Shares of Snap Inc. (SNAP) plummeted 15.87% in pre-market trading on Wednesday following the release of disappointing second-quarter 2025 financial results. The social media company, known for its Snapchat app, reported its slowest revenue growth in over a year, primarily due to a temporary glitch in its advertising platform and other external factors.

Snap's Q2 earnings per share (EPS) came in at -$0.16, significantly below the consensus estimate of $0.01. Revenue for the quarter stood at $1.34 billion, slightly missing the expected $1.35 billion and representing a growth rate of just 8.7% year-over-year. This marks a substantial deceleration from the double-digit growth Snap had been experiencing in previous quarters. The company's net loss widened to $263 million from $249 million a year ago.

Several factors contributed to Snap's underwhelming performance. A key issue was an unintentional error that allowed some ads to run at much lower prices, directly impacting revenue. Additionally, the timing of Ramadan and the termination of a duty-free import loophole in the U.S. further affected the quarter's results. Despite these challenges, Snap reported some positive metrics, including a 9% increase in daily active users to 469 million and a 42% rise in Snapchat+ subscribers to nearly 16 million. However, these improvements were not enough to offset investor concerns about the company's overall financial health and growth trajectory, leading to the significant pre-market stock decline.