Snap direct revenue hits $1b, subscribers top 25 million

Snapchat’s parent company, Snap, reported that its direct-revenue business reached a US$1 billion annualized run rate, driven mainly by growth in its Snapchat+ subscription service.

The company also announced that its total subscriber count exceeded 25 million.

In response to intense competition from TikTok and Meta’s Instagram, Snap is focusing on expanding its subscription offerings to diversify revenue, as ads remain its primary income source.

CEO Evan Spiegel highlighted efforts to make direct revenue a sustained growth driver and recently announced a test of a new subscription feature for creators in the US, starting February 23.

The platform’s active advertisers increased by 28% in Q4, while daily active users rose 5% to 474 million but declined by 3 million from the previous quarter.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

The $1 billion milestone is a bright spot amid ongoing losses

Snap touted Snapchat+ subscription growth, yet the company stayed unprofitable with a net loss of $460 million for fiscal year 2025 1.
The shift toward subscriptions comes from pressure, since ads still bring in most revenue. Ad revenue rose 4% year-over-year in Q2 2025, while the global digital ad market grew 13% year-over-year 2.
Snap’s stock fell to an all-time low of $4.72 per share on Feb. 12, 2026 3.
The strain became clearer when chief technology officer Robert C. Murphy sold 2 million shares in the same period, per an SEC Form 4 filing (a required disclosure insiders file when they buy or sell company stock) 3.

Subscriptions are becoming a bigger strategic lever for social platforms

Snap is expanding subscriptions through Snapchat+ and a test of a new subscription feature for creators in the US. The effort adds another income stream as Snap’s share of the global digital ad market stays under 1% 2.
Across social media, tighter competition for ad dollars is pushing more platforms to collect direct payments from users and creators. Ads still drive most of Snap’s business 2.
CEO Evan Spiegel called Snap’s position a “crucible moment,” with pressure from larger and smaller rivals, and said direct revenue can support long-term growth 2.
The shift may push investors and rivals to rethink ad-only approaches, with more attention on blended revenue per user and more momentum for paid features across social platforms.