Is the business good?
How good a business is SNAP?
Snap Inc. earns −11% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
−11%
Return on invested capital · cost of capital 9.0% · 20 points below what the capital costs: growth destroys value
- Operating margin
- −6.8%
Operating margin · Internet Content & Information median 6.3% · 12 months to Q1 2026
- Share count, year on year
- −0.51%
Share count, year on year · flat: no meaningful dilution
- R&D as % of revenue
- 30%
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 Q1 2026
- 56%
- Operating margin12 months to Q1 2026
- −6.8%
- Net margin12 months to Q1 2026
- −6.7%
- Free cash flow margin
- 10.0%
- R&D as % of revenue
- 30%
- Revenue, trailing twelve months
- $6.10B
- Free cash flow, trailing twelve months
- $609M
- Net income, trailing twelve months
- −$410M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Internet Content & Information
Ranks #20 of 24 by Smart Score