Snap Inc's stock experienced a significant after-hours plunge of 5.07% following the release of its first quarter 2026 financial results. The decline reflects investor concerns over the company's financial performance and outlook.

The company reported a net loss of $88.951 million and an operating loss of $74.449 million for Q1 2026. While revenue of $1.53 billion met analyst expectations, the company posted a loss per share of $0.05, missing the expected $0.09 per share.

Investor sentiment was particularly dampened by the company's Q2 outlook. Snap provided adjusted EBITDA guidance of $175 million to $200 million, which falls below the analyst estimate of $226.1 million. The company also expects to incur pre-tax restructuring charges of $95 million to $130 million in the second quarter, which will be a headwind to net income. Furthermore, Snap noted that its Q2 revenue guidance assumes no contribution from Perplexity, as the relationship was amicably ended in Q1, and mentioned that recovery among larger North American advertisers remains early and uneven.