Snap Inc. posted strong Q3 2025 results with 10% revenue growth to US$1.51 billion and an 8% rise in users. Its US$400 million partnership with Perplexity AI marks a strategic shift toward integrating conversational AI and expanding beyond traditional advertising.
With a revenue of US$1.51 billion, up approximately 10% from a year earlier, Snapchat Inc. not only exceeded Wall Street’s predictions but also demonstrated the growing confidence of advertisers. The company has reported third-quarter 2025 results that surpassed expectations, marking a remarkable comeback for the social media company following several tough quarters. Its net loss decreased from US$153 million in the same quarter of last year to nearly US$104 million.
The number of daily active users went up by 8% reaching almost 477 million, which is a clear sign of the company’s popularity in the global markets and the Gen Z audience. The increase in the user base was attributed by management to improved content discovery, new augmented reality features, and more engagement in its short-form video capabilities. One of the most controversial issues discussed during Snap’s earnings call was its newly unveiled partnership with Perplexity AI
The deal states that Perplexity will integrate its AI-powered search engine into Snapchat. This will allow the users to ask questions in neutral language and get relevant answers within the app. After the announcement of the results, Snap’s stock price jumped significantly in after-hours trading, implying that investors were, at least, delighted. The executive members still recognized that there would be problems in the future.
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Meanwhile, regulatory changes such as tighter age-verification requirements and the international privacy frameworks that the companies might have to comply with could slow down user growth for a number of months ahead. However, staying positive, Snapchat gave a revenue forecast of US$1.68 – US$1.71 billion for the last quarter of the year. Financial resurgence and innovative strategy are two different faces of the same coin, and the industry experts consider them as licensing Snap’s revival.
