Snap’s Other Revenue Jumps 85% as It Adds More Ways for Users to Pay

Snap generated $316 million in Other Revenue during the second quarter as Snapchat+, Memories Storage Plans, and Lens+ helped expand the company’s business beyond advertising.

Snap’s paid products are beginning to generate meaningful revenue alongside its advertising business.

The company reported $316 million in Other Revenue for the second quarter of 2026, up 85% from a year earlier. Snapchat+, Memories Storage Plans and Lens+ contributed to the quarter’s growth.

Advertising remains Snap’s largest business. It generated approximately $1.28 billion and accounted for about 80% of the company’s $1.60 billion in quarterly revenue. Advertising revenue grew 9%.

Snap is giving users several reasons to pay instead of relying on a single subscription product.

Snap Is Building Several Paid Options

Snapchat+ remains the foundation of the company’s paid-product strategy. The subscription includes customization features, early access to new products and more controls for highly engaged users.

Along with Snapchat+, Memories Storage Plans and Lens+, Snap’s broader paid portfolio includes Snapchat Platinum and Creator Subscriptions:

• Lens+, with premium artificial intelligence and augmented reality tools

• Snapchat Platinum, an ad-light version of Snapchat

• Memories Storage Plans for users who want to store more than 5GB of photos and videos

• Creator Subscriptions, which let users pay individual creators for exclusive content, priority engagement and an ad-free experience within the creator’s Stories

Each product gives users a different reason to pay. Some may want personalization or storage. Others may value creative tools, fewer ads or closer access to a creator.

Most Snapchat Users Still Don’t Pay

Snap reported 971 million monthly active users in the second quarter, up 4% from a year earlier. Daily active users increased 5% to 493 million.

In February, Snap said its global subscription community had passed 25 million members. During its second-quarter earnings discussion, management said paying subscribers still represented less than 3% of monthly active users.

That leaves a large pool of people who use Snapchat but don’t pay for it. Snap doesn’t need most of them to subscribe for its paid products to become a significant business.

Separate products also give Snap room to test pricing and packaging without putting every paid feature into Snapchat+.

Advertising Still Pays Most of the Bills

Snap is still an advertising business. The company continues to invest in advertising performance and tools for businesses.

Its paid products give Snap another source of revenue when advertising demand shifts. They may also help the company earn more from its most engaged users without charging everyone to use Snapchat.

Snap reported total second-quarter revenue of $1.599 billion, up 19% from a year earlier. Its net loss narrowed to $164 million from $263 million. Free cash flow increased to $121 million from $24 million.

Insider Take

Snap is building paid products around different customer needs.

Customization, storage, creative tools, fewer ads and creator access give users distinct reasons to pay. Snap can learn who buys each product, whether customers use more than one and which offers keep them paying.

Snap’s approach should prompt subscription operators to look at their own plans. Are too many different customer needs being packed into one subscription?

A free-to-paid strategy may need more than one conversion point. The questions now are which products attract new payers, which improve retention, which increase revenue per customer and whether the growing selection stays easy to understand.

Sources

• Snap Inc. Announces Second Quarter 2026 Financial Results
• Snap’s Direct Revenue Business Reaches $1 Billion Annualized Revenue Run Rate