natural interface that uses your hands and voice without the need for physical controllers. Spectacles are available to professional and hobbyist developers through our Spectacles Developer Program to create AR experiences through Lens Studio, our free AR development and distribution tool.
In 2021, we adopted a set of science-based emissions reduction targets which were validated by the Science Based Targets Initiative. Additionally, in 2021, we achieved carbon neutrality with the purchase of carbon offsets for our historical operations from our founding in 2011 through 2020.
We continue to act on our science-based greenhouse gas emissions reduction targets, which were validated by the Science Based Targets initiative in 2021. We maintain carbon neutrality for our operations through the purchase of verified carbon offsets and renewable energy certificates.
Since then, we’ve maintained our carbon-neutral status each year through the purchase of carbon offsets for emissions attributable to us. Our Commitment to Privacy Our approach to privacy is simple: Be upfront, offer choices, and never forget that our community comes first.
Our Commitment to Privacy Our approach to privacy is simple: Be upfront, offer choices, and never forget that our community comes first.
Removed
We are currently testing a new and simplified version of Snapchat referred to as Simple Snapchat, which organizes the tabs into three core experiences focused on communicating with friends, using the camera, and watching entertaining content. In addition to our core Snapchat product, we offer Snapchat+, our subscription service that provides subscribers access to exclusive, experimental, and pre-release features.
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Lens+ offers all the value of our Snapchat+ subscription in addition to access to hundreds of exclusive Lens and AR experiences, and Snapchat Platinum offers all the benefits of Snapchat+ and Lens+ in addition to an ad-free experience.
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Advertising Technology : We constantly develop and expand our advertising products and technology.
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We also offer Memories Storage Plans, which provide subscribers with the ability to purchase cloud storage, and Snapchat for Web, a browser-based product that brings Snapchat’s signature capabilities to the web. Snapchat has evolved into a premier ecosystem where leading companies can connect with our global community in creative and trusted environments.
Added
Our AI platform allows partners to integrate with Snapchat, unlocking a powerful distribution channel that places AI directly in front of our large, engaged, and global community. Spectacles, or Specs, are our wearable AR glasses, which overlay computing over the world and extend the immersive AR Lenses experience beyond Snapchat.
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We develop a wide range of products related to augmented reality experiences, visual messaging, and storytelling that are designed to make computing more human and are powered by a variety of new technologies. Advertising Technology : We constantly develop and expand our advertising products and technology.
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The DOJ did not take action on the referred complaint within the statutory period, and the matter subsequently returned to the FTC. To date, the FTC has not taken further action on the complaint, and we have no indication it will do so.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

222 edited+66 added−13 removed420 unchanged
Biggest changeIn addition, holders of the Convertible Notes have the right to require us to repurchase all or a portion of the Convertible Notes on the occurrence of a fundamental change at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date.
Biggest changeIn addition, holders of the Senior Notes have the right to require us to repurchase all or a portion of the Senior Notes on the occurrence of specific kinds of change of control events at a repurchase price equal to 101% of the principal amount of the Senior Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the change of control repurchase date, and holders of the Convertible Notes have the right to require us to repurchase all or a portion of the Convertible Notes on the occurrence of a fundamental change at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date.
Moreover, individuals are also increasingly aware of and resistant to the collection, use, and sharing of personal data in connection with advertising. Individuals are more aware of options and certain rights related to consent and other options to opt-out of such data processing, including through media attention about privacy and data protection.
Moreover, individuals are also increasingly aware of and resistant to the collection, use, and sharing of personal data, including in connection with advertising. Individuals are more aware of options and certain rights related to consent and other options to opt-out of such data processing, including through media attention about privacy and data protection.
In the future, we may acquire additional patents or patent portfolios in the future, which could require significant cash expenditures.
In the future, we may acquire additional patents or patent portfolios, which could require significant cash expenditures.
In addition, our co-founders may make long-term strategic investment decisions for the company and take risks that may not be successful and may seriously harm our business. As our Chief Executive Officer, Mr. Spiegel has control over our day-to-day management and the implementation of major strategic investments of our company, subject to authorization and oversight by our board of directors.
In addition, our co-founders may make long-term strategic investment decisions for our company and take risks that may not be successful and may seriously harm our business. As our Chief Executive Officer, Mr. Spiegel has control over our day-to-day management and the implementation of major strategic investments of our company, subject to authorization and oversight by our board of directors.
As we continue to adapt and update our business model and priorities, we may make additional restructurings, reprioritizations, or workforce reductions in the future.
As we continue to adapt and update our business model and priorities, we may make additional restructurings, reprioritizations, or workforce reductions in the future.
Even if the outcome of any such litigation or claim is favorable, defending against such lawsuits is costly and can impose a significant burden on management and employees. We may also receive unfavorable preliminary, interim, or final rulings in the course of litigation.
Even if the outcome of any such litigation or claim is favorable, defending against such lawsuits is costly and can impose a significant burden on management and employees. We may also receive unfavorable preliminary, interim, or final rulings in the course of litigation.
For example, in November 2021, we, and certain of our officers, were named as defendants in a securities class-action lawsuit in federal court purportedly brought on behalf of purchasers of our Class A common stock.
For example, in November 2021, we, and certain of our officers, were named as defendants in a securities class action lawsuit in federal court purportedly brought on behalf of purchasers of our Class A common stock.
In addition, as our international operations and sales continue to grow, we are subject to a variety of risks inherent in doing business internationally, including: • political, social, and economic instability, including war and other armed conflict, and significant political developments or disruptions in foreign jurisdictions; • risks related to the legal and regulatory environment in foreign jurisdictions, including with respect to privacy, rights of publicity, content, data protection, cybersecurity, intellectual property, communication, health and safety, competition, protection of minors, consumer protection, employment, money transmission, import and export restrictions, gift cards, electronic funds transfers, anti-money laundering, advertising, algorithms, encryption, and taxation, and unexpected changes in laws, regulatory requirements, and enforcement; • potential damage to our brand and reputation due to compliance with local laws, including potential censorship and requirements to provide user information to local authorities; • fluctuations in currency exchange rates; • higher levels of credit risk and payment fraud; • complying with tax requirements of multiple jurisdictions; • enhanced difficulties of integrating any foreign acquisitions; • complying with a variety of foreign laws, including certain employment laws requiring national collective bargaining agreements that set minimum salaries, benefits, working conditions, and termination requirements; • complying with a variety of foreign disclosure and reporting obligations, including those related to environmental, social, and corporate governance impacts and security breaches; • reduced protection for intellectual-property rights in some countries; • difficulties in staffing and managing global operations and the increased travel, infrastructure, and compliance costs associated with multiple international locations; • regulations that might add difficulties in repatriating cash earned outside the United States and otherwise preventing us from freely moving cash; • import and export restrictions and changes in trade regulation; • complying with statutory equity requirements; • complying with the U.S.
In addition, as our international operations and sales continue to grow, we are subject to a variety of risks inherent in doing business internationally, including: • political, social, and economic instability, including war and other armed conflict, and significant political developments or disruptions in foreign jurisdictions; • risks related to the legal and regulatory environment in foreign jurisdictions, including with respect to privacy, rights of publicity, content, data protection, cybersecurity, intellectual property, communication, health and safety, competition, protection of minors, consumer protection, employment, money transmission, import and export restrictions, gift cards, electronic funds transfers, anti-money laundering, advertising, algorithms, encryption, and taxation, and unexpected changes in laws, regulatory requirements, and enforcement; • potential damage to our brand and reputation due to compliance with local laws, including potential censorship and requirements to provide user information to local authorities; • fluctuations in currency exchange rates; • higher levels of credit risk and payment fraud; • complying with tax requirements of multiple jurisdictions; • enhanced difficulties of integrating any foreign acquisitions; • complying with a variety of foreign laws, including certain employment laws requiring national collective bargaining agreements that set minimum salaries, benefits, working conditions, and termination requirements; • complying with a variety of foreign disclosure and reporting obligations, including those related to environmental, social, and corporate governance impacts and security breaches; • reduced protection for intellectual-property rights in some countries; • difficulties in staffing and managing global operations and the increased travel, infrastructure, and compliance costs associated with multiple international locations; • regulations that might add difficulties in repatriating cash earned outside the United States and otherwise preventing us from freely moving cash; • import and export restrictions and changes in trade agreements or regulations; • complying with statutory equity requirements; • complying with the U.S.
We believe that our ability to compete effectively depends on many factors, many of which are beyond our control, including: • the usefulness, novelty, performance, and reliability of our products compared to our competitors’ products; • the number and demographics of our DAUs; • the timing and market acceptance of our products, including developments and enhancements of our competitors’ products; • our ability to monetize our products and services, including new products and services; • the availability of our products to users; • the effectiveness of our advertising and sales teams; • the effectiveness of our advertising products; • our ability to establish and maintain advertisers’ and partners’ interest in using Snapchat; • the frequency, relative prominence, and type of advertisements displayed on our application or by our competitors; • the effectiveness of our customer service and support efforts; • the effectiveness of our marketing activities; • actual or proposed legislation, regulation, executive actions, or litigation, including settlements and consent decrees, some of which may have a disproportionate effect on us; • acquisitions or consolidation within our industry segment; • our ability to attract, retain, and motivate talented team members, particularly engineers, designers, and sales personnel; 22 Table of Contents • our ability to successfully acquire and integrate companies and assets; • the security, or perceived security, of our products and data protection measures compared to our competitors’ products; • our ability to cost-effectively manage and scale our operations; and • our reputation and brand strength relative to our competitors.
We believe that our ability to compete effectively depends on many factors, many of which are beyond our control, including: • the usefulness, novelty, performance, and reliability of our products compared to our competitors’ products; 23 Table of Contents • the number and demographics of our DAUs; • the timing and market acceptance of our products, including developments and enhancements of our competitors’ products; • our ability to monetize our products and services, including new products and services; • the availability of our products to users; • the effectiveness of our advertising and sales teams; • the effectiveness of our advertising products; • our ability to establish and maintain advertisers’ and partners’ interest in using Snapchat; • the frequency, relative prominence, and type of advertisements displayed on our application or by our competitors; • the effectiveness of our customer service and support efforts; • the effectiveness of our marketing activities; • actual or proposed legislation, regulation, executive actions, or litigation, including settlements and consent decrees, some of which may have a disproportionate effect on us relative to our competitors; • acquisitions or consolidation within our industry segment; • our ability to attract, retain, and motivate talented team members, particularly engineers, designers, and sales personnel; • our ability to successfully acquire and integrate companies and assets; • the security, or perceived security, of our products and data protection measures compared to our competitors’ products; • our ability to cost-effectively manage and scale our operations; and • our reputation and brand strength relative to our competitors.
These actions, including any potential unfavorable outcomes, and our compliance with any associated court orders or settlements, may require us to change our policies or practices, subject us to substantial monetary judgments, fines, penalties, or sanctions, result in increased operating costs, divert management’s attention, harm our reputation, and require us to incur significant legal and other expenses, any of which could seriously harm our business.
These actions, including any potential unfavorable outcomes, and our compliance with any associated court orders or settlements, may require us to change our policies, practices, or products, subject us to substantial monetary judgments, fines, penalties, or sanctions, result in increased operating costs, divert management’s attention, harm our reputation, and require us to incur significant legal and other expenses, any of which could seriously harm our business.
In general, an “ownership change” occurs if there is a cumulative change in our ownership by “5% shareholders” that exceeds 50 percentage points over a rolling three-year period. Similar ownership change rules may apply under U.S. state tax laws, as well as in the United Kingdom and other jurisdictions where we have loss carryforwards.
In general, an “ownership change” occurs if there is a cumulative change in ownership by “5% shareholders” that exceeds 50 percentage points over a rolling three-year period. Similar ownership change rules may apply under U.S. state tax laws, as well as in the United Kingdom and other jurisdictions where we have loss carryforwards.
We compete broadly with the products and services of Alphabet, Apple, ByteDance, Meta, Pinterest, and X (formerly Twitter), and with other, largely regional, social media platforms that have strong positions in particular countries. As we introduce new products, as our existing products evolve, or as other companies introduce new products and services, we may become subject to additional competition.
We compete broadly with the products and services of Alphabet, Apple, ByteDance, Meta, Pinterest, Reddit, and X (formerly Twitter), and with other, largely regional, social media platforms that have strong positions in particular countries. As we introduce new products, as our existing products evolve, or as other companies introduce new products and services, we may become subject to additional competition.
We are not restricted under the terms of the Indentures governing the Convertible Notes from incurring additional debt, securing existing or future debt, repurchasing our stock, making investments, paying dividends, recapitalizing our debt, or taking a number of other actions that could have the effect of diminishing our ability to make payments on the Convertible Notes when due.
We are not restricted under the terms of the indentures governing the Notes from incurring additional debt, securing existing or future debt, repurchasing our stock, making investments, paying dividends, recapitalizing our debt, or taking a number of other actions that could have the effect of diminishing our ability to make payments on the Notes when due.
If our users provide us with incorrect or incomplete information regarding their age or other attributes, then our estimates may prove inaccurate and fail to meet investor or advertiser expectations. In addition, our estimates for revenue by user location may also be affected by data limitations and other challenges in measuring user locations.
If our users provide us with incorrect or incomplete information regarding their age or other attributes, then our estimates may prove inaccurate and fail to meet investor or advertiser expectations. In addition, our estimates for revenue and DAU by user location may also be affected by data limitations and other challenges in measuring user locations.
We are currently, and expect to be in the future, party to lawsuits contending that we should be legally responsible for content created by our users or harms experienced by our users. These lawsuits can be expensive and time-consuming. If resolved adversely, these lawsuits and claims could seriously harm our business.
We are currently, and expect to be in the future, party to lawsuits contending that we should be legally responsible for content created by our users or harms experienced or perpetrated by our users. These lawsuits can be expensive and time-consuming. If resolved adversely, these lawsuits and claims could seriously harm our business.
Our operating results may be negatively affected if we are required to pay additional sales and use tax, value added tax, digital services tax, or other transaction taxes, and we could be subject to liability with respect to all or a portion of past or future sales.
Our operating results may be negatively affected if we are required to pay additional sales and use tax, value added tax, digital services tax, or other transaction taxes, and we could be subject to liability with respect to a portion of past or future sales.
Our ability to pay our debt when due or to refinance our indebtedness, including the Convertible Notes, depends on our financial condition at such time, the condition of capital markets, and our future performance, which is subject to economic, financial, competitive, and other factors beyond our control.
Our ability to pay our debt when due or to refinance our indebtedness, including the Notes, depends on our financial condition at such time, the condition of capital markets, and our future performance, which is subject to economic, financial, competitive, and other factors beyond our control.
For example, privacy regulators have targeted us and some of our competitors, including by investigating data processing activities and in the past have issued large fines to our competitors. Such enforcement actions may cause us to revise our business plans and operations.
For example, privacy regulators have targeted us and some of our competitors, including by investigating data processing activities and in the past have issued large fines to our competitors. Such investigations and enforcement actions may cause us to revise our business plans and operations.
Furthermore, certain enacted and proposed regulations related to AI could impose onerous obligations on our business, products, and services, including restrictions on or transparency obligations with respect to the training and use of AI-related systems, and obligations relating to labeling and provenance of AI-generated content.
Furthermore, certain enacted and proposed regulations related to AI could impose onerous obligations on our business, products, and services, including restrictions on or transparency obligations with respect to the training and use of AI-related systems, and obligations relating to labeling, detection and provenance of AI-generated content.
We frequently launch new products and the products that we launch may have technical issues that diminish the performance of our application, experience product failures, or become subject to product recalls. These performance issues or issues that we encounter in the future could impact our user engagement.
We frequently launch new products and they may have technical issues that diminish the performance of our application, experience product failures, or become subject to product recalls. These performance issues or issues that we encounter in the future could impact our user engagement.
It is possible that changes or interpretations under the Tax Cuts and Jobs Act, the IRA, or other tax legislation, or the enactment of new tax legislation, could increase our future tax liability, which could in turn adversely impact our business and future profitability.
It is possible that changes in or interpretations under the OBBBA, the Tax Cuts and Jobs Act, the IRA, or other tax legislation, or the enactment of new tax legislation, could increase our future tax liability, which could in turn adversely impact our business and future profitability.
While such regulatory inquiries have not adversely impacted our business to date, given the current unsettled nature of the legal and regulatory environment surrounding AI, our or our partners’ AI development, deployment, training, use, safety, and personal data processing of AI could subject us to further regulatory inquiries or actions, which could result in product 29 Table of Contents restrictions, fines and penalties, equitable remedies such as requirements to retrain or disgorge our AI, as well as litigation and reputational harm, any of which could seriously harm our business and require us to expend significant resources.
While such regulatory inquiries have not adversely impacted our business to date, given the current unsettled nature of the legal and regulatory environment surrounding AI, our or our partners’ AI development, deployment, training, use, safety, and personal data processing of AI 31 Table of Contents could subject us to further regulatory inquiries or actions, which could result in product restrictions, fines and penalties, equitable remedies such as requirements to retrain or disgorge our AI, as well as litigation and reputational harm, any of which could seriously harm our business and require us to expend significant resources.
Operating our business requires a significant amount of cash, and we may not have sufficient cash flow from our business to pay the Convertible Notes, and any other debt when due, which may seriously harm our business.
Operating our business requires a significant amount of cash, and we may not have sufficient cash flow from our business to pay the senior notes and convertible senior notes, and any other debt when due, which may seriously harm our business.
Our advertising revenue could also be seriously harmed by many other factors, including: • diminished or stagnant growth, or a decline, in the total or regional number of DAUs on Snapchat; • our inability to deliver advertisements to all of our users due to legal restrictions or hardware, software, or network limitations; • a decrease in the amount of time spent on Snapchat, a decrease in the amount of content that our users share, or decreases in usage of our Camera, Visual Messaging, Map, Stories, and Spotlight platforms; • our inability to create new products that sustain or increase the value of our advertisements; • changes in our user demographics that make us less attractive to advertisers; • lack of ad creative availability by our advertising partners; • a decline in our available content, including if our content partners do not renew agreements, devote the resources to create engaging content, or provide content exclusively to us; • decreases in the perceived quantity, quality, usefulness, or relevance of the content provided by us, our community, or partners; • decreases in user response rate to application notifications received from Snapchat, whether due to decreased user appreciation for notifications generally or changes in the manner notifications are delivered by mobile operating systems, which may decrease user engagement; 15 Table of Contents • increases in resistance by users to our collecting, using, and sharing their personal data for advertising-related purposes; • changes in our analytics and measurement solutions, including what we are permitted to collect and disclose under the terms of Apple’s and Google’s mobile operating systems, that demonstrate the value of our advertisements and other commercial content; • competitive developments or advertiser perception of the value of our products that change the rates we can charge for advertising or the volume of advertising on Snapchat; • product changes or advertising inventory management decisions we may make that change the type, size, frequency, or effectiveness of advertisements displayed on Snapchat or the method used by advertisers to purchase advertisements; • adverse legal developments relating to advertising, including changes mandated or prompted by legislation, regulation, executive actions, or litigation regarding the collection, use, and sharing of personal data for certain advertising-related purposes; • adverse media reports or other negative publicity involving us, our founders, our partners, or other companies in our industry; • advertiser or user perception that content published by us, our users, or our partners is objectionable; • the degree to which users skip advertisements and therefore diminish the value of those advertisements to advertisers; • changes in the way advertising is priced or its effectiveness is measured; • our inability, or perceived inability, to achieve an advertiser’s intended performance metric, measure the effectiveness of our advertising, or target the appropriate audience for advertisements , including due to metric estimates published by third parties that may differ from our own metrics ; • our inability to access, collect, and disclose user’s personal data, including advertising or similar deterministic identifiers that new and existing advertisers may find useful; • difficulty and frustration from advertisers who may need to reformat or change their advertisements to comply with our guidelines; • volatility in the equity markets, which may reduce our advertisers’ capacity or desire for aggressive advertising spending towards growth; and • the political, economic, and macroeconomic climate and the status of the advertising industry in general, including impacts related to labor shortages and disruptions, supply chain disruptions, banking instability, tariffs implemented by the United States or other governments, inflation, and as a result of war, terrorism, or armed conflict.
Our advertising revenue has in the past and could also be seriously harmed by many other factors, including: • diminished or stagnant growth, or a decline, in the total or regional number of DAUs on Snapchat; • our inability to deliver advertisements to all of our users due to legal restrictions or hardware, software, or network limitations; • a decrease in the amount of time spent on Snapchat, a decrease in the amount of content that our users share, or decreases in usage of our Camera, Visual Messaging, Snap Map, Stories, and Spotlight platforms; • our inability to create new products that sustain or increase the value of our advertisements; • changes in our user demographics that make us less attractive to advertisers; • lack of ad creative availability by our advertising partners; • a decline in our available content, including if our content partners do not renew agreements, devote the resources to create engaging content, or provide content exclusively to us; • decreases in the perceived quantity, quality, usefulness, or relevance of the content provided by us, our community, or partners; 15 Table of Contents • decreases in user response rate to application notifications received from Snapchat, whether due to decreased user appreciation for notifications generally or changes in the manner notifications are delivered by mobile operating systems, which may decrease user engagement; • increases in resistance by users to our collecting, using, and sharing their personal data for advertising-related purposes; • changes in our analytics and measurement solutions, including what we are permitted to collect and disclose under the terms of Apple’s and Google’s mobile operating systems, that demonstrate the value of our advertisements and other commercial content; • competitive developments or advertiser perception of the value of our products that change the rates we can charge for advertising or the volume of advertising on Snapchat; • product changes or advertising inventory management decisions we may make that change the type, size, frequency, or effectiveness of advertisements displayed on Snapchat or the method used by advertisers to purchase advertisements; • adverse legal developments relating to advertising, including changes mandated or prompted by legislation, regulation, executive actions, or litigation regarding the collection, use, and sharing of personal data for certain advertising-related purposes; • adverse media reports or other negative publicity involving us, our founders, our partners, or other companies in our industry; • advertiser or user perception that content published by us, our users, or our partners is objectionable; • the degree to which users skip advertisements and therefore diminish the value of those advertisements to advertisers; • changes in the way advertising is priced or its effectiveness is measured; • our inability, or perceived inability, to achieve an advertiser’s intended performance metric, measure the effectiveness of our advertising, or target the appropriate audience for advertisements , including due to metric estimates published by third parties that may differ from our own metrics ; • our inability to access, collect, and disclose user’s personal data, including advertising or similar deterministic identifiers that new and existing advertisers may find useful; • difficulty and frustration from advertisers who may need to reformat or change their advertisements to comply with our guidelines; • volatility in the equity and global trade markets, which may reduce our advertisers’ capacity or desire for aggressive advertising spending towards growth; and • the political, economic, and macroeconomic climate and the status of the advertising industry in general, including impacts related to labor shortages and disruptions, supply chain disruptions, banking instability, tariffs and retaliatory countermeasures implemented by the United States or other governments, inflation, fluctuating interest rates, and as a result of war, terrorism, or armed conflict.
We have attempted to structure our operations, and the cross-border transfer mechanisms we rely on, in a manner designed to help us partially avoid some of these concerns.
We have attempted to structure our operations, and the cross-border transfer mechanisms we rely on, in a manner designed to help us partially avoid some of these cross-border data transfer concerns.
If a court were to find either exclusive forum provision in our certificate of incorporation to be inapplicable or unenforceable in an action, we may incur further significant additional costs associated with resolving the dispute in other jurisdictions, all of which could seriously harm our business. 51 Table of Contents Item 1B. Unresolved Staff Comments. None.
If a court were to find either exclusive forum provision in our certificate of incorporation to be inapplicable or unenforceable in an action, we may incur further significant additional costs associated with resolving the dispute in other jurisdictions, all of which could seriously harm our business. 55 Table of Contents Item 1B. Unresolved Staff Comments. None.
Laws and regulations focused on privacy, security, and data protection, including data breach notification laws, personal data privacy laws, consumer protection laws, wiretapping laws, invasion of privacy laws, and other similar laws have imposed obligations on companies that collect personal data from users, including providing specific disclosures in privacy notices, expanding the requirements for handling personal data, requiring consents to process personal data in certain circumstances, and affording residents with certain rights concerning their personal data.
Laws and regulations focused on privacy, security, and data protection, including data breach notification laws, personal data privacy laws, consumer protection laws, wiretapping laws, invasion of privacy laws, and other similar laws have imposed obligations on companies that collect personal data, including providing specific disclosures in privacy notices, expanding the requirements for handling personal data, requiring consents to process personal data in certain circumstances, and affording residents with certain rights concerning their personal data.
The exercise of these rights impact our business and ability to provide our products and services, and our inability or failure to obtain consent or otherwise identify a lawful basis for data processing that is acceptable to a regulator, where required, could result in adverse consequences, including class-action litigation, regulatory enforcement, and mass arbitration demands.
The exercise of these rights impacts our business and ability to provide our products and services, and our inability or failure to obtain consent or otherwise identify a lawful basis for data processing that is acceptable to a regulator, where required, could result in adverse consequences, including class action litigation, regulatory enforcement, and mass arbitration demands.
We may not be able to engage in any of these activities or on desirable terms, which could result in a default on our debt obligations. In addition, our existing and future debt agreements, including the Convertible Notes and Credit Facility, may contain restrictive covenants that may prohibit us from adopting any of these alternatives.
We may not be able to engage in any of these activities or on desirable terms, which could result in a default on our debt obligations. In addition, our existing and future debt agreements, including our Credit Facility and the indentures governing the Convertible Notes, may contain restrictive covenants that may prohibit us from adopting any of these alternatives.
Regulators have issued significant monetary fines in certain circumstances where the regulators alleged that appropriate consent was not obtained in connection with targeted advertising activities. In addition, legislative proposals and present laws and regulations in countries where we operate regulate the use of cookies and other tracking technologies, electronic communications, and marketing.
Regulators have issued significant monetary fines in certain circumstances where the regulators alleged that appropriate consent was not obtained in connection with targeted advertising activities. In addition, legislative proposals and current laws and regulations in countries where we operate regulate the use of cookies and other tracking technologies, electronic communications, and marketing.
Any errors, bugs, or vulnerabilities discovered in our products or code (particularly after release) could damage our reputation, result in a security incident (and attendant consequences), drive away users, lower revenue, and expose us to litigation claims or regulatory investigations or enforcement actions, any of which could seriously harm our business.
Any errors, bugs, or vulnerabilities discovered in our products or code (particularly after release) could damage our reputation, result in a security, privacy, or safety incident (and attendant consequences), drive away users, lower revenue, and expose us to litigation claims or regulatory investigations or enforcement actions, any of which could seriously harm our business.
Most of that information, however, will be reported in other public filings. For example, any disclosures required by Part III of Form 10-K as well as disclosures required by the NYSE for the year ended December 31, 2024 that are customarily included in a proxy statement are instead included in our Annual Report.
Most of that information, however, will be reported in other public filings. For example, any disclosures required by Part III of Form 10-K as well as disclosures required by the NYSE for the year ended December 31, 2025 that are customarily included in a proxy statement are instead included in our Annual Report.
Congress and the Executive branch have proposed further changes or amendments to the CDA each year since 2019 including, among other things, proposals that would narrow the scope of CDA protection, expand government enforcement power relating to content moderation concerns, or repeal the CDA altogether.
Congress and the Executive branch have proposed further changes or amendments to the CDA each year since 2019 including, among other things, proposals that would narrow the scope of CDA protection, expand government enforcement power relating to content moderation concerns, or repeal the pertinent section of the CDA altogether.
The counterparties to these hedging positions or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to our Class A common stock or purchasing or selling our Class A common stock in secondary market transactions prior to the maturity of the Convertible Notes (and are likely to do so 48 Table of Contents during any observation period related to a conversion of Convertible Notes or following any repurchase of Convertible Notes by us on any fundamental change repurchase date or otherwise).
The counterparties to these hedging positions or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to our Class A common stock or purchasing or selling our Class A common stock in secondary market transactions prior to the maturity of the Convertible Notes (and are likely to do so during any observation period related to a conversion of the Convertible Notes or following any repurchase of the Convertible Notes by us on any fundamental change repurchase date or otherwise).
In addition, Google or Amazon may take actions beyond our control that could seriously harm our business, including: • discontinuing or limiting our access to its cloud platform; • increasing pricing terms; • terminating or seeking to terminate our contractual relationship altogether; 17 Table of Contents • establishing more favorable relationships or pricing terms with one or more of our competitors; or • modifying or interpreting its terms of service or other policies in a manner that impacts our ability to run our business and operations.
In addition, Google or Amazon may take actions beyond our control that could seriously harm our business, including: • discontinuing or limiting our access to its cloud platform; • increasing pricing terms; • terminating or seeking to terminate our contractual relationship altogether; • establishing more favorable relationships or pricing terms with one or more of our competitors; or • modifying or interpreting its terms of service or other policies in a manner that impacts our ability to run our business and operations.
For example, some federal 28 Table of Contents privacy laws are currently being challenged, and litigation in this space could impact the privacy rights of our community, including modifying the ability of third parties (such as government agencies and civil litigants) to obtain private communications between users, which in turn may negatively impact users’ experience, trust, and satisfaction and decrease their engagement with our products.
For example, some federal privacy laws are currently being challenged, and litigation in this space could impact the privacy rights of our community, including modifying the ability of third parties (such as government agencies and civil litigants) to obtain private communications between users, which in turn may negatively impact users’ experience, trust, and satisfaction and decrease their engagement with our products.
The market price of our Class A common stock may fluctuate or decline significantly in response to numerous factors, many of which are beyond our control, including: • actual or anticipated fluctuations in our user growth, retention, engagement, revenue, or other operating results; • variations between our actual operating results and the expectations of investors and the financial community; • the accuracy of our financial guidance or projections; • any forward-looking financial or operating information we may provide, any changes in this information, or our failure to meet expectations based on this information; • actions of investors who initiate or maintain coverage of us, changes in financial estimates by any investors who follow our company, or our failure to meet these estimates or the expectations of investors; • significant acquisitions or divestitures of our stock by investors, whether voluntarily or to comply with regulatory or other requirements; • whether our capital structure is viewed unfavorably, particularly our non-voting Class A common stock and the significant voting control of our co-founders; • additional shares of our common stock being sold into the market by us or our existing stockholders, or the anticipation of such sales, including if we issue shares to satisfy equity-related tax obligations; • stock repurchase programs, or repurchases of the Convertible Notes, undertaken by us; 46 Table of Contents • announcements by us or our competitors of significant products or features, technical innovations, acquisitions, strategic partnerships, joint ventures, or capital commitments; • announcements by us or estimates by third parties of actual or anticipated changes in the size of our user base or the level of user engagement; • changes in operating performance and stock market valuations of technology companies in our industry segment, including our partners and competitors; • price and volume fluctuations in the overall stock market, including as a result of trends in the economy as a whole, inflationary pressures, banking instability, war or other armed conflict, terrorism, or responses to these events; • lawsuits threatened or filed against us; • developments in new legislation and pending lawsuits, executive actions, or regulatory actions, including interim or final rulings by judicial or regulatory bodies, whether such developments may impact us or our competitors; and • other events or factors, including those resulting from war, incidents of terrorism, pandemics, or responses to these events.
The market price of our Class A common stock may fluctuate or decline significantly in response to numerous factors, many of which are beyond our control, including: • actual or anticipated fluctuations in our user growth, retention, engagement, revenue, or other operating results; • variations between our actual operating results and the expectations of investors and the financial community; • the accuracy of our financial guidance or projections; • any forward-looking financial or operating information we may provide, any changes in this information, or our failure to meet expectations based on this information; • actions of investors who initiate or maintain coverage of us, changes in financial estimates by any investors who follow our company, or our failure to meet these estimates or the expectations of investors; • significant acquisitions or divestitures of our stock by investors, whether voluntarily or to comply with regulatory or other requirements; • whether our capital structure is viewed unfavorably, particularly our non-voting Class A common stock and the significant voting control of our co-founders; • additional shares of our common stock being sold into the market by us or our existing stockholders, or the anticipation of such sales, including if we issue shares to satisfy equity-related tax obligations; • stock repurchase programs, or repurchases of the Convertible Notes, undertaken by us; • announcements by us or our competitors of significant products or features, technical innovations, acquisitions, strategic partnerships, joint ventures, or capital commitments; • announcements by us or estimates by third parties of actual or anticipated changes in the size of our user base or the level of user engagement; • changes in operating performance and stock market valuations of technology companies in our industry segment, including our partners and competitors; • price and volume fluctuations in the overall stock market, including as a result of trends in the economy as a whole, inflationary pressures, tariffs and retaliatory countermeasures, fluctuating interest rates, banking instability, war or other armed conflict, terrorism, or responses to these events; • lawsuits threatened or filed against us; • developments in new legislation and pending lawsuits, executive actions, or regulatory actions, including interim or final rulings by judicial or regulatory bodies, whether such developments may impact us or our peers; and • other events or factors, including those resulting from war, incidents of terrorism, pandemics, or responses to these events.
Our financial condition and results of operations in any given quarter can be influenced by numerous factors, many of which we are unable to predict or are outside of our control, including: • our ability to maintain and grow our user base and user engagement; • the development and introduction of new or redesigned products or services by us or our competitors; • the ability of our cloud service providers to scale effectively and timely provide the necessary technical infrastructure to offer our service; • our ability to attract and retain advertisers in a particular period; • seasonal or other fluctuations in spending by our advertisers and product usage by our users, each of which may change as our product offerings evolve or as our business grows or as a result of unpredictable events such as labor shortages and disruptions, supply chain disruptions, banking instability, inflationary pressures, or geo-political conflicts; • restructuring or other charges and unexpected costs or other operating expenses; • the number of advertisements shown to users; • the pricing of our advertisements and other products; • the effectiveness, and our ability to demonstrate to advertisers the effectiveness, of our advertisements; • the diversification and growth of revenue sources beyond current advertising; • increases in marketing, sales, research and development, and other operating expenses that we may incur to grow and expand our operations and to remain competitive; • our ability to maintain operating margins, cash provided by operating activities, and Free Cash Flow; • our ability to accurately forecast consumer demand for our physical products and adequately manage inventory; • system failures or security incidents, and the costs associated with such incidents and remediations; • inaccessibility of Snapchat, or certain features within Snapchat, due to third-party or governmental actions; • stock-based compensation expense; • our ability to effectively incentivize our workforce; • adverse litigation judgments, settlements, or other litigation-related costs, or product recalls; • changes in the legislative or regulatory environment, including with respect to privacy, rights of publicity, content, data protection, intellectual property, communication, health and safety, competition, protection of minors, consumer protection, employment, money transmission, import and export restrictions, gift cards, electronic funds transfers, anti-money laundering, advertising, algorithms, encryption, and taxation, enforcement by government regulators, including fines, orders, sanctions, tariffs, or consent decrees, or the issuance of executive orders or other similar executive actions that may adversely affect our revenues or restrict our business; 30 Table of Contents • new privacy, data protection, and security laws and other obligations and increased regulatory scrutiny on our or our competitors’ data processing activities and privacy and information security practices, including through enforcement actions potentially resulting in large penalties or other severe sanctions and increased restrictions on the data processing activities and personal data transfers critical to the operation of our current business model; • fluctuations in currency exchange rates and changes in the proportion of our revenue and expenses denominated in foreign currencies; • fluctuations in the market values of our portfolio investments and interest rates or impairments of any assets on our consolidated balance sheet; • changes in our effective tax rate; • announcements by competitors of significant new products, licenses, or acquisitions; • our ability to make accurate accounting estimates and appropriately recognize revenue for our products; • our ability to meet minimum spending commitments in agreements with our infrastructure providers; • changes in accounting standards, policies, guidance, interpretations, or principles; • the effect of war or other armed conflict on our workforce, operations, or the global economy; and • changes in domestic and global business or macroeconomic conditions, including as a result of inflationary pressures, banking instability, geo-political conflicts, tariffs, terrorism, or responses to these events.
Our financial condition and results of operations in any given quarter can be influenced by numerous factors, many of which we are unable to predict or are outside of our control, including: • our ability to maintain and grow our user base and user engagement; • the development and introduction of new or redesigned products or services by us or our competitors; • the ability of our cloud service providers to scale effectively and timely provide the necessary technical infrastructure to offer our service; • our ability to attract and retain advertisers in a particular period; • seasonal or other fluctuations in spending by our advertisers and product usage by our users, each of which may change as our product offerings evolve or as our business grows or as a result of unpredictable events such as labor shortages and disruptions, supply chain disruptions, banking instability, inflationary pressures, fluctuating interest rates, or geo-political conflicts; • modifications or changes to our products and services by us, our partners, or other companies in our industry because of new and proposed laws and regulations, corporate strategy, or litigation; • restructuring or other charges and unexpected costs or other operating expenses; • the number of advertisements shown to users; • the pricing of our advertisements and other products; 32 Table of Contents • the effectiveness, and our ability to demonstrate to advertisers the effectiveness, of our advertisements; • the diversification and growth of revenue sources beyond current advertising; • increases in marketing, sales, research and development, and other operating expenses that we may incur to grow and expand our operations and to remain competitive; • our ability to maintain operating margins, cash provided by operating activities, and Free Cash Flow; • our ability to accurately forecast consumer demand for our physical products and adequately manage inventory; • system failures or security incidents, and the costs associated with such incidents and remediations; • inaccessibility of Snapchat, or certain features within Snapchat, due to third-party or governmental actions; • stock-based compensation expense; • our ability to effectively incentivize our workforce; • adverse litigation judgments, settlements, or other litigation-related costs, or product recalls; • changes in the legislative or regulatory environment, including with respect to privacy, rights of publicity, content, data protection, intellectual property, communication, health and safety, competition, protection of minors, consumer protection, employment, money transmission, import and export restrictions, gift cards, electronic funds transfers, anti-money laundering, advertising, algorithms, encryption, and taxation, enforcement by government regulators, including fines, orders, sanctions, tariffs and retaliatory countermeasures, or consent decrees, or the issuance of executive orders or other similar executive actions that may adversely affect our revenues or restrict our business; • new privacy, data protection, and security laws and other obligations and increased regulatory scrutiny on our or our competitors’ data processing activities and privacy and information security practices, including through enforcement actions potentially resulting in large penalties or other severe sanctions and increased restrictions on the data processing activities and personal data transfers critical to the operation of our current business model; • fluctuations in currency exchange rates and changes in the proportion of our revenue and expenses denominated in foreign currencies; • fluctuations in the market values of our investment portfolio, including strategic investments, and interest rates or impairments of any assets on our consolidated balance sheet; • changes in our effective tax rate; • announcements by competitors of significant new products, licenses, or acquisitions; • our ability to make accurate accounting estimates and appropriately recognize revenue for our products and from our partners; • our ability to meet minimum spending commitments in agreements with our infrastructure providers; • changes in accounting standards, policies, guidance, interpretations, or principles; • the effect of war or other armed conflict on our workforce, operations, or the global economy; and • changes in domestic and global business or macroeconomic conditions, including as a result of inflationary pressures, fluctuating interest rates, banking instability, geo-political conflicts, tariffs and retaliatory countermeasures, terrorism, or responses to these events.
If we were to 33 Table of Contents receive a claim of non-compliance with the terms of any of our open source licenses, we may be required to publicly release certain portions of our proprietary source code or expend substantial time and resources to re-engineer some or all of our software, which may divert resources away from our product development efforts and, as a result, adversely affect our business.
If we were to receive a claim of non-compliance with the terms of any of our open source licenses, we may be required to publicly release certain portions of our proprietary source code or expend substantial time and resources to re-engineer some or all of our software, which may divert resources away from our product development efforts and, as a result, adversely affect our business.
Negative public perception regarding us (including regarding our privacy or security practices, products, corporate viewpoints, illicit use of our products, litigation, or employee matters, or regarding the actions of our founders, our partners, our users, or other companies in our industry) or unfavorable legislative, litigation, or regulatory actions could seriously harm our reputation and brand, and result in decreased revenue, fewer application installs (or increased application un-installs), or declining engagement or growth rates.
Negative public perception regarding us (including regarding our privacy or security practices, products, corporate viewpoints, illicit use of our products, litigation, or employee matters, or regarding the actions of our founders, our partners, our users, or other companies in our industry) or unfavorable legislative, litigation, or regulatory actions could seriously harm our reputation and brand, and result in decreased revenue, fewer application installs (or 37 Table of Contents increased application un-installs), or declining engagement or growth rates.
As a result, our financial performance and ability to grow revenue could be seriously harmed if: • we fail to increase or maintain DAUs, especially in regions where we have higher monetization; • our user growth outpaces our ability to monetize our users, including if we don’t attract sufficient advertisers or if our user growth occurs in markets that are not as monetizable; • we fail to increase or maintain the amount of time spent on Snapchat, the amount of content that our users share, or the usage of our Camera, Visual Messaging, Map, Stories, and Spotlight platforms; • partners and users do not create sufficient engaging content for users or partners do not renew their agreements with us; • we fail to attract sufficient advertisers to utilize our self-serve platform to make the best use of our advertising inventory; • advertisers do not continue to introduce engaging advertisements; • advertisers reduce their advertising on Snapchat; • we fail to maintain good relationships with advertisers or attract new advertisers, or demonstrate to advertisers the effectiveness of advertising on Snapchat; • the content on Snapchat does not maintain or gain popularity; or 31 Table of Contents • we fail to attract prospective subscribers to Snapchat+, retain existing subscribers, or effectively continue to monetize Snapchat+.
As a result, our financial performance and ability to grow revenue could be seriously harmed if: • we fail to increase or maintain DAUs, especially in regions where we have higher monetization; • our user growth outpaces our ability to monetize our users, including if we don’t attract sufficient advertisers or if our user growth occurs in markets that are not as monetizable; • we fail to increase or maintain the amount of time spent on Snapchat, the amount of content that our users share, or the usage of our Camera, Visual Messaging, Map, Stories, and Spotlight platforms; • partners and users do not create sufficient engaging content for users or partners do not renew their agreements with us; • we fail to attract sufficient advertisers to utilize our self-serve platform to make the best use of our advertising inventory; • advertisers do not continue to introduce engaging advertisements; • advertisers reduce their advertising on Snapchat; • we fail to maintain good relationships with advertisers or attract new advertisers, or demonstrate to advertisers the effectiveness of advertising on Snapchat; • the content on Snapchat does not maintain or gain popularity; or • we fail to attract prospective subscribers to Snapchat+, retain existing subscribers, or effectively continue to monetize Snapchat+ and other products and services.
If a third party does not offer us a license to its intellectual property on commercially reasonable terms, or at all, we may be required to develop, acquire or license alternative, non-infringing technology, which could require significant time, effort, and expense, and may ultimately not be successful. Any of these events would adversely affect our business.
If a third party does not offer us a license to its intellectual property on commercially reasonable terms, or at all, we may be required 39 Table of Contents to develop, acquire or license alternative, non-infringing technology, which could require significant time, effort, and expense, and may ultimately not be successful. Any of these events would adversely affect our business.
If there is no lawful manner for us to transfer personal data, or if the requirements for a legally compliant transfer are too onerous, we could face significant adverse consequences, including the interruption or degradation of our operations, the need to relocate part of or all of our business or data processing activities to other jurisdictions at significant expense, increased exposure to regulatory actions, substantial fines and penalties, the inability to transfer data and work with partners, vendors, and other third parties, and injunctions against our processing or transferring 27 Table of Contents of personal data necessary to operate our business.
If there is no lawful manner for us to transfer personal data, or if the requirements for a legally compliant transfer are too onerous, we could face significant adverse consequences, including the interruption or degradation of our operations, the need to relocate part of or all of our business, personnel, or data processing activities to other jurisdictions at significant expense, increased exposure to regulatory actions, substantial fines and penalties, the inability to transfer data and work with partners, vendors, and other third parties, and injunctions against our processing or transferring of personal data necessary to operate our business.
These and other factors could reduce demand for our advertising products, which may lower the prices we receive, or cause advertisers to stop advertising with us altogether. Either of these would seriously harm our business. Snapchat depends on effectively operating with mobile operating systems, hardware, networks, regulations, and standards that we do not control.
These and other factors could reduce demand for our advertising products, which may lower the prices we receive, or cause advertisers to stop advertising with us altogether. Either of these would seriously harm our business. 16 Table of Contents Snapchat depends on effectively operating with mobile operating systems, hardware, networks, regulations, and standards that we do not control.
Our user metrics are also affected by technology on certain mobile devices that automatically runs in the background of our Snapchat application when another phone function is used, and this activity can cause our system to miscount the user metrics associated with such account. Some of our demographic data may be incomplete or inaccurate.
Our user metrics are also affected by technology on certain mobile devices that 27 Table of Contents automatically runs in the background of our Snapchat application when another phone function is used, and this activity can cause our system to miscount the user metrics associated with such account. Some of our demographic data may be incomplete or inaccurate.
If we were to elect to satisfy tax withholding and remittance obligations in whole or in part by drawing on our revolving credit facility, or Credit Facility, our interest expense and principal repayment requirements could increase significantly, which could seriously harm our business. 40 Table of Contents There are numerous risks associated with our internal and contract manufacturing of our physical products and components.
If we were to elect to satisfy tax withholding and remittance obligations in whole or in part by drawing on our revolving credit facility, or Credit Facility, our interest expense and principal repayment requirements could increase significantly, which could seriously harm our business. There are numerous risks associated with our internal and contract manufacturing of our physical products and components.
Although we believe that Snapchat reaps significant long-term benefits from increased user engagement with content on Snapchat provided by our partners, these benefits may not offset the possible loss of advertising revenue, in which case our business could be seriously harmed. 34 Table of Contents If events occur that damage our brand or reputation, our business may be seriously harmed.
Although we believe that Snapchat reaps significant long-term benefits from increased user engagement with content on Snapchat provided by our partners, these benefits may not offset the possible loss of advertising revenue, in which case our business could be seriously harmed. If events occur that damage our brand or reputation, our business may be seriously harmed.
If not waived, defaults could cause our outstanding indebtedness under our outstanding Convertible Notes or our Credit Facility, including any future financing agreements that we may enter into, to become immediately due and payable.
If not waived, defaults could cause our outstanding indebtedness under the Notes or our Credit Facility, including any future financing agreements that we may enter into, to become immediately due and payable.
As a result of our capital structure, holders are not 45 Table of Contents obligated to disclose changes in ownership of our Class A common stock, so there can be no assurance that you, or we, will be notified of any such changes. Our directors and officers are required to file reports under Section 16 of the Exchange Act.
As a result of our capital structure, holders are not obligated to disclose changes in ownership of our Class A common stock, so there can be no assurance that you, or we, will be notified of any such changes. Our directors and officers are required to file reports under Section 16 of the Exchange Act.
Furthermore, repurchases of the Convertible Notes reduce the amount of cash we have available to fund working capital, capital expenditures, strategic acquisitions or business opportunities, and other general corporate purposes. We may still incur substantially more debt or take other actions that would diminish our ability to make payments on the Convertible Notes when due.
Furthermore, repurchases of the Convertible Notes reduce the amount of cash we have available to fund working capital, capital expenditures, strategic acquisitions or business opportunities, and other general corporate purposes. 51 Table of Contents We may still incur substantially more debt or take other actions that would diminish our ability to make payments on the Notes when due.
In the event the conditions for optional conversion of the 2025 Notes, 2026 Notes, 2027 Notes, 2028 Notes, or 2030 Notes by holders are met before the close of business on the business day immediately preceding February 1, 2025, May 1, 2026, February 1, 2027, December 1, 2027, or May 1, 2030, respectively, holders of the applicable Convertible Notes will be entitled to convert the Convertible Notes at any time during specified periods at their option.
In the event the conditions for optional conversion of the Convertible Notes due in 2026, 2027, 2028, or 2030 are met before the close of business on the business day immediately preceding May 1, 2026, February 1, 2027, December 1, 2027, or February 1, 2030, respectively, holders of the applicable Convertible Notes will be entitled to convert the Convertible Notes at any time during specified periods at their option.
For example, in January 2023, we made changes to our advertising platform, which we believe will lay the foundation for future growth, but which have been disruptive to our customers and how some of them utilized our platform.
For example, in January 2023, we made changes to our advertising platform to lay the foundation for future growth, but which have been disruptive to our customers and how some of them utilized our platform.
Since that information is also not required in a Form 10-K, holders of Class A common stock may not receive the information required under Section 14 of the Exchange Act with respect to extraordinary meetings of stockholders. In addition, we are not subject to the “say-on-pay” and “say-on-frequency” provisions of the Dodd–Frank Act.
Since that information is also not required in a Form 10-K, holders of Class A common stock may not receive the information 49 Table of Contents required under Section 14 of the Exchange Act with respect to extraordinary meetings of stockholders. In addition, we are not subject to the “say-on-pay” and “say-on-frequency” provisions of the Dodd–Frank Act.
Many of these obligations are becoming increasingly stringent and subject to rapid change and uncertain interpretation. Preparing for and complying with these obligations requires us to devote significant resources, and there is no guarantee that our compliance efforts to date, or in the future, will be deemed compliant or sufficient.
Many of these obligations are becoming increasingly stringent and subject to rapid change and uncertain interpretation. Preparing for and complying with these obligations requires us to devote significant 30 Table of Contents resources, and there is no guarantee that our compliance efforts to date, or in the future, will be deemed compliant or sufficient.
This expense growth will continue as we broaden our user base, as users increase the number of connections and amount of content they consume and share, as we develop and implement new product features that require more computing infrastructure or products that are not revenue generating, and as we grow our business.
This expense growth will continue as we broaden our user 34 Table of Contents base, as users increase the number of connections and amount of content they consume and share, as we develop and implement new product features that require more computing infrastructure or products that are not revenue generating, and as we grow our business.
Such consequences, if imposed, may also make it harder for us to use AI in our product and services, or internally in our business operations, which could seriously harm our business.
Such consequences, if imposed or threatened, may also make it harder for us to use and provide AI in our product and services, or internally in our business operations, which could seriously harm our business.
Although such state laws have been or can be expected to be challenged in court, if these laws were upheld or if additional similar laws or the changes or amendments to the CDA proposed by the U.S.
Although such state laws have been or can be expected to be challenged in court, if these laws are upheld or if additional similar laws or the changes or amendments to the CDA proposed by the U.S.
We may develop future products that are regulated as medical devices by the FDA or regulated by other governmental agencies. Government authorities, primarily the FDA and corresponding regulatory agencies, regulate the medical device industry.
We may develop future products that are regulated as medical devices by the FDA or regulated by other governmental authorities around the world. Government authorities, primarily the FDA and corresponding regulatory agencies, regulate the medical device industry.
Our inability to protect our proprietary technology against unauthorized copying or use, as well as any costly litigation or diversion of our management’s attention and resources, could impair the functionality of our platform, delay introductions of enhancements to our platform, result in our substituting inferior or more costly technologies into our platform, or harm our reputation and brand.
Our inability to protect our proprietary technology against unauthorized copying or use, as well as any costly litigation or 18 Table of Contents diversion of our management’s attention and resources, could impair the functionality of our platform, delay introductions of enhancements to our platform, result in our substituting inferior or more costly technologies into our platform, or harm our reputation and brand.
If any of these or similar events occur, our or our third-party partners’ sensitive information and information technology systems could be accessed, acquired, modified, destroyed, lost, altered, encrypted, or disclosed in an unauthorized, unlawful, accidental, or other improper manner, resulting in a security incident or other interruption.
If any of these or similar events occur, our or our third-party partners’ sensitive information and information technology systems could be accessed, acquired, modified, destroyed, lost, altered, encrypted, or disclosed in an unauthorized, unlawful, accidental, or other 26 Table of Contents improper manner, resulting in a security incident or other interruption.
Our ability to obtain additional financing, if and when required, will depend on investor demand, our operating performance, our credit rating, the condition of the capital markets, and other factors.
Our ability to obtain additional financing, if and when required, will depend on investor demand, our operating performance, our credit rating and/or the rating of our debt, the condition of the capital markets, and other factors.
Hosting costs also have and will continue to increase as our user base and user engagement grows and may seriously harm our business if we are unable to grow our revenues faster than the cost of utilizing the services of Google Cloud, AWS, or similar providers.
Hosting costs also have and will 17 Table of Contents continue to increase as our user base and user engagement grows and may seriously harm our business if we are unable to grow our revenues faster than the cost of utilizing the services of Google Cloud, AWS, or similar providers.
The loss of key personnel, including members of management and key engineering, product development, marketing, and sales personnel, could disrupt our operations, adversely impact employee retention and morale, and seriously harm our business. We cannot guarantee we will continue to attract and retain the personnel we need to maintain our competitive position.
The loss of key personnel, including members of management and key engineering, product development, marketing, and sales personnel, could disrupt our operations, adversely impact employee retention and morale, and seriously harm our business. 24 Table of Contents We cannot guarantee we will continue to attract and retain the personnel we need to maintain our competitive position.
If these or 36 Table of Contents other matters continue in the future or we need to enter into licensing arrangements, which may not be available to us or on terms favorable to us, it may increase our costs and decrease the value of our products, and our business could be seriously harmed.
If these or other matters continue in the future or we need to enter into licensing arrangements, which may not be available to us or on terms favorable to us, it may increase our costs and decrease the value of our products, and our business could be seriously harmed.
We may not successfully evaluate or use the acquired products, technology, and personnel, or accurately forecast the financial impact of an acquisition or 39 Table of Contents investment transaction, including accounting charges. We may also incur unanticipated liabilities and litigation exposure that we assume as a result of acquiring companies.
We may not successfully evaluate or use the acquired products, technology, and personnel, or accurately forecast the financial impact of an acquisition or investment transaction, including accounting charges. We may also incur unanticipated liabilities and litigation exposure that we assume as a result of acquiring companies.
Some of these claims allow for the recovery of statutory damages on a per violation basis, and, if viable, carry the potential for monumental statutory damages, depending on the volume of data and the number of violations.
Some of these claims allow for the recovery of statutory damages on a per violation basis, and, if viable, carry the potential for substantial statutory damages, depending on the volume of data and the number of violations.
Other legislative proposals and present laws and regulations may also apply to our or our advertisers’ activities and require significant operational changes to our business. These laws and regulations could have a material impact on the development and deployment of AI and machine learning in the context of our targeted advertising activities.
Other legislative proposals and present laws and regulations currently, and may in the future, apply to our or our advertisers’ activities and require significant operational changes to our business. These laws and regulations could have a material impact on the development and deployment of AI and machine learning in the context of our targeted advertising activities.
If these policies, materials, or statements are found to be deficient, lacking in transparency, deceptive, unfair, or misrepresentative of our practices, we may be subject to investigation, enforcement actions by regulators, or other adverse consequences, including class-action litigation or mass arbitration demands.
If these policies, materials, or statements are found to be deficient, lacking transparency or adequate notice, deceptive, unfair, or misrepresentative of our practices, we may be subject to investigation, enforcement actions by regulators, or other adverse consequences, including class action litigation or mass arbitration demands.
This includes the election of directors and significant corporate transactions, such as a merger or other sale of our company or our assets. This concentrated control could discourage others from initiating any potential merger, takeover, or other change-of-control transaction that other stockholders may view as beneficial.
This includes the election of directors and significant corporate transactions, such as a merger or other sale of our company or our assets. This concentrated control could discourage others from initiating any potential merger, takeover, or other change-of-control transaction that other stockholders may view 52 Table of Contents as beneficial.
The owners and operators of such mobile operating systems and application stores, primarily Google and Apple, each have approval authority over whether to feature our core products on their application stores and make available to 16 Table of Contents consumers third-party products that compete with ours.
The owners and operators of such mobile operating systems and application stores, primarily Google and Apple, each have approval authority over whether to feature our core products on their application stores and make available to consumers third-party products that compete with ours.
We have in the past experienced, and may in the future experience, actual and attempted cyberattacks and other security incidents that impact the confidentiality, availability, or integrity of sensitive information, including as a result of insider threats, employee error, vendor breaches, and other causes.
We have in the past experienced, and may in the future experience, actual and attempted cyberattacks and other security incidents that impact the confidentiality, availability, or integrity of sensitive information, including as a result of insider threats, denial of service or outage, employee error, vendor breaches, and other causes.
Because of our global and varied user base, we may also be the target of commercial exploits and other internal and external attack methodologies by commercial spyware vendors, nation states, or nation-state supported groups, which have targeted users and the data we process about them and sought to use insiders to obtain user or employee data at peer technology companies.
Because of our global and varied user base, we have been and may in the future be the target of commercial exploits and other internal and external attack methodologies by commercial spyware vendors, nation states, or nation-state supported groups, which have targeted users and the data we process about them and sought to use insiders to obtain user or employee data at peer technology companies.
While we have implemented security measures designed to protect against cyberattacks and other security incidents, there can be no assurance that these measures will be effective.
While we have implemented security measures, including encryption, designed to protect against cyberattacks and other security incidents, there can be no assurance that these measures will be effective.
Our measures of DAU and other metrics may also differ from estimates published by third parties or from similarly titled metrics of our competitors due to differences in methodology, data used, data limitations, or other challenges in measuring large online and mobile 26 Table of Contents populations.
Our measures of DAU and other metrics may also differ from estimates published by third parties or from similarly titled metrics of our competitors due to differences in methodology, data used, data limitations, or other challenges in measuring large online and mobile populations.
We use AI, including generative AI, in consumer-facing features of our products and services, such as My AI, and in the operation of our business. The development, deployment, training, use, safety, and personal data processing of AI presents various AI, privacy, and security risks that impact our business.
We, including through our partners, use and provide AI, including generative AI, in consumer-facing features of our products and services, such as My AI, and in the operation of our business. The development, deployment, training, use, safety, and personal data processing of AI presents various AI, privacy, and security risks that impact our business.
It is possible that we may fail to effectively scale and grow our technology infrastructure to 32 Table of Contents accommodate these increased demands, or that improving our current technology infrastructure will require significant resources and delay or hinder the development of other products or services.
It is possible that we may fail to effectively scale and grow our technology infrastructure to accommodate these increased demands, or that improving our current technology infrastructure will require significant resources and delay or hinder the development of other products or services.
Unless there is an exemption, we must obtain regulatory approval from the FDA and corresponding agencies, or other applicable governmental authorities, before we can market or sell a new regulated product or make a significant modification to an existing product.
Unless there is an exemption, we must obtain regulatory approval from the FDA and potentially from corresponding agencies, or other applicable governmental authorities around the world, before we can market or sell a new regulated product or make a significant modification to an existing product.
In addition, we have reserved shares for issuance under our equity incentive plans. We may also issue shares of our Class A common stock or securities convertible into our Class A common stock from time to time in 49 Table of Contents connection with a financing, acquisition, investment, or otherwise.
In addition, we have reserved shares for issuance under our equity incentive plans. We may also issue shares of our Class A common stock or securities convertible into our Class A common stock from time to time in connection with a financing, acquisition, investment, or otherwise.
We continue to examine the impact these and other tax reforms may have on our business. The impact of these and other tax reforms is uncertain and one or more of these or similar measures could seriously harm our business. We may have exposure to greater-than-anticipated tax liabilities, which could seriously harm our business.
We continue to evaluate the impact that these and other tax reforms may have on our business. The impact of these and other tax reforms is uncertain and one or more of these or similar measures could seriously harm our business. We may have exposure to greater-than-anticipated tax liabilities, which could seriously harm our business.
If we elect to settle our conversion obligation in shares of our Class A common stock or a combination of cash and shares of our Class A common stock, any 47 Table of Contents sales in the public market of our Class A common stock issuable on such conversion could adversely affect prevailing market prices of our Class A common stock.
If we elect to settle our conversion obligation in shares of our Class A common stock or a combination of cash and shares of our Class A common stock, any sales in the public market of our Class A common stock issuable on such conversion could adversely affect prevailing market prices of our Class A common stock.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeYoung has more than 25 years of experience working in the technology industry across a diverse range of business sectors and since June 2023 has overseen Mr. Higgins and our engineering security team, which comprises personnel with a broad range of experience in cybersecurity, information technology, and risk management. During Mr. Young’s tenure at Snap, Mr.
Biggest changeOur CISO, Jeb Boniakowski, has over two decades of experience in the technology sector, including senior roles focused on risk management, application development, and user safety systems. Mr. Boniakowski joined our security engineering team in 2017, which comprises personnel with a broad range of cybersecurity, information technology, and risk management experience.
These processes vary in scope and maturity across the business and are processes we work to improve. Our risk management approach is supplemented by external and internal enterprise risk management audits, which are designed to test the effectiveness of our controls.
These processes vary in scope and maturity across the business and are processes we work to improve. Our risk management approach is supplemented by external and internal enterprise risk management assessments and audits, which are designed to test the effectiveness of our controls.
If a cybersecurity incident is determined to be a material cybersecurity incident, our Security Incident Response Policy and associated plans define the process to file a report regarding the incident with the SEC. Mr.
If a cybersecurity incident is determined to be a material cybersecurity incident, our Security Incident Response Policy and associated plans define the process to file a report regarding the incident with the SEC.
A reported incident triggers our Security Incident Response Policy or 52 Table of Contents associated plans, which has defined roles for our cross-functional incident response team to investigate, contain, eradicate, and remediate the incident.
A reported incident triggers our Security Incident Response Policy or 56 Table of Contents associated plans, which has defined roles for our cross-functional incident response team to investigate, contain, eradicate, and remediate the incident.
Higgins has worked in information security at Chevron, Eastman Kodak, and Google, and, mostly recently, spent two years as the CISO of Block, Inc. (formerly Square). Our CISO also regularly meets with our CEO and other senior management, including as part of the cybersecurity incident response process.
Prior to that, he led engineering teams at several startups in fintech and consumer social media. Our CISO also regularly meets with our Chief Executive Officer and other senior management, including as part of the cybersecurity incident response process.
Removed
Our CISO, Jim Higgins, has over 30 years of experience in the technology sector, including senior leadership roles in product security, information security engineering, and cloud enterprise. Mr. Higgins assisted the Linux Foundation in starting the Open Source Security Foundation to help increase awareness and promote technical solutions to address validation of Open Source software. Mr.
Removed
Higgins recently announced his intention to depart our company effective February 21, 2025 and, as a result, Eric Young, our Senior Vice President of Engineering, will act as our interim CISO while we conduct a search for a permanent replacement. Mr.
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Young has been involved in our approach in assessing, identifying, and managing security incidents.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Properties. Our corporate headquarters are located in Santa Monica, California, where we occupy approximately 718,000 square feet. As of December 31, 2024, our global facilities totaled an aggregate of approximately 1.9 million square feet of leased office space. We also maintain offices in multiple locations in North America and internationally in Europe, Asia, and Australia.
Biggest changeItem 2. Properties. Our corporate headquarters are located in Santa Monica, California, where we occupy approximately 577,672 square feet. As of December 31, 2025, our global facilities totaled an aggregate of approximately 1.8 million square feet of leased office space. We also maintain offices in multiple locations in North America and in Europe, Asia, and Australia.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeNumerous school districts and other municipalities have filed public nuisance claims based on similar allegations, which also have been consolidated in either the MDL or JCCP, and we have received similar claims in Canada and Israel. The Nevada Attorney General and New Mexico Attorney General have also filed lawsuits against us in their respective state courts making similar allegations.
Biggest changeNumerous school districts, municipalities and tribal nations have filed public nuisance and other claims based on similar allegations, which also were consolidated in either the MDL or JCCP. In the JCCP proceeding, the court dismissed the school district and municipality plaintiffs’ claims without prejudice, which ruling is now on appeal.
On October 13, 2022, we were named as a defendant in a lawsuit in Los Angeles Superior Court alleging that we should be responsible for the deaths of young people who died from ingesting fatal doses of fentanyl after communicating on Snapchat with drug dealers concerning drug transactions.
On October 13, 2022, we were named as a defendant in a lawsuit in Los Angeles Superior Court alleging that we should be responsible for the deaths of young people who died from ingesting fatal doses of fentanyl after allegedly communicating on Snapchat with drug dealers concerning drug transactions.
Item 3. Legal Proceedings. On November 11, 2021, we, and certain of our officers, were named as defendants in a federal securities class-action lawsuit filed in the U.S. District Court Central District of California. The lawsuit was purportedly brought on behalf of purchasers of our Class A common stock.
Item 3. Legal Proceedings. Securities-Related Matters On November 11, 2021, we, and certain of our officers, were named as defendants in a federal securities class action lawsuit filed in the U.S. District Court for the Central District of California. The lawsuit was purportedly brought on behalf of purchasers of our Class A common stock.
Other similar lawsuits were filed on behalf of other families, which were coordinated with the first-filed case and assigned to the same judge. On January 2, 2024, the judge granted in part and overruled in part our demurrer to the lawsuit, allowing several of the claims to proceed.
Other similar lawsuits were filed on behalf of other families, which were coordinated with the first-filed case and assigned to the same judge. On January 2, 2024, the judge granted in part and overruled in part our demurrer to the lawsuit, allowing several of the claims to proceed. On January 16, 2025, the U.S.
We believe we have meritorious defenses to the lawsuit, and continue to defend it vigorously, but litigation is inherently uncertain and an unfavorable outcome could seriously harm our business.
We believe we have meritorious defenses to the claims, and will defend it vigorously, but litigation is inherently uncertain, and an unfavorable outcome could seriously harm our business.
We are also subject to government investigations and inquiries from multiple regulators concerning the use of our products and features, and the alleged mental and physical health and safety impacts on teen users in particular.
We are also subject to government investigations and inquiries from multiple regulators in various jurisdictions globally concerning the use of our products and features, and the alleged mental and physical health and safety impacts on users, in particular younger users.
We believe we have meritorious defenses to these lawsuits, and continue to defend them vigorously, but litigation is inherently uncertain and an unfavorable outcome could seriously harm our business.
We believe we have meritorious defenses to these lawsuits, and plan to continue to defend them vigorously, but litigation is inherently uncertain and an unfavorable outcome, including substantial potential damages, penalties, fines and injunctive relief, could seriously harm our business.
Regardless of final outcomes, however, any such proceedings, claims, inquiries, and investigations may nonetheless impose a significant burden on management and employees and may come with costly defense costs or unfavorable preliminary and interim rulings. Item 4. Mine Safety Disclosures. Not applicable. 54 Table of Contents PART II
Regardless of final outcomes, however, any such proceedings, claims, inquiries, and investigations may nonetheless impose a significant burden on management and employees and may come with costly defense costs or unfavorable preliminary and interim rulings.
The lawsuit alleges that we and certain of our officers made false or misleading statements and omissions concerning the impact that Apple’s App Tracking Transparency framework would have on our business. Defendants seek monetary damages and other relief.
The lawsuit alleges that we and certain of our officers made false or misleading statements and omissions concerning the impact that Apple’s App Tracking Transparency framework would have on our business. Plaintiffs seek monetary damages and other relief. We recently settled this case, but that settlement is subject to court approval.
District Court for the Northern District of California, or MDL, or a California Judicial Council Coordinated Proceeding, or JCCP, pending in the Complex Division of the Los Angeles County Superior Court.
The majority of cases have been consolidated in either a federal Multi-District Litigation pending in the U.S. District Court for the Northern District of California, or MDL, or a California Judicial Council Coordinated Proceeding, or JCCP, pending in the Complex Division of the Los Angeles County Superior Court.
We believe we have meritorious defenses to any legal proceedings that may arise out of this complaint, and plan to continue to defend them vigorously, but any legal proceedings that may arise out of this complaint are inherently uncertain and an unfavorable outcome could seriously harm our business.
We plan to continue to engage with the regulators productively and believe we have meritorious defenses to any legal proceedings that may arise out of these investigations and inquiries, but any legal proceedings that may arise are inherently uncertain and an unfavorable outcome, including substantial potential damages, penalties, fines and injunctive relief, could seriously harm our business.
Beginning on January 20, 2022, we were named as defendants in various federal and state courts by plaintiffs alleging that the design and use of our platform, and those of our competitors, is addictive and harmful to minor users’ mental health. The majority of cases have been consolidated in either a federal Multi-District Litigation pending in the U.S.
Platform-Related Matters Beginning on January 20, 2022, we were named as a defendant in various federal and state courts by plaintiffs alleging that the design and use of our platform, and those of our competitors, is addictive and harmful to users, with most of the cases focused on mental health harms and users under 18-years old.
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We believe we have meritorious defenses to these lawsuits, and plan to continue to defend them vigorously, but litigation is inherently uncertain and an unfavorable outcome could seriously harm our business. 53 Table of Contents On January 16, 2025, the FTC referred a complaint against us to the DOJ that pertains to our deployment of our My AI feature and the allegedly resulting risks of harm to young users.
Added
If the settlement is not approved, we will continue to litigate the case. Although we believe we have meritorious defenses to the lawsuit, litigation is inherently uncertain and an unfavorable outcome could seriously harm our business.
Added
On August 21, 2025, we, and certain of our officers, were named as defendants in a federal securities class action lawsuit filed in the U.S. District Court for the Central District of California. The lawsuit was purportedly brought on behalf of purchasers of our Class A common stock.
Added
The lawsuit alleges that we and certain of our officers made false or misleading statements concerning an ad platform change that impacted revenue in the first half of 2025. Plaintiffs seek monetary damages and other relief. In December 2025, the plaintiffs voluntarily dismissed the case which may be refiled in the future.
Added
Trials are scheduled for the individual plaintiff bellwether cases in the JCCP starting in January 2026. Snap reached a confidential settlement agreement resolving the first JCCP bellwether trial for Snap. The next JCCP bellwether trial including Snap is scheduled to begin in March 2026. A putative class action asserting similar allegations was also filed in Canada and Israel.
Added
Some of those dismissed plaintiffs have refiled their claims in the MDL or other venue. Trials are scheduled for the school district bellwether cases in the MDL starting in June 2026.
Added
We have received similar claims in Canada. 57 Table of Contents Beginning on January 30, 2024, certain U.S. state attorneys general have filed lawsuits against us in their respective state courts making similar allegations as well as allegations regarding harmful and mature content, child safety concerns, sexual exploitation of minors, misuse by bad actors, unlawful data collection, privacy violations, and allegedly misleading safety and marketing campaigns.
Added
These lawsuits assert various legal claims, including violations of state consumer protection laws, unfair business practices, product liability, and negligence.
Added
Federal Trade Commission referred a complaint against us to the Department of Justice that pertains to our deployment of our My AI feature and the allegedly resulting risks of harm to young users. The DOJ did not act on the referred complaint within the time defined by statute, thereby returning the complaint to the FTC’s jurisdiction.
Added
The FTC has not taken further action to advance the complaint, and we have no indication they will do so. On July 24, 2025, a lawsuit was filed against Roblox and Snap alleging that a minor had met a stranger on Roblox and became an alleged victim of sexual exploitation occurring on both Roblox and Snapchat.
Added
Similar lawsuits have been filed by additional families, including against other platforms. In December 2025, a federal Multi-District Litigation proceeding was formed to coordinate similar cases that had been filed in federal court. There are separate cases proceeding in state court.
Added
In all of these matters, the victim is alleged to have met a stranger on Roblox followed by exploitation allegedly occurring on Roblox or another platform, such as Snapchat, Instagram, or Discord.
Added
Any violation of existing or future regulatory orders or consent decrees, or new regulatory investigations or proceedings, could subject us to substantial monetary fines and other penalties that could seriously harm our business.
Added
For information regarding legal proceedings in which we are involved, see other sections of this Annual Report on Form 10-K, including sections titled Note 8, “Commitments and Contingencies,” in the Notes to Consolidated Financial Statements, “Management's Discussion and Analysis of Financial Condition and Results of Operations,” and “Risk Factors,” which are incorporated by reference. Item 4. Mine Safety Disclosures.
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Not applicable. 58 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeRecent Sale of Unregistered Securities and Use of Proceeds None. 55 Table of Contents Stock Performance Graph This performance graph shall not be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act, or incorporated by reference into any filing of Snap Inc. under the Securities Act.
Biggest changeStock Performance Graph This performance graph shall not be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act, or incorporated by reference into any filing of Snap Inc. under the Securities Act.
The graph assumes that $100 was invested at the market close on December 31, 2019 in our Class A common stock, the S&P 500 Index, and the NYSE Composite, and data for the S&P 500 Index and the NYSE Composite assumes reinvestment of any dividends.
The graph assumes that $100 was invested at the market close on December 31, 2020 in our Class A common stock, the S&P 500 Index, and the NYSE Composite, and data for the S&P 500 Index and the NYSE Composite assumes reinvestment of any dividends.
The following graph shows a comparison, for the five years ended December 31, 2024, of the cumulative total return for our Class A common stock, the Standard & Poor’s 500 Stock Index ( “ S&P 500 Index ” ), and the NYSE Composite.
The following graph shows a comparison, for the five years ended December 31, 2025, of the cumulative total return for our Class A common stock, the Standard & Poor’s 500 Stock Index ( “ S&P 500 Index ” ), and the NYSE Composite.
Holders of Record As of December 31, 2024, there were 902 stockholders of record of our Class A common stock. Because many of our shares of Class A common stock are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of stockholders represented by these record holders.
Holders of Record As of December 31, 2025, there were 882 stockholders of record of our Class A common stock. Because many of our shares of Class A common stock are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of stockholders represented by these record holders.
The closing price of our Class A common stock as of December 31, 2024 was $10.77 per share as reported on the NYSE. As of December 31, 2024, there were 73 stockholders of record of our Class B common stock and two stockholders of record of our Class C common stock.
The closing price of our Class A common stock as of December 31, 2025 was $8.07 per share as reported on the NYSE. As of December 31, 2025, there were 73 stockholders of record of our Class B common stock and 2 stockholders of record of our Class C common stock.
The stock price performance of the following graph is not necessarily indicative of future stock price performance.
The stock price performance of the following graph is not necessarily indicative of future stock price performance. Item 6. Reserved. Not required. 60 Table of Contents
Removed
Purchases of Equity Securities by the Issuer and Affiliated Purchasers There were no purchases of equity securities by the issuer or any “affiliated purchasers” (as defined in Rule 10b-18(a)(3) the Exchange Act) during the three months ended December 31, 2024.
Added
Purchases of Equity Securities by the Issuer and Affiliated Purchasers The following table summarizes stock repurchase activity for the three months ended December 31, 2025 (in thousands, except per share data): Total Number of Shares Purchased (1) Average Price Per Share (2) Total Number of Shares Purchased as Part of Publicly Announced Program (1) Approximate Dollar Value of Shares that May Yet be Repurchased Under the Program (1) October 1, 2025 - October 31, 2025 — $ — — $ — November 1, 2025 - November 30, 2025 29,400 $ 8.51 29,400 $ 250,000 December 1, 2025 - December 31, 2025 — $ — — $ 250,000 Total 29,400 29,400 (1) In November 2025, our board of directors authorized a stock repurchase program of up to $500.0 million of our Class A common stock.
Added
During the fourth quarter of 2025, we repurchased 29.4 million shares of our Class A common stock for $250.3 million, including costs associated with the repurchases. As of December 31, 2025, the remaining availability under the stock repurchase authorization was $250.0 million. This program was completed in January 2026.
Added
(2) Average price paid per share includes costs associated with the repurchases. 59 Table of Contents Recent Sale of Unregistered Securities and Use of Proceeds None.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeSee “Non-GAAP Financial Measures” for additional information and a reconciliation of net loss to Adjusted EBITDA. 63 Table of Contents Discussion of Results of Operations The following table sets forth our consolidated statements of operations data: Year Ended December 31, 2024 2023 2022 (in thousands) Consolidated Statements of Operations Data: Revenue $ 5,361,398 $ 4,606,115 $ 4,601,847 Costs and expenses (1) (2) : Cost of revenue 2,474,237 2,114,117 1,815,342 Research and development 1,691,683 1,910,862 2,109,800 Sales and marketing 1,063,675 1,122,092 1,118,746 General and administrative 919,097 857,423 953,265 Total costs and expenses 6,148,692 6,004,494 5,997,153 Operating loss (787,294) (1,398,379) (1,395,306) Interest income 153,466 168,394 58,597 Interest expense (21,552) (22,024) (21,459) Other income (expense), net (16,846) (42,414) (42,529) Loss before income taxes (672,226) (1,294,423) (1,400,697) Income tax benefit (expense) (25,630) (28,062) (28,956) Net loss $ (697,856) $ (1,322,485) $ (1,429,653) Adjusted EBITDA (3) $ 508,605 $ 161,577 $ 377,573 (1) Stock-based compensation expense included in the above line items: Year Ended December 31, 2024 2023 2022 (in thousands) Stock-based compensation expense: Cost of revenue $ 6,034 $ 9,555 $ 12,288 Research and development 683,830 893,026 970,746 Sales and marketing 216,672 255,688 203,092 General and administrative 134,487 165,735 201,661 Total $ 1,041,023 $ 1,324,004 $ 1,387,787 (2) Depreciation and amortization expense included in the above line items: Year Ended December 31, 2024 2023 2022 (in thousands) Depreciation and amortization expense: Cost of revenue $ 6,110 $ 12,751 $ 24,235 Research and development 99,656 106,278 98,041 Sales and marketing 19,947 26,161 67,169 General and administrative 32,361 23,251 12,728 Total $ 158,074 $ 168,441 $ 202,173 (3) See “Non-GAAP Financial Measures” in this Annual Report on Form 10-K for more information and for a reconciliation of Adjusted EBITDA to net loss, the most directly comparable financial measure calculated and presented in accordance with GAAP. 64 Table of Contents The following table sets forth the components of our consolidated statements of operations data for each of the periods presented as a percentage of revenue: Year Ended December 31, 2024 2023 2022 Consolidated Statements of Operations Data: Revenue 100 % 100 % 100 % Costs and expenses: Cost of revenue 46 46 39 Research and development 32 41 46 Sales and marketing 20 24 24 General and administrative 17 19 21 Total costs and expenses 115 130 130 Operating loss (15) (30) (30) Interest income 3 4 1 Interest expense (1) (1) — Other income (expense), net — (1) (1) Loss before income taxes (13) (28) (30) Income tax benefit (expense) — (1) (1) Net loss (13) % (29) % (31) % Revenue Year Ended December 31, 2024 vs 2023 Change 2023 vs 2022 Change 2024 2023 2022 $ % $ % (dollars in thousands) Revenue $ 5,361,398 $ 4,606,115 $ 4,601,847 $ 755,283 16 % $ 4,268 — % 2024 compared to 2023 Revenue for the year ended December 31, 2024 increased $755.3 million compared to the same period in 2023.
Biggest changeSee “Non-GAAP Financial Measures” for additional information and a reconciliation of net loss to Adjusted EBITDA. 67 Table of Contents Discussion of Results of Operations The following table sets forth our consolidated statements of operations data: Year Ended December 31, 2025 2024 2023 (in thousands) Consolidated Statements of Operations Data: Revenue $ 5,931,447 $ 5,361,398 $ 4,606,115 Costs and expenses (1) (2) : Cost of revenue 2,669,575 2,474,237 2,114,117 Research and development 1,793,601 1,691,683 1,910,862 Sales and marketing 1,021,305 1,063,675 1,122,092 General and administrative 979,133 919,097 857,423 Total costs and expenses 6,463,614 6,148,692 6,004,494 Operating income (loss) (532,167) (787,294) (1,398,379) Interest income 134,159 153,466 168,394 Interest expense (121,998) (21,552) (22,024) Other income (expense), net 68,870 (16,846) (42,414) Loss before income taxes (451,136) (672,226) (1,294,423) Income tax benefit (expense) (9,353) (25,630) (28,062) Net loss $ (460,489) $ (697,856) $ (1,322,485) Adjusted EBITDA (3) $ 689,479 $ 508,605 $ 161,577 (1) Stock-based compensation expense included in the above line items: Year Ended December 31, 2025 2024 2023 (in thousands) Stock-based compensation expense: Cost of revenue $ 7,426 $ 6,034 $ 9,555 Research and development 680,602 683,830 893,026 Sales and marketing 198,013 216,672 255,688 General and administrative 130,784 134,487 165,735 Total $ 1,016,825 $ 1,041,023 $ 1,324,004 (2) Depreciation and amortization expense included in the above line items: Year Ended December 31, 2025 2024 2023 (in thousands) Depreciation and amortization expense: Cost of revenue $ 5,759 $ 6,110 $ 12,751 Research and development 101,531 99,656 106,278 Sales and marketing 21,363 19,947 26,161 General and administrative 34,980 32,361 23,251 Total $ 163,633 $ 158,074 $ 168,441 (3) See “Non-GAAP Financial Measures” in this Annual Report on Form 10-K for more information and for a reconciliation of Adjusted EBITDA to net loss, the most directly comparable financial measure calculated and presented in accordance with GAAP. 68 Table of Contents The following table sets forth the components of our consolidated statements of operations data for each of the periods presented as a percentage of revenue: Year Ended December 31, 2025 2024 2023 Consolidated Statements of Operations Data: Revenue 100 % 100 % 100 % Costs and expenses: Cost of revenue 45 46 46 Research and development 30 32 41 Sales and marketing 17 20 24 General and administrative 17 18 19 Total costs and expenses 109 115 130 Operating loss (9) (15) (30) Interest income 2 3 4 Interest expense (2) (1) (1) Other income (expense), net 1 — (1) Loss before income taxes (8) (13) (28) Income tax benefit (expense) — — (1) Net loss (8) % (13) % (29) % Revenue Year Ended December 31, 2025 vs 2024 Change 2024 vs 2023 Change 2025 2024 2023 $ % $ % (dollars in thousands) Revenue $ 5,931,447 $ 5,361,398 $ 4,606,115 $ 570,049 11 % $ 755,283 16 % 2025 compared to 2024 Revenue for the year ended December 31, 2025 increased $570.0 million compared to the same period in 2024.
The increase in Adjusted EBITDA was attributable to increased revenue, lower research and development expenses, and lower sales and marketing expenses, partially offset by higher cost of revenue and general and administrative expenses.
The increase in Adjusted EBITDA was attributable to increased revenue and lower sales and marketing expenses, partially offset by higher cost of revenue, research and development expenses, and general and administrative expenses.
In this evaluation, we consider if we obtain control of the specified goods or services before they are transferred to the customer, as well as other indicators such as the party primarily responsible for fulfillment, inventory risk, and discretion in establishing price. For advertising revenue arrangements where we are not the principal, we recognize revenue on a net basis.
In this evaluation, we consider if we obtain control of the specified goods or services before they are transferred to the customer, as well as other indicators such as the party primarily responsible for fulfillment, inventory risk, and discretion in establishing price. For revenue arrangements where we are not the principal, we recognize revenue on a net basis.
See Note 18 to our consolidated financial statements included in the “Financial Statements and Supplementary Data” in this Annual Report on Form 10-K for more information. Critical Accounting Estimates We prepare our financial statements in accordance with GAAP.
See Note 18 to our consolidated financial statements included in the “Financial Statements and Supplementary Data” in this Annual Report on Form 10-K for more information. Critical Accounting Policies and Estimates We prepare our financial statements in accordance with GAAP.
Some of these limitations are that: • Free Cash Flow does not reflect our future contractual commitments; • Adjusted EBITDA excludes certain recurring, non-cash charges such as depreciation of fixed assets and amortization of acquired intangible assets and, although these are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future; • Adjusted EBITDA excludes stock-based compensation expense and payroll and other tax expense related to stock-based compensation, which have been, and will continue to be for the foreseeable future, significant recurring expenses in our business and an important part of our compensation strategy; and • Adjusted EBITDA excludes income tax benefit (expense).
Some of these limitations are that: • Free Cash Flow does not reflect our future contractual commitments; • Adjusted EBITDA excludes certain recurring, non-cash charges such as depreciation of fixed assets and amortization of acquired intangible assets and, although these are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future; 75 Table of Contents • Adjusted EBITDA excludes stock-based compensation expense and payroll and other tax expense related to stock-based compensation, which have been, and will continue to be for the foreseeable future, significant recurring expenses in our business and an important part of our compensation strategy; and • Adjusted EBITDA excludes income tax benefit (expense).
Factors that could cause or contribute to those differences include those discussed below and elsewhere in this Annual Report on Form 10-K, particularly in “Risk Factors,” “Note Regarding Forward-Looking Statements,” and “Note Regarding User Metrics and Other Data.” The following generally discusses 2024 and 2023 items and year-to-year comparisons between 2024 and 2023.
Factors that could cause or contribute to those differences include those discussed below and elsewhere in this Annual Report on Form 10-K, particularly in “Risk Factors,” “Note Regarding Forward-Looking Statements,” and “Note Regarding User Metrics and Other Data.” The following generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024.
Other Income (Expense), Net Other income (expense), net primarily consists of gains and losses on strategic investments, marketable securities, and foreign currency transactions. Income Tax Benefit (Expense) We are subject to income taxes in the United States and numerous foreign jurisdictions.
Other Income (Expense), Net Other income (expense), net primarily consists of gains and losses on debt extinguishments, and gains and losses on strategic investments, marketable securities, and foreign currency transactions. Income Tax Benefit (Expense) We are subject to income taxes in the United States and numerous foreign jurisdictions.
We expect to continue to experience increased competition, which may result in reduced advertising demand, and 57 Table of Contents could adversely affect our revenue growth, pricing, business, financial condition, and results of operations.
We expect to continue to experience increased competition, which may result in reduced advertising demand, and 61 Table of Contents could adversely affect our revenue growth, pricing, business, financial condition, and results of operations.
Our primary source of liquidity is cash generated through financing activities. Our primary uses of cash include operating costs such as personnel-related costs and the infrastructure costs of the Snapchat application, facility-related capital spending, and acquisitions and investments. There are no known material subsequent events that could have a material impact on our cash or liquidity.
Our primary source of liquidity is cash generated through financing activities. Our primary uses of cash include operating costs such as personnel-related costs and the infrastructure costs of the Snapchat application, facility-related capital spending, and acquisitions and investments. There are no known material subsequent events that could have a material impact on our cash or liquidity, except as disclosed herein.
This differs from the presentation of our revenue by geography in the notes to our consolidated financial statements, where revenue is based on the billing address of the advertising customer. 60 Table of Contents Quarterly Average Revenue per User Global North America (1) Europe (2) (1) North America includes Mexico, the Caribbean, and Central America.
This differs from the presentation of our revenue by geography in the notes to our consolidated financial statements, where revenue is based on the billing address of the advertising customer. 64 Table of Contents Quarterly Average Revenue per User Global North America (1) Europe (2) (1) North America includes Mexico, the Caribbean, and Central America. (2) Europe includes Turkey.
We believe that both Free Cash Flow and Adjusted EBITDA provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater 71 Table of Contents transparency with respect to key metrics used by our management for financial and operational decision-making.
We believe that both Free Cash Flow and Adjusted EBITDA provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to key metrics used by our management for financial and operational decision-making.
However, the likelihood of a loss is often difficult to predict and determining a meaningful estimate of the loss or a range of loss may not be practicable based on the information available, the potential effect of future events, and decisions by third parties impacting the ultimate resolution of the contingency.
However, the likelihood of a loss is often difficult to predict and determining a meaningful estimate of the loss or a range of loss may not be practicable based on the 77 Table of Contents information available, the potential effect of future events, and decisions by third parties impacting the ultimate resolution of the contingency.
Such macroeconomic factors may also negatively impact, in the short-term or long-term, the global economy, advertising ecosystem, our customers and their budgets with us, user engagement, other user metrics, and our business, financial condition, and results of operations. In addition, competition for advertising dollars has increased and demand growth on our advertising platform has slowed.
Such macroeconomic factors and geo-political events and conflicts may also negatively impact, in the short-term or long-term, the global economy, advertising ecosystem, our customers and their budgets with us, user engagement, other user metrics, and our business, financial condition, and results of operations. In addition, competition for advertising dollars has increased and demand growth on our advertising platform has slowed.
We monetize our business primarily through advertising. Our advertising products include Snap Ads and AR Ads. We measure our business using ARPU because it helps us understand the rate at which we are monetizing our daily user base. ARPU was $3.44 in the fourth quarter of 2024, compared to $3.29 in the fourth quarter of 2023.
We monetize our business primarily through advertising. Our advertising products include Snap Ads and AR Ads. We measure our business using ARPU because it helps us understand the rate at which we are monetizing our daily user base. ARPU was $3.62 in the fourth quarter of 2025, compared to $3.44 in the fourth quarter of 2024.
For additional discussion on our leases, see Note 9 to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. Stock Repurchases In October 2024, our board of directors authorized a stock repurchase program of up to $500.0 million of our Class A common stock.
For additional discussion on our leases, see Note 9 to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. Stock Repurchases In November 2025, our board of directors authorized a stock repurchase program of up to $500.0 million of our Class A common stock.
Macroeconomic factors such as labor shortages and disruptions, supply chain disruptions, inflation, changes in interest and foreign currency exchange rates, banking instability, tariffs, war and other armed conflict, and other risks and uncertainties have in the past and may continue to cause logistical challenges, increased input costs, and inventory constraints for our advertisers, which in turn may cause our advertisers to halt or decrease advertising spending on our platform.
Macroeconomic factors and geo-political events and conflicts such as labor shortages and disruptions, supply chain disruptions, inflation, changes in interest and foreign currency exchange rates, banking instability, tariffs and retaliatory countermeasures, war and other armed conflict, and other risks and uncertainties have in the past and may continue to cause logistical challenges, increased input costs, and inventory constraints for our advertisers, which in turn may cause our advertisers to halt or decrease advertising spending on our platform.
All strategic investments are reviewed periodically for impairment. When indicators of impairment exist, we prepare quantitative measurements of the fair value of our equity investments using a market approach or an income approach, which requires judgment and the use of unobservable inputs, including discount rates, investee revenues and costs, and comparable market data of private and public companies, among others.
When indicators of impairment exist, we prepare quantitative measurements of the fair value of our equity investments using a market approach or an income approach, which requires judgment and the use of unobservable inputs, including discount rates, investee revenues and costs, and comparable market data of private and public companies, among others.
Free Cash Flow Free Cash Flow was $218.7 million for the year ended December 31, 2024, compared to $34.8 million for the year ended December 31, 2023. Free Cash Flow in all periods was composed of net cash provided by operating activities, resulting primarily from net loss, adjusted for non-cash items and changes in working capital.
Free Cash Flow Free Cash Flow was $437.2 million for the year ended December 31, 2025, compared to $218.7 million for the year ended December 31, 2024. Free Cash Flow in all periods was composed of net cash provided by operating activities, resulting primarily from net loss, adjusted for non-cash items and changes in working capital.
The decrease in net loss was primarily the result of the changes in revenues and expenses discussed above. Adjusted EBITDA for the year ended December 31, 2024 was $508.6 million, compared to $161.6 million for the same period in 2023.
The decrease in net loss was primarily the result of the changes in revenues and expenses discussed above. Adjusted EBITDA for the year ended December 31, 2025 was $689.5 million, compared to $508.6 million for the same period in 2024.
Contractual Commitments We have non-cancelable contractual agreements primarily related to the hosting of our data processing, storage, and other computing services, as well as lease, content and developer partner, and other commitments. We had $4.9 billion in commitments as of December 31, 2024, primarily due within three years.
Contractual Commitments We have non-cancelable contractual agreements primarily related to the hosting of our data processing, storage, and other computing services, as well as lease, content and developer partner, and other commitments. We had $3.4 billion in commitments as of December 31, 2025, primarily due within two years.
For a discussion of the limitations associated with using Adjusted EBITDA rather than GAAP measures, and a reconciliation of this measure to net loss, see “Non-GAAP Financial Measures.” Liquidity and Capital Resources Capital Resources Cash, cash equivalents, and marketable securities were $3.4 billion as of December 31, 2024, primarily consisting of cash on deposit with banks and highly liquid investments in U.S. government and agency securities, money market funds, corporate debt securities, certificates of deposit, commercial paper, and publicly traded equity securities.
For a discussion of the limitations associated with using Adjusted EBITDA rather than GAAP measures, and a reconciliation of this measure to net loss, see “Non-GAAP Financial Measures.” Liquidity and Capital Resources Capital Resources Cash, cash equivalents, and marketable securities were $2.9 billion as of December 31, 2025, primarily consisting of cash on deposit with banks and highly liquid investments in U.S. government securities, money market funds, corporate debt securities, and publicly traded equity securities.
Our actual results could differ from these estimates. The critical accounting estimates, assumptions, and judgments that we believe to have the most significant impact on our consolidated financial statements are described below.
Our actual results could differ from these estimates. 76 Table of Contents The critical accounting policies, estimates, assumptions, and judgments that we believe to have the most significant impact on our consolidated financial statements are described below.
Discussion of historical items and year-to-year comparisons between 2023 and 2022 that are not included in this discussion can be found in “Management ’ s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 7, 2024.
Discussion of historical items and year-to-year comparisons between 2024 and 2023 that are not included in this discussion can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 5, 2025.
Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We determine collectability by performing ongoing credit evaluations and monitoring customer accounts receivable balances.
Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We determine collectability by performing ongoing credit evaluations and monitoring customer accounts receivable balances. Sales tax, including value added tax, is excluded from reported revenue.
We recognize tax benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position.
We recognize a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.
Overview of Full Year 2024 Results Our key user metrics and financial results for fiscal year 2024 are as follows: User Metrics • Daily Active Users, or DAUs, increased 9% year-over-year to 453 million in Q4 2024. • Average revenue per user, or ARPU, was $3.44 in Q4 2024 compared to $3.29 in Q4 2023.
Overview of Full Year 2025 Results Our key user metrics and financial results for fiscal year 2025 are as follows: User Metrics • Daily Active Users, or DAUs, increased 5% year-over-year to 474 million in Q4 2025. • Average revenue per user, or ARPU, was $3.62 in Q4 2025 compared to $3.44 in Q4 2024.
Net Cash Provided by (Used in) Investing Activities Net cash used in investing activities was $717.1 million for the year ended December 31, 2024, compared to net cash provided by investing activities of $571.0 million for the year ended December 31, 2023.
Net Cash Provided by (Used in) Investing Activities Net cash provided by investing activities was $173.1 million for the year ended December 31, 2025, compared to net cash used in investing activities of $717.1 million for the year ended December 31, 2024.
For additional discussion, see Note 12 to our consolidated financial statements included in “Financial Statements and Supplementary Data” in this Annual Report on Form 10-K.
For additional discussion, see Note 12 to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
Business and Macroeconomic Conditions We periodically make changes to our business and priorities. In recent years, we conducted a strategic reprioritization to realign our focus on three strategic priorities: growing our community and deepening their engagement with our products, accelerating and diversifying our revenue growth, and investing in the future of augmented reality.
Business and Macroeconomic Conditions We periodically make changes to our business and priorities. In recent years, our focus has been on three strategic priorities: growing our community and deepening their engagement with our products, accelerating and diversifying our revenue growth, and investing in the future of augmented reality, including our investments in Spectacles.
Research and Development Expenses Research and development expenses primarily consist of personnel-related costs, including salaries, benefits, and stock-based compensation expense for our engineers, designers, and other employees engaged in the research and development of our products. Research and development expenses also include facilities and other supporting overhead costs, including depreciation and amortization. Research and development costs are expensed as incurred.
Cost of revenue also includes facilities and other supporting overhead costs, including depreciation and amortization, and inventory costs. Research and Development Expenses Research and development expenses primarily consist of personnel-related costs, including salaries, benefits, and stock-based compensation expense for our engineers, designers, and other employees engaged in the research and development of our products.
Net Cash Provided by (Used in) Financing Activities Net cash used in financing activities was $428.6 million for the year ended December 31, 2024, compared to net cash used in financing activities of $458.8 million for the year ended December 31, 2023.
Net Cash Provided by (Used in) Financing Activities Net cash used in financing activities was $848.1 million for the year ended December 31, 2025, compared to net cash used in financing activities of $428.6 million for the year ended December 31, 2024.
Sales and Marketing Expenses Year Ended December 31, 2024 vs 2023 Change 2023 vs 2022 Change 2024 2023 2022 $ % $ % (dollars in thousands) Sales and Marketing Expenses $ 1,063,675 $ 1,122,092 $ 1,118,746 $ (58,417) (5) % $ 3,346 — % 2024 compared to 2023 Sales and marketing expenses for the year ended December 31, 2024 decreased $58.4 million compared to the same period in 2023.
Sales and Marketing Expenses Year Ended December 31, 2025 vs 2024 Change 2024 vs 2023 Change 2025 2024 2023 $ % $ % (dollars in thousands) Sales and Marketing Expenses $ 1,021,305 $ 1,063,675 $ 1,122,092 $ (42,370) (4) % $ (58,417) (5) % 2025 compared to 2024 Sales and marketing expenses for the year ended December 31, 2025 decreased $42.4 million compared to the same period in 2024.
Should any of these estimates and assumptions change, it could have a material impact on our results of operations, financial position, and cash flows. 74 Table of Contents Income Taxes We are subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgment is required in determining our uncertain tax positions.
Should any of these estimates and assumptions change, it could have a material impact on our results of operations, financial position, and cash flows. Income Taxes We are subject to income taxes in the United States and numerous foreign jurisdictions.
Our financing activities for the year ended December 31, 2024 primarily consisted of the Note Repurchases for $859.0 million, repurchases of our Class A common stock for $311.1 million, and the purchase of the 2030 Capped Call Transactions for $68.9 million, partially offset by the issuance of the 2030 Notes for net proceeds of $740.4 million and the termination of the 2025 Capped Call Transactions for proceeds of $62.7 million.
Our financing activities for the year ended December 31, 2024 primarily consisted of the repurchases of certain outstanding convertible notes for $859.0 million, repurchases of our Class A common stock for $311.1 million, and the purchase of the capped call transactions entered into in connection with the pricing of our convertible senior notes due in 2030 (the “2030 Notes”) for $68.9 million, partially offset by the issuance of the 2030 Notes for net proceeds of $740.4 million and the termination of the 2025 Capped Call Transactions for proceeds of $62.7 million.
Revenue Recognition We determine revenue recognition by first identifying the contract or contracts with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract, and recognizing revenue when, or as, we satisfy a performance obligation.
Other revenue also includes our subscriptions and sales of physical products. We determine revenue recognition by first identifying the contract or contracts with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract, and recognizing revenue when, or as, we satisfy a performance obligation.
Sources and Uses of Cash and Related Trends The following table sets forth the major components of our consolidated statements of cash flows for the periods presented: Year Ended December 31, 2024 2023 2022 (in thousands) Net cash provided by (used in) operating activities $ 413,480 $ 246,521 $ 184,614 Net cash provided by (used in) investing activities (717,084) 570,954 (1,062,275) Net cash provided by (used in) financing activities (428,624) (458,789) 306,714 Change in cash, cash equivalents, and restricted cash $ (732,228) $ 358,686 $ (570,947) Free Cash Flow (1) $ 218,654 $ 34,794 $ 55,308 (1) For information on how we define and calculate Free Cash Flow, and a reconciliation to net cash provided by (used in) operating activities to Free Cash Flow, see “Non-GAAP Financial Measures.” Net Cash Provided by (Used in) Operating Activities Net cash provided by operating activities was $413.5 million for the year ended December 31, 2024, compared to net cash provided by operating activities of $246.5 million for the year ended December 31, 2023, resulting primarily from our net loss, adjusted for non-cash items, including stock-based compensation expense of $1,041.0 million and depreciation and amortization expense of $158.1 million.
Sources and Uses of Cash and Related Trends The following table sets forth the major components of our consolidated statements of cash flows for the periods presented: Year Ended December 31, 2025 2024 2023 (in thousands) Net cash provided by (used in) operating activities $ 656,170 $ 413,480 $ 246,521 Net cash provided by (used in) investing activities 173,118 (717,084) 570,954 Net cash provided by (used in) financing activities (848,125) (428,624) (458,789) Change in cash, cash equivalents, and restricted cash $ (18,837) $ (732,228) $ 358,686 Free Cash Flow (1) $ 437,189 $ 218,654 $ 34,794 (1) For information on how we define and calculate Free Cash Flow, and a reconciliation of net cash provided by (used in) operating activities to Free Cash Flow, see “Non-GAAP Financial Measures.” Net Cash Provided by (Used in) Operating Activities Net cash provided by operating activities was $656.2 million for the year ended December 31, 2025, compared to net cash provided by operating activities of $413.5 million for the year ended December 31, 2024, resulting primarily from our net loss, adjusted for non-cash items, including stock-based compensation expense of $1.0 billion, depreciation and amortization expense of $163.6 million and gains on debt extinguishment of $96.7 million.
Other Income (Expense), Net Year Ended December 31, 2024 vs 2023 Change 2023 vs 2022 Change 2024 2023 2022 $ % $ % (dollars in thousands) Other Income (Expense), Net $ (16,846) $ (42,414) $ (42,529) $ 25,568 60 % $ 115 — % 2024 compared to 2023 Other expense, net for the year ended December 31, 2024 was $16.8 million, compared to other expense, net of $42.4 million for the same period in 2023 .
Other Income (Expense), Net Year Ended December 31, 2025 vs 2024 Change 2024 vs 2023 Change 2025 2024 2023 $ % $ % (dollars in thousands) Other Income (Expense), Net $ 68,870 $ (16,846) $ (42,414) $ 85,716 509 % $ 25,568 60 % 2025 compared to 2024 Other income , net for the year ended December 31, 2025 was $68.9 million, compared to other expense , net of $16.8 million for the same period in 2024 .
Financial Results • Revenue was $5.4 billion, compared to $4.6 billion in the prior year, an increase of 16% year-over-year. • Total costs and expenses were $6.1 billion, compared to $6.0 billion in the prior year. • Net loss was $0.7 billion, compared to $1.3 billion in the prior year . • Adjusted EBITDA was $508.6 million, compared to $161.6 million in the prior year. • Diluted net loss per share was $(0.42), compared to $(0.82) in the prior year. • Cash provided by operating activities was $413.5 million, compared to $246.5 million in the prior year. • Free Cash Flow was $218.7 million, compared to $34.8 million in the prior year. • Cash, cash equivalents, and marketable securities were $3.4 billion as of December 31, 2024.
Financial Results • Revenue was $5.9 billion, compared to $5.4 billion in the prior year, an increase of 11% year-over-year. • Total costs and expenses were $6.5 billion, compared to $6.1 billion in the prior year. • Net loss was $460.5 million, compared to $697.9 million in the prior year . • Adjusted EBITDA was $689.5 million, compared to $508.6 million in the prior year. • Diluted net loss per share was $(0.27), compared to $(0.42) in the prior year. • Cash provided by operating activities was $656.2 million, compared to $413.5 million in the prior year. • Free Cash Flow was $437.2 million , compared to $218.7 million in the prior year. • Cash, cash equivalents, and marketable securities were $2.9 billion as of December 31, 2025.
The following table presents a reconciliation of Free Cash Flow to net cash provided by (used in) operating activities, the most comparable GAAP financial measure, for each of the periods presented: Year Ended December 31, 2024 2023 2022 (in thousands) Free Cash Flow reconciliation: Net cash provided by (used in) operating activities $ 413,480 $ 246,521 $ 184,614 Less: Purchases of property and equipment (194,826) (211,727) (129,306) Free Cash Flow $ 218,654 $ 34,794 $ 55,308 72 Table of Contents The following table presents a reconciliation of Adjusted EBITDA to net loss, the most comparable GAAP financial measure, for each of the periods presented: Year Ended December 31, 2024 2023 2022 (in thousands) Adjusted EBITDA reconciliation: Net loss $ (697,856) $ (1,322,485) $ (1,429,653) Add (deduct): Interest income (153,466) (168,394) (58,597) Interest expense 21,552 22,024 21,459 Other (income) expense, net 16,846 42,414 42,529 Income tax (benefit) expense 25,630 28,062 28,956 Depreciation and amortization 154,459 159,999 186,434 Stock-based compensation expense 1,031,621 1,319,783 1,353,283 Payroll and other tax expense related to stock-based compensation 37,768 39,324 44,213 Restructuring charges (1) 72,051 40,850 188,949 Adjusted EBITDA $ 508,605 $ 161,577 $ 377,573 (1) Restructuring charges in 2024 are primarily related to cash severance, stock-based compensation expense, and other charges associated with the 2024 restructuring.
The following table presents a reconciliation of Free Cash Flow to net cash provided by (used in) operating activities, the most comparable GAAP financial measure, for each of the periods presented: Year Ended December 31, 2025 2024 2023 (in thousands) Free Cash Flow reconciliation: Net cash provided by (used in) operating activities $ 656,170 $ 413,480 $ 246,521 Less: Purchases of property and equipment (218,981) (194,826) (211,727) Free Cash Flow $ 437,189 $ 218,654 $ 34,794 The following table presents a reconciliation of Adjusted EBITDA to net loss, the most comparable GAAP financial measure, for each of the periods presented: Year Ended December 31, 2025 2024 2023 (in thousands) Adjusted EBITDA reconciliation: Net loss $ (460,489) $ (697,856) $ (1,322,485) Add (deduct): Interest income (134,159) (153,466) (168,394) Interest expense 121,998 21,552 22,024 Other (income) expense, net (68,870) 16,846 42,414 Income tax (benefit) expense 9,353 25,630 28,062 Depreciation and amortization 163,633 154,459 159,999 Stock-based compensation expense 1,016,825 1,031,621 1,319,783 Payroll and other tax expense related to stock-based compensation 41,188 37,768 39,324 Restructuring charges (1) — 72,051 40,850 Adjusted EBITDA $ 689,479 $ 508,605 $ 161,577 (1) Restructuring charges in 2024 are primarily related to cash severance, stock-based compensation expense, and other charges associated with the 2024 restructuring.
Additionally, we recognized an income tax benefit of $5.7 million relating to the wind down, which is included in the income tax (benefit) expense line item above.
Additionally, we recognized an income tax benefit of $5.7 million relating to the wind down, which is included in the income tax (benefit) expense line item above. These charges are not reflective of underlying trends in our business.
General and Administrative Expenses Year Ended December 31, 2024 vs 2023 Change 2023 vs 2022 Change 2024 2023 2022 $ % $ % (dollars in thousands) General and Administrative Expenses $ 919,097 $ 857,423 $ 953,265 $ 61,674 7 % $ (95,842) (10) % 2024 compared to 2023 General and administrative expenses for the year ended December 31, 2024 increased $61.7 million compared to the same period in 2023.
General and Administrative Expenses Year Ended December 31, 2025 vs 2024 Change 2024 vs 2023 Change 2025 2024 2023 $ % $ % (dollars in thousands) General and Administrative Expenses $ 979,133 $ 919,097 $ 857,423 $ 60,036 7 % $ 61,674 7 % 2025 compared to 2024 General and administrative expenses for the year ended December 31, 2025 increased $60.0 million compared to the same period in 2024.
We had 453 million DAUs on average in the fourth quarter of 2024, an increase of 39 million, or 9%, from the fourth quarter of 2023. 58 Table of Contents Quarterly Average Daily Active Users (1) (in millions) Global YoY growth: 17% 15% 14% 12% 10% 10% 9% 9% 9% (1) Numbers may not foot due to rounding.
We had 474 million DAUs on average in the fourth quarter of 2025, an increase of 21 million, or 5%, from the fourth quarter of 2024. 62 Table of Contents Quarterly Average Daily Active Users (1) (in millions) Global YoY growth (2) : 10% 10% 9% 9% 9% 9% 9% 8% 5% (1) Numbers may not foot due to rounding.
Our investing activities for the year ended December 31, 2023 primarily consisted of maturities of marketable securities of $2.4 billion and sales of marketable securities of $459.5 million, partially offset by purchases of marketable securities of $2.0 billion and purchases of property and equipment of $211.7 million.
Our investing activities for the year ended December 31, 2025 primarily consisted of maturities of marketable securities of $977.2 million and sales of marketable securities of $741.3 million, partially offset by purchases of marketable securities of $1.3 billion and purchases of property and equipment of $219.0 million.
Research and Development Expenses Year Ended December 31, 2024 vs 2023 Change 2023 vs 2022 Change 2024 2023 2022 $ % $ % (dollars in thousands) Research and Development Expenses $ 1,691,683 $ 1,910,862 $ 2,109,800 $ (219,179) (11) % $ (198,938) (9) % 2024 compared to 2023 Research and development expenses for the year ended December 31, 2024 decreased $219.2 million compared to the same period in 2023.
Research and Development Expenses Year Ended December 31, 2025 vs 2024 Change 2024 vs 2023 Change 2025 2024 2023 $ % $ % (dollars in thousands) Research and Development Expenses $ 1,793,601 $ 1,691,683 $ 1,910,862 $ 101,918 6 % $ (219,179) (11) % 2025 compared to 2024 Research and development expenses for the year ended December 31, 2025 increased $101.9 million compared to the same period in 2024.
We believe that we can be successful in our current operating environment, with various macroeconomic factors impacting our business, by rigorously prioritizing our investments and continuing to engage our community with our products while driving success for our advertising partners. However, the impact of our strategic reprioritization and recent restructurings is difficult to predict.
We believe that we can be successful in our current operating environment, with various macroeconomic factors and geo-political events and conflicts impacting our business, by rigorously prioritizing our investments and continuing to engage our community with our products while driving success for our advertising partners.
Other expense, net for the current year was primarily the result of $7.4 million in net losses on strategic investments and a $6.7 million net loss on extinguishment associated with the Note Repurchases, which is discussed within Note 7 to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
Other income , net for the current year was primarily driven by $96.7 million in gains on extinguishment associated with the repurchases of certain outstanding convertible notes, which is discussed within Note 7 to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K, partially offset by $12.6 million in net losses on strategic investments.
Cost of Revenue Year Ended December 31, 2024 vs 2023 Change 2023 vs 2022 Change 2024 2023 2022 $ % $ % (dollars in thousands) Cost of Revenue $ 2,474,237 $ 2,114,117 $ 1,815,342 $ 360,120 17 % $ 298,775 16 % 2024 compared to 2023 Cost of revenue for the year ended December 31, 2024 increased $360.1 million compared to the same period in 2023.
Cost of Revenue Year Ended December 31, 2025 vs 2024 Change 2024 vs 2023 Change 2025 2024 2023 $ % $ % (dollars in thousands) Cost of Revenue $ 2,669,575 $ 2,474,237 $ 2,114,117 $ 195,338 8 % $ 360,120 17 % 2025 compared to 2024 Cost of revenue for the year ended December 31, 2025 increased $195.3 million compared to the same period in 2024.
Net Loss and Adjusted EBITDA Year Ended December 31, 2024 vs 2023 Change 2023 vs 2022 Change 2024 2023 2022 $ % $ % (dollars in thousands) Net Loss $ (697,856) $ (1,322,485) $ (1,429,653) $ 624,629 47 % $ 107,168 7 % Adjusted EBITDA $ 508,605 $ 161,577 $ 377,573 $ 347,028 215 % $ (215,996) (57) % 2024 compared to 2023 Net loss for the year ended December 31, 2024 was $697.9 million, compared to $1,322.5 million for the same period in 2023.
Net Loss and Adjusted EBITDA Year Ended December 31, 2025 vs 2024 Change 2024 vs 2023 Change 2025 2024 2023 $ % $ % (dollars in thousands) Net Loss $ (460,489) $ (697,856) $ (1,322,485) $ 237,367 34 % $ 624,629 47 % Adjusted EBITDA $ 689,479 $ 508,605 $ 161,577 $ 180,874 36 % $ 347,028 215 % 2025 compared to 2024 Net loss for the year ended December 31, 2025 was $460.5 million, compared to $697.9 million for the same period in 2024.
Sales and marketing expenses also include costs incurred for advertising, market research, tradeshows, branding, marketing, promotional expense, and public relations, as well as facilities and other supporting overhead costs, including depreciation and amortization. 62 Table of Contents General and Administrative Expenses General and administrative expenses primarily consist of personnel-related costs, including salaries, benefits, and stock-based compensation expense for our finance, legal, information technology, human resources, and other administrative teams.
General and Administrative Expenses General and administrative expenses primarily consist of personnel-related costs, including salaries, benefits, and stock-based compensation expense for our finance, legal, information technology, human resources, and other administrative teams. General and administrative expenses also include facilities and supporting overhead costs, including depreciation and amortization, and external professional services.
Other expense, net in the prior year was primarily the result of $27.1 million in net losses on strategic investments and $6.7 million in net losses on publicly traded securities classified as marketable securities. 67 Table of Contents Income Tax Benefit (Expense) Year Ended December 31, 2024 vs 2023 Change 2023 vs 2022 Change 2024 2023 2022 $ % $ % (dollars in thousands) Income Tax Benefit (Expense) $ (25,630) $ (28,062) $ (28,956) $ 2,432 9 % $ 894 3 % Effective Tax Rate (3.8) % (2.2) % (2.1) % 2024 compared to 2023 Income tax expense was $25.6 million for the year ended December 31, 2024 , compared to $28.1 million for the same period in 2023 .
Other expense, net in the prior year was primarily the result of $7.4 million in net losses on strategic investments and a $6.7 million net loss on extinguishment associated with the repurchases of certain outstanding convertible notes in the prior year. 71 Table of Contents Income Tax Benefit (Expense) Year Ended December 31, 2025 vs 2024 Change 2024 vs 2023 Change 2025 2024 2023 $ % $ % (dollars in thousands) Income Tax Benefit (Expense) $ (9,353) $ (25,630) $ (28,062) $ 16,277 64 % $ 2,432 9 % Effective Tax Rate (2.1) % (3.8) % (2.2) % 2025 compared to 2024 Income tax expense was $9.4 million for the year ended December 31, 2025 , compared to $25.6 million for the same period in 2024 .
Interest Expense Year Ended December 31, 2024 vs 2023 Change 2023 vs 2022 Change 2024 2023 2022 $ % $ % (dollars in thousands) Interest Expense $ (21,552) $ (22,024) $ (21,459) $ 472 (2) % $ (565) 3 % 2024 compared to 2023 Interest expense for the year ended December 31, 2024 decreased $0.5 million compared to the same period in 2023.
Interest Expense Year Ended December 31, 2025 vs 2024 Change 2024 vs 2023 Change 2025 2024 2023 $ % $ % (dollars in thousands) Interest Expense $ (121,998) $ (21,552) $ (22,024) $ (100,446) 466 % $ 472 (2) % 2025 compared to 2024 Interest expense for the year ended December 31, 2025 increased $100.4 million compared to the same period in 2024.
Our future capital requirements will depend on many factors including our growth rate, headcount, sales and marketing activities, research and development efforts, the introduction of new features, products, and acquisitions, and continued user engagement.
We believe our existing cash balance is sufficient to fund our ongoing working capital, investing, and financing requirements for at least the next 12 months. Our future capital requirements will depend on many factors including our growth rate, headcount, sales and marketing activities, research and development efforts, the introduction of new features, products, and acquisitions, and continued user engagement.
(3) Europe includes Russia and Turkey. 59 Table of Contents Rest of World YoY growth: 31 % 27 % 25 % 21 % 19 % 19 % 16 % 16 % 17 % Monetization We recorded revenue of $5.4 billion for the year ended December 31, 2024, compared to revenue of $4.6 billion for the year ended December 31, 2023, an increase of 16% year-over-year.
Rest of World YoY growth: 19 % 19 % 16 % 16 % 17 % 16 % 15 % 15 % 11 % Monetization We recorded revenue of $5.9 billion for the year ended December 31, 2025, compared to revenue of $5.4 billion for the year ended December 31, 2024, an increase of 11% year-over-year.
General and administrative expenses also include facilities and supporting overhead costs, including depreciation and amortization, and external professional services. Interest Income Interest income primarily consists of interest earned on our cash, cash equivalents, and marketable securities. Interest Expense Interest expense primarily consists of interest expense associated with convertible notes and commitment fees related to our revolving credit facility.
Interest Income Interest income primarily consists of interest earned on our cash, cash equivalents, and marketable securities. Interest Expense Interest expense primarily consists of interest expense associated with our notes and commitment fees related to our revolving credit facility.
We may contemplate and engage in merger and acquisition activity that could materially impact our liquidity and capital resource position. As of December 31, 2024, approximately 3% of our cash, cash equivalents, and marketable securities was held outside the United States. These amounts were primarily held in Canada and the United Kingdom and are utilized to fund our international operations.
We may 72 Table of Contents contemplate and engage in merger and acquisition activity that could materially impact our liquidity and capital resource position. As of December 31, 2025, approximately 7% of our cash, cash equivalents, and marketable securities was held by our foreign subsidiaries, primarily in the United Kingdom.
Under these arrangements, we pay a portion of the fees we receive from advertisers for Snap Ads that are displayed within partner content on Snapchat. Advertising partner and other costs primarily consist of payments to third-party partners for fulfillment services, credit card and other transaction processing fees, and other expenses directly related to providing our services.
Content and developer partner costs primarily consist of fees paid to our content creators and publisher partners who share content on our platform through revenue sharing arrangements. Under these arrangements, we pay a portion of the fees we receive from advertisers for Snap Ads that are displayed within partner content on Snapchat.
Infrastructure costs primarily consist of payments to th ird-party infrastructure partners for hosting our products, which include expenses related to storage, computing, and bandwidth. Content and developer partner costs primarily consist of fees paid to our content creators and publisher partners who share content on our platform through revenue sharing arrangements.
Sales of physical products are reported net of allowances for returns. Cost of Revenue Cost of revenue includes payments for infrastructure, content and developer partner costs, and advertiser partner and other costs. Infrastructure costs primarily consist of payments to th ird-party infrastructure partners for hosting our products, which include expenses related to storage, computing, and bandwidth.
Free Cash Flow also included purchases of property and equipment of $194.8 million for the year ended December 31, 2024, compared to $211.7 million for the year ended December 31, 2023.
Free Cash Flow also included purchases of property and equipment of $219.0 million for the year ended December 31, 2025, compared to $194.8 million for the year ended December 31, 2024. Purchases of property and equipment in both periods are primarily related to improvements to our leased facilities to support our team workspaces.
Net cash provided by operating activities for the year ended December 31, 2024 was also driven by a $150.4 million increase in accrued expenses and other current liabilities, offset by a 70 Table of Contents $100.7 million decrease in accounts payable and a $94.0 million increase in accounts receivables due to the timing of collections and an increase in billings in the period.
Net cash provided by operating activities for the year ended December 31, 2025 was also driven by a $45.9 million increase in accounts payable and a $66.7 million increase in prepaid expenses and other current assets primarily due to the timing of payments, as well as a $31.8 million increase in accounts receivable due to the timing of collections.
The Credit Facility also contains an annual commitment fee of 0.10% on the daily undrawn balance of the facility. As of December 31, 2024, we had $80.7 million in the form of outstanding standby letters of credit, with no amounts outstanding under the Credit Facility.
As of December 31, 2025, we had $82.2 million in the form of outstanding standby letters of credit, with no amounts outstanding under the Credit Facility.
Cost of revenue includes personnel-related costs, including salaries, benefits, and stock-based compensation expense for our employees engaged in the delivery of our services. Cost of revenue also includes facilities and other supporting overhead costs, including depreciation and amortization, and inventory costs.
Advertising partner and other costs primarily consist of payments to third-party partners for fulfillment services, transaction processing fees, and other expenses directly related to providing our services. Cost of revenue includes personnel-related costs, including salaries, benefits, and stock-based compensation expense for our employees engaged in the delivery of our services.
The increase was primarily driven by a $269.1 million increase in infrastructure costs, attributable to DAU growth of 65 Table of Contents 9% compared to the prior year as well as investments in machine learning and AI. The increase in infrastructure costs was partially offset by improvements to our cloud infrastructure unit costs resulting from engineering efficiencies and pricing improvements.
The increase was primarily driven by a $143.0 million increase in infrastructure costs, attributable to DAU growth as 69 Table of Contents well as investments in machine learning and AI. The increase was also attributable to higher transaction processing fees resulting from growth in subscription revenues.
Effective March 2022, we halted advertising sales to Russian and Belarusian entities. 61 Table of Contents Rest of World Results of Operations Components of Results of Operations Revenue We generate substantially all of our revenue through the sale of our advertising products, which primarily include Snap Ads and AR Ads, referred to as advertising revenue.
Europe also includes Russia and Belarus; however, we maintain a policy prohibiting sales to entities in these countries. 65 Table of Contents Rest of World Results of Operations Components of Results of Operations Revenue We generate the substantial majority of our revenue through the sale of our advertising products on Snapchat, which include Snap Ads and AR Ads, referred to as advertising revenue.
We record a provision for a liability when we believe that it is both probable that a liability has been incurred and the amount can be reasonably estimated. We also disclose material contingencies when we believe that a loss is not probable but reasonably possible. Significant judgment is required to determine both probability and the estimated amount.
We also disclose material contingencies when we believe that a loss is not probable but reasonably possible. Significant judgment is required to determine both probability and the 73 Table of Contents estimated amount. Such claims, suits, and proceedings are inherently unpredictable and subject to significant uncertainties, some of which are beyond our control.
Should any of these estimates and assumptions change or prove to be incorrect, it could have a material impact on our results of operations, financial position, and cash flows. We believe our existing cash balance is sufficient to fund our ongoing working capital, investing, and financing requirements for at least the next 12 months.
Many of these legal and tax contingencies can take years to resolve. Should any of these estimates and assumptions change or prove to be incorrect, it could have a material impact on our results of operations, financial position, and cash flows.
Cash held outside the United States may be repatriated, subject to certain limitations, and 68 Table of Contents would be available to be used to fund our domestic operations. However, repatriation of funds may result in additional tax liabilities. We believe our existing cash balance in the United States is sufficient to fund our working capital needs.
Cash held by our foreign subsidiaries is utilized to fund our foreign operations and may be repatriated, subject to certain limitations. Upon repatriation, these funds would be available to fund our domestic operations, but repatriation may result in additional tax liabilities.
The increase in advertising revenue was primarily driven by an increase in global advertising impressions volume of approximately 16% compared to the prior year, partially offset by a decrease in the cost per advertising impression of approximately 4%.
The increase was driven by a $282.4 million increase in advertising revenue for the year ended December 31, 2025. The increase in advertising revenue was primarily driven by an increase in global advertising impressions volume of approximately 17% compared to the prior year, largely due to expanded advertising delivery within Sponsored Snaps and Spotlight.
The increase in global advertising impressions volume was driven by expanded advertising delivery within Spotlight and Creator Stories and the decrease in the cost per advertising impression was due to inventory growth exceeding advertising demand growth. The increase in revenue was also driven by higher subscription revenue due to an increase in the number of subscribers.
The increase in advertising revenue was partially offset by a decrease in the cost per advertising impression of approximately 10%, which is driven by strong growth in impressions delivery. The increase in total revenue was also driven by a $287.6 million increase in other revenue, which is predominantly due to higher subscription revenue from growth in the number of subscribers.
The decrease was partially offset by $38.8 million in restructuring charges related to the 2024 restructuring.
The increase was primarily due to investments in product development, including higher employee compensation due to additional research and development headcount. The increase was partially offset by $38.8 million in restructuring charges recognized in 2024.
Interest Income Year Ended December 31, 2024 vs 2023 Change 2023 vs 2022 Change 2024 2023 2022 $ % $ % (dollars in thousands) Interest Income $ 153,466 $ 168,394 $ 58,597 $ (14,928) (9) % $ 109,797 187 % 2024 compared to 2023 Interest income for the year ended December 31, 2024 decreased $14.9 million compared to the same period in 2023, primarily driven by lower invested cash balances throughout the year and lower interest rates from macroeconomic events.
The increase was primarily driven by higher spend on external professional services, including legal-related expenses, partially offset by $10.3 million in restructuring charges recognized in 2024. 70 Table of Contents Interest Income Year Ended December 31, 2025 vs 2024 Change 2024 vs 2023 Change 2025 2024 2023 $ % $ % (dollars in thousands) Interest Income $ 134,159 $ 153,466 $ 168,394 $ (19,307) (13) % $ (14,928) (9) % 2025 compared to 2024 Interest income for the year ended December 31, 2025 decreased $19.3 million compared to the same period in 2024, primarily driven by lower interest rates and decreased investments in marketable debt securities.
The decrease was primarily driven by lower employee compensation, which included a $39.0 million decrease in stock-based compensation expenses. The lower employee compensation was primarily due to a decrease in sales and marketing headcount compared to the prior year.
The decrease was primarily driven by the timing of marketing events occurring in the prior year, lower advertising and marketing investments, as well as $19.9 million in restructuring charges recognized in 2024. The decrease was partially offset by higher employee compensation due to additional sales and marketing headcount.
Our financing activities for the year ended December 31, 2023 primarily consisted of $189.4 million of repurchases of our Class A common stock and $270.4 million of deferred payments for acquisitions completed in prior periods.
Our financing activities for the year ended December 31, 2025 primarily consisted of the repurchases of certain outstanding convertible notes for $2.0 billion, repurchases of our Class A common stock for $750.9 million, deferred payments for acquisitions of $72.5 million, and the repayment of our convertible senior notes due in 2025 (the “2025 Notes”) for $36.2 million, partially 74 Table of Contents offset by the issuance of the 2033 Notes and 2034 Notes for total net proceeds of $2.0 billion.
Sales tax, including value added tax, is excluded from reported revenue. 73 Table of Contents We generate substantially all of our revenues by offering various advertising products on Snapchat, which include Snap Ads and AR Ads, referred to as advertising revenue.
Revenue Recognition We generate the substantial majority of our revenue through the sale of our advertising products on Snapchat, which include Snap Ads and AR Ads, referred to as advertising revenue. Other revenue primarily consists of service revenue from our Snapchat subscriptions and partnerships, including an agreement with our AI platform partner.
Removed
North America (2) Europe (3) YoY growth: 3% 3% 2% 1% —% (1)% —% —% (1)% 12% 10% 9% 7% 4% 4% 3% 4% 4% (2) North America includes Mexico, the Caribbean, and Central America.
Added
(2) In the first quarter of 2025, we refined our processes and controls to allow us to more accurately record user activity that would not otherwise be recorded during such period due to delays in receiving user metric information resulting from carrier or other user connectivity issues during the measurement period.
Removed
Snap Ads may be subject to revenue sharing arrangements between us and the content partner. We also generate revenue from subscriptions and sales of hardware products. Sales of hardware products are reported net of allowances for returns. Cost of Revenue Cost of revenue includes payments for infrastructure, content and developer partner costs, and advertiser partner and other costs.
Added
For additional information concerning these refinements, see the “Note Regarding User Metrics and Other Data.” As a result of such refinements, our DAUs may not be directly comparable to those in prior periods, including in this table and the following tables below as they reflect a comparison to previously reported numbers. 63 Table of Contents North America (3) Europe (4) YoY growth: —% (1)% —% —% (1)% (1)% (2)% (3)% (5)% 4% 4% 3% 4% 4% 3% 3% 1% (1)% (3) North America includes Mexico, the Caribbean, and Central America.
Removed
The decrease was primarily driven by lower employee compensation, which included a $209.2 million decrease in stock-based compensation expenses. The lower employee compensation was due to a decrease in research and development headcount compared to the prior year as well as the diminished impact of refresh equity grants relative to the prior year.
Added
Snap Ads may be subject to revenue sharing arrangements between us and the content partner. Additionally, we generate revenue from subscriptions, such as Snapchat+, Lens+, and Snapchat Platinum, which provide subscribers access to exclusive, experimental, and pre-release features, as well as an ad-free experience for Snapchat Platinum subscribers.
Removed
The decrease was partially offset by increased marketing investments, which included a $32.8 million increase in advertising costs, and $19.9 million in restructuring charges related to the 2024 restructuring.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

9 edited+5 added−11 removed3 unchanged
Biggest changeForeign Currency Risk For all periods presented, our revenue and operating expenses were predominately denominated in U.S. dollars. We therefore have not had material foreign currency risk associated with revenue and cost-based activities.
Biggest changeHowever, the fair value of the notes will fluctuate with movements in market interest rates, and in the case of the Convertible Notes, with movements of our stock’s market price. 78 Table of Contents Foreign Currency Risk For all periods presented, our revenue and operating expenses were predominately denominated in U.S. dollars.
Our strategic investments in privately held companies primarily consist of equity securities without readily determinable fair values. We adjust the carrying value of these equity securities to fair value upon observable transactions for identical or similar investments of the same issuer or upon impairment. All strategic investments are reviewed periodically for impairment.
Our strategic investments in privately held companies primarily consist of equity securities without readily determinable fair values. We adjust the carrying value of these securities to fair value upon observable transactions for identical or similar investments of the same issuer or upon impairment.
For additional discussion on foreign currency risk, see “Risk Factors” elsewhere in this Annual Report on Form 10-K. Equity Price Risk We hold equity securities in privately held and publicly traded companies, which are subject to equity price risks that could have a material impact on the carrying value of our holdings.
For additional discussion on foreign currency risk, see “Risk Factors” elsewhere in this Annual Report on Form 10-K. Investment Valuation and Liquidity Risk We hold equity securities in privately held and publicly traded companies, which expose us to valuation and liquidity risks that could have a material impact on the carrying value of our holdings.
For the periods presented, we believe the exposure to foreign currency fluctuation from operating expenses is immaterial as the related costs do not constitute a significant portion of our total expenses. As we grow operations, our exposure to foreign currency risk will likely become more significant.
For the periods presented, we believe the exposure to foreign currency fluctuation from revenue and operating expenses is immaterial as the related revenue or costs do not constitute a significant portion of their respective totals. As we grow operations, our exposure to foreign currency risk will likely become more significant.
However, due to fluctuations in exchange rates, we have experienced, and may in the future experience, negative impacts to our revenue and operating expenses denominated in currencies other than the U.S. dollar. The functional currency of our material operating entities is the U.S. dollar.
We therefore have not had material foreign currency risk associated with revenue and cost-based activities. However, due to fluctuations in exchange rates, we have experienced, and may in the future experience, negative impacts to our revenue and operating expenses denominated in currencies other than the U.S. dollar. The functional currency of our material operating entities is the U.S. dollar.
These risks primarily include interest rate risk, foreign currency risk and equity price risk as follows: Interest Rate Risk We had cash and cash equivalents totaling $1.0 billion and $1.8 billion as of December 31, 2024 and December 31, 2023, respectively.
These risks primarily include interest rate risk, foreign currency risk and investment valuation and liquidity risk as follows: Interest Rate Risk We had cash and cash equivalents totaling $1.0 billion and $1.0 billion as of December 31, 2025 and December 31, 2024, respectively.
Our total strategic investments had carrying values of $188.3 million and $195.3 million as of December 31, 2024 and 2023, respectively. Our investments in publicly traded equity securities had carrying values of $12.4 million and $13.6 million as of December 31, 2024 and 2023, respectively. 76 Table of Contents
Our investments in publicly traded equity securities had carrying values of $9.5 million and $12.4 million as of December 31, 2025 and 2024, respectively. 79 Table of Contents
We do not enter into investments for trading or speculative purposes. Due to the relatively short-term nature of our investment portfolio, a hypothetical 100 basis point change in interest rates would not have a material effect on the fair value of our portfolio for the periods presented.
The primary objectives of our investment activities are to preserve principal and provide liquidity without significantly increasing risk. We do not enter into investments for trading or speculative purposes. Due to the relatively short-term nature of our investment portfolio, changes in interest rates do not have a material effect on the fair value of our portfolio.
We had marketable securities totaling $2.3 billion and $1.8 billion as of December 31, 2024 and December 31, 2023, respectively.
We had marketable securities totaling $1.9 billion and $2.3 billion as of December 31, 2025 and December 31, 2024, respectively. Our cash and cash equivalents primarily consist of cash in bank accounts and money market funds, and our marketable securities generally consist of U.S. government debt securities, publicly traded equity securities and corporate debt securities.
Removed
Our cash and cash equivalents primarily consist of cash in bank accounts and money market funds, and our marketable securities consist of U.S. government debt and agency securities, publicly traded equity securities, corporate debt securities, certificates of deposit, and commercial paper. The primary objectives of our investment activities are to preserve principal and provide liquidity without significantly increasing risk.
Added
A hypothetical 100 basis point increase in interest rates would result in a $18.2 million and $22.5 million decrease in the market value of our cash equivalents and marketable securities as of December 31, 2025 and December 31, 2024, respectively.
Removed
In May 2024, we issued the 2030 Notes with an aggregate principal amount of $750.0 million, the full amount of which is outstanding as of December 31, 2024. We carry the 2030 Notes at face value less the unamortized debt issuance costs on our consolidated balance sheets.
Added
As of December 31, 2025 and December 31, 2024, we had aggregate principal amounts of debt outstanding of $3.5 billion and $3.7 billion, respectively. Since our notes bear interest at fixed rates and are carried at amortized cost, fluctuations in interest rates do not have any impact on our consolidated financial statements.
Removed
The 2030 Notes have a fixed interest rate; therefore, we have no financial statement risk associated with changes in interest rates with respect to the 2030 Notes. The fair value of the 2030 Notes changes when the market price of our stock fluctuates or market interest rates change.
Added
The fair value derived from an observable transaction is based on information available at that time and may not be indicative of the fair value at the balance sheet date.
Removed
In February 2022, we issued the 2028 Notes with an aggregate principal amount of $1.5 billion, the full amount of which is outstanding as of December 31, 2024. We carry the 2028 Notes at face value less the unamortized debt issuance costs on our consolidated balance sheets.
Added
These investments, particularly those in early-stage companies, are inherently risky because their technologies or products may not progress to commercialization, and the companies may experience financial or operational difficulties, either of which could result in the loss of a substantial portion of our investment.
Removed
The 2028 Notes have a fixed interest rate; therefore, we have no financial statement risk associated with changes in interest rates with respect to the 2028 Notes. The fair value of the 2028 Notes changes when the market price of our stock fluctuates or market interest rates change.
Added
The value ultimately realized on these investments is also subject to the occurrence and timing of liquidity events, such as public offerings, acquisitions, private sales, or other market transactions. Our total strategic investments had carrying values of $183.7 million and $188.3 million as of December 31, 2025 and 2024, respectively.
Removed
In April 2021, we issued the 2027 Notes with an aggregate principal amount of $1.15 billion, the full amount of which is outstanding as of December 31, 2024. We carry the 2027 Notes at face value less the unamortized debt issuance costs on our consolidated balance sheets.
Removed
The 2027 Notes do not bear regular interest; therefore, we have no financial statement risk associated with changes in interest rates with respect to the 2027 Notes. The fair value of the 2027 Notes changes when the market price of our stock fluctuates or market interest rates change.
Removed
In April 2020, we issued the 2025 Notes with an aggregate principal amount of $1.0 billion, of which $36.2 million remains outstanding as of December 31, 2024. We carry the 2025 Notes at face value less the unamortized debt issuance costs on our consolidated balance sheets.
Removed
The 2025 Notes have a fixed interest rate; therefore, we have no 75 Table of Contents financial statement risk associated with changes in interest rates with respect to the 2025 Notes. The fair value of the 2025 Notes changes when the market price of our stock fluctuates or market interest rates change.
Removed
In August 2019, we issued the 2026 Notes with an aggregate principal amount of $1.265 billion, of which $249.8 million remains outstanding as of December 31, 2024. We carry the 2026 Notes at face value less the unamortized debt issuance costs on our consolidated balance sheets.
Removed
The 2026 Notes have a fixed interest rate; therefore, we have no financial statement risk associated with changes in interest rates with respect to the 2026 Notes. The fair value of the 2026 Notes changes when the market price of our stock fluctuates or market interest rates change.

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