Beppian

$Snap I don't think many have grasped how accretive the layoffs today is for Snap's bottom line. The $500M annualized cost reduction is for Adj. Opex. That does not include SBC. In my prior model (see below), I had 2026 adj. Opex at ~69% of total Opex and SBC related to Opex at ~27,5% of total Opex. Assuming similar ratios for the cost reductions (i.e., 69% corresponds to $500M), SBC related to Opex should be reduced by ~$200M. So in total, $700M in Opex reductions. To put that in perspective, I modeled 2028 Net Income at $522M, and Morgan Stanley's estimates from earlier this month modeled Net Income at ($332M), ($149M), $23M in 2026, 2027, 2028 respectively.

$SNAP LAYS OFF 16% $500M+ annualized cost savings Targets Long term MAU of 1 Billion Q1 rev raised to ~$1.53B Q1 adj. EBITDA ~$233M vs prior $170M-$190M FY26 gross margin seen above 60% FY26 adj. opex cut to $2.75B from $3.0B