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Home/News Feed/Snap's Q1 shows strong growth and cost cuts, backing its risky AR glasses bet.

SNAP

$4.76

+$0.00 +0.11%

Snap's Q1 shows strong growth and cost cuts, backing its risky AR glasses bet.

Company Fundamentals

13 May 2026

Forbes

View Source

Bullish

Snap reported a 12% revenue increase to $1.53 billion in Q1, with daily active users growing to 483 million and adjusted EBITDA more than doubling to $233 million. The company narrowed its net loss to $89 million and improved free cash flow to $286 million, demonstrating better operational discipline. Despite activist investor pressure to spin off or shut down its AR glasses project, Specs, Snap reaffirmed its commitment to this strategic bet, aiming to lead in augmented reality technology against competitors like Meta and Apple. The success of Specs depends on Snap's ability to scale AR Lenses into a viable platform, balancing short-term financial discipline with long-term innovation.

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