Snap Inc. (NYSE:SNAP) today announced that S&P Global Ratings has upgraded the company's issuer credit rating to BB- from B+, with a positive outlook. S&P also upgraded its issue-level ratings on Snap's unsecured notes to BB- from B+.

In its report, S&P cited Snap's improving operating and financial performance, including:

Lower S&P Global Ratings-adjusted gross leverage;
Improved free operating cash flow to debt;
Expected revenue growth, supported by subscriptions and newer monetization initiatives; and
Snap's recently announced cost savings program, which S&P expects to support accelerated deleveraging.

S&P's positive outlook reflects the potential for a higher rating over the next year if Snap successfully executes its cost savings initiatives and continues growing revenue, supporting further improvement in leverage.

"This upgrade reflects the progress we are making to strengthen Snap's financial profile while continuing to invest in our long-term growth opportunities," said Doug Hott, Chief Financial Officer of Snap Inc. "We remain focused on disciplined execution, durable revenue growth, and building a more efficient business that supports long-term value creation."

Recent Snap highlights include:

Growth: Q1 revenue grew 12% year-over-year to $1.53 billion.
Profitability path: Net loss improved to $89 million and adjusted EBITDA improved to $233 million.
Cash flow: Operating cash flow reached $327 million and free cash flow reached $286 million in Q1.
Revenue diversification: Other Revenue grew 87% year-over-year to $285 million.
Cost discipline: Snap expects more than $500 million in annualized cost reductions in the second half of 2026.
Long-term investment: Snap continues to invest with discipline in Specs and the future of computing.

About Snap Inc.

Snap Inc. is a technology company. We believe the camera presents the greatest opportunity to improve the way people live and communicate. We contribute to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together.

Snap Inc. operates Snapchat, a visual messaging app that enhances your relationships with friends, family, and the world, and Specs Inc., a wholly-owned subsidiary dedicated to making computing more human, in addition to Bitmoji, Saturn, and other digital services. For more information, visit snap.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this press release, including statements regarding Snap's financial profile, cost savings initiatives, revenue growth, leverage, monetization opportunities, long-term growth opportunities, disciplined execution, business efficiency, investments in Specs, and long-term value creation. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "going to," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would" or the negative of these words or other similar terms or expressions. Snap cautions you that the foregoing may not include all of the forward-looking statements made in this press release.

You should not rely on forward-looking statements as predictions of future events. Snap has based the forward-looking statements contained in this press release primarily on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. For more information, please refer to Snap's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, and Snap's other filings with the SEC, which are available on the SEC's website at www.sec.gov. In addition, any forward-looking statements contained in this press release are based on assumptions that Snap believes to be reasonable as of this date. Snap undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

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Investor Relations: ir@snap.com

Media: press@snap.com

Snap Inc. Receives Credit Rating Upgrade from S&P Global Ratings