Snap Inc 10-K

Item 8. Financial Statements and Supplementary Data. SNAP INC. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Reports of Independent Registered Public Accounting Firm (PCAOB ID: 42) 81 Consolidated Financial Statements: Consolidated Statements of Cash Flows 84 Consolidated Statements of Operations 85 Consolidated Statements of Comprehensive Income (Loss) 86 Consolidated Balance Sheets 87 Consolidated Statements of Stockholders’ Equity 88 Notes to Consolidated Financial Statements 89 80 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Snap Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Snap Inc. (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 4, 2026 expressed an unqualified opinion thereon. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates. 81 Table of Contents Revenue Recognition Description of the Matter As described in Note 2 to the consolidated financial statements, the Company generates the substantial majority of its revenues through the sale of its advertising products on Snapchat. Advertising revenue is primarily generated from the display of advertisements on Snapchat through contractual agreements with customers that are either based on the number of advertising impressions delivered or on a fixed fee basis for advertisements delivered over a period of time. Revenues related to agreements based on the number of advertising impressions delivered are recognized when the advertisements are served while fixed fee agreements are recognized ratably over the service period. The Company’s advertising revenue recognition process utilizes proprietary systems for the initiation, processing, and recording of transactions which comprise a high volume of individually low monetary value transactions. This process is dependent on the effective design and operation of systems, data sources, and controls that required significant audit effort. How We Addressed the Matter in Our Audit With the support of our information technology professionals, we identified and tested the relevant systems used for the determination of initiation, processing, recording, and billing of revenue, which included processes and controls related to access to the relevant systems and data, changes to the relevant systems and interfaces, and configuration of the relevant systems. To test the Company’s recognition of advertising revenue, our audit procedures included, among others, testing the completeness and accuracy of the underlying data within the Company’s billing systems by agreeing amounts recognized to contractual terms and conditions, and testing revenue recognized to accounts receivable and cash receipts. Additionally, we examined standard customer online terms and conditions to understand the distinct performance obligations and tested the timing of revenue recognition. /s/ Ernst & Young LLP We have served as the Company’s auditor since 2016. Los Angeles, California February 4, 2026 82 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Snap Inc. Opinion on Internal Control Over Financial Reporting We have audited Snap Inc.’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Snap Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes, and our report dated February 4, 2026 expressed an unqualified opinion thereon. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP Los Angeles, California February 4, 2026 83 Table of Contents Snap Inc. Consolidated Statements of Cash Flows (in thousands) Year Ended December 31, 2025 2024 2023 Cash flows from operating activities Net loss $ ( 460,489 ) $ ( 697,856 ) $ ( 1,322,485 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 163,633 158,074 168,441 Stock-based compensation 1,016,825 1,041,023 1,324,004 Amortization of debt issuance costs and debt discount (premium) 6,880 9,388 7,361 Losses (gains) on debt and equity securities, net 16,940 8,460 33,027 (Gain) loss on extinguishment of debt ( 96,734 ) 6,672 — Other 26,119 ( 20,825 ) ( 26,958 ) Change in operating assets and liabilities, net of effect of acquisitions: Accounts receivable, net of allowance ( 31,827 ) ( 94,005 ) ( 98,127 ) Prepaid expenses and other current assets ( 66,744 ) ( 36,544 ) ( 9,920 ) Operating lease right-of-use assets 57,214 54,127 70,674 Other assets 7,705 ( 9,952 ) 2,238 Accounts payable 45,918 ( 100,728 ) 94,988 Accrued expenses and other current liabilities 12,814 150,391 62,130 Operating lease liabilities ( 34,429 ) ( 62,663 ) ( 68,007 ) Other liabilities ( 7,655 ) 7,918 9,155 Net cash provided by (used in) operating activities 656,170 413,480 246,521 Cash flows from investing activities Purchases of property and equipment ( 218,981 ) ( 194,826 ) ( 211,727 ) Purchases of strategic investments ( 22,500 ) ( 2,000 ) ( 7,770 ) Sales of strategic investments 11,050 1,755 7,559 Cash paid for acquisitions, net of cash acquired ( 35,499 ) — ( 50,254 ) Purchases of marketable securities ( 1,275,796 ) ( 2,287,668 ) ( 2,048,273 ) Sales of marketable securities 741,266 354,311 459,481 Maturities of marketable securities 977,159 1,411,444 2,424,717 Other ( 3,581 ) ( 100 ) ( 2,779 ) Net cash provided by (used in) investing activities 173,118 ( 717,084 ) 570,954 Cash flows from financing activities Proceeds from issuance of notes, net of issuance costs 2,014,193 740,350 — Purchase of capped calls — ( 68,850 ) — Proceeds from termination of capped calls — 62,683 — Proceeds from the exercise of stock options 374 12,798 1,038 Repurchases of Class A non-voting common stock ( 750,866 ) ( 311,069 ) ( 189,394 ) Deferred payments for acquisitions ( 72,539 ) ( 3,695 ) ( 270,433 ) Repurchases of convertible notes ( 1,994,550 ) ( 859,042 ) — Repayment of convertible notes ( 36,240 ) — — Other ( 8,497 ) ( 1,799 ) — Net cash provided by (used in) financing activities ( 848,125 ) ( 428,624 ) ( 458,789 ) Change in cash, cash equivalents, and restricted cash ( 18,837 ) ( 732,228 ) 358,686 Cash, cash equivalents, and restricted cash, beginning of period 1,050,234 1,782,462 1,423,776 Cash, cash equivalents, and restricted cash, end of period $ 1,031,397 $ 1,050,234 $ 1,782,462 Supplemental disclosures Cash paid for income taxes, net $ 26,716 $ 24,686 $ 30,924 Cash paid for interest $ 65,060 $ 10,284 $ 10,244 See Notes to Consolidated Financial Statements. 84 Table of Contents Snap Inc. Consolidated Statements of Operations (in thousands, except per share amounts) Year Ended December 31, 2025 2024 2023 Revenue $ 5,931,447 $ 5,361,398 $ 4,606,115 Costs and expenses: Cost of revenue 2,669,575 2,474,237 2,114,117 Research and development 1,793,601 1,691,683 1,910,862 Sales and marketing 1,021,305 1,063,675 1,122,092 General and administrative 979,133 919,097 857,423 Total costs and expenses 6,463,614 6,148,692 6,004,494 Operating loss ( 532,167 ) ( 787,294 ) ( 1,398,379 ) Interest income 134,159 153,466 168,394 Interest expense ( 121,998 ) ( 21,552 ) ( 22,024 ) Other income (expense), net 68,870 ( 16,846 ) ( 42,414 ) Loss before income taxes ( 451,136 ) ( 672,226 ) ( 1,294,423 ) Income tax benefit (expense) ( 9,353 ) ( 25,630 ) ( 28,062 ) Net loss $ ( 460,489 ) $ ( 697,856 ) $ ( 1,322,485 ) Net loss per share attributable to Class A, Class B, and Class C common stockholders (Note 3): Basic $ ( 0.27 ) $ ( 0.42 ) $ ( 0.82 ) Diluted $ ( 0.27 ) $ ( 0.42 ) $ ( 0.82 ) Weighted average shares used in computation of net loss per share: Basic 1,694,598 1,659,147 1,612,504 Diluted 1,694,598 1,659,147 1,612,504 See Notes to Consolidated Financial Statements. 85 Table of Contents Snap Inc. Consolidated Statements of Comprehensive Income (Loss) (in thousands) Year Ended December 31, 2025 2024 2023 Net loss $ ( 460,489 ) $ ( 697,856 ) $ ( 1,322,485 ) Other comprehensive income (loss), net of tax Unrealized gain (loss) on marketable securities, net of tax 4,745 4,590 8,269 Foreign currency translation 19,253 ( 9,027 ) 12,836 Total other comprehensive income (loss), net of tax 23,998 ( 4,437 ) 21,105 Total comprehensive loss $ ( 436,491 ) $ ( 702,293 ) $ ( 1,301,380 ) See Notes to Consolidated Financial Statements. 86 Table of Contents Snap Inc. Consolidated Balance Sheets (in thousands, except par value) December 31, 2025 2024 Assets Current assets Cash and cash equivalents $ 1,030,435 $ 1,046,534 Marketable securities 1,910,137 2,329,745 Accounts receivable, net of allowance 1,372,237 1,348,472 Prepaid expenses and other current assets 272,065 182,006 Total current assets 4,584,874 4,906,757 Property and equipment, net 578,075 489,088 Operating lease right-of-use assets 506,216 530,441 Intangible assets, net 66,613 86,363 Goodwill 1,720,769 1,689,785 Other assets 221,255 233,914 Total assets $ 7,677,802 $ 7,936,348 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 219,793 $ 173,197 Operating lease liabilities 48,479 24,885 Accrued expenses and other current liabilities 971,627 1,009,254 Short-term debt, net 46,969 36,212 Total current liabilities 1,286,868 1,243,548 Long-term debt, net 3,489,860 3,607,717 Operating lease liabilities, noncurrent 557,823 575,082 Other liabilities 61,756 59,240 Total liabilities 5,396,307 5,485,587 Commitments and contingencies (Note 8) Stockholders’ equity Class A non-voting common stock, $ 0.00001 par value. 3,000,000 shares authorized, 1,502,073 shares issued, 1,457,403 shares outstanding as of December 31, 2025, and 3,000,000 shares authorized, 1,483,718 shares issued, 1,436,495 shares outstanding as of December 31, 2024. 15 14 Class B voting common stock, $ 0.00001 par value. 700,000 shares authorized, 22,523 shares issued and outstanding as of December 31, 2025, and December 31, 2024. — — Class C voting common stock, $ 0.00001 par value. 260,888 shares authorized, 231,627 shares issued and outstanding as of December 31, 2025 and December 31, 2024. 2 2 Treasury stock, at cost. 44,670 and 47,222 shares of Class A non-voting common stock as of December 31, 2025 and December 31, 2024, respectively. ( 435,722 ) ( 460,620 ) Additional paid-in capital 16,637,324 15,644,132 Accumulated deficit ( 13,946,816 ) ( 12,735,461 ) Accumulated other comprehensive income (loss) 26,692 2,694 Total stockholders’ equity 2,281,495 2,450,761 Total liabilities and stockholders’ equity $ 7,677,802 $ 7,936,348 See Notes to Consolidated Financial Statements. 87 Table of Contents Snap Inc. Consolidated Statements of Stockholders’ Equity (in thousands) Year Ended December 31, 2025 2024 2023 Shares Amount Shares Amount Shares Amount Class A non-voting common stock Balance, beginning of period 1,436,495 $ 14 1,391,341 $ 14 1,319,930 $ 13 Shares issued in connection with exercise of stock options under stock-based compensation plans 58 — 884 — 599 — Issuance of Class A non-voting common stock for vesting of restricted stock units and restricted stock awards, net 104,991 1 70,167 — 86,557 1 Conversion of Class B voting common stock to Class A non-voting common stock — — 10 — 566 — Repurchases of Class A non-voting common stock ( 86,693 ) — ( 27,885 ) — ( 18,423 ) — Reissuances of Class A non-voting common stock for vesting of restricted stock units 2,552 — 1,978 — 2,112 — Balance, end of period 1,457,403 15 1,436,495 14 1,391,341 14 Class B voting common stock Balance, beginning of period 22,523 — 22,528 — 22,529 — Shares issued in connection with exercise of stock options under stock-based compensation plans — — 5 — 565 — Conversion of Class B voting common stock to Class A non-voting common stock — — ( 10 ) — ( 566 ) — Balance, end of period 22,523 — 22,523 — 22,528 — Class C voting common stock Balance, beginning of period 231,627 2 231,627 2 231,627 2 Balance, end of period 231,627 2 231,627 2 231,627 2 Treasury stock Balance, beginning of period 47,222 ( 460,620 ) 49,200 ( 479,903 ) 51,312 ( 500,514 ) Repurchases of Class A non-voting common stock 86,693 ( 750,866 ) 27,885 ( 311,069 ) 18,423 ( 189,394 ) Retirement of Class A non-voting common stock ( 86,693 ) 750,866 ( 27,885 ) 311,069 ( 18,423 ) 189,394 Reissuances of Class A non-voting common stock for vesting of restricted stock units ( 2,552 ) 24,898 ( 1,978 ) 19,283 ( 2,112 ) 20,611 Balance, end of period 44,670 ( 435,722 ) 47,222 ( 460,620 ) 49,200 ( 479,903 ) Additional paid-in capital Balance, beginning of period — 15,644,132 — 14,613,404 — 13,309,828 Stock-based compensation expense — 1,017,716 — 1,041,023 — 1,323,149 Shares issued in connection with exercise of stock options under stock-based compensation plans — 374 — 12,798 — 1,038 Purchase of capped calls — — — ( 68,850 ) — — Termination of capped calls — — — 62,683 — — Reissuances of Class A non-voting common stock for vesting of restricted stock units — ( 24,898 ) — ( 19,283 ) — ( 20,611 ) Other — — — 2,357 — — Balance, end of period — 16,637,324 — 15,644,132 — 14,613,404 Accumulated deficit Balance, beginning of period — ( 12,735,461 ) — ( 11,726,536 ) — ( 10,214,657 ) Net loss — ( 460,489 ) — ( 697,856 ) — ( 1,322,485 ) Retirement of Class A non-voting common stock — ( 750,866 ) — ( 311,069 ) — ( 189,394 ) Balance, end of period — ( 13,946,816 ) — ( 12,735,461 ) — ( 11,726,536 ) Accumulated other comprehensive income (loss) Balance, beginning of period — 2,694 — 7,131 — ( 13,974 ) Other comprehensive income (loss), net of tax — 23,998 — ( 4,437 ) — 21,105 Balance, end of period — 26,692 — 2,694 — 7,131 Total stockholders’ equity 1,756,223 $ 2,281,495 1,737,867 $ 2,450,761 1,694,696 $ 2,414,112 See Notes to Consolidated Financial Statements. 88 Table of Contents Snap Inc. Notes to Consolidated Financial Statements 1. Description of Business and Summary of Significant Accounting Policies Snap Inc. is a technology company. Snap Inc. (“we,” “our,” or “us”), a Delaware corporation, is headquartered in Santa Monica, California. Our flagship product, Snapchat, is a visual messaging application that was created to help people communicate through short videos and images called “Snaps.” Basis of Presentation Our consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Our consolidated financial statements include the accounts of Snap Inc. and our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Our fiscal year ends on December 31. Certain reclassifications have been made in the prior periods to conform to the current year’s presentation. None of these reclassifications had a material impact on our consolidated financial statements. Use of Estimates The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect the reported amounts in the consolidated financial statements. Management’s estimates and judgments are based on historical information available as of the date of the consolidated financial statements and various other assumptions that we believe are reasonable under the circumstances. Actual results could differ from those estimates. Key estimates and judgments relate primarily to determining the recoverability of long-lived assets, evaluation of contingencies, uncertain tax positions, and the fair value of strategic investments. On an ongoing basis, management evaluates our estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities. Concentrations of Business Risk We currently use both Google Cloud and Amazon Web Services for our hosting requirements. A disruption or loss of service from one or both of these partners could seriously harm our ability to operate. Although we believe there are other qualified providers that can provide these services, a transition to a new provider could create a significant disruption to our business and negatively impact our consolidated financial statements. Concentrations of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash, cash equivalents, marketable securities, and accounts receivable. We maintain cash deposits, cash equivalent balances, and marketable securities with several financial institutions. Cash and cash equivalents may be withdrawn or redeemed on demand. We believe that the financial institutions that hold our cash and cash equivalents are financially sound and, accordingly, minimal credit risk exists with respect to these balances. We also maintain investments in U.S. government debt securities, publicly traded equity securities, corporate debt securities, and money market funds that carry high credit ratings and accordingly, minimal credit risk exists with respect to these balances. We extend credit to our customers based on an evaluation of their ability to pay amounts due under contractual arrangement and generally do not obtain or require collateral. Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. See Note 2 for additional information. 89 Table of Contents As a practical expedient, we do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less or contracts for which we recognize revenues at the amount to which we have the right to invoice for services provided. Cost of Revenue Cost of revenue includes payments for infrastructure, content and developer partner costs, and advertiser partner and other costs. Infrastructure costs primarily consist of payments to th ird-party infrastructure partners for hosting our products, which include expenses related to storage, computing, and bandwidth. Content and developer partner costs primarily consist of fees paid to our content creators and publisher partners who share content on our platform through revenue sharing arrangements. Under these arrangements, we pay a portion of the fees we receive from advertisers for Snap Ads that are displayed within partner content on Snapchat. Advertising partner and other costs primarily consist of payments to third-party partners for fulfillment services, transaction processing fees, and other expenses directly related to providing our services. Cost of revenue includes personnel-related costs, including salaries, benefits, and stock-based compensation expense for our employees engaged in the delivery of our services. Cost of revenue also includes facilities and other supporting overhead costs, including depreciation and amortization, and inventory costs. Advertising Advertising costs are expensed as incurred and recorded within sales and marketing expenses in our consolidated statements of operations. For the years ended December 31, 2025 , 2024 , and 2023 , advertising costs were $ 23.6 million, $ 57.7 million, and $ 24.9 million, respectively. Capital Structure We have three classes of authorized common stock – Class A common stock, Class B common stock, and Class C common stock. Class A common stockholders have no voting rights, Class B common stockholders are entitled to one vote per share, and Class C common stockholders are entitled to ten votes per share. Shares of our Class B common stock are convertible into an equivalent number of shares of our Class A common stock and generally convert into shares of our Class A common stock upon transfer. Shares of our Class C common stock are convertible into an equivalent number of shares of our Class B common stock and generally convert into shares of our Class B common stock upon transfer. Future Stock Split to be Effected in the Form of a Stock Dividend In July 2022, our board of directors determined that it was advisable and in our best interest to approve a stock split to be effected in the form of a special dividend of one share of Class A common stock on each outstanding share of our common stock at a future date (the “Future Stock Split”). In connection with the Future Stock Split, we entered into certain agreements (the “Co-Founder Agreements”) with Evan Spiegel and Robert Murphy, our co-founders, and certain of their respective affiliates requiring them, among other things, to convert shares of Class B common stock and Class C common stock into Class A common stock under certain circumstances. In May 2024, the conditions for the declaration of such dividends were modified and the Co-Founder Agreements were amended to reflect such modifications. As modified, the Future Stock Split will not be declared and paid until the first business day following the date on which (i) the average of the volume weighted average price (the “VWAP”) per share of Class A common stock equals or exceeds $ 40 per share for 90 consecutive trading days (the “90-Day VWAP”) and (ii) the ratio of the 90-Day VWAP to $ 8.70 equals or exceeds the ratio of the average closing price of the S&P 500 Total Return index for the same 90 trading days for which the 90-Day VWAP was calculated to 8,862.85 . If this does not occur by July 21, 2032, the Future Stock Split will not be declared and paid, and the Co-Founder Agreements will terminate. No adjustments have been made to share or per share amounts for Class A common stock in the accompanying consolidated financial statements for the effects of the Future Stock Split as these triggering conditions have not been met. Stock-based Compensation We measure and recognize compensation expense for stock-based payment awards, including stock options, restricted stock units (“RSUs”), and restricted stock awards (“RSAs”) granted to employees, directors, and advisors, based on the grant date fair value of the awards. The grant date fair value of stock options is estimated using a Black-Scholes 90 Table of Contents option pricing model. The fair value of stock-based compensation for stock options is recognized on a straight-line basis, net of estimated forfeitures, over the period during which services are provided in exchange for the award. The grant date fair value of RSUs and RSAs is estimated based on the fair value of our underlying common stock. RSUs and RSAs vest on the satisfaction of a service-based condition. The service condition for RSUs and RSAs is generally satisfied in equal monthly or quarterly installments over three or four years . For these awards, we recognize stock-based compensation expense on a straight-line basis over the requisite service p eriod. Stock-based compensation expense recognized for all periods presented is based on awards that are expected to vest, including an estimate of forfeitures. We estimate the forfeiture rate using historical forfeitures of equity awards and other expected changes in facts and circumstances, if any. A modification of the terms of a stock-based award is treated as an exchange of the original award for a new award with total compensation cost equal to the grant-date fair value of the original award plus the incremental value of the modification to the award. The total recognized tax benefit related to stock-based compensation expense for all periods presented was immaterial as we have established valuation allowances to reduce our net deferred tax assets to the amount that is more likely than not to be realized. The majority of the future tax benefits that arise on settlement of RSUs, RSAs and stock options are in jurisdictions for which our net deferred tax assets have a full valuation allowance. Income Taxes We are subject to income taxes in the United States and numerous foreign jurisdictions. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the deferred tax asset or liability is expected to be realized or settled. In evaluating our ability to recover deferred tax assets, we consider all available positive and negative evidence, including historical operating results, ongoing tax planning, and forecasts of future taxable income on a jurisdiction-by-jurisdiction basis. Based on the level of historical losses, we have established a valuation allowance to reduce our net deferred tax assets to the amount that is more likely than not to be realized. We recognize a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in our consolidated financial statements from such positions are measured based on the largest benefit that has a greater than 50 % likelihood of being realized. We recognize interest and penalties associated with tax matters as part of the income tax provision and include accrued interest and penalties with the related income tax liability on our consolidated balance sheets. Currency Translation and Remeasurement The functional currency of the majority of our foreign subsidiaries is the U.S. dollar. Monetary assets and liabilities denominated in a foreign currency are remeasured into U.S. dollars at the exchange rate on the balance sheet date. Revenue and expenses are remeasured at the average exchange rates during the period. Equity transactions and other non-monetary assets are remeasured using historical exchange rates. Foreign currency transaction gains and losses are recorded in other income (expense), net on our consolidated statement of operations. For those foreign subsidiaries where the local currency is the functional currency, adjustments to translate those statements into U.S. dollars are recorded in accumulated other comprehensive income (loss) in stockholders’ equity. Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with maturities of 90 days or less from the date of purchase. Restricted Cash Restricted cash primarily includes cash and cash equivalents that are legally restricted as to withdrawal or use in our operations. Restricted cash balances are included in other assets on our consolidated balance sheets. 91 Table of Contents Marketable Securities We hold investments in marketable securities consisting of U.S. government securities, corporate debt securities, and publicly traded equity securities. We classify marketable investments in debt securities as available-for-sale investments in our current assets because they represent investments available for current operations. Our available-for-sale investments in debt securities are carried at fair value with any unrealized gains and losses included in accumulated other comprehensive income (loss) in stockholders’ equity. Available-for-sale debt securities with an amortized cost basis in excess of estimated fair value are assessed to determine what amount of that difference, if any, is caused by expected credit losses, with any allowance for credit losses recognized as a charge in other income (expense), net on our consolidated statements of income. We did not record any credit losses on our available-for-sale debt securities in any of the periods presented. We determine gains or losses on the sale or maturities of marketable securities using the specific identification method and these gains or losses are recorded in other income (expense), net in our consolidated statements of operations. Publicly traded equity securities are carried at fair value with any unrealized gains and losses recorded in other income (expense), net in our consolidated statements of operations. Strategic Investments We hold strategic investments primarily in privately held companies, consisting primarily of equity securities without readily determinable fair values, and to a lesser extent, debt securities. We adjust the carrying value of these equity securities to fair value upon observable transactions for identical or similar investments of the same issuer or upon impairment. The fair value derived from an observable transaction is based on information available at that time and may not be indicative of the fair value at the balance sheet date. All strategic investments are reviewed periodically for impairment. Any adjustments to carrying value of these investments are recorded in other income (expense), net in our consolidated statements of operations. Strategic investments are included within other assets in our consolidated balance sheets. When we exercise significant influence over, but do not control the investee, such strategic investments are accounted for using the equity method. Under the equity method of accounting, we record our share of the results of the investments within other income (expense), net in our consolidated statements of operations. Fair Value Measurements Certain financial instruments are required to be recorded at fair value. Other financial instruments, including cash and cash equivalents and restricted cash, are recorded at cost, which approximates fair value. Additionally, accounts receivable, accounts payable, and accrued expenses approximate fair value because of the short-term nature of these financial instruments. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount less any allowance for doubtful accounts to reserve for potentially uncollectible receivables. To determine the amount of the allowance, we make judgments about the creditworthiness of customers based on ongoing credit evaluation and historical experience. As of December 31, 2025 and 2024 , the allowance for doubtful accounts was immaterial . Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. We compute depreciation using the straight-line method over the estimated useful lives of the assets, which is generally three years for computer hardware, software, and equipment, five years for furniture, and over the shorter of lease term or useful life of the assets for leasehold improvements. Buildings are generally depreciated over a useful life ranging from 20 to 45 years . Maintenance and repairs are expensed as incurred. Leases We have non-cancelable lease agreements, primarily for offices, that are recorded as operating lease right-of-use assets and operating lease liabilities in our consolidated balance sheets. We account for lease and non-lease components as 92 Table of Contents a single lease component and do not record leases with an initial term of twelve months or less in our consolidated balance sheets. We use our incremental borrowing rate based on the information available at the lease commencement date to determine the present value of lease payments over the lease term . Our lease terms may include options to extend or terminate the lease when it is reasonably certain we will exercise that option. Certain agreements have free rent periods or escalating rent payment provisions. Rent expense is recognized on a straight-line basis over the lease term. Software Development Costs Software development costs include costs to develop software to be used to meet internal needs and applications used to deliver our services. We capitalize development costs related to these software applications once the preliminary project stage is complete and it is probable that the project will be completed and the software will be used to perform the function intended. Costs capitalized for developing such software applications were not material for the periods presented. Software development costs that do not meet the criteria for capitalization and other research and development costs are expensed as incurred. Segments Our Chief Executive Officer (“CEO”) is our chief operating decision maker (“CODM ” ). Our CEO evaluates performance and makes operating decisions about allocating resources based on financial data presented on a consolidated basis, accompanied by information about revenue disaggregated by geographic region. Because our CODM evaluates financial performance on a consolidated basis, we have determined that we have a single reportable segment composed of the consolidated financial results of Snap Inc. Business Combinations We include the results of operations of the businesses that we acquire from the date of acquisition. We determine the fair value of the assets acquired and liabilities assumed based on their estimated fair values as of the respective date of acquisition. The excess purchase price over the fair values of identifiable assets and liabilities is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates including the selection of valuation methodologies, estimates of future revenue and cash flows, discount rates, and selection of comparable companies. Our estimates of fair value are based on assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, not to exceed one year from the date of acquisition, we may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill. At the conclusion of the measurement period, any subsequent adjustments are reflected in our consolidated statements of operations. When we issue payments or grants of equity to selling stockholders in connection with an acquisition, we evaluate whether the payments or awards are compensatory. This evaluation includes whether cash payments or stock award vesting is contingent on the continued employment of the selling stockholder beyond the acquisition date. If continued employment is required for the cash to be paid or stock awards to vest, the award is treated as compensation for post-acquisition services and is recognized as compensation expense. Transaction costs associated with business combinations are expensed as incurred, and are included in general and administrative expenses in our consolidated statements of operations. Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. We test goodwill for impairment at least annually, in the fourth quarter, or whenever events or changes in circumstances indicate that goodwill might be impaired. For all periods presented, we had a single operating segment and reporting unit structure. There were no impairment charges in any of the periods presented. 93 Table of Contents Intangible Assets Intangible assets are carried at cost and amortized on a straight-line basis over their estimated useful lives. We determine the appropriate useful life of our intangible assets by measuring the expected cash flows of acquired assets. Impairment of Long-Lived Assets We evaluate recoverability of our property and equipment, operating lease right-of-use assets, and intangible assets, excluding goodwill, when events or changes indicate the carrying amount of an asset may not be recoverable. Events and changes in circumstances considered in determining whether the carrying value of long-lived assets may not be recoverable include significant changes in performance relative to expected operating results, significant changes in asset use, and significant negative industry or economic trends and changes in our business strategy. Recoverability of these assets is measured by comparison of their carrying amount to future undiscounted cash flows to be generated. If impairment is indicated based on a comparison of the assets’ carrying values and the undiscounted cash flows, the impairment loss is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Legal Contingencies For legal contingencies, we accrue a liability for an estimated loss if the potential loss from any claim or legal proceeding is considered probable, and the amount can be reasonably estimated. Legal fees and expenses are expensed as incurred. Note 8 provides additional information regarding our legal contingencies. Recent Accounting Pronouncements Recently Adopted Accounting Standards In September 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract. The accounting standard excludes from the scope of Topic 815, Derivatives and Hedging, certain contracts that are not traded on an exchange that include underlyings based on the operations or activities of one of the parties to the contract. The guidance also clarifies that an entity receiving share-based noncash consideration from a customer for the transfer of goods or services in a revenue contract is required to apply the noncash consideration guidance in Topic 606, Revenue from Contracts with Customers, unless and until the entity’s right to receive or retain the share-based noncash consideration is unconditional under Topic 606. We early adopted ASU 2025-07 on a prospective basis. The impact of adoption of this standard on our consolidated financial statements, including accounting policies, processes, and systems, was not material. In November 2024, the FASB issued ASU 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments, which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. We early adopted ASU 2024-04 on a prospective basis. The impact of adoption of this standard on our consolidated financial statements, including accounting policies, processes, and systems, was not material. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities to provide greater disaggregation within their annual rate reconciliation, including new requirements to present reconciling items on a gross basis in specified categories, disclose both percentages and dollar amounts, and disaggregate individual reconciling items by jurisdiction and nature when the effect of the items meet a quantitative threshold. The guidance also requires disaggregating the annual disclosure of income taxes paid, net of refunds received, by federal (national), state, and foreign taxes, with separate presentation of individual jurisdictions that meet a quantitative threshold. Effective January 1, 2025, we adopted ASU 2023-09 on a prospective basis. The impact of adoption of this standard to our accounting policies, processes, and systems was not material. Refer to Note 12 of these consolidated financial statements. Accounting Standards Not Yet Adopted In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants by Business Entities. The accounting standard establishes authoritative guidance on the recognition, measurement and presentation of government grants received by business entities. The guidance is effective for annual reporting periods 94 Table of Contents beginning after December 15, 2028. Early adoption is permitted as of the beginning of an annual reporting period. The guidance is applied on a modified prospective, a modified retrospective, or a retrospective transition approach. We are currently evaluating the impact of adoption of this standard on our consolidated financial statements and disclosures. In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which clarifies and modernizes the accounting for costs related to internal-use software. The guidance is effective for annual reporting periods, and interim reporting periods within those annual reporting periods, beginning after December 15, 2027. Early adoption is permitted as of the beginning of an annual reporting period. The guidance is applied on a prospective transition approach, a modified transition approach, or a retrospective transition approach. We are currently evaluating the impact of adoption of this standard on our consolidated financial statements and disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires public entities to provide a disclosure within the financial statement footnotes showing the disaggregation of certain expenses included in relevant expense captions on the consolidated income statement, with a qualitative description of the amounts that are not separately disaggregated quantitatively. The guidance also requires disclosure of the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. The guidance is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The guidance is applied on a prospective basis, with a retrospective option, and early adoption is permitted. We are currently evaluating the impact of adoption of this standard on our consolidated financial statements and disclosures. 2. Revenue We determine revenue recognition by first identifying the contract or contracts with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract, and recognizing revenue when, or as, we satisfy a performance obligation. Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We determine collectability by performing ongoing credit evaluations and monitoring customer accounts receivable balances. Sales tax, including value added tax, is excluded from reported revenue. In arrangements where another party is involved in providing specified services to a customer, we evaluate whether we are the principal or agent. In this evaluation, we consider if we obtain control of the specified goods or services before they are transferred to the customer, as well as other indicators such as the party primarily responsible for fulfillment, inventory risk, and discretion in establishing price. Advertising Revenue We generate the substantial majority of our revenue through the sale of our advertising products on Snapchat, which include Snap Ads and AR Ads, referred to as advertising revenue. AR Ads include Sponsored Lenses, which allow users to interact with an advertiser’s brand by enabling branded augmented reality experiences. Advertising revenue is primarily generated from the display of advertisements on Snapchat through contractual agreements that are either based on the number of advertising impressions delivered or on a fixed fee basis over a period of time. Revenue related to agreements based on the number of impressions delivered is recognized when the advertisement is served. Revenue related to fixed fee arrangements is recognized ratably over the service period, typically less than 30 days in duration, and such arrangements do not contain minimum impression guarantees. For advertising revenue arrangements where we are not the principal, we recognize revenue on a net basis. For the periods presented, revenue for arrangements where we are the agent was not material. Other Revenue Other revenue primarily consists of revenue from subscriptions, which include Snapchat+, Lens+, and Snapchat Platinum. These services provide subscribers access to exclusive, experimental, and pre-release features, as well as an ad-free experience for Snapchat Platinum subscribers. We also generate subscription revenue from Memories Storage Plans, 95 Table of Contents which provide subscribers with the ability to purchase cloud storage. Subscription revenue is initially deferred and then recognized ratably over the term of the subscription, which is generally one year or less. We report subscription revenue gross of transaction processing fees, which are recognized within cost of revenue on our consolidated statements of operations. Other revenue also includes amounts earned from partnerships, including an agreement with our AI platform partner. These agreements are structured as fixed-fee arrangements with contract terms that may exceed one year, with revenue generally recognized ratably over the service period. We also generate revenue from subscriptions and sales of physical products. Sales of physical products are reported net of allowances for returns. For the periods presented, all such revenue was not material. The following table represents our revenue disaggregated by source: Year Ended December 31, 2025 2024 2023 (in thousands) Advertising revenue $ 5,186,077 $ 4,903,703 $ 4,408,306 Other revenue 745,370 457,695 197,809 Total revenue $ 5,931,447 $ 5,361,398 $ 4,606,115 The following table represents our revenue disaggregated by geography based on the billing address of the customer: Year Ended December 31, 2025 2024 2023 (in thousands) North America (1) (2) $ 3,473,174 $ 3,236,217 $ 2,952,301 Europe (3) 1,092,092 957,075 772,078 Rest of World 1,366,181 1,168,106 881,736 Total revenue $ 5,931,447 $ 5,361,398 $ 4,606,115 (1) North America includes Mexico, the Caribbean, and Central America. (2) United States revenue was $ 3.4 billion, $ 3.1 billion, and $ 2.9 billion for the years ended December 31, 2025, 2024, and 2023, respectively. (3) Europe includes Turkey. Europe also includes Russia and Belarus; however, we maintain a policy prohibiting sales to entities in these countries. As of December 31, 2025, the aggregate amount of unsatisfied performance obligations in contracts with an original duration through the first quarter of 2027 was $ 387.9 million, which is attributable to an agreement with our AI platform partner. 3. Net Loss per Share We compute net loss per share using the two-class method required for multiple classes of common stock. We have three classes of authorized common stock for which voting rights differ by class. Basic net loss per share is computed by dividing net loss attributable to each class of stockholders by the weighted-average number of shares of stock outstanding during the period, adjusted for RSAs for which the risk of forfeiture has not yet lapsed. For the calculation of diluted net loss per share, net loss per share attributable to common stockholders for basic net loss per share is adjusted by the effect of dilutive securities, including awards under our equity compensation plans. Diluted net loss per share attributable to common stockholders is computed by dividing the resulting net loss attributable to 96 Table of Contents common stockholders by the weighted-average number of fully diluted common shares outstanding. We use the if-converted method for calculating any potential dilutive effect of the convertible senior notes due in 2025, 2026, 2027, 2028, and 2030 (collectively, the “Convertible Notes”) on diluted net loss per share. The Convertible Notes would have a dilutive impact on net income per share when the average market price of Class A common stock for a given period exceeds the respective conversion price of the Convertible Notes. For the periods presented, our potentially dilutive shares relating to stock options, RSUs, RSAs, and the Convertible Notes were not included in the computation of diluted net loss per share as the effect of including these shares in the calculation would have been anti-dilutive. The numerators and denominators of the basic and diluted net loss per share computations for our common stock are calculated as follows for the years ended December 31, 2025, 2024, and 2023: Year Ended December 31, 2025 2024 2023 (in thousands, except per share data) Class A Class B Class C Class A Class B Class C Class A Class B Class C Numerator: Net loss $ ( 391,426 ) $ ( 6,121 ) $ ( 62,942 ) $ ( 590,956 ) $ ( 9,475 ) $ ( 97,425 ) $ ( 1,114,039 ) $ ( 18,479 ) $ ( 189,967 ) Net loss attributable to common stockholders $ ( 391,426 ) $ ( 6,121 ) $ ( 62,942 ) $ ( 590,956 ) $ ( 9,475 ) $ ( 97,425 ) $ ( 1,114,039 ) $ ( 18,479 ) $ ( 189,967 ) Denominator: Basic shares: Weighted-average common shares - Basic 1,440,448 22,523 231,627 1,404,994 22,526 231,627 1,358,345 22,532 231,627 Diluted shares: Weighted-average common shares - Diluted 1,440,448 22,523 231,627 1,404,994 22,526 231,627 1,358,345 22,532 231,627 Net loss per share attributable to common stockholders: Basic $ ( 0.27 ) $ ( 0.27 ) $ ( 0.27 ) $ ( 0.42 ) $ ( 0.42 ) $ ( 0.42 ) $ ( 0.82 ) $ ( 0.82 ) $ ( 0.82 ) Diluted $ ( 0.27 ) $ ( 0.27 ) $ ( 0.27 ) $ ( 0.42 ) $ ( 0.42 ) $ ( 0.42 ) $ ( 0.82 ) $ ( 0.82 ) $ ( 0.82 ) The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive: As of December 31, 2025 2024 2023 (in thousands) Stock options 519 680 1,697 Unvested RSUs and RSAs 167,374 134,253 157,130 Convertible Notes (if-converted) 46,193 85,945 89,379 4. Stockholders’ Equity Common Stock As of December 31, 2025, we are authorized to issue 3,000,000,000 shares of Class A non-voting common stock, 700,000,000 shares of Class B voting common stock, and 260,887,848 shares of Class C voting common stock, each with a par value of $ 0.00001 per share. Class A common stockholders have no voting rights, Class B common stockholders are entitled to one vote per share, and Class C common stockholders are entitled to ten votes per share. Shares of our Class B common stock are convertible into an equivalent number of shares of our Class A common stock and generally convert into shares of our Class A common stock upon transfer. Shares of our Class C common stock are convertible into an equivalent number of shares of our Class B common stock and generally convert into shares of our Class B common stock upon transfer. Any dividends paid to the holders of the Class A common stock, Class B common stock, and Class C common stock will be paid on a pro rata basis. For the year ended December 31, 2025, we did not declare any dividends. On a liquidation event, as defined in our certificate of incorporation, any distribution to common stockholders is made on a pro rata basis to the holders of the Class A common stock, Class B common stock, and Class C common stock. 97 Table of Contents As of December 31, 2025, there were 1,502,073,263 shares issued and 1,457,403,389 shares outstanding of Class A common stock, and 22,523,290 shares and 231,626,943 shares issued and outstanding of Class B common stock and Class C common stock, respectively. Stock-based Compensation Plans We maintain one active stock-based employee compensation plan, the 2017 Equity Incentive Plan (the “2017 Plan”). In January 2017, our board of directors adopted the 2017 Plan, and in February 2017, our stockholders approved the 2017 Plan, effective on March 1, 2017. The 2017 Plan provides for the grant of incentive stock options to employees, including employees of any parent or subsidiary, and for the grant of nonstatutory stock options, stock appreciation rights, RSAs, RSUs, performance stock awards, performance cash awards, and other forms of stock awards to employees, directors, and consultants, including employees and consultants of our affiliates. The maximum term for stock options granted under the 2017 Plan may not exceed ten years from the date of grant. The 2017 Plan will terminate ten years from the date our board of directors approved the plan, unless it is terminated earlier by our board of directors. The number of shares reserved for issuance under the 2017 Plan will increase automatically on January 1st of each calendar year, beginning on January 1, 2018 through January 1, 2027, by the lesser of (i) 5.0 % of the total number of shares of our capital stock outstanding on December 31st of the immediately preceding calendar year, and (ii) a number determined by our board of directors. As of December 31, 2025, there were 96,392,672 shares of our Class A common stock reserved for future issuance under the 2017 Plan. 2017 Employee Stock Purchase Plan In January 2017, our board of directors adopted the 2017 Employee Stock Purchase Plan (the “2017 ESPP”). Our stockholders approved the 2017 ESPP in February 2017. The 2017 ESPP became effective in connection with the IPO. A total of 16,484,690 shares of Class A common stock were initially reserved for issuance under the 2017 ESPP. No shares of our Class A common stock have been issued or offered under the 2017 ESPP. The number of shares of our Class A common stock reserved for issuance will automatically increase on January 1st of each calendar year, beginning on January 1, 2018 through January 1, 2027, by the lesser of (i) 1.0 % of the total number of shares of our common stock outstanding on the last day of the calendar month before the date of the automatic increase, and (ii) 15,000,000 shares; provided that before the date of any such increase, our board of directors may determine that such increase will be less than the amount set forth in clauses (i) and (ii). As of December 31, 2025, there were 16,484,690 shares of our Class A common stock reserved for future issuance under the 2017 ESPP. Restricted Stock Units and Restricted Stock Awards The following table summarizes the RSU and RSA activity for the year ended December 31, 2025: Number of Class A Shares Weighted- Average Grant Date Fair Value (in thousands, except per share data) Unvested as of December 31, 2024 134,253 $ 11.90 Granted 175,226 $ 8.51 Vested ( 107,610 ) $ 10.89 Forfeited ( 34,495 ) $ 10.79 Unvested as of December 31, 2025 167,374 $ 9.23 The weighted-average grant date fair value of RSUs and RSAs granted for the years ended December 31, 2025, 2024 and 2023 was $ 8.51 , $ 12.92 , and $ 10.41 , respectively. The total fair value of RSUs and RSAs vested for the years ended December 31, 2025, 2024, and 2023 was $ 0.9 billion, $ 0.9 billion, and $ 1.0 billion, respectively. Total unrecognized compensation cost related to outstanding RSUs and RSAs was $ 1.4 billion as of December 31, 2025 and is expected to be recognized over a weighted-average period of 2.1 years. 98 Table of Contents Stock Options The following table summarizes the stock option award activity under the 2017 Plan for the year ended December 31, 2025: Number of Class A Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (1) (in thousands, except per share and year data) Outstanding as of December 31, 2024 680 $ 16.01 4.51 $ 253 Granted — $ — — $ — Exercised ( 58 ) $ 6.43 — $ — Forfeited ( 103 ) $ 12.56 — $ — Outstanding as of December 31, 2025 519 $ 17.77 3.74 $ — Exercisable as of December 31, 2025 519 $ 17.77 3.74 $ — Vested and expected to vest as of December 31, 2025 519 $ 17.77 3.74 $ — (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the closing market price of our Class A common stock as of December 31, 2025 and December 31, 2024. There were no stock options granted for the years ended December 31, 2025, 2024 and 2023, and no stock-based compensation expense from stock options for the years ended December 31, 2025 and 2024. Stock-based compensation expense from stock options for the year ended December 31, 2023 was not material. As of December 31, 2025, there was no unrecognized compensation cost related to stock options granted under the 2017 Stock Plan. There were no stock options that vested for the years ended December 31, 2025 and 2024. The total grant date fair value of stock options that vested for the year ended December 31, 2023 was $ 1.1 million. The intrinsic value of stock options exercised for the years ended December 31, 2025, 2024, and 2023 was $ 0.1 million, $ 1.4 million, and $ 12.3 million, respectively. Stock-Based Compensation Expense Total stock-based compensation expense by function was as follows: Year Ended December 31, 2025 2024 2023 (in thousands) Cost of revenue $ 7,426 $ 6,034 $ 9,555 Research and development 680,602 683,830 893,026 Sales and marketing 198,013 216,672 255,688 General and administrative 130,784 134,487 165,735 Total $ 1,016,825 $ 1,041,023 $ 1,324,004 Stock Repurchases In November 2025, our board of directors authorized a stock repurchase program of up to $ 500.0 million of our Class A common stock. Under this program, we repurchased and retired 29.4 million shares of our Class A common stock for $ 250.3 million, including costs associated with the repurchases. As of December 31, 2025, the remaining availability under the stock repurchase authorization was $ 250.0 million. This program was completed in January 2026. 99 Table of Contents In October 2024, our board of directors authorized a stock repurchase program of up to $ 500.0 million of our Class A common stock. The program was completed in the second quarter of 2025. During the program, we repurchased and subsequently retired 57.3 million shares of our Class A common stock for an aggregate of $ 500.6 million, representing the entire amount approved by our board of directors and the costs associated with the repurchases. In October 2023, our board of directors authorized a stock repurchase program of up to $ 500.0 million of our Class A common stock. The program was completed in the second quarter of 2024. During the program, we repurchased and subsequently retired 46.3 million shares of our Class A common stock for an aggregate of $ 500.5 million, representing the entire amount approved by our board of directors and the costs associated with the repurchases. 5. Business Acquisitions 2025 Acquisitions In 2025, the aggregate purchase consideration for business acquisitions was $ 41.7 million, which primarily consisted of cash. Of the aggregate purchase consideration, $ 24.5 million was allocated to goodwill and the remainder primarily to identifiable intangible assets. The acquired assets are expected to enhance our existing platform, technology, and workforce. The goodwill amount represents synergies related to our existing platform expected to be realized from the business acquisitions and assembled workforce. The associated goodwill and intangible assets are deductible for tax purposes. 2023 Acquisitions In 2023, the aggregate purchase consideration for business acquisitions was $ 73.1 million, which primarily consisted of $ 56.3 million in cash and $ 12.6 million recorded in other liabilities in our consolidated balance sheet. Of the aggregate purchase consideration, $ 42.8 million was allocated to goodwill and the remainder primarily to identifiable intangible assets. The acquired assets are expected to enhance our existing platform, technology, and workforce. The goodwill amount represents synergies related to our existing platform expected to be realized from the business acquisitions and assembled workforce. The associated goodwill and intangible assets are not deductible for tax purposes. Additional Information on 2025 and 2023 Acquisitions The operating results of the above acquisitions were included in the results of our operations from the acquisition date and were not material to our consolidated revenue or consolidated operating loss. In addition, unaudited pro forma results of operations assuming the above acquisitions had taken place at the beginning of each period are not provided because the historical operating results of the acquired entities were not material and pro forma results would not be materially different from reported results for the periods presented. 6. Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the years ended December 31, 2025 and 2024 were as follows: Goodwill (in thousands) Balance as of December 31, 2023 $ 1,691,827 Foreign currency translation ( 2,042 ) Balance as of December 31, 2024 $ 1,689,785 Goodwill acquired 24,549 Foreign currency translation 6,435 Balance as of December 31, 2025 $ 1,720,769 100 Table of Contents Intangible assets consisted of the following: As of December 31, 2025 Weighted- Average Remaining Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net (in thousands, except years) Technology 2.6 $ 328,234 $ ( 274,464 ) $ 53,770 Patents 8.9 30,172 ( 17,485 ) 12,687 Other 3.3 835 ( 679 ) 156 Total intangible assets $ 359,241 $ ( 292,628 ) $ 66,613 As of December 31, 2024 Weighted- Average Remaining Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net (in thousands, except years) Technology 2.3 $ 308,333 $ ( 238,189 ) $ 70,144 Patents 8.8 39,373 ( 23,286 ) 16,087 Other 2.0 6,745 ( 6,613 ) 132 Total intangible assets $ 354,451 $ ( 268,088 ) $ 86,363 Amortization of intangible assets for the years ended December 31, 2025, 2024, and 2023 was $ 45.5 million, $ 60.0 million, and $ 81.1 million, respectively. We revised the useful lives of certain customer relationships, trademarks, domain names, and technology for the years ended December 31, 2024 and 2023, which resulted in a $ 3.2 million and $ 19.9 million increase to amortization expense for the respective years. As of December 31, 2025, the estimated intangible asset amortization expense for the next five years and thereafter is as follows: Estimated Amortization (in thousands) Year ending December 31, 2026 $ 26,775 2027 18,599 2028 8,092 2029 4,789 2030 2,937 Thereafter 5,421 Total $ 66,613 7. Debt Senior Notes 2034 Notes In August 2025, we entered into a purchase agreement with certain counterparties for the sale of $ 550.0 million principal amount of senior notes due in 2034 (the “2034 Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The 2034 Notes were issued pursuant to an indenture dated August 12, 2025. The proceeds from the issuance of the 2034 Notes, net of $ 8.9 million in 101 Table of Contents debt issuance costs, were $ 541.1 million and primarily used for the August 2025 repurchase transactions, as discussed below. In connection with the August 2025 repurchase transactions, $ 1.4 million of the debt issuance costs were expensed in the third quarter of 2025, with the remainder to be amortized to interest expense using the effective interest rate method. The 2034 Notes are unsecured and unsubordinated obligations. Interest is payable in cash semi-annually in arrears beginning on March 15, 2026 at a rate of 6.875 % per year. The effective interest rate of the 2034 Notes is 6.86 %. The 2034 Notes mature on March 15, 2034 unless repurchased or redeemed in accordance with their terms prior to such date. We may redeem for cash all or any portion of the 2034 Notes, at our option, at any time prior to September 15, 2028 at a redemption price equal to 100 % of the principal amount of the 2034 Notes to be redeemed plus any accrued and unpaid interest and a “make-whole” premium as provided in the indenture. Furthermore, until September 15, 2028, we may redeem up to 40 % of the original aggregate principal amount of the 2034 Notes with the net cash proceeds of certain equity offerings at a redemption price of 106.875 % of the principal amount of the 2034 Notes to be redeemed plus accrued and unpaid interest. In addition, we may redeem all or any portion of the 2034 Notes at any time on or after September 15, 2028 at the redemption prices set forth in the indenture, plus any accrued and unpaid interest. The 2034 Notes include customary terms and covenants, including certain events of default, after which the 2034 Notes may be due and payable immediately. In addition, if we experience certain change of control events, as described in the indenture, we will be required to make an offer to repurchase some or all of the 2034 Notes at a price equal to 101 % of the principal amount of the 2034 Notes to be repurchased plus accrued and unpaid interest. 2033 Notes In February 2025, we entered into a purchase agreement with certain counterparties for the sale of $ 1.50 billion principal amount of senior notes due in 2033 (the “2033 Notes” and collectively with the 2034 Notes, the “Senior Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act, and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act. The 2033 Notes were issued pursuant to an indenture dated February 14, 2025. The proceeds from the issuance of the 2033 Notes, net of $ 26.9 million in debt issuance costs, were $ 1.47 billion and primarily used for the February 2025 repurchase transactions, as discussed below. In connection with the February 2025 repurchase transactions, $ 6.5 million of the debt issuance costs were expensed in the first quarter of 2025, with the remainder to be amortized to interest expense using the effective interest rate method. The 2033 Notes are unsecured and unsubordinated obligations. Interest is payable in cash semi-annually in arrears beginning on September 1, 2025 at a rate of 6.875 % per year. The effective interest rate of the 2033 Notes is 5.81 %. The 2033 Notes mature on March 1, 2033 unless repurchased or redeemed in accordance with their terms prior to such date. We may redeem for cash all or any portion of the 2033 Notes, at our option, at any time prior to March 1, 2028 at a redemption price equal to 100 % of the principal amount of the 2033 Notes to be redeemed plus any accrued and unpaid interest and a “make-whole” premium as provided in the indenture. Furthermore, until March 1, 2028, we may redeem up to 40 % of the original aggregate principal amount of the 2033 Notes with the net cash proceeds of certain equity offerings at a redemption price of 106.875 % of the principal amount of the 2033 Notes to be redeemed plus accrued and unpaid interest. In addition, we may redeem all or any portion of the 2033 Notes at any time on or after March 1, 2028 at the redemption prices set forth in the indenture, plus any accrued and unpaid interest. The 2033 Notes include customary terms and covenants, including certain events of default, after which the 2033 Notes may be due and payable immediately. In addition, if we experience certain change of control events, as described in the indenture, we will be required to make an offer to repurchase some or all of the 2033 Notes at a price equal to 101 % of the principal amount of the 2033 Notes to be repurchased plus accrued and unpaid interest. Convertible Notes 2030 Notes In May 2024, we entered into a purchase agreement for the sale of an aggregate of $ 750.0 million principal amount of convertible senior notes due in 2030 (the “2030 Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The net proceeds from the issuance of the 2030 Notes were $ 671.5 million, net of debt issuance costs and cash used to purchase the capped call transactions (the “2030 Capped Call Transactions”) discussed below. The 2030 Notes are unsecured and unsubordinated obligations. 102 Table of Contents 2028 Notes In February 2022, we entered into a purchase agreement for the sale of an aggregate of $ 1.50 billion principal amount of convertible senior notes due in 2028 (the “2028 Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The net proceeds from the issuance of the 2028 Notes were $ 1.31 billion, net of debt issuance costs and cash used to purchase the capped call transactions (the “2028 Capped Call Transactions”) discussed below. The 2028 Notes are unsecured and unsubordinated obligations. 2027 Notes In April 2021, we entered into a purchase agreement for the sale of an aggregate of $ 1.15 billion principal amount of convertible senior notes due in 2027 (the “2027 Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The net proceeds from the issuance of the 2027 Notes were $ 1.05 billion, net of debt issuance costs and cash used to purchase the capped call transactions (the “2027 Capped Call Transactions”) discussed below. The 2027 Notes are unsecured and unsubordinated obligations. 2026 Notes In August 2019 , we entered into a purchase agreement for the sale of an aggregate of $ 1.265 billion principal amount of convertible senior notes due in 2026 (the “2026 Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The net proceeds from the issuance of the 2026 Notes were $ 1.15 billion, net of debt issuance costs and cash used to purchase the capped call transactions (the “2026 Capped Call Transactions”) discussed below. The 2026 Notes are unsecured and unsubordinated obligations. 2025 Notes In April 2020, we entered into a purchase agreement for the sale of an aggregate of $ 1.0 billion principal amount of convertible senior notes due in 2025 (the “2025 Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The net proceeds from the issuance of the 2025 Notes were $ 888.6 million, net of debt issuance costs and cash used to purchase the capped call transactions (the “2025 Capped Call Transactions”) discussed below. The 2025 Notes are unsecured and unsubordinated obligations. The outstanding balance of the 2025 Notes was repaid on the maturity date of May 1, 2025. Additional terms related to the Convertible Notes are as follows: Maturity Date Redemption Date (1) Optional Conversion Date (2) Initial Conversion Rate (3) Stated Interest Rate (4) Effective Interest Rate 2025 Notes (5) May 1, 2025 May 6, 2023 February 1, 2025 46.1233 0.25 % 0.48 % 2026 Notes August 1, 2026 August 6, 2023 May 1, 2026 43.8481 0.75 % 0.91 % 2027 Notes May 1, 2027 May 5, 2024 February 1, 2027 11.2042 — % 0.19 % 2028 Notes March 1, 2028 March 5, 2025 December 1, 2027 17.7494 0.125 % 0.32 % 2030 Notes May 1, 2030 May 5, 2027 February 1, 2030 45.0846 0.50 % 1.21 % (1) We may redeem for cash all or any portion of the Convertibles Notes, at our option, on or after the redemption dates based on certain circumstances as described in the respective indentures governing the Convertible Notes. (2) Holders of the Convertible Notes may convert all or a portion of their notes at their option prior to the optional conversion date, in multiples of $1,000 principal amounts, under certain circumstances as described in the respective indentures governing the Convertible Notes. On or after the optional conversion date, the Convertible Notes are convertible at any time until the close of business on the business day immediately preceding the respective maturity date. (3) The Convertible Notes are convertible into cash, shares of our Class A common stock, or a combination of cash and shares of our Class A common stock, at our election, at the initial conversion rates of Class A common stock per $ 1,000 principal amount of the respective Convertible Note. The initial conversion rates specified above represent an initial conversion price of $ 21.68 , $ 22.81 , $ 89.25 , $ 56.34 , and $ 22.18 per share of our Class A common stock for the 2025 Notes, 2026 Notes, 2027 Notes, 2028 Notes, and 2030 Notes, respectively. The initial conversion rates are subject to customary adjustments for certain events as described in the respective indentures governing the Convertible Notes. Additionally, holders of the Convertible Notes who convert their notes in 103 Table of Contents connection with a make-whole fundamental change or a redemption are entitled to an increase in the conversion rates, as described in the indentures governing the Convertible Notes. In the event of a fundamental change, holders of the Convertible Notes may require us to repurchase all or a portion of the Convertible Notes at a price equal to 100% of the principal amount, plus any accrued and unpaid interest, if any. (4) Interest is payable in cash semi-annually in arrears, except for the 2027 Notes, which do not bear regular interest. (5) The outstanding balance of the 2025 Notes was repaid on the maturity date of May 1, 2025. As of December 31, 2025, the if-converted value of the outstanding Convertible Notes did not exceed the principal amount. The sale price for conversion was not satisfied as of December 31, 2025 for the Convertible Notes, and as a result, the Convertible Notes will not be eligible for optional conversion during the first quarter of 2026. No sinking fund is provided for the Convertible Notes, which means that we are not required to redeem or retire them periodically. 2025 Note Repurchases In February 2025, we entered into various privately negotiated repurchase transactions with certain holders of the 2026 Notes, 2027 Notes, and 2028 Notes, pursuant to which we repurchased $ 45.3 million in aggregate principal amount of the 2026 Notes, $ 797.4 million in aggregate principal amount of the 2027 Notes, and $ 800.0 million in aggregate principal amount of the 2028 Notes. The total cash repurchase price was $ 1.4 billion, which was $ 190.1 million below the carrying value of the repurchased notes. The February 2025 repurchase transactions were accounted for as both a debt modification and a partial debt extinguishment, which resulted in a $ 66.9 million gain on extinguishment in the first quarter of 2025. The portion accounted for as a debt modification resulted in a $ 128.3 million increase to the carrying value of the 2033 Notes, offset by $ 5.1 million of debt issuance costs carried over from the repurchased notes. In August 2025, we entered into various privately negotiated repurchase transactions (collectively with the February 2025 repurchase transactions, the “2025 Note Repurchases”) with certain holders of the 2026 Notes, 2027 Notes, and 2028 Notes, pursuant to which we repurchased $ 157.4 million in aggregate principal amount of the 2026 Notes, $ 246.3 million in aggregate principal amount of the 2027 Notes, and $ 185.8 million in aggregate principal amount of the 2028 Notes. The total cash repurchase price was $ 549.9 million, which was $ 37.7 million below the carrying value of the repurchased notes. The August 2025 repurchase transactions were accounted for as both a debt modification and a partial debt extinguishment, which resulted in a $ 29.8 million gain on extinguishment in the third quarter of 2025. The portion accounted for as a debt modification resulted in a $ 8.3 million increase to the carrying value of the 2034 Notes, offset by $ 0.4 million of debt issuance costs carried over from the repurchased notes. 2024 Note Repurchases In February 2024, we entered into various privately negotiated repurchase transactions with certain holders of the 2025 Notes and 2026 Notes, pursuant to which we repurchased $ 100.0 million in aggregate principal amount of the 2025 Notes and $ 351.2 million in aggregate principal amount of the 2026 Notes for a cash repurchase price of $ 440.7 million. The February 2024 repurchase transactions resulted in an $ 8.8 million gain on extinguishment in the first quarter of 2024. In May 2024, we entered into various privately negotiated repurchase transactions (collectively with the February 2024 repurchase transactions, the “2024 Note Repurchases”) with certain holders of the 2025 Notes and 2026 Notes, pursuant to which we repurchased $ 147.9 million in aggregate principal amount of the 2025 Notes and $ 237.5 million in aggregate principal amount of the 2026 Notes. The total cash repurchase price was $ 418.3 million, which was $ 34.1 million above the carrying value of the notes repurchased. The May 2024 repurchase transactions were accounted for as both a debt modification and a partial debt extinguishment, which resulted in a $ 15.5 million loss on extinguishment in the second quarter of 2024. The portion accounted for as a debt modification resulted in a $ 20.9 million decrease to the carrying value of the 2030 Notes, which included debt issuance costs carried over from the repurchased notes. Gains and losses on extinguishment are included within other income (expense), net on our consolidated statements of operations. 104 Table of Contents The Senior Notes and the Convertible Notes (collectively, the “Notes”) rank equally with each other and consist of the following: As of December 31, 2025 2024 Principal Unamortized Debt Issuance Costs Unamortized (Discount) Premium Net Carrying Amount Principal Unamortized Debt Issuance Costs Unamortized (Discount) Premium Net Carrying Amount (in thousands) Convertible Notes: 2025 Notes $ — $ — $ — $ — $ 36,240 $ ( 28 ) $ — $ 36,212 2026 Notes 47,013 ( 44 ) — 46,969 249,754 ( 624 ) — 249,130 2027 Notes 106,318 ( 264 ) — 106,054 1,150,000 ( 4,984 ) — 1,145,016 2028 Notes 514,191 ( 2,111 ) — 512,080 1,500,000 ( 8,982 ) — 1,491,018 2030 Notes 750,000 ( 6,197 ) ( 16,238 ) 727,565 750,000 ( 7,582 ) ( 19,865 ) 722,553 Senior Notes: 2033 Notes 1,500,000 ( 23,288 ) 117,043 1,593,755 — — — — 2034 Notes 550,000 ( 7,597 ) 8,003 550,406 — — — — Total Notes $ 3,467,522 $ ( 39,501 ) $ 108,808 $ 3,536,829 $ 3,685,994 $ ( 22,200 ) $ ( 19,865 ) $ 3,643,929 The following table summarizes interest expense related to our Notes: Year Ended December 31, 2025 2024 2023 (in thousands) Contractual interest expense $ 111,218 $ 7,334 $ 8,874 Amortization of debt issuance costs 14,121 6,637 6,880 Amortization of debt discount (premium) ( 7,891 ) 2,269 — Total interest expense $ 117,448 $ 16,240 $ 15,754 Capped Call Transactions In connection with the pricing of the 2025 Notes, the 2026 Notes, the 2027 Notes, the 2028 Notes, and the 2030 Notes, we entered into the 2025 Capped Call Transactions, the 2026 Capped Call Transactions, the 2027 Capped Call Transactions, the 2028 Capped Call Transactions, and the 2030 Capped Call Transactions (collectively, the “Capped Call Transactions”), respectively, with certain counterparties at a net cost of $ 100.0 million, $ 102.1 million, $ 86.8 million, $ 177.0 million, and $ 68.9 million respectively. The cap price of the 2025 Capped Call Transactions, the 2026 Capped Call Transactions, the 2027 Capped Call Transactions, the 2028 Capped Call Transactions, and the 2030 Capped Call Transactions is initially $ 32.12 , $ 32.58 , $ 121.02 , $ 93.90 , and $ 33.48 per share of our Class A common stock, respectively. All are subject to certain adjustments under the terms of the Capped Call Transactions. Conditions that cause adjustments to the initial strike price of the Capped Call Transactions mirror conditions that result in corresponding adjustments for the Convertible Notes. The Capped Call Transactions are intended to reduce potential dilution to holders of our Class A common stock beyond the conversion prices up to the cap prices on any conversion of the Convertible Notes or offset any cash payments we are required to make in excess of the principal amount, as the case may be, with such reduction or offset subject to a cap. The cost of the Capped Call Transactions was recorded as a reduction of our additional paid-in capital in our consolidated balance sheets. The Capped Call Transactions will not be remeasured as long as they continue to meet the conditions for equity classification. In May 2024, we entered into agreements to terminate all of the 2025 Capped Call Transactions, which resulted in $ 62.7 million recorded within additional paid-in capital in our consolidated balance sheets. As of December 31, 2025, the remaining Capped Call Transactions were out-of-the-money. 105 Table of Contents Credit Facility In May 2022, we entered into a five-year senior unsecured revolving credit facility (the “Credit Facility”) with certain lenders that allows us to borrow up to $ 1.05 billion to fund working capital and general corporate-purpose expenditures. Loans bear interest, at our option, at a rate equal to (i) a term secured overnight financing rate (“SOFR”) plus 0.85 % or the base rate, if selected by us, for loans made in U.S. dollars, (ii) the Sterling overnight index average plus 0.7826 % for loans made in Sterling, or (iii) foreign indices as stated in the credit agreement plus 0.75 % for loans made in other permitted foreign currencies. The base rate is defined as the greatest of (i) the Wall Street Journal prime rate, (ii) the greater of the (a) federal funds rate and (b) the overnight bank funding rate, plus 0.50 %, and (iii) the applicable SOFR for a period of one month (but not less than zero) plus 1.00 . The Credit Facility also contains an annual commitment fee of 0.10 % on the daily undrawn balance of the facility. In February 2025, we amended the Credit Facility to extend the term of $ 800.0 million of the $ 1.05 billion to February 12, 2030, with the remaining $ 250.0 million of the Credit Facility maturing on the existing maturity date of May 6, 2027. In addition, the amendment increased the minimum liquidity covenant (defined as unrestricted cash and cash equivalents) from $ 300.0 million to $ 800.0 million. As of December 31, 2025, we had $ 82.2 million in the form of outstanding standby letters of credit, with no amounts outstanding under the Credit Facility. 8. Commitments and Contingencies Commitments We have non-cancelable contractual agreements primarily related to the hosting of our data processing, storage, and other computing services, as well as lease, content and developer partner, and other commitments. For additional discussion on leases, see Note 9 of these consolidated financial statements. Our non-cancelable contractual commitments as of December 31, 2025 were as follows: Non-Cancelable Commitments (in thousands) Year ending December 31, 2026 $ 1,609,584 2027 1,075,237 2028 104,372 2029 99,244 2030 98,397 Thereafter 437,020 Total non-cancelable contractual commitments $ 3,423,854 Contingencies We record a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We also disclose material contingencies when we believe a loss is not probable but reasonably possible. Accounting for contingencies requires us to use judgment related to both the likelihood of a loss and the estimate of the amount or range of loss. Many legal and tax contingencies can take years to be resolved. Pending Matters In November 2021, we and certain of our officers were named as defendants in a federal securities class action lawsuit purportedly brought on behalf of purchasers of our Class A common stock, alleging that we and certain of our officers made false or misleading statements and omissions concerning the impact that Apple’s App Tracking Transparency framework would have on our business. In September 2025, we reached a preliminary settlement agreement to resolve this matter for $ 65.0 million, which we expect to be covered by insurance. This settlement is subject to court approval. If the settlement is not approved, we will continue to litigate the case. Although we believe we have meritorious defenses to this lawsuit, litigation is inherently uncertain, and an unfavorable outcome could seriously harm our business. The impact of this settlement on our consolidated financial statements is not expected to be material. 106 Table of Contents In August 2025, we and certain of our officers were named as defendants in a federal securities class action lawsuit filed in the U.S. District Court for the Central District of California. The lawsuit was purportedly brought on behalf of purchasers of our Class A common stock. The lawsuit alleges that we and certain of our officers made false or misleading statements concerning an ad platform change that impacted revenue in the first half of 2025. Plaintiffs seek monetary damages and other relief. In December 2025, the plaintiffs voluntarily dismissed the case which may be refiled in the future. Although we believe we have meritorious defenses to the claims, litigation is inherently uncertain, and an unfavorable outcome could seriously harm our business. For this pending matter, it is not possible to reasonably estimate the amount or range of loss. We are subject to various other legal proceedings and claims in the ordinary course of business, including certain patent, trademark, privacy, regulatory, and employment matters. The outcomes of these legal proceedings are inherently unpredictable, subject to significant uncertainties, and could be material to our financial condition, results of operations, and cash flows for a particular period. Although occasional adverse decisions or settlements may occur, we do not currently believe that the final disposition of any of our other pending matters will seriously harm our business or materially impact our financial condition, results of operations, and cash flows. Indemnifications In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, investors, directors, officers, employees, and other parties with respect to certain matters. Indemnification may include losses from our breach of such agreements, services we provide, or third-party intellectual property infringement claims. These indemnifications may survive termination of the underlying agreement and the maximum potential amount of future indemnification payments may not be subject to a cap. We have not incurred material costs to defend lawsuits or settle claims related to these indemnifications as of December 31, 2025. We believe the fair value of these liabilities is immaterial and accordingly have no liabilities recorded for these agreements as of December 31, 2025. 9. Leases We have non-cancelable lease agreements for certain of our offices with original lease terms expiring between 2026 and 2042. Total operating lease costs were $ 105.5 million, $ 101.0 million, and $ 101.0 million for the years ended December 31, 2025, 2024, and 2023, respectively. The weighted-average remaining lease term (in years) and discount rate related to our operating leases were as follows: As of December 31, 2025 2024 Weighted-average remaining lease term 8.6 9.3 Weighted-average discount rate 6.1 % 6.1 % The maturities of our operating lease liabilities as of December 31, 2025 were as follows: Operating Leases (in thousands) Year ending December 31, 2026 $ 85,126 2027 95,850 2028 93,389 2029 89,320 2030 88,175 Thereafter 347,711 Total lease payments 799,571 Less: imputed interest ( 193,269 ) Present value of lease liabilities $ 606,302 107 Table of Contents As of December 31, 2025, we had additional operating leases that have not yet commenced for facilities with lease obligations of $ 115.9 million. These operating leases will commence starting in 2026 with lease terms of approximately 12.7 years. Cash payments included in the measurement of our o perating lease liabilities, net of lease incentives received, were $ 74.0 million, $ 101.4 million, and $ 89.8 million for the years ended December 31, 2025 , 2024 , and 2023 , respectively. Lease liabilities arising from obtaining operating lease right-of-use assets were $ 30.9 million, $ 71.0 million, and $ 220.2 million for the years ended December 31, 2025 , 2024 , and 2023 , respectively . 10. Strategic Investments We hold strategic investments primarily in privately held companies, which consist of equity securities without readily determinable fair values, and to a lesser extent, debt securities. These strategic investments are primarily recorded at fair value on a non-recurring basis. The estimation of fair value for these privately held strategic investments requires the use of significant unobservable inputs, such as the issuance of new equity by the company, and as a result, we deem these assets as Level 3 financial instruments within the fair value measurement framework. The following table summarizes our strategic investments as of December 31, 2025 and 2024: As of December 31, 2025 2024 (in thousands) Initial cost $ 115,761 $ 106,052 Cumulative upward adjustments 145,932 146,201 Cumulative downward adjustments, including impairments ( 77,956 ) ( 63,910 ) Carrying value $ 183,737 $ 188,343 Gains and losses recognized during the periods presented were as follows: Year Ended December 31, 2025 2024 2023 (in thousands) Gains (losses) recognized on strategic investments sold during the period, net $ 2,109 $ ( 60 ) $ — Unrealized gains on strategic investments still held at the reporting date 586 334 1,368 Unrealized losses, including impairments, on strategic investments still held at the reporting date ( 15,304 ) ( 7,703 ) ( 28,423 ) Gains (losses) on strategic investments, net $ ( 12,609 ) $ ( 7,429 ) $ ( 27,055 ) Gains and losses on all strategic investments are included within other income (expense), net on our consolidated statements of operations and included as an adjustment to reconcile net loss to net cash provided by (used in) operating activities in our consolidated statements of cash flows. Strategic investments are included within other assets on our consolidated balance sheets. 11. Fair Value Measurements Assets and liabilities measured at fair value are classified into the following categories: • Level 1: Quoted market prices in active markets for identical assets or liabilities. • Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. • Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions or external inputs from inactive markets. 108 Table of Contents We classify our cash equivalents and marketable securities within Level 1 or Level 2 because we use quoted market prices or alternative pricing sources and models utilizing observable market-based inputs to determine their fair value. The following tables set forth our financial assets that are measured at fair value on a recurring basis, excluding publicly traded equity securities, as of December 31, 2025 and 2024: December 31, 2025 Fair Value Hierarchy Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value (in thousands) Cash $ 399,573 $ — $ — $ 399,573 Cash equivalents: Money market funds Level 1 630,862 — — 630,862 Total cash and cash equivalents 1,030,435 — — 1,030,435 Marketable debt securities: U.S. government securities Level 1 1,796,271 6,479 ( 5 ) 1,802,745 Corporate debt securities Level 2 97,701 161 ( 6 ) 97,856 Total marketable debt securities 1,893,972 6,640 ( 11 ) 1,900,601 Total $ 2,924,407 $ 6,640 $ ( 11 ) $ 2,931,036 December 31, 2024 Fair Value Hierarchy Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value (in thousands) Cash $ 348,251 $ — $ — $ 348,251 Cash equivalents: Money market funds Level 1 694,323 — ( 30 ) 694,293 U.S. government securities Level 1 3,991 — ( 1 ) 3,990 Total cash and cash equivalents 1,046,565 — ( 31 ) 1,046,534 Marketable debt securities: U.S. government securities Level 1 2,186,192 4,984 ( 3,292 ) 2,187,884 Corporate debt securities Level 2 129,217 229 ( 5 ) 129,441 Total marketable debt securities 2,315,409 5,213 ( 3,297 ) 2,317,325 Total $ 3,361,974 $ 5,213 $ ( 3,328 ) $ 3,363,859 Gross unrealized losses on marketable debt securities were not material as of December 31, 2025 and 2024. As of December 31, 2025 and 2024, we considered any decreases in fair value on our marketable debt securities to be driven by factors other than credit risk, including market risk. As of December 31, 2025, $ 0.9 billion of our total $ 1.9 billion in marketable debt securities have contractual maturities between one and five years . All other marketable debt securities have contractual maturities less than one year. We hold investments in publicly traded companies with an aggregate carrying value of $ 9.5 million and $ 12.4 million as of December 31, 2025 and 2024, respectively, recorded as marketable securities. We classify these publicly traded equity securities within Level 1 because we use quoted market prices to determine their fair value. Gains 109 Table of Contents and losses recognized during the periods presented, which are included within other income (expense), net on our consolidated statements of operations, were as follows: Year Ended December 31, 2025 2024 2023 (in thousands) Gains (losses) recognized on publicly traded equity securities sold during the period, net $ — $ — $ 11,046 Unrealized gains (losses) on publicly traded equity securities still held at the reporting date, net ( 5,636 ) ( 1,185 ) ( 17,731 ) Gains (losses) on publicly traded equity securities, net $ ( 5,636 ) $ ( 1,185 ) $ ( 6,685 ) We carry the Notes at face value less any unamortized debt issuance costs and discounts, plus unamortized premiums on our consolidated balance sheets and present the fair value for disclosure purposes only. As of December 31, 2025, the fair value of the 2026 Notes, the 2027 Notes, the 2028 Notes, the 2030 Notes, the 2033 Notes and the 2034 Notes was $ 45.8 million, $ 99.1 million, $ 467.9 million, $ 655.4 million, $ 1,553.8 million, and $ 566.2 million respectively. As of December 31, 2024, the fair value of the 2025 Notes, the 2026 Notes, the 2027 Notes, the 2028 Notes and the 2030 Notes was $ 35.5 million, $ 242.7 million, $ 998.5 million, $ 1,226.6 million, and $ 635.6 million, respectively. The estimated fair value of the Notes, which are classified as Level 2 financial instruments, was determined based on the estimated or actual bid prices of the Notes in an over-the-counter market on the last business day of the period. Schedule of Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in our consolidated balance sheets to the total of the amounts in the consolidated statements of cash flows. As of December 31, 2025 2024 2023 (in thousands) Cash and cash equivalents $ 1,030,435 $ 1,046,534 $ 1,780,400 Restricted cash, included in other assets 962 3,700 2,062 Total cash, cash equivalents, and restricted cash $ 1,031,397 $ 1,050,234 $ 1,782,462 110 Table of Contents 12. Income Taxes The domestic and foreign components of pre-tax loss were as follows: Year Ended December 31, 2025 2024 2023 (in thousands) Domestic (1) $ ( 238,993 ) $ ( 280,877 ) $ ( 285,330 ) Foreign (1) ( 212,143 ) ( 391,349 ) ( 1,009,093 ) Loss before income taxes $ ( 451,136 ) $ ( 672,226 ) $ ( 1,294,423 ) (1) Includes the impact of intercompany charges to foreign affiliates for financing, management fees, and research and development cost sharing, inclusive of stock-based compensation. The components of our income tax (benefit) expense were as follows: Year Ended December 31, 2025 2024 2023 (in thousands) Current: Federal $ — $ 5,216 $ — State 4,631 6,811 8,585 Foreign 1,930 13,273 26,727 Total current income tax expense (benefit) 6,561 25,300 35,312 Deferred: Federal 1,542 1,595 1,267 State 1,061 1,027 1,061 Foreign 189 ( 2,292 ) ( 9,578 ) Total deferred income tax expense (benefit) 2,792 330 ( 7,250 ) Income tax expense (benefit) $ 9,353 $ 25,630 $ 28,062 111 Table of Contents The following is a reconciliation of the U.S. statutory federal income tax rate to our effective tax rate. We adopted ASU 2023-09 prospectively for the fiscal year 2025. Prior period disclosures have not been retrospectively adjusted and may not be comparable to the current period presentation under the new standard. Year Ended December 31, 2025 Amount Percent (dollars in thousands) U.S. federal statutory tax rate $ ( 94,739 ) 21.0 % Total state and local income taxes (1) 2,506 ( 0.6 ) Foreign tax effects United Kingdom Statutory tax rate difference between United Kingdom and United States ( 1,991 ) 0.4 Changes in valuation allowances ( 57,537 ) 12.8 Other ( 1,534 ) 0.3 Singapore Statutory tax rate difference between Singapore and United States 8,588 ( 1.9 ) Changes in valuation allowances 37,952 ( 8.4 ) Other 2,240 ( 0.5 ) Other foreign jurisdictions 2,305 ( 0.5 ) Tax credits Research and development tax credits ( 92,642 ) 20.6 Changes in valuation allowances 110,612 ( 24.5 ) Nontaxable or nondeductible items Stock-based payment awards 52,357 ( 11.6 ) Other 8,869 ( 2.0 ) Changes in unrecognized tax benefits 32,367 ( 7.2 ) Total income tax expense (benefit) $ 9,353 ( 2.1 ) % (1) State taxes in California contributed to the majority of the tax effect in this category. The following is a reconciliation of the statutory federal income tax rate to our effective tax rate for the years ended December 31, 2024 and 2023: Year Ended December 31, 2024 2023 Tax benefit (expense) computed at the federal statutory rate 21.0 % 21.0 % State tax benefit (expense), net of federal benefit (1) 3.9 2.2 Change in valuation allowance ( 31.0 ) ( 31.5 ) Differences between U.S. and foreign tax rates on foreign income ( 0.3 ) 3.3 Stock-based compensation ( 6.4 ) ( 7.0 ) U.S. federal research & development credit benefit 11.0 8.6 Acquisitions and divestitures ( 1.0 ) 1.8 Other benefits (expenses) ( 1.0 ) ( 0.6 ) Total income tax benefit (expense) ( 3.8 ) % ( 2.2 ) % (1) Inclusive of state research and development credits. 112 Table of Contents As a result of our prospective adoption of ASU 2023-09 as of January 1, 2025, the following table presents income taxes paid, net of refunds, disaggregated by jurisdiction in accordance with the new disclosure requirement for the year ended December 31, 2025: Year Ended December 31, 2025 (in thousands) U.S. federal $ 1,500 U.S. states and local 2,660 Foreign Canada 1,395 France 5,437 Germany 6,191 Israel 2,950 Netherlands 1,453 Other 5,130 Total foreign 22,556 Total income taxes paid $ 26,716 The significant components of net deferred tax balances were as follows: Year Ended December 31, 2025 2024 (in thousands) Deferred tax assets: Accruals and reserves $ 23,230 $ 16,413 Intangible assets 199,140 139,612 IRC 174 capitalized R&D 440,540 598,669 Stock-based compensation 23,686 58,171 Loss carryforwards 2,865,653 2,757,814 Tax credit carryforwards 1,169,703 1,060,486 Operating lease liabilities 134,620 128,072 Other 97,987 67,958 Total deferred tax assets 4,954,559 4,827,195 Deferred tax liabilities: Operating lease right-of-use assets ( 113,448 ) ( 112,907 ) Unrealized gains in securities and investments ( 13,544 ) ( 18,333 ) Other ( 20,784 ) ( 18,445 ) Total deferred tax liabilities ( 147,776 ) ( 149,685 ) Total net deferred tax assets before valuation allowance 4,806,783 4,677,510 Valuation allowance ( 4,808,739 ) ( 4,677,088 ) Net deferred taxes $ ( 1,956 ) $ 422 During the year ended December 31, 2025, we completed an intra-group transaction, which resulted in the recognition of U.S. deferred tax assets and the reversal of U.K. deferred tax assets. Both are subject to a full valuation allowance and, accordingly, the transaction did not result in a net income tax benefit or expense or a net impact to the consolidated balance sheet. 113 Table of Contents Income tax expense was $ 9.4 million for the year ended December 31, 2025, compared to $ 25.6 million for the same period in 2024. The decrease of $ 16.3 million was primarily attributable to a reduction in unrecognized tax benefits due to statute expirations and a reduction in U.S. federal and certain state tax liabilities due to the enactment of the One Big Beautiful Bill Act, which repealed the mandatory capitalization of domestic research and experimental expenditures for tax years beginning after December 31, 2024. As of December 31, 2025, we had an immaterial amount of unremitted earnings related to certain foreign subsidiaries. We intend to continue to reinvest these foreign earnings indefinitely and do not expect to incur any significant taxes related to such amounts. As of December 31, 2025, we had accumulated U.S. federal and state net operating loss carryforwards of $ 6.5 billion and $ 4.4 billion, respectively. Because they were generated after December 31, 2017, these U.S. federal net operating loss carryforwards can be carried forward indefinitely, but the ability to utilize such net operating loss carryforwards to offset taxable income in a tax year may not exceed 80 % of the taxable income in such year. Certain significant state net operating loss carryforwards will begin to expire in 2031. As of December 31, 2025, we had $ 4.9 billion of U.K. net operating loss carryforwards that can be carried forward indefinitely; however, use of such carryforwards in a given year is generally limited to 50 % of such year’s taxable income. As of December 31, 2025, we had accumulated $ 420.0 million of Singapore net operating loss carryforwards, which can be carried forward indefinitely and are not subject to any taxable income limitation. As of December 31, 2025, we had accumulated U.S. federal and state research tax credits of $ 1.0 billion and $ 574.8 million, respectively. The U.S. federal research tax credits will begin to expire in 2035. The U.S. state research tax credits do not expire. We recognize valuation allowances on deferred tax assets if it is more likely than not that some or all of the deferred tax assets will not be realized. We had valuation allowances against net deferred tax assets of $ 4.8 billion and $ 4.7 billion as of December 31, 2025 and 2024, respectively. In 2025, the increase in the valuation allowance was primarily attributable to a net increase in our deferred tax assets resulting from the loss from operations. Uncertain Tax Positions The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended December 31, 2025, 2024, and 2023: Year Ended December 31, 2025 2024 2023 (in thousands) Beginning balance of unrecognized tax benefits $ 562,808 $ 513,404 $ 510,669 Additions for current year tax positions 119,255 49,536 46,188 Additions for prior year tax positions 421 1,163 10,171 Reductions for prior year tax positions ( 3,935 ) ( 622 ) ( 16,736 ) Changes due to lapse of statute of limitations ( 10,855 ) ( 99 ) ( 31,786 ) Reductions for settlements with taxing authorities — — ( 4,927 ) Changes due to foreign currency translation adjustments 1,858 ( 574 ) ( 175 ) Ending balance of unrecognized tax benefits (excluding interest and penalties) 669,552 562,808 513,404 Interest and penalties associated with unrecognized tax benefits 1,791 1,918 967 Ending balance of unrecognized tax benefits (including interest and penalties) $ 671,343 $ 564,726 $ 514,371 Substantially all of the unrecognized tax benefit was recorded as a reduction in our gross deferred tax assets, offset by a corresponding reduction in our valuation allowance. In addition, we record separate deferred tax assets related to potential competent authority relief under applicable income tax treaties, which are fully offset by a valuation allowance. We have net unrecognized tax benefits of $ 27.8 million and $ 35.8 million included in other liabilities on our consolidated balance sheet as of December 31, 2025 and 2024, respectively, which, if recognized, would result in a tax benefit. 114 Table of Contents Our policy is to recognize interest and penalties associated with tax matters as part of the income tax provision and include accrued interest and penalties with the related income tax liability on our consolidated balance sheets. For the year ended December 31, 2025, interest expense recorded related to uncertain tax positions was not material. The income taxes we pay are subject to potential review by taxing jurisdictions globally. Our estimate of the potential outcome of any uncertain tax position is subject to management’s assessment of relevant risks, facts, and circumstances existing at that time. We believe that our estimate has adequately provided for these matters. However, our future results may include adjustments to estimates in the period the audits are resolved, which may impact our effective tax rate. The material tax jurisdictions in which we are subject to potential examination include the United States for tax years ending on or after December 31, 2012, and the United Kingdom for tax years ending on or after December 31, 2020. We are currently under examination by the U.S. Internal Revenue Service for tax year 2022, U.K. tax authorities for tax years 2020 through 2023, and also in various other jurisdictions covering multiple tax years. 13. Accumulated Other Comprehensive Income (Loss) The table below presents the changes in accumulated other comprehensive income (loss) (“AOCI”) by component and the reclassifications out of AOCI: Changes in Accumulated Other Comprehensive Income (Loss) by Component Marketable Securities Foreign Currency Translation Total (in thousands) Balance as of December 31, 2024 $ 1,730 $ 964 $ 2,694 Other comprehensive income (loss) before reclassifications 3,470 19,253 22,723 Amounts reclassified from AOCI (1) 1,275 — 1,275 Net current period other comprehensive income (loss) 4,745 19,253 23,998 Balance as of December 31, 2025 $ 6,475 $ 20,217 $ 26,692 (1) Realized gains and losses on marketable securities are reclassified from AOCI into other income (expense), net in our consolidated statements of operations. 14. Property and Equipment, Net Property and equipment, net, consisted of the following: As of December 31, 2025 2024 (in thousands) Computer hardware and software $ 65,466 $ 67,796 Buildings 21,486 21,486 Leasehold improvements 560,551 450,826 Furniture and equipment 259,673 214,619 Construction in progress 41,301 63,284 Total 948,477 818,011 Less: accumulated depreciation ( 370,402 ) ( 328,923 ) Property and equipment, net $ 578,075 $ 489,088 Depreciation on property and equipment was $ 118.1 million , $ 98.0 million , and $ 87.3 million for the years ended December 31, 2025 , 2024 , and 2023 , respectively. Noncash property and equipment additions in accounts payable, accrued 115 Table of Contents expenses and other current liabilities were $ 32.5 million , $ 29.3 million , and $ 44.5 million for the years ended December 31, 2025 , 2024 , and 2023 , respectively . 15. Balance Sheet Components Accrued expenses and other current liabilities as of December 31, 2025 and 2024 consisted of the following: As of December 31, 2025 2024 (in thousands) Accrued infrastructure costs $ 327,980 $ 377,022 Deferred revenue 145,210 112,769 Accrued compensation and related expenses 77,812 85,416 Accrued professional fees 71,407 69,618 Accrued revenue share 63,885 84,990 Accrued operating costs 61,315 62,375 Deferred payments for acquisitions 3,789 76,434 Other 220,229 140,630 Total accrued expenses and other current liabilities $ 971,627 $ 1,009,254 16. Employee Benefit Plans We have a defined contribution savings plan for U.S.-based employees under the provisions of the U.S. Internal Revenue Code Section 401(k) (the “401(k) Plan”). The 401(k) Plan is available for all full-time employees who meet certain eligibility requirements. Eligible employees may contribute up to 100 % of their eligible compensation, but are limited to the maximum annual dollar amount allowable under the Code. We match 100 % of each participant’s contribution up to a maximum of 3 % of the participant’s eligible compensation paid during the period, and also match 50 % of each participant’s contribution between 3 % and 5 % of the participant’s eligible compensation paid during the period. For the years ended December 31, 2025 , 2024 , and 2023 , we recognized expense of $ 29.5 million , $ 29.6 million , and $ 34.0 million , respectively, related to matching contributions. 17. Related Party Transactions In November 2020 , we entered into a ground sublease with an entity that is controlled by our CEO that allows us to build and operate a hangar to support our aviation program. This entity subleases the ground to us for $ 0 and in exchange may utilize a specified percentage of the hangar space. If the entity needs additional space within the hangar, it will pay rent to Snap at a fair market value rate determined at the time this arrangement was entered into. Any space utilized by this entity will be space that is not required for Snap’s aviation program. Subject to certain limited exceptions, neither party may terminate this sublease for at least six years . After this period, Snap or this entity may terminate the lease at any time on 24 months ’ prior written notice. Upon termination of the sublease, this entity will purchase the hangar from Snap at its fair market value on the termination date. The value of these arrangements is not material to our consolidated financial statements for the periods presented or for the term of the agreement. 18. Restructuring 2024 Restructuring In the first quarter of 2024, we announced a plan to reduce hierarchy and concentrate our team members in major hub locations to support in-person collaboration, resulting in the reduction of our global headcount by approximately 10%. We completed the 2024 restructuring in the second quarter of 2024. 116 Table of Contents The following table summarizes the 2024 restructuring charges included in our consolidated statement of operations for the year ended December 31, 2024 : Severance and Related Charges (1) Stock-Based Compensation Expense Other (2) Total (in thousands) Cost of revenue $ 932 $ 189 $ — $ 1,121 Research and development 30,845 4,801 3,201 38,847 Sales and marketing 15,755 4,176 — 19,931 General and administrative 7,786 236 2,236 10,258 Total $ 55,318 $ 9,402 $ 5,437 $ 70,157 (1) Severance and related charges include cash severance expenses and other termination benefits. The majority of cash paid for the restructuring was related to severance and benefits. (2) Other primarily includes intangible asset amortization and depreciation expense. AR Enterprise Strategic Review In the third quarter of 2023, we initiated the wind down of our AR Enterprise business, which included a reduction of our global employee headcount by approximately 3 % . We substantially completed the program in the fourth quarter of 2023. During the year ended December 31, 2023, we recognized pre-tax restructuring charges of $ 40.8 million , primarily recorded in sales and marketing and general and administrative expenses in our consolidated statement of operations, and an income tax benefit of $ 5.7 million . The pre-tax restructuring charges primarily include cash severance, stock-based compensation expense, and charges related to the revision of the useful lives and disposal of certain acquired intangible assets. 19. Segments and Geographic Information Our CEO is our CODM. Our CODM evaluates performance and makes operating decisions about allocating resources based on financial data presented on a consolidated basis, accompanied by information about revenue disaggregated by geographic region. Because our CODM evaluates financial performance on a consolidated basis, we have determined that we have a single operating segment composed of the consolidated financial results of Snap Inc. The measure used by our CODM to assess performance and make operating decisions is net loss as reported on our consolidated statements of operations. Net loss is used by our CODM to identify underlying trends in the performance of our business and make comparisons with the financial performance of our competitors. Our CODM also reviews total assets, as reported on our consolidated balance sheets, and purchases of property and equipment, as reported on our consolidated statements of cash flows. Our CODM also utilizes expense information in order to assess our financial performance. Infrastructure costs primarily consist of payments to th ird-party infrastructure partners for hosting our products, which include expenses related to storage, computing, and bandwidth. Content and developer partner costs primarily consist of fees paid to our content creators and publisher partners who share content on our platform through revenue sharing arrangements. Advertising partner and other costs primarily consist of payments to third-party partners for fulfillment services, transaction processing fees, and other expenses directly related to providing our services. Operating expenses include all remaining costs necessary to operate our business, which primarily include personnel exp enses, facilities and related costs, promotional and marketing expenses, external professional services, and other administrative expenses. Operating expenses include charges recognized as research and development, selling and marketing, and general and administrative expenses within our consolidated statements of operations, but exclude stock-based compensation and related payroll and other tax expenses, depreciation and amortization, and restructuring charges, which are independently reviewed by our CODM. 117 Table of Contents The following table presents the significant segment expenses and other segment items regularly reviewed by our CODM: Year Ended December 31, 2025 2024 2023 (in thousands) Revenue $ 5,931,447 $ 5,361,398 $ 4,606,115 Less: Infrastructure costs 1,584,147 1,441,134 1,171,993 Content and developer partner costs 621,442 634,977 621,971 Advertising partner and other costs 450,508 384,804 297,262 Operating expenses 2,585,871 2,391,878 2,353,312 Stock-based compensation and related payroll and other tax expense 1,058,013 1,069,389 1,359,107 Depreciation and amortization 163,633 154,459 159,999 Other segment items (1) ( 71,678 ) ( 17,387 ) ( 35,044 ) Net loss $ ( 460,489 ) $ ( 697,856 ) $ ( 1,322,485 ) (1) Other segment items primarily include interest income; interest expense; other income (expense), net; and income tax benefit (expense) as reported in our consolidated statements of operations. Other segment items also include restructuring charges of $ 72.1 million and $ 40.8 million for the years ended December 31, 2024 and 2023, respectively. The following table represents our long-lived assets, which includes property and equipment, net and operating lease right-of-use assets, by geography: As of December 31, 2025 2024 (in thousands) United States $ 710,984 $ 682,173 United Kingdom 245,911 248,243 Rest of world (1) 127,396 89,113 Total long-lived assets, net $ 1,084,291 $ 1,019,529 (1) No individual country other than the United States and the United Kingdom exceeded 10% of our total long-lived assets for any period presented. 20. Subsequent Events In February 2026, our board of directors authorized a stock repurchase program of up to $ 500 million of our Class A common stock. Repurchases of Class A common stock may be made from time to time, either through open market transactions (including pre-set trading plans) or through other transactions in accordance with applicable securities laws. Repurchases have been authorized for the next 12 months but the program may be initiated, modified, suspended, or terminated at any time during such period. 118 Table of Contents Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. None.