$SNAP (Snapchat Inc)
WE ARE STILL ON SNAP AND HERES WHY
The fact Snap is generating positive free cash flow is a sign of maturity: the business is beginning to convert user/engagement metrics into cash that could be used for growth, buybacks, debt reduction or even dividends (in the long term).
If Snap can sustain FCF growth while increasing monetisation, then the high valuation multiple might be justified.
Conversely, if heavy investment delays further FCF growth, then having already paid a premium multiple might prove risky.
In Q3 2025, Snap reported operating cash flow of $146 million and free cash flow of $93 million.
• In Q2 2025, Snap turned a negative free cash flow a year earlier (-$73 million) into a positive $24 million.
• According to a data aggregator, Snap’s trailing-12-months (TTM) free cash flow was ~$414 million as of September 2025 up ~181% year-on-year.
• The company’s free cash flow yield (estimated) is around ~3%.
• The improvement in FCF suggests that Snap is getting closer to turning its user-growth and monetisation engines into real cash for the business.
I’m in on this until January and make a decision on whether to stay invested or not. ... Show More
Not investment advice. The author may have financial interests in the mentioned instruments.
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Fri Aug 21 2026 14:39:57 GMT+0000 (Coordinated Universal Time)
