SNAPSnap Inc.
Is the business good?
The checks split: nothing decisive, though margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is SNAP?
Snap Inc. earns −8.7% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 18 points below what the capital costs: growth destroys value
- Operating margin
- −5.1%
Operating margin · Internet Content & Information median 4.9% · 12 months to Q2 2026
- Share count, year on year
- −0.68%
Share count, year on year · flat: no meaningful dilution
- R&D as % of revenue
- 31%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −34% |
| FY2021 | −17% |
| FY2022 | −30% |
| FY2023 | −30% |
| FY2024 | −15% |
| FY2025 | −9.0% |
Details›
- Gross margin12 months to Q2 2026
- 57%
- Operating margin12 months to Q2 2026
- −5.1%
- Net margin12 months to Q2 2026
- −4.9%
- Free cash flow margin
- 11%
- R&D as % of revenue
- 31%
- Revenue, trailing twelve months
- $6.35B
- Free cash flow, trailing twelve months
- $706M
- Net income, trailing twelve months
- −$311M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −8.7%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Internet Content & Information
Ranks #28 of 31 by RyuScore