
Shares of Snap Inc. (SNAP) edged up more than 4% on Tuesday, after the company reported that its direct-revenue business and the number of subscribers, or ‘Snapchatters,’ hit a milestone.
The social media company said that its direct revenue segment had exceeded a $1 billion annualized revenue run rate, and its global subscription community has crossed 25 million members.
Apart from its core Snapchat+ subscription, the company has also launched paid versions of Lens+, Snapchat Platinum, and Memories Storage Plans as it tries to diversify revenue streams beyond advertising.
Earlier on Tuesday, Snap introduced Creator Subscriptions, a feature that would allow creators on its platform to monetize their loyal fan base.
The social media company said that alpha testing for the feature would launch on Feb. 23 among a selected group of U.S.-based Snap Creators. This would then be rolled out across Canada, the U.K., and France in the weeks ahead, the company said.
Earlier this month, Snap reported fourth-quarter (Q4) 2025 results, with quarterly revenue beating Wall Street estimates. The company’s Q4 revenue rose 10% to $1.72 billion, above analysts’ estimates of $1.70 billion.
The social media company said that revenue from its In-App Optimizations grew 89% year-over-year, fueled by advances in foundational app models, broader adoption of the App Power Pack, and new immersive formats such as Playables. Its global monthly active users (MAU) grew to 946 million in the quarter, an increase of 51 million or 6% year-over-year.
For the upcoming quarter, Snap projected revenue of $1.5 billion to $1.53 billion, slightly below analyst expectations of $1.55 billion. The company also projected adjusted core profit between $170 million and $190 million in Q1.
On Stocktwits, retail sentiment around SNAP shares remained in the ‘bullish’ territory over the past 24 hours amid ‘normal’ message volumes.
SNAP stock has declined more than 55% in the past year.
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