Snap Inc.

Core operations · Operational disruption and business continuity

Our business depends on our ability to maintain and scale our technology infrastructure. Any significant disruption to our service could damage our reputation, result in a potential loss of users and decrease in user engagement, and seriously harm our business. We have in the past experienced, and may in the future experience, interruptions in the availability or performance of our products and services from time to time.

Human capital and workforce · Key personnel dependence and succession

Mr. Spiegel, as Chief Executive Officer, has been responsible for our company's strategic vision and Mr. Murphy, as Chief Technology Officer, developed the Snapchat application's technical foundation. Should either of them stop working for us for any reason, it is unlikely that the other co-founder would be able to fulfill all of the responsibilities of the departing co-founder.

Reputation and brand · Brand damage and negative publicity

If events occur that damage our brand or reputation, our business may be seriously harmed. In the past, we have experienced, and we expect that we will continue to experience, media, legislative, and regulatory scrutiny. Negative public perception regarding us could seriously harm our reputation and brand, and result in decreased revenue, fewer application installs, or declining engagement or growth rates.

Organizational and management · Leadership and management changes

We periodically make changes to our business and priorities. For example, in the first quarter of 2024, we undertook a restructuring of our business to focus on our top priorities, improve cost efficiencies, and drive toward profitability and positive free cash flow. As we continue to adapt and update our business model and priorities, we may make additional restructurings.

Corporate governance · Shareholder rights and activism

Our two co-founders, Evan Spiegel and Robert Murphy, control over 99% of the voting power of our outstanding capital stock as of December 31, 2025, and Mr. Spiegel alone can exercise voting control over a majority of our outstanding capital stock. This concentrated control could delay, defer, or prevent a change of control, merger, consolidation, or sale of all or substantially all of our assets that our other stockholders support.

Digital transformation and innovation · Integration and interoperability

Because Snapchat is used primarily on mobile devices, the application must remain interoperable with popular mobile operating systems, primarily Android and iOS, application stores, and related hardware. We may not successfully cultivate relationships with key industry participants or develop products that operate effectively with these technologies, systems, networks, regulations, or standards.

Information management · Data quality and integrity

Our user metrics and other estimates are subject to inherent challenges in measurement, and real or perceived inaccuracies in those metrics may seriously harm and negatively affect our reputation and our business. These metrics are calculated using internal company data gathered on an analytics platform that we developed and operate and our methodologies have not in all instances been validated by an independent third party.

Digital transformation and innovation · Technology implementation and upgrades

We plan to continue to introduce new products and features regularly, including some features that may only work on the latest systems and hardware, and have experienced that it takes significant time to optimize new products and features to function with the variety of existing mobile operating systems, hardware, and standards.

Technology infrastructure · Disaster recovery and business continuity

Our systems may not be adequately designed with the necessary reliability and redundancy to avoid performance delays or outages caused by us or other service providers that could seriously harm our business. If Snapchat is unavailable when users attempt to access it, or if it does not load as quickly as they expect, users may not return to Snapchat as often in the future.

Technology infrastructure · Network connectivity and telecommunications

Our products require high-bandwidth data capabilities. If the costs of data usage increase or access to cellular networks is limited, our user retention, growth, and engagement may be seriously harmed. Additionally, to deliver high-quality video and other content over mobile cellular networks, our products must work well with a range of mobile technologies, systems, networks, regulations, and standards.

Credit and liquidity · Banking relationships and credit facilities

We have a Credit Facility that we may draw on to finance our operations, acquisitions, and other corporate purposes. If we default on these credit obligations, our lenders may: require repayment of any outstanding amounts drawn on our Credit Facility; terminate our Credit Facility; or require us to pay significant damages.

International and currency · International operations and emerging markets

We plan to continue expanding our business operations abroad and to enter new international markets and expand our operations in existing international markets, where in some cases we have limited or no experience in marketing, selling, and deploying our products and advertisements. Our limited experience and infrastructure in such markets may make it more difficult for us to effectively monetize any increase in DAUs in those markets.

Strategic execution · Joint venture and partnership risks

For example, in December 2025, we entered into a strategic partnership to integrate Perplexity's conversational AI search engine into our platform. This and other third-party integrations subject us to several operational and financial risks, particularly as our partners' ability to scale their infrastructure to meet the demands of our global community remains unproven.

Market position and competition · Industry consolidation and market concentration

Certain acquisitions by our competitors may result in reduced functionality of our products and services, provide our competitors with valuable insight into the performance of our and our partners' businesses, and provide our competitors with a pipeline of future acquisitions to maintain a dominant position.

Strategic execution · Geographic expansion and market entry

Expanding and operating in international markets requires significant resources and management attention. If we are not successful in expanding and operating our business in international markets, we may incur significant costs, damage our brand, or need to lay off team members in those markets, any of which may seriously harm our business.

Customer and revenue · Customer retention and subscription renewal

If our efforts to attract prospective subscribers to Snapchat+, retain existing subscribers, and effectively continue to monetize Snapchat+ and other non-advertising products and services are not successful, our revenue will be adversely affected. Our ability to generate non-advertising revenue depends on retaining, expanding, and effectively monetizing our total user base.

Market position and competition · Competitive pressure and market share loss

We face significant competition in almost every aspect of our business both domestically and internationally. Our competitors range from smaller or newer companies to larger, more established companies such as Alphabet (including Google and YouTube), Apple, ByteDance (TikTok and affiliated joint ventures), Meta (including Facebook, Instagram, Threads, and WhatsApp), and others.

Market position and competition · Pricing pressure and margin compression

Competitive developments or advertiser perception of the value of our products that change the rates we can charge for advertising or the volume of advertising on Snapchat could seriously harm our business. Many of our current and potential competitors have significantly greater resources and broader global recognition, which may allow them to adopt more aggressive pricing policies.

Data and privacy · Data protection and privacy laws

Regulators in many countries in which we operate or have users are increasingly scrutinizing and regulating the collection, use, and sharing of personal data related to advertising, which could materially impact our revenue and seriously harm our business. Many of these laws and regulations expand the rights of individuals to control how their personal data is collected and processed, and place restrictions on the use of personal data of teens.

Natural and catastrophic events · Terrorism and security threats

Generally, during times of war and other major conflicts, we, the third parties on which we rely, and our partners are vulnerable to a heightened risk of cyberattacks, including retaliatory cyberattacks, that could seriously disrupt our business. We may also face retaliatory attacks by governments, entities, or individuals who do not agree with our public expressions with regards to any conflicts.