Snap Inc's stock plummeted 8.51% in after-hours trading following the release of its first quarter 2026 financial results.

The decline was driven by a combination of factors including weaker-than-expected guidance for the second quarter, significant geopolitical headwinds impacting advertising revenue, and substantial restructuring charges. Snap provided Q2 adjusted EBITDA guidance of $175 million to $200 million, well below analyst estimates of $226.1 million, and expects to incur pre-tax restructuring charges of $95 million to $130 million in the quarter, which will pressure net income.

Additionally, the company reported that geopolitical conflicts in the Middle East reduced its advertising revenue by an estimated $20 million to $25 million in March, with the uncertainty expected to persist. Snap also noted that its Q2 revenue guidance assumes no contribution from its partnership with AI startup Perplexity, as the relationship was ended in Q1, and forecasted a decline of approximately 1 million daily active users in North America for the second quarter.