Snap (0RNH) AI Stock Analysis

Company Guidance

Snap guided Q3 revenue of $1.70–$1.74 billion and Q3 adjusted EBITDA of $300–$350 million, noting infrastructure costs will grow modestly in Q3 and full-year infrastructure is now expected at $1.65–$1.70 billion (up from $1.60–$1.65b), with all other cost of revenue (ex‑infrastructure) at 16–17% of revenue. They reiterated full‑year adjusted operating expenses of ~ $2.75 billion and stock‑based compensation of ~ $1.05 billion, said personnel savings from the recent restructuring should show up in Q3+, and confirmed Specs investment is being paced within the existing opex outlook. For context, Q2 operating cash flow was $176 million and free cash flow $121 million (TTM OCF $919 million, FCF $706 million), Snap ended Q2 with ~$2.7 billion cash and marketable securities, has generated positive FCF for eight consecutive quarters, limited fully diluted share count growth to ~2% over five years while repaying >$2 billion of convertibles plus $47 million due Aug‑2026, and expects to complete the current repurchase in Q4 then launch a multiyear, FCF‑funded dilution management program beginning in 2027; management said free cash flow per share is now the primary financial objective and reiterated expectations for gross margin and adjusted EBITDA margin expansion with sustained positive net income beginning in 2027.