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Snap Reports Slowest Revenue Growth in Over a Year as Ad Platform Glitch and Competition Weigh

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Snap Inc. (SNAP.N), the parent company of Snapchat, reported on Tuesday its slowest quarterly revenue growth in more than a year, affected by a temporary glitch in its advertising platform and strong competition from larger rivals such as Meta and TikTok. The news sent Snap shares down over 16% in extended trading.

The company acknowledged and resolved an error that unintentionally allowed some ads to run at significantly lower prices, which negatively impacted revenue. Snap faces intense competition from Meta’s Facebook and Instagram, as well as TikTok, with advertisers favoring the bigger platforms amid tighter marketing budgets due to economic uncertainty. Meta and Reddit recently reported strong second-quarter results, highlighting Snap’s tougher market environment.

In addition, the timing of Ramadan influenced advertising spend patterns, and the expiration of a U.S. duty-free import exemption (“de minimis”) led some Chinese advertisers to reduce their budgets on the platform.

Snap’s second-quarter revenue was $1.34 billion, up 8.7% year-over-year, largely in line with expectations but slower than the double-digit growth seen in the previous five quarters. The company’s net loss widened to $263 million from $249 million a year earlier.

Small and medium-sized businesses were the primary drivers of ad revenue growth. Snap’s subscription service, Snapchat+, continues to diversify revenue, with subscriber numbers rising 42% to nearly 16 million during the quarter. Daily active users increased 9% to 469 million, slightly above estimates.

Snap projects third-quarter revenue between $1.48 billion and $1.51 billion, matching analyst expectations.

Japan’s TDK Acquires U.S. Smart Glasses Company SoftEye

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Japanese electronics manufacturer TDK announced on Thursday it has acquired SoftEye, a U.S.-based company specializing in software and hardware for smart glasses. This acquisition supports TDK’s strategy to find new growth drivers linked to artificial intelligence (AI).

SoftEye, headquartered in San Diego, California, develops eye-tracking and object recognition technologies. Its founder and CEO, Te-Won Lee, has previously held executive roles at Samsung Electronics and Qualcomm.

According to a source familiar with the deal, the acquisition is valued at under $100 million.

Tech companies are increasingly investing in hardware beyond smartphones, with smart glasses gaining attention. Facebook owner Meta and others are focusing on AI-powered smart glasses to enhance user interaction with their environment. Social media company Snap plans to launch consumer smart glasses next year, and Alphabet’s Google recently showcased smart glasses at its developer conference. Chipmaker Qualcomm also unveiled a smart glasses processor this month.

TDK, once famous for its cassette tapes, now plays a key role in electronics by supplying components and batteries for smart glasses.

Snap to Launch Consumer Smart Glasses in 2026, Taking on Meta in AR Wearables

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Snap Inc. announced on Tuesday that it will release its first-ever smart glasses for general consumers in 2026, stepping up competition against Meta in the augmented reality (AR) wearable market. The new glasses, named Specs, are designed to be lightweight and user-friendly.

Snap, widely recognized for its Snapchat app and AR-powered animated filters, has invested over $3 billion in developing AR glasses over 11 years, according to CEO Evan Spiegel. The upcoming Specs will build on Snap’s prior developer-only 5th generation Spectacles launched last September.

Augmented reality enables overlaying digital effects on real-world images and videos through a camera or lens, creating interactive experiences. Snap aims to expand its product offerings and revenue sources beyond the digital advertising market, which faces uncertainties due to shifting U.S. trade policies.

The company will collaborate with Niantic Spatial, a platform for augmented reality and geospatial tech, to enhance Lens Studio, Snap’s app for creators to design and publish AR lenses for the Snapchat camera and Specs glasses.

Snap’s move follows strong momentum in AR wearables led by Meta, whose Ray-Ban Meta smart glasses—developed with EssilorLuxottica—have gained popularity. Meta continues integrating AI features into its glasses to broaden appeal. Google and other tech giants are also exploring investments in smart glasses.