Net Loss per Share

We compute net loss per share using the two-class method required for multiple classes of common stock. We have three classes of authorized common stock for which voting rights differ by class.

Basic net loss per share is computed by dividing net loss attributable to each class of stockholders by the weighted-average number of shares of stock outstanding during the period, adjusted for RSAs for which the risk of forfeiture has not yet lapsed.

For the calculation of diluted net loss per share, net loss per share attributable to common stockholders for basic net loss per share is adjusted by the effect of dilutive securities, including awards under our equity compensation plans. Diluted net loss per share attributable to common stockholders is computed by dividing the resulting net loss attributable to

common stockholders by the weighted-average number of fully diluted common shares outstanding. We use the if-converted method for calculating any potential dilutive effect of the convertible senior notes due in 2025, 2026, 2027, 2028, and 2030 (collectively, the “Convertible Notes”) on diluted net loss per share. The Convertible Notes would have a dilutive impact on net income per share when the average market price of Class A common stock for a given period exceeds the respective conversion price of the Convertible Notes. For the periods presented, our potentially dilutive shares relating to stock options, RSUs, RSAs, and the Convertible Notes were not included in the computation of diluted net loss per share as the effect of including these shares in the calculation would have been anti-dilutive.

The numerators and denominators of the basic and diluted net loss per share computations for our common stock are calculated as follows for the years ended December 31, 2025, 2024, and 2023:


	Year Ended December 31,
	2025						2024						2023

	(in thousands, except per share data)
	Class A		Class B		Class C		Class A		Class B		Class C		Class A		Class B		Class C
Numerator:
Net loss	$	(391,426)	$	(6,121)	$	(62,942)	$	(590,956)	$	(9,475)	$	(97,425)	$	(1,114,039)	$	(18,479)	$	(189,967)
Net loss attributable to common stockholders	$	(391,426)	$	(6,121)	$	(62,942)	$	(590,956)	$	(9,475)	$	(97,425)	$	(1,114,039)	$	(18,479)	$	(189,967)
Denominator:
Basic shares:
Weighted-average common shares - Basic	1,440,448		22,523		231,627		1,404,994		22,526		231,627		1,358,345		22,532		231,627
Diluted shares:
Weighted-average common shares - Diluted	1,440,448		22,523		231,627		1,404,994		22,526		231,627		1,358,345		22,532		231,627
Net loss per share attributable to common stockholders:
Basic	$	(0.27)	$	(0.27)	$	(0.27)	$	(0.42)	$	(0.42)	$	(0.42)	$	(0.82)	$	(0.82)	$	(0.82)
Diluted	$	(0.27)	$	(0.27)	$	(0.27)	$	(0.42)	$	(0.42)	$	(0.42)	$	(0.82)	$	(0.82)	$	(0.82)

The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive:


	As of December 31,
	2025	2024	2023

	(in thousands)
Stock options	519	680	1,697
Unvested RSUs and RSAs	167,374	134,253	157,130
Convertible Notes (if-converted)	46,193	85,945	89,379

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Snap Inc Earnings Per Share Disclosure

About Earnings Per Share Disclosures

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