Forensic Analysis · Technology / Software · as of Jun 27, 2026
Snap Inc (SNAP)
A forensic read on Snap Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-3.1
Altman Z-score
Clean
Earnings quality
4
Forensic signals
-18.9%
ROE
$7.3B
Market cap
Snap Inc earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is -3.1, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-8%Return on invested capital.Return on invested capital is -8% and rising from -20% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+1.8%/yrShare-count dilution.Diluted share count changed +5% over the last 3 years to FY2025 (+1.8%/yr). The count is GROWING — existing holders are being diluted. That's ~1.8% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~5%.
17% of revStock-based comp load.Stock-based compensation ran 17% of revenue and 233% of free cash flow in FY2025 — about $0.60 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
172% of FCFShareholder returns.Returned $751M to shareholders (buybacks + dividends) in FY2025 — 172% of free cash flow. More than free cash flow generated — and beyond operating cash too, so the extra is coming from debt or cash reserves, which isn't sustainable indefinitely.
Key fundamentals
Net Margin-7.8%
Debt / Equity1.55x
Free Cash Flow$437.2M
Latest Revenue$5.93B
Return on Equity-20.2%
Revenue Growth YoY+10.6%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Snap Inc:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about SNAP's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown