Snap's User Base Surges to 932M MAUs as AR Engagement Soars
Snap Inc. has reported impressive growth, with games engagement surging 40% year-over-year (YoY) to 175 million monthly active users (MAUs). Video chat time also climbed 30% YoY, reflecting increased user interaction on the platform.
Snap's user base continues to expand, now reaching 932 million MAUs, with over 350 million daily active AR users. The company's premium subscription service, Snapchat+, has also seen growth, with subscribers increasing from 15 million to 16 million quarter-over-quarter (QoQ).
Snap's investment in a vertically integrated AR platform, totalling over $3 billion, is paying off. The company has developed proprietary data and unique developer tools, attracting users and advertisers alike. Sponsored Snaps, launched in late 2024, have shown stronger engagement, conversion, and dwell times than traditional ad formats. Meanwhile, Spotlight usage surged 23% YoY, nearly doubling the time spent on the platform.
Institutional investors have taken note of Snap's performance. Hedge funds such as Voloridge Investment Management, Contour Asset Management LLC, and Two Sigma Investments LP have added significant shares of Snap Inc. to their portfolios in Q2 2025.
Snap's free cash flow per share is rising sharply, and the annual revenue run-rate from Snapchat+ is $700 million. The company's share was trading at $8.53 as of September 22nd, with a forward P/E of 23.70, and is trading at just over 2x sales, implying an asymmetric opportunity.
Snap Inc.'s strong user growth, innovative AR platform, and robust financial performance have positioned the company as a leader in the social media landscape. With increased engagement, a growing user base, and positive investor sentiment, Snap looks set to continue its upward trajectory.
