Snapchat has published its Q4 2025 performance update, revealing a mixed picture for the social media platform as it prepares for its critical AR Specs launch. While the app lost 3 million daily active users, dropping to 474 million DAU, it maintained steady revenue growth, bringing in $1.72 billion for the quarter—a 10% year-over-year increase.
User Decline Amid Regulatory Pressures
The daily user decline reflects external pressures rather than pure platform decay. Snapchat’s ban in Russia in December and Australia’s restrictions on under-16 social media usage contributed to an estimated 8.5 million user loss. However, the company’s monthly active users continue to grow, suggesting sustained engagement among its core audience. Notably, the app is experiencing steady declines in the U.S. and EU markets, indicating potential market saturation.
Revenue Focus Shifts to Profitability
Snap is pivoting strategy by emphasizing subscription growth and monetization rather than user acquisition. Snapchat+ subscribers grew 71% year-over-year to reach 24 million, with the company targeting subscription revenue as a key performance metric. The company also expanded its advertiser base through SMB initiatives and AI-powered advertising tools, though it remains heavily dependent on the U.S. market for revenue generation.
The real test lies ahead with the AR Specs launch, where Snap faces formidable competition from Meta’s upcoming AR device. While Snap possesses AR expertise and first-mover advantage, industry analysts question whether its device can compete against Meta’s resources and established position in the smart glasses market. This challenge will define Snap’s future trajectory.