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Snap Restructures Into Small 'Startup Squads' To Accelerate Growth

The overhaul seeks to replicate Snapchat+ momentum after a softer ad quarter.

Overview

  • CEO Evan Spiegel outlined five to seven independent squads of 10–15 people with single‑threaded leaders, weekly demo days, and 90‑day mission cycles.
  • The shift follows Q2 2025 results showing 4% year‑over‑year advertising growth and a 2% decline in North American daily active users to 98 million.
  • Snapchat+ has surpassed 15 million subscribers and generates over $700 million in annual recurring revenue, driving more than half of recent incremental revenue growth.
  • Sales efforts will concentrate on under‑penetrated medium‑sized advertisers, where management cites below‑0.5% penetration and roughly $6 million in average annualized U.S. spend per new activation.
  • Snap is also prioritizing its long‑term AR push with Specs, which Spiegel describes as a potential smartphone replacement, while acknowledging investor doubt at a roughly $12 billion valuation.