AUSTIN, Texas--(BUSINESS WIRE)--Bumble Inc. (NASDAQ: BMBL) today announced that it will report financial results for the first quarter ending March 31, 2026, following the close of market on Tuesday, May 5, 2026. The Company will host a live webcast of its conference call to discuss the results at 4:30 p.m. Eastern Time on that day.
The webcast of the call, the earnings release, and any related materials will be accessible on the Investors section of the Company’s website at https://ir.bumble.com. A webcast replay will be available approximately two hours after the conclusion of the live event.
About Bumble Inc.
Bumble Inc. is the parent company of Bumble, Badoo, and BFF. The Bumble platform brings people closer to love by enabling them to build healthy relationships. Founded in 2014 by Whitney Wolfe Herd, who serves as CEO, Bumble was one of the first dating apps built with women at the center and connects people across dating (Bumble Date) and friendship (BFF). Badoo, founded in 2006, was one of the pioneers of web and mobile dating products. BFF is a friendship app made to help you find your people.
For more information about Bumble, please visit www.bumble.com and follow @Bumble on social platforms.
Bumble Inc. (BMBL - Free Report) ended the recent trading session at $4.26, demonstrating a -1.16% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 1.2%. On the other hand, the Dow registered a gain of 1.79%, and the technology-centric Nasdaq increased by 1.52%.
Prior to today's trading, shares of the company had gained 15.24% outpaced the Computer and Technology sector's gain of 8.24% and the S&P 500's gain of 5.15%.
The investment community will be paying close attention to the earnings performance of Bumble Inc. in its upcoming release. The company is slated to reveal its earnings on May 5, 2026. It is anticipated that the company will report an EPS of $0.3, marking a 130.77% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $211.88 million, down 14.25% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $0.98 per share and a revenue of $852.57 million, demonstrating changes of +116.25% and -11.71%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Bumble Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Bumble Inc. holds a Zacks Rank of #3 (Hold).
In the context of valuation, Bumble Inc. is at present trading with a Forward P/E ratio of 4.41. Its industry sports an average Forward P/E of 19.02, so one might conclude that Bumble Inc. is trading at a discount comparatively.
Also, we should mention that BMBL has a PEG ratio of 0.15. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.08.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Izea Worldwide (NASDAQ:IZEA – Get Free Report) and Bumble (NASDAQ:BMBL – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Analyst Recommendations This is a breakdown of current ratings and target prices for Izea Worldwide and Bumble, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Izea Worldwide 2 0 0 0 1.00 Bumble 2 15 1 0 1.94 Bumble has a consensus target price of $4.34, indicating a potential upside of 1.78%. Given Bumble’s stronger consensus rating and higher possible upside, analysts plainly believe Bumble is more favorable than Izea Worldwide.
Profitability This table compares Izea Worldwide and Bumble’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Izea Worldwide 0.13% 0.09% 0.07% Bumble -72.74% 24.58% 12.09% Earnings & Valuation This table compares Izea Worldwide and Bumble”s top-line revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Izea Worldwide $31.24 million 2.41 $40,000.00 N/A N/A Bumble $965.66 million 0.57 -$693.14 million ($6.05) -0.70 Izea Worldwide has higher earnings, but lower revenue than Bumble.
Risk and Volatility Izea Worldwide has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Bumble has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.
Insider and Institutional Ownership 15.6% of Izea Worldwide shares are held by institutional investors. Comparatively, 94.9% of Bumble shares are held by institutional investors. 6.5% of Izea Worldwide shares are held by insiders. Comparatively, 15.8% of Bumble shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary Bumble beats Izea Worldwide on 10 of the 13 factors compared between the two stocks.
About Izea Worldwide (Get Free Report)
IZEA Worldwide, Inc., together with its subsidiaries, offers software and professional services to connect brands and content creators in North America, the Asia Pacific, and internationally. The company offers IZEA Flex, its flagship platform for managing enterprise influencer marketing; and comprehensive expense management service to track and manage off-platform expenses related to influencer marketing campaigns. It also operates The Creator Marketplace on IZEA.com that provides creators tools to present their work to marketers. In addition, the company provides management of content workflow, creator search and targeting, bidding, analytics, and payment processing services. It primarily sells influencer marketing and custom content campaigns through client development team and platforms. The company was formerly known as IZEA, Inc. and changed its name to IZEA Worldwide, Inc. in August 2018. IZEA Worldwide, Inc. was founded in 2006 and is headquartered in Orlando, Florida.
About Bumble (Get Free Report)
Bumble Inc. provides online dating and social networking platforms in North America, Europe, internationally. It owns and operates websites and applications that offers subscription and in-app purchases dating products. The company operates apps, including Bumble, a dating app built with women at the center, where women make the first move; Badoo, the web and mobile free-to-use dating app; Official app where users connect their profile with that of their partner enabling a shared, linked product experience; Bumble BFF and Bumble Bizz Modes that have a format similar to the date mode requiring users to set up profiles and matching users through yes and no votes, similar to the dating platform; and Bumble for Friends, a friendship app where people in all stages of life can meet people nearby and create meaningful platonic connections, as well as Fruitz app is centered around encouraging honesty and transparency by sharing dating intentions from the first touch point. Bumble Inc. was founded in 2006 in and is headquartered in Austin, Texas.
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In the latest close session, Bumble Inc. (BMBL - Free Report) was down 4.75% at $4.21. The stock trailed the S&P 500, which registered a daily loss of 0.41%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.89%.
The company's shares have seen an increase of 33.13% over the last month, surpassing the Computer and Technology sector's gain of 14.93% and the S&P 500's gain of 9.71%.
Investors will be eagerly watching for the performance of Bumble Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 5, 2026. The company is forecasted to report an EPS of $0.3, showcasing a 130.77% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $211.88 million, down 14.25% from the year-ago period.
BMBL's full-year Zacks Consensus Estimates are calling for earnings of $0.98 per share and revenue of $852.57 million. These results would represent year-over-year changes of +116.25% and -11.71%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Bumble Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Bumble Inc. is currently a Zacks Rank #3 (Hold).
With respect to valuation, Bumble Inc. is currently being traded at a Forward P/E ratio of 4.52. This denotes a discount relative to the industry average Forward P/E of 19.47.
Investors should also note that BMBL has a PEG ratio of 0.15 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software was holding an average PEG ratio of 1.14 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 88, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Shares of Bumble Inc. (NASDAQ:BMBL – Get Free Report) have received an average recommendation of “Reduce” from the seventeen ratings firms that are covering the stock, Marketbeat Ratings reports. Two analysts have rated the stock with a sell rating, fourteen have issued a hold rating and one has issued a buy rating on the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $4.3615.
A number of equities research analysts have weighed in on the stock. JPMorgan Chase & Co. upgraded shares of Bumble from an “underweight” rating to a “neutral” rating in a research report on Thursday, March 12th. Royal Bank Of Canada reiterated a “sector perform” rating and set a $5.00 price target on shares of Bumble in a research report on Thursday, March 12th. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating on shares of Bumble in a research report on Monday, March 16th. William Blair reiterated an “outperform” rating on shares of Bumble in a research report on Monday, March 16th. Finally, Susquehanna reiterated a “neutral” rating and set a $3.50 price target on shares of Bumble in a research report on Thursday, March 12th.
View Our Latest Stock Report on BMBL
Bumble Price Performance Shares of BMBL stock opened at $4.21 on Friday. The company has a debt-to-equity ratio of 0.86, a current ratio of 2.21 and a quick ratio of 2.21. The firm’s 50-day moving average is $3.41 and its two-hundred day moving average is $3.82. Bumble has a 12 month low of $2.61 and a 12 month high of $8.64. The company has a market capitalization of $546.54 million, a PE ratio of -0.70, a price-to-earnings-growth ratio of 0.15 and a beta of 1.86.
Insider Buying and Selling at Bumble In related news, major shareholder – Nq L.L.C. Btoa sold 7,477,504 shares of Bumble stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $3.51, for a total value of $26,246,039.04. Following the completion of the transaction, the insider owned 25,832 shares in the company, valued at approximately $90,670.32. The trade was a 99.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, major shareholder Bx Buzz Ml-1 Gp Llc sold 7,477,504 shares of the business’s stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $3.51, for a total transaction of $26,246,039.04. Following the transaction, the insider owned 25,832 shares of the company’s stock, valued at $90,670.32. This trade represents a 99.66% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 29,910,016 shares of company stock worth $104,984,156. 15.84% of the stock is currently owned by company insiders.
Institutional Trading of Bumble Several institutional investors have recently modified their holdings of the stock. Tudor Investment Corp ET AL purchased a new stake in Bumble in the 3rd quarter valued at $6,013,000. Vanguard Group Inc. raised its position in Bumble by 52.0% in the 3rd quarter. Vanguard Group Inc. now owns 11,164,004 shares of the company’s stock valued at $67,989,000 after purchasing an additional 3,820,205 shares during the last quarter. Counterpoint Mutual Funds LLC purchased a new stake in Bumble in the 3rd quarter valued at $3,104,000. Jupiter Asset Management Ltd. purchased a new stake in Bumble in the 3rd quarter valued at $3,570,000. Finally, Y Intercept Hong Kong Ltd raised its position in Bumble by 533.0% during the 3rd quarter. Y Intercept Hong Kong Ltd now owns 313,899 shares of the company’s stock worth $1,912,000 after buying an additional 264,312 shares during the last quarter. Hedge funds and other institutional investors own 94.85% of the company’s stock.
About Bumble (Get Free Report)
Bumble Inc operates a technology platform designed to facilitate social and professional connections through its suite of apps, most notably the flagship Bumble dating app. The company’s core premise is to empower users—particularly women—to make the first move, helping to reshape traditional dating dynamics. In addition to its dating function, Bumble offers mode-switching features that allow users to find friends through “Bumble BFF” or pursue professional networking opportunities via “Bumble Bizz.”
Beyond the Bumble app, the company also owns and operates Badoo, a social discovery platform with a substantial global footprint, particularly in Europe and Latin America.
See Also Five stocks we like better than Bumble
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In the latest trading session, Bumble Inc. (BMBL - Free Report) closed at $4.21, marking a -1.17% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.04%. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq added 0.04%.
Heading into today, shares of the company had gained 30.67% over the past month, outpacing the Computer and Technology sector's gain of 20.43% and the S&P 500's gain of 12.24%.
The investment community will be paying close attention to the earnings performance of Bumble Inc. in its upcoming release. The company is slated to reveal its earnings on May 5, 2026. In that report, analysts expect Bumble Inc. to post earnings of $0.3 per share. This would mark year-over-year growth of 130.77%. Simultaneously, our latest consensus estimate expects the revenue to be $211.88 million, showing a 14.25% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.98 per share and revenue of $852.57 million. These totals would mark changes of +116.25% and -11.71%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Bumble Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Bumble Inc. is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Bumble Inc. is currently exchanging hands at a Forward P/E ratio of 4.36. This signifies a discount in comparison to the average Forward P/E of 18.77 for its industry.
Meanwhile, BMBL's PEG ratio is currently 0.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.08.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
AUSTIN, Texas--(BUSINESS WIRE)--Bumble Inc. (NASDAQ: BMBL) today reported financial results for the first quarter ended March 31, 2026.
“Our deliberate steps to reset the Bumble member base have meaningfully improved the health of our ecosystem,” said Whitney Wolfe Herd, Founder & CEO of Bumble Inc. "We’re now focused on activating this higher-quality member base by launching a fully reimagined Bumble experience on our rebuilt, AI-enabled platform later this year. This next chapter will deliver a more intuitive, personalized way to connect and help members move more confidently and quickly to in-person dates.”
First Quarter 2026 Financial and Operational Highlights:
(all comparisons relative to the First Quarter 2025)
Total Revenue decreased 14.1% to $212.4 million, compared to $247.1 million. Bumble App Revenue decreased 14.4% to $172.7 million, compared to $201.8 million. Badoo App and Other Revenue decreased 12.4% to $39.7 million, compared to $45.3 million. Total Paying Users decreased 21.1% to 3.2 million, compared to 4.0 million. Total Average Revenue per Paying User ("ARPPU") increased 8.9% to $22.04, compared to $20.24. Net earnings increased 165.4% to $52.6 million, or 24.8% of revenue, from net earnings of $19.8 million, or 8.0% of revenue. Adjusted EBITDA increased 28.3% to $82.6 million, or 38.9% of revenue, from $64.4 million, or 26.1% of revenue. Information about Bumble's use of non-GAAP financial measures is provided below under “Non-GAAP Financial Measures.”
“We maintained strong operating discipline in Q1, delivering results in line with our expectations and generating strong cash flow,” said Kevin Cook, CFO of Bumble Inc. “The company’s performance and outlook reflect a more efficient cost structure with continued investment in product and platform capabilities designed to support sustainable growth.”
Key Operating Metrics:
The following metrics were calculated excluding paying users of and revenue generated from Official, advertising and partnerships or affiliates. The Bumble For Friends app was relaunched as BFF in the United States in September 2025. The Company has not sought to generate revenue from the BFF app and therefore it is excluded from our key operating metrics as of March 31, 2026. Please refer to the Definitions section for more information.
(In thousands, except ARPPU)
Three Months Ended
March 31, 2026
Three Months Ended
March 31, 2025
Bumble App Paying Users
2,082.0
2,708.4
Badoo App and Other Paying Users
1,084.3
1,306.3
Total Paying Users
3,166.3
4,014.7
Bumble App Average Revenue per Paying User
$
27.65
$
24.84
Badoo App and Other Average Revenue per Paying User
$
11.26
$
10.72
Total Average Revenue per Paying User
$
22.04
$
20.24
Balance Sheet:
As of March 31, 2026, total cash and cash equivalents were $245.6 million and total debt was $587.5 million.
On April 24, 2026, the Company entered into a new $475.0 million senior secured term loan, the proceeds of which, together with cash on hand, were used to repay in full and terminate its prior term loans. In addition, the Company entered into a new $50.0 million senior secured revolving credit facility, which replaced its previous revolving credit facility. The new facilities extended the Company’s debt maturities to 2030.
Financial Outlook:
A reconciliation of Adjusted EBITDA to GAAP net earnings (loss) and Adjusted EBITDA margin growth to GAAP net earnings (loss) margin growth, which is growth in GAAP net earnings (loss) as a percentage of revenue, has not been provided for the outlook included herein, as the quantification of certain items included in the calculation of GAAP net earnings (loss) cannot be calculated or predicted at this time without unreasonable efforts. For example, the non-GAAP adjustment for stock-based compensation expense requires additional inputs such as number of shares granted and market price that are not currently ascertainable, and the non-GAAP adjustment for certain legal, tax and regulatory reserves and expenses depends on the timing and magnitude of these expenses and cannot be accurately forecasted. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on its future GAAP financial results.
Bumble anticipates the following results for the second quarter ending June 30, 2026:
Second Quarter 2026:
Total Revenue in the range of $205 million to $213 million, which includes: Bumble App Revenue of $168 million to $174 million. Adjusted EBITDA of $65 million to $70 million. Actual results may differ materially from Bumble’s financial outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below.
Conference Call and Webcast Information
Bumble will host a live webcast of its conference call to discuss its first quarter 2026 financial results at 4:30 p.m. Eastern Time today, May 5, 2026. A webcast of the call and other information related to the call will be accessible on the Investors section of the Company’s website at https://ir.bumble.com. A webcast replay will be available approximately two hours after the conclusion of the live event.
Definitions
As used in this press release, unless otherwise noted or the context requires otherwise, the following terms have the following meanings. Our key metrics (Bumble App Paying Users, Badoo App and Other Paying Users, Total Paying Users, Bumble App Average Revenue per Paying User, Badoo App and Other Average Revenue per Paying User, and Total Average Revenue per Paying User) were calculated excluding paying users of and revenue generated from Official, advertising and partnerships or affiliates. The Bumble For Friends app was relaunched as BFF in the United States in September 2025. The Company has not sought to generate revenue from the BFF app and therefore it is excluded from our key operating metrics as of March 31, 2026.
Total Revenue is the sum of Bumble App Revenue and Badoo App and Other Revenue.
Total Paying Users is the sum of Bumble App Paying Users and Badoo App and Other Paying Users.
Total Average Revenue per Paying User or Total ARPPU is a metric calculated based on Total Revenue in any measurement period divided by the Total Paying Users in such period divided by the number of months in the period.
Bumble App Revenue is revenue derived from purchases or renewals of a Bumble app or Bumble For Friends app subscription plan and/or in-app purchases on Bumble app or Bumble For Friends app in the relevant period.
Bumble App Paying User is a member that has purchased or renewed a Bumble app or Bumble For Friends app subscription plan and/or made an in-app purchase on Bumble app or Bumble For Friends app in a given month. We calculate Bumble App Paying Users as a monthly average, by counting the number of Bumble App Paying Users in each month and then dividing by the number of months in the relevant measurement period.
Bumble App Average Revenue per Paying User or Bumble App ARPPU is a metric calculated based on Bumble App Revenue in any measurement period, divided by Bumble App Paying Users in such period divided by the number of months in the period.
Badoo App and Other Revenue is revenue derived from purchases or renewals of a Badoo app subscription plan and/or in-app purchases on Badoo app in the relevant period, purchases on one of our other apps that we owned and operated in the relevant period, purchases on other third-party apps that used our technology in the relevant period and advertising, partnerships or affiliates revenue in the relevant period.
Badoo App and Other Paying User is a member that has purchased or renewed a subscription plan and/or made an in-app purchase on Badoo app in a given month or made a purchase on one of our other apps that we owned and operated in a given month, or made a purchase on other third-party apps that used our technology in the relevant period. We calculate Badoo App and Other Paying Users as a monthly average, by counting the number of Badoo App and Other Paying Users in each month and then dividing by the number of months in the relevant measurement period.
Badoo App and Other Average Revenue per Paying User or Badoo App and Other ARPPU is a metric calculated based on Badoo App and Other Revenue in any measurement period divided by Badoo App and Other Paying Users in such period divided by the number of months in the period.
Non-GAAP Financial Measures
We report our financial results in accordance with GAAP, however, management believes that certain non-GAAP financial measures provide users of our financial information with useful supplemental information that enables a better comparison of our performance across periods. We believe Adjusted EBITDA provides visibility to the underlying continuing operating performance by excluding the impact of certain expenses, including income tax (benefit) provision, interest and derivative (gains) losses, net, depreciation and amortization expense, stock-based compensation expenses, employer costs related to stock-based compensation, foreign exchange (gain) loss, changes in fair value of contingent earn-out liability, changes in fair value of investments in equity securities, transaction and other costs, litigation costs net of insurance reimbursements that arise outside of the ordinary course of business, tax receivable agreement liability remeasurement (benefit) expense, impairment loss, and costs associated with restructuring, as management does not believe these expenses are representative of our core earnings. We also provide Adjusted EBITDA margin, which is calculated as Adjusted EBITDA divided by revenue. In addition to Adjusted EBITDA and Adjusted EBITDA margin, we believe free cash flow and free cash flow conversion provide useful information regarding how cash provided by (used in) operating activities compares to the capital expenditures required to maintain and grow our business, and our available liquidity, after funding such capital expenditures, to service our debt, fund strategic initiatives, effectuate discretionary share repurchases and strengthen our balance sheet, as well as our ability to convert our earnings to cash. Additionally, we believe such metrics are widely used by investors, securities analysts, ratings agencies and other parties in evaluating liquidity and debt-service capabilities. We calculate free cash flow and free cash flow conversion using methodologies that we believe can provide useful supplemental information to help investors better understand underlying trends in our business.
Our non-GAAP financial measures may not be comparable to similarly titled measures used by other companies, have limitations as analytical tools and should not be considered in isolation, or as substitutes for analysis of our operating results as reported under GAAP. Additionally, we do not consider our non-GAAP financial measures as superior to, or a substitute for, the equivalent measures calculated and presented in accordance with GAAP.
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) is defined as net earnings (loss) excluding income tax (benefit) provision, interest and derivative (gains) losses, net, depreciation and amortization expense, stock-based compensation expense, employer costs related to stock-based compensation, foreign exchange (gain) loss, changes in fair value of contingent earn-out liability, changes in fair value of investments in equity securities, transaction and other costs, litigation costs net of insurance reimbursements that arise outside of the ordinary course of business, tax receivable agreement liability remeasurement (benefit) expense, impairment loss, and restructuring costs.
Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of revenue.
Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures.
Free cash flow conversion represents free cash flow as a percentage of Adjusted EBITDA.
Operating cash flow conversion represents net cash provided by (used in) operating activities as a percentage of net earnings (loss).
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements reflecting the current views of management of Bumble Inc. with respect to, among other things, our operations, our financial performance, our industry and our business and other non-historical statements, including without limitation statements related to our product innovation, investment in platform capabilities and member experience enhancement plans, statements regarding our ability to achieve product-led, long-term growth, our ability to maintain financial discipline and the statements in the “Financial Outlook” section of this press release. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believe(s),” “expect(s),” “potential,” “continue(s),” “may,” “will,” “should,” “could,” “would,” “seek(s),” “predict(s),” “intend(s),” “trends,” “plan(s),” “estimate(s),” “anticipate(s),” “projection,” “will likely result” and or the negative version of these words or other comparable words of a future or forward-looking nature. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors include, but are not limited to, the following:
our ability to retain existing members or attract new members and to convert members to paying users (including as a result of shifts in strategy) competition and changes in the competitive landscape of our market our ability to distribute our dating products through third parties, such as Apple App Store or Google Play Store, and offset related fees our ability to attract, hire and retain a highly qualified and diverse workforce, or maintain our corporate culture, including as such factors may be impacted by our global workforce reductions and efforts to restructure our operations our ability to maintain the value and reputation of our brands risks relating to changes to our existing brands and products, or the introduction or acquisition of new brands or products risks relating to certain of our international operations, including geopolitical conditions and successful expansion into new markets the impact of data security breaches or cyber attacks on our systems and the costs of remediation related to any such incidents challenges with properly managing the use of artificial intelligence our ability to obtain, maintain, protect and enforce intellectual property rights and successfully defend against claims of infringement, misappropriation or other violations of third-party intellectual property our ability to comply with complex and evolving U.S. and international laws and regulations relating to our business, including data privacy laws our substantial indebtedness affiliates of Blackstone Inc.’s (“Blackstone”) and our Founder’s control of us the outsized voting rights of Blackstone and our Founder the risk that our restructuring efforts may not generate their intended benefits to the extent or as quickly as anticipated risks relating to the market price volatility of our Class A common stock, which could limit our ability to make acquisitions and retain key personnel and employees, and result in dilution if our stock-based compensation programs issue increased numbers of shares because of a depressed stock price or could result in increased cash compensation expense in the event that we shift the mix of incentive compensation in favor of cash-based awards over equity-based awards changes in business or macroeconomic conditions, including the impact of lower consumer confidence in our business or in the online dating industry generally, recessionary conditions, increased unemployment rates, stagnant or declining wages, changes in inflation or interest rates, geopolitical events (such as trade wars), political unrest, armed conflicts, including conflicts in Eastern Europe and the Middle East, widespread health emergencies or pandemics and measures taken in response, extreme weather events or natural disasters foreign currency exchange rate fluctuations For additional information on these and other factors that could cause Bumble’s actual results to differ materially from expected results, please see our Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the Securities and Exchange Commission (the “SEC”) on March 16, 2026, as such factors may be updated from time to time in our subsequent periodic filings, which are accessible on the SEC’s website at www.sec.gov. The forward-looking statements included in this press release are made only as of the date of this press release, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
About Bumble
Bumble Inc. is the parent company of Bumble, Badoo and BFF. Bumble brings people closer to love by enabling them to build healthy relationships. Founded in 2014 by Whitney Wolfe Herd, who serves as CEO, Bumble was one of the first dating apps built with women at the center and connects people across dating (Bumble Date) and friendship (Bumble For Friends). Badoo, founded in 2006, was one of the pioneers of web and mobile dating products. BFF is a friendship app for friend-finding, group connections and community-building.
Bumble Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share and per share information)
(Unaudited)
March 31, 2026
December 31, 2025
ASSETS
Cash and cash equivalents
$
245,589
$
175,760
Accounts receivable (net of allowance of $64 and $86, respectively)
66,199
83,062
Other current assets
45,196
46,449
Total current assets
356,984
305,271
Right-of-use assets
9,193
10,198
Property and equipment (net of accumulated depreciation of $23,889 and $22,706, respectively)
5,790
6,896
Goodwill
732,715
732,715
Intangible assets, net
351,883
351,454
Deferred tax assets, net
9,943
11,429
Other noncurrent assets
6,397
7,115
Total assets
$
1,472,905
$
1,425,078
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable
$
1,901
$
9,231
Deferred revenue
35,454
36,790
Accrued expenses and other current liabilities
97,463
86,226
Current portion of long-term debt, net
158,656
5,750
Total current liabilities
293,474
137,997
Long-term debt, net
428,834
582,715
Deferred tax liabilities, net
2,321
318
Other long-term liabilities
13,031
22,939
Total liabilities
737,660
743,969
Commitments and contingencies
Shareholders’ equity:
Class A common stock (par value $0.01 per share, 6,000,000,000 shares authorized; 130,389,737 shares issued and outstanding as of March 31, 2026; 129,613,455 shares issued and outstanding as of December 31, 2025)
1,305
1,297
Class B common stock (par value $0.01 per share, 1,000,000 shares authorized; 17 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively)
—
—
Preferred stock (par value $0.01; authorized 600,000,000 shares; no shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively)
—
—
Additional paid-in capital
1,812,051
1,803,905
Accumulated deficit
(1,349,019
)
(1,394,230
)
Accumulated other comprehensive income
152,760
159,021
Total Bumble Inc. shareholders’ equity
617,097
569,993
Noncontrolling interests
118,148
111,116
Total shareholders’ equity
735,245
681,109
Total liabilities and shareholders’ equity
$
1,472,905
$
1,425,078
Bumble Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share information)
(Unaudited)
Three Months Ended
March 31, 2026
Three Months Ended
March 31, 2025
Revenue
$
212,383
$
247,101
Operating costs and expenses:
Cost of revenue
54,824
73,353
Selling and marketing expense
26,960
59,734
General and administrative expense
30,762
21,644
Product development expense
30,171
34,504
Depreciation and amortization expense
4,412
9,585
Impairment loss
—
3,631
Total operating costs and expenses
147,129
202,451
Operating earnings
65,254
44,650
Interest expense, net
(7,959
)
(12,049
)
Other income (expense), net
6,741
(6,762
)
Income before income taxes
64,036
25,839
Income tax provision
(11,414
)
(6,008
)
Net earnings
52,622
19,831
Net earnings attributable to noncontrolling interests
7,411
6,387
Net earnings attributable to Bumble Inc. shareholders
$
45,211
$
13,444
Net earnings per share attributable to Bumble Inc. shareholders
Basic earnings per share
$
0.35
$
0.13
Diluted earnings per share
$
0.34
$
0.13
Bumble Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
March 31, 2026
Three Months Ended
March 31, 2025
Cash flows from operating activities:
Net earnings
$
52,622
$
19,831
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Impairment loss
—
3,631
Depreciation and amortization expense
4,412
9,585
Changes in fair value of interest rate swaps
(675
)
2,636
Changes in fair value of contingent earn-out liability
Includes interest income received on money market funds and interest rate swaps, fair value changes in interest rate swaps, and interest expense incurred in connection with our long-term debt.
(2)
Represents employer portion of Social Security and Medicare payroll taxes domestically, National Insurance contributions in the United Kingdom and comparable costs internationally related to the settlement of equity awards.
(3)
Represents certain litigation costs, net of insurance proceeds, associated with pending litigations or settlements of litigation that arise outside of the ordinary course of business.
(4)
Represents foreign exchange (gain) loss due to foreign currency transactions.
(5)
Represents costs associated with discontinuing the operations of the Fruitz and Official apps and the 2025 Restructuring Plan, such as severance, benefits and other related costs.
(6)
Represents transaction and other costs primarily related to acquisitions and divestiture of business.
(7)
Represents recognized adjustments to the tax receivable agreement liability prior to its amendment in November 2025.
(8)
Represents impairment charges to the Official asset group in the first quarter of 2025.
Supplementary Information (Unaudited)
Stock-Based Compensation Expense
(In thousands)
Three Months Ended
March 31, 2026
Three Months Ended
March 31, 2025
Cost of revenue
$
50
$
154
Selling and marketing expense
889
(839
)
General and administrative expense
6,218
(3,894
)
Product development expense
3,661
8,717
Total stock-based compensation expense
$
10,818
$
4,138
Reconciliation of GAAP costs and expenses to non-GAAP costs and expenses by function
(In thousands)
Three Months Ended
March 31, 2026
Three Months Ended
March 31, 2025
Cost of revenue GAAP
$
54,824
$
73,353
Stock-based compensation expense
(50
)
(154
)
Employer costs related to stock-based compensation
(4
)
(25
)
Restructuring costs
(369
)
(36
)
Transaction and other costs
—
(85
)
Cost of revenue non-GAAP
$
54,401
$
73,053
(In thousands)
Three Months Ended
March 31, 2026
Three Months Ended
March 31, 2025
Selling and marketing expense GAAP
$
26,960
$
59,734
Stock-based compensation expense
(889
)
839
Employer costs related to stock-based compensation
(23
)
(39
)
Restructuring costs
(42
)
(195
)
Selling and marketing expense non-GAAP
$
26,006
$
60,339
(In thousands)
Three Months Ended
March 31, 2026
Three Months Ended
March 31, 2025
General and administrative expense GAAP
$
30,762
$
21,644
Changes in fair value of contingent earn-out liability
36
2,282
Litigation costs, net of insurance proceeds
(4
)
(1,287
)
Stock-based compensation expense
(6,218
)
3,894
Employer costs related to stock-based compensation
(111
)
(219
)
Restructuring costs
(178
)
(75
)
Transaction and other costs
(1
)
(408
)
General and administrative expense non-GAAP
$
24,286
$
25,831
(In thousands)
Three Months Ended
March 31, 2026
Three Months Ended
March 31, 2025
Product development expense GAAP
$
30,171
$
34,504
Stock-based compensation expense
(3,661
)
(8,717
)
Employer costs related to stock-based compensation
(175
)
(422
)
Restructuring costs
(1,047
)
(904
)
Transaction and other costs
(198
)
(820
)
Product development expense non-GAAP
$
25,090
$
23,641
(In thousands)
Three Months Ended
March 31, 2026
Three Months Ended
March 31, 2025
Total operating costs and expenses GAAP
$
147,129
$
202,451
Impairment loss
—
(3,631
)
Depreciation and amortization expense
(4,412
)
(9,585
)
Changes in fair value of contingent earn-out liability
36
2,282
Litigation costs, net of insurance proceeds
(4
)
(1,287
)
Stock-based compensation expense
(10,818
)
(4,138
)
Employer costs related to stock-based compensation
Bumble on Tuesday posted first-quarter revenue above estimates as the online dating platform's strategy to win back younger users starts to bear fruit.
Bumble Inc. (BMBL - Free Report) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +33.54%. A quarter ago, it was expected that this company would post earnings of $0.28 per share when it actually produced earnings of $1.07, delivering a surprise of +282.14%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Bumble, which belongs to the Zacks Internet - Software industry, posted revenues of $212.38 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.24%. This compares to year-ago revenues of $247.1 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Bumble shares have added about 19.6% since the beginning of the year versus the S&P 500's gain of 5.2%.
What's Next for Bumble?While Bumble has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Bumble was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.19 on $213.69 million in revenues for the coming quarter and $0.81 on $852.57 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, MongoDB (MDB - Free Report) , is yet to report results for the quarter ended April 2026.
This database platform is expected to post quarterly earnings of $1.18 per share in its upcoming report, which represents a year-over-year change of +18%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
MongoDB's revenues are expected to be $662.17 million, up 20.6% from the year-ago quarter.
As Bumble gets ready for a big overhaul meant to win back Gen Z users (who are pretty over dating apps right now), its latest earnings still reports that paying users are declining. In the first quarter of 2026, total paying users fell 21.1% to 3.2 million, down from 4 million a year ago.
This has been the story for a few quarters now. However, during the call to investors this afternoon, Bumble has framed this as a deliberate shift toward higher-quality, more intentional users.
So while total revenue dropped 14.1% to $212.4 million (though it did beat expectations), and Bumble app revenue fell to $172.7 million, its total average revenue per paying user increased nearly 9%. It also reported higher profits: Net earnings increased to $52.6 million compared to $19.8 million in the year-ago quarter (largely from cutting sales and marketing expenses).
On the company’s investor call, founder and CEO Whitney Wolfe Herd described the paid-user decline as part of an intentional reset. “This is a period of real transformation at Bumble over the past few quarters,” she said. “We have executed a deliberate reset of our member base. We made a clear choice to prioritize quality over quantity, focusing on well-intentioned, engaged members. That decision reduced overall scale, but meaningfully improved the health of our ecosystem.”
Still, even with that framing, a shrinking paying user base is hard to ignore. That’s why much of the conversation on the call was more about what comes next. Bumble is asking investors to look ahead to its massive overhaul, which it hopes will eventually reverse the trend.
“When do we start to see a rebound in the numbers you’re all looking for? Well, the answer is very simple. When our technology and our next-gen recommendation engine can actually help better connect people more compatibly and show people who they want to see and out on great dates. That’s where the magic happens,” Herd said.
The overhaul refers to replacing Bumble’s old technology platform with a cloud-native, AI-powered one so it can improve matches and roll out updates more quickly. This is already starting to roll out to some users and will expand over the next few months.
The more noticeable changes, though, are coming later. Bumble said on Tuesday that its full “reimagined” experience for members is now expected to launch in Q4, with a broader rollout continuing into late this year and early next year. That’s a bit later than earlier expectations and shows this is going to be more of a phased rollout than a single big relaunch.
And the changes themselves sound pretty significant. The company is making a big bet that the swiping model is outdated and most matches never turn into actual dates. The company wants to fix that by redesigning profiles, changing how people interact, and focusing a lot more on getting users to meet in real life.
AI is a huge part of that plan. Earlier this year, Bumble introduced something called “Bee,” a built-in matchmaker that learns daters’ preferences, relationship goals, and communication style, then suggests matches based on those factors. In a feature called “Dates,” Bee may even explain why two people are a good fit before they connect.
Profiles are changing too. Bumble has been experimenting with more detailed, “chapter-style” profiles that go beyond just photos and a short bio.
Additionally, Bumble is seeing some momentum outside of dating. Its friend-focused app, Bumble BFF, added a Groups tab last year where users can join chats, plan hangouts, and organize events. According to Herd, engagement there is growing, especially among Gen Z women. Group joins nearly doubled between December and March, the company touts.
For now, Bumble is kind of in wait-and-see mode. The hope is that by fixing how people go from matching to actually going on dates, it can bring users back. But until that new experience is fully out there, it’s still just a bet.
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Lauren covers media, streaming, apps and platforms at TechCrunch.
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For the quarter ended March 2026, Bumble Inc. (BMBL - Free Report) reported revenue of $212.38 million, down 14.1% over the same period last year. EPS came in at $0.34, compared to $0.13 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $211.88 million, representing a surprise of +0.24%. The company delivered an EPS surprise of +33.54%, with the consensus EPS estimate being $0.26.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Bumble performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Badoo App and Other Paying Users: 1.08 million versus 1.08 million estimated by three analysts on average.Bumble App Paying Users: 2.08 million versus the three-analyst average estimate of 2.08 million.Total Average Revenue per Paying User: $22.04 versus $21.99 estimated by three analysts on average.Badoo App and Other Average Revenue per Paying User: $11.26 versus the two-analyst average estimate of $11.37.Bumble App Average Revenue per Paying User: $27.65 versus the two-analyst average estimate of $27.64.Total Paying Users: 3.17 million compared to the 3.15 million average estimate based on two analysts.Revenue- Badoo App and Other: $39.7 million versus the two-analyst average estimate of $39.28 million. The reported number represents a year-over-year change of -12.4%.Revenue- Bumble App: $172.7 million versus the two-analyst average estimate of $172.83 million. The reported number represents a year-over-year change of -14.4%.View all Key Company Metrics for Bumble here>>>
Shares of Bumble have returned +23.8% over the past month versus the Zacks S&P 500 composite's +9.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Bumble Inc (NASDAQ:BMBL) shares tumbled about 21% to about $3 after the dating app operator issued weaker-than-expected guidance, overshadowing a first quarter earnings beat.
Bumble forecast second-quarter revenue in the range of $205 million to $213 million, below analyst expectations of around $215 million. The company also guided for adjusted EBITDA of $65 million to $70 million for the period.
For Q1, Bumble reported adjusted earnings per share of $0.34, well above analyst expectations of about $0.25 to $0.26. Revenue came in at $212.4 million, slightly ahead of estimates of $211.5 million, though down 14% from $247.1 million a year earlier.
Adjusted EBITDA totaled $83 million, exceeding the $77.5 million consensus, while net earnings rose 165% year over year to $52.6 million.
Despite the better-than-expected profitability, underlying operating trends remained under pressure. Total paying users declined 21.1% to 3.2 million, compared with 4 million in the prior-year period. Average revenue per paying user increased 8.9% to $22.04, partially offsetting the user decline.
By segment, Bumble App revenue fell 14.4% to $172.7 million, while Badoo App and other revenue declined 12.4% to $39.7 million.
“Our deliberate steps to reset the Bumble member base have meaningfully improved the health of our ecosystem,” Bumble CEO Whitney Wolfe Herd said in a statement.
"We’re now focused on activating this higher-quality member base by launching a fully reimagined Bumble experience on our rebuilt, AI-enabled platform later this year.”
Following the report, analysts at Jefferies maintained a Hold rating on the stock and lowered their price target to $4 from $5, citing ongoing user declines and a weaker near-term revenue trajectory.
While they noted gross margin expansion of more than 300 basis points year over year, supported in part by growing adoption of alternative billing methods such as Apple Pay, and said revenue headwinds could begin to moderate through 2026, they flagged continued pressure on paying users.
Jefferies highlighted that Bumble lost about 100,000 paying users sequentially in the first quarter, worse than the roughly 80,000 decline expected by the Street, with year-over-year declines showing limited signs of sustained improvement.
They noted the launch of new member experiences in select markets in Q4, with a broader rollout in 2027.
“The platform will continue adding AI features, group dating, a new interaction model, and refreshed profiles, all supported by a dedicated marketing campaign,” they wrote.
“Management sees this as a key recovery driver and, importantly, now has a clear timeline. In parallel, the company has reduced its tech debt to increase product velocity.”
Will dating app malaise finally kill off the swipe? For Bumble, at least, that seems to be the case.
In an interview with Axios on Thursday, Bumble CEO Whitney Wolfe Herd confirmed that Bumble will get rid of swiping, the defining feature of 2010s dating apps.
“We are going to be saying goodbye to the swipe and hello to something that I believe is revolutionary for the category,” Wolfe Herd said.
Bumble is planning to overhaul its app later this year, following several disappointing quarters in which the app consistently lost paying users. In this year’s first quarter, Bumble’s paid users fell about 21% to 3.2 million, down from 4 million last year.
Redesigning the app is a pretty serious intervention, signaling to investors that the situation is dire. But like any good CEO, Wolfe Herd has done some verbal gymnastics to argue that Bumble is doing a very good job at losing money.
“This is a period of real transformation at Bumble over the past few quarters,” she said on this week’s quarterly earnings call. “We have executed a deliberate reset of our member base. We made a clear choice to prioritize quality over quantity, focusing on well-intentioned, engaged members. That decision reduced overall scale, but meaningfully improved the health of our ecosystem.”
Based on Wolfe Herd’s past comments about Bumble’s new direction, the company is expected to lean into AI — Bumble is even working on an AI dating assistant called Bee, and Wolfe Herd has made many comments over the years about how AI will be “a supercharger to love and relationships.”
Of course, dating apps already use AI to decide what users should be shown to one another. But Gen Z is trending more negative toward in-your-face AI features, and Wolfe Herd has expressed interest in more extreme futures, like having personal AI bots that date other AI bots for you. So, it’s unclear if these “Black Mirror”-like overtures will effectively attract users in their 20s. Bumble’s overhaul isn’t expected to launch until the last quarter of this year, so users will still be swiping for now.
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Amanda Silberling is a senior writer at TechCrunch covering the intersection of technology and culture. She has also written for publications like Polygon, MTV, the Kenyon Review, NPR, and Business Insider. She is the co-host of Wow If True, a podcast about internet culture, with science fiction author Isabel J. Kim. Prior to joining TechCrunch, she worked as a grassroots organizer, museum educator, and film festival coordinator. She holds a B.A. in English from the University of Pennsylvania and served as a Princeton in Asia Fellow in Laos.
You can contact or verify outreach from Amanda by emailing [email protected] or via encrypted message at @amanda.100 on Signal.
May 8th, 2026 - Morning Brief Yahoo Finance's Head of News, Myles Udland, and Julie Hyman discuss the latest jobs market report and Bumble's decision to get rid of swipes as online dating slows. == — Facebook: https://www.facebook.com/yahoofinance — X/Twitter: https://x.com/YahooFinance — Instagram: https://www.instagram.com/yahoofinance/ — TikTok: https://www.tiktok.com/@yahoofinance — LinkedIn: https://www.linkedin.com/company/yahoo-finance https://finance.yahoo.com/
Bumble has a new AI assistant: a matchmaker named Bee. The dating app company recently revealed the new dating guru during its fourth-quarter earnings call, which was first reported by TechCrunch.
Essentially, Bee’s job is to learn about what users want in a partner through initial private conversations and to help them find matches through Bumble’s new “Dates” tool. Bee’s job will eventually get bigger, too. She will help plan dates and even ask for (anonymous) feedback about those dates in the same way a close friend with inside information might offer. In addition to the new AI tool, Bumble will be moving away from swiping right (yes) or left (no) and into entirely new territory, with Bee leading the charge.
In an interview with Axios, Bumble founder and CEO Whitney Wolfe Herd said that Bee’s introduction, along with the rest of the changes coming to the app, are due to the fact that users have simply outgrown swiping left or right. “Now, people are feeling exhausted. They’re feeling fatigued,” Wolfe Herd explained. “They feel like the swipe has degraded their love lives.”
Bee’s introduction seems like a major change for the app. But for Bumble, it’s the latest in a number of recent changes. While the app used to only allow women to send the first message to potential matches, it abandoned that rule when it introduced the “opening moves” feature, which allowed men to answer preset prompt questions and gave women a 24-hour window to reply. Bumble explained at the time that it was responding to criticism that leaving women with the chore of making the first move “sometimes felt like just another thing to do on top of everything else” on the to-do list.
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In a May 5 press release, Wolfe Herd said the brand’s “reset” is already working to improve the app, but now the company is focused on the next phase of its revamp—it’s AI tool.
“We’re now focused on activating this higher-quality member base by launching a fully reimagined Bumble experience on our rebuilt, AI-enabled platform later this year,” the CEO explained. “This next chapter will deliver a more intuitive, personalized way to connect and help members move more confidently and quickly to in-person dates,” Wolfe Herd added.
For those who have been on dating apps for months or even years, it’s tough to imagine how Bumble will function without swiping, and with a virtual assistant in its place. But it’s also tough to imagine how dating apps like Bumble can continue down the same path they’ve been moving along for years. That’s because dating app fatigue has been hard to miss in recent years. According to a 2025 Forbes health survey, 78% of dating app users reported feeling burned out by endless swiping without real results.
“There are so many ways to meet people, but actually forming a real connection is much more rare. A lot of people are stuck between wanting something real and being afraid to really show up for [a relationship], put themselves out there, and truly be vulnerable,” Sabrina Romanoff, a Harvard-trained clinical psychologist and Forbes Health Advisory Board member, says per the report.
“People want connection, but they’re tired of the games, the ghosting, the emotional whiplash. Dating feels like a second job sometimes, with very little pay,” Romanoff adds. Likewise, that burnout showed up in Bumble’s own numbers. According to the brand’s latest earnings report, in the first quarter of 2026, total paying users fell 21.1% to 3.2 million, down from 4 million just last year.
Burnout is likely a big part of why singles have been shifting away from dating apps for years now. But they’re not simply staying home. According to data shared with Axios, from 2022 to 2025, singles events advertised on the event’s page Eventbrite doubled. In 2024, event listings aimed at singles rose by 30%, and attendance skyrocketed by 85%. Therefore, singles are still seeking partners. But they no longer seem to believe in the power of the dating app.
Bumble’s AI is still in its beta-testing stage, but it will be here soon enough for users to test out. Bee is rolling out in select markets sometime in the fourth quarter, the company says. And, as far as dating app burnout goes, it seems she already has her work cut out for her.
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Whitney Wolfe Herd returned to the position of Bumble CEO in 2025. Patrick T. Fallon / AFP via Getty Images Bumble has "Plans" for you.
The dating app is set to launch a new group-dating feature called "Plans" this week, Business Insider has learned. The pilot, which launches in New York and costs money to participate in, will bring together small gatherings of Bumble users to meet in-person.
Users must pay a flat fee to RSVP to a "Plan." After signing up, Bumble users can also invite a plus-one to tag along to the "Plan." That friend must also pay the RSVP fee. Daters will see the meet-up location after payment.
After attending the "Plan," Bumble will ask users about their experience and whether they liked any specific attendees. Then, users can match with those crushes and continue messaging on the app.
Bumble's latest feature joins a slew of other dating apps embracing in-person experiences, as worries of "swipe fatigue" grow. It also represents a new potential revenue stream for the company, which has faced declining revenue. The company's full-year total revenue decreased by 9.9% between 2025 and 2024, and was down 14.1% year-over-year in the first quarter of 2026.
In a Slack message sent to employees this week, Bumble announced the launch of the "Plans" social handle, @plansbybumble. The account is still private, though its profile logo matches images Business Insider viewed.
While this "Plans" launch is limited to New York, Bumble plans to roll out the feature nationally, based on performance.
The @plansbybumble account is currently private. Screenshot via Instagram The move echoes two recent launches from Tinder, one of Bumble's primary competitors. Tinder launched "Double Date" in June, a social dating feature that lets users swipe (and meet up) with their friends.
In March, Tinder announced a new "Events" tab, which connected users to in-person dating experiences. The feature is still testing in Los Angeles, across the country from Bumble's "Plans" pilot.
"Events are fun, they're low-pressure, they're social, they're safe," Tinder CEO Spencer Rascoff told Business Insider in March. "They're bringing Tinder into the physical world in a way that is consistent with our users' lifestyles."
Like much of the dating app category, Bumble's stock has suffered recently. The stock is down around 45% year over year.
Bumble has tried similar in-person dating experiences. In 2022, the company launched Bumble IRL, a series of local events to "meet cool people in your city." The company is also hosting a handful of bar events in New York this summer.
Meanwhile, a variety of new dating app startups promise to get users more face-to-face connections, like Court IRL, First Round's on Me, and 222.
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For the quarter ended March 2026, Fidelity National Information Services (FIS - Free Report) reported revenue of $3.3 billion, up 30.1% over the same period last year. EPS came in at $1.36, compared to $1.21 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $3.27 billion, representing a surprise of +0.66%. The company delivered an EPS surprise of +6.43%, with the consensus EPS estimate being $1.28.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Fidelity National performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Corporate and Other: $98 million versus the five-analyst average estimate of $87.83 million. The reported number represents a year-over-year change of +96%.Revenue- Capital Market Solutions: $823 million versus the five-analyst average estimate of $818.97 million. The reported number represents a year-over-year change of +7.7%.Revenue- Banking Solutions: $2.37 billion versus $2.37 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +38.2% change.Adjusted EBITDA- Banking Solutions: $1.04 billion compared to the $977.16 million average estimate based on two analysts.Adjusted EBITDA- Corporate and other: $-158 million compared to the $-109.26 million average estimate based on two analysts.Adjusted EBITDA- Capital Market Solutions: $424 million compared to the $412.88 million average estimate based on two analysts.View all Key Company Metrics for Fidelity National here>>>
Shares of Fidelity National have returned +4.3% over the past month versus the Zacks S&P 500 composite's +11% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Insider Selling: MarketAxess (NASDAQ:MKTX) General Counsel Sells 100 Shares of StockMarketAxess Holdings Inc. (NASDAQ:MKTX - Get Free Report) General Counsel Scott Pintoff sold 100 shares of the stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $116.03, for a total transaction of $11,603.00. Following the transaction, the general counsel owned 11,786 shares in the company, valued at approximately $1,367,529.58. The trade was a 0.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.
NASDAQ:MKTX
Read Insider Selling: MarketAxess (NASDAQ:MKTX) General Counsel Sells 100 Shares of Stock
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Palo Alto Networks (NASDAQ:PANW) Director Sells $99,905.00 in StockMarketBeat
Palo Alto Networks, Inc. (NASDAQ:PANW - Get Free Report) Director Aparna Bawa sold 377 shares of the stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $265.00, for a total transaction of $99,905.00. Following the sale, the director directly owned 8,795 shares of the company's stock, valued at approximately $2,330,675. This trade represents a 4.11% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink.
NASDAQ:PANW
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Commonwealth Bank of Australia (CommBank) is adopting FIS Data Integrity Manager to consolidate and automate reconciliation across the bank. Delivered in a SaaS model, the solution will process over 150 million transactions daily on a single, unified platform, enhancing operational efficiency and scalability. FIS is delivering the solution via Microsoft Azure, providing cloud-native scalability and seamless third-party integrations. JACKSONVILLE, Fla.--(BUSINESS WIRE)--Global financial technology leader FIS® (NYSE: FIS) has been selected by the Commonwealth Bank of Australia (CommBank), the nation's largest bank, to streamline reconciliations through FIS Data Integrity Manager. In a banking environment, reconciliation ensures financial accuracy by verifying millions of daily transactions across complex systems. The fully-hosted solution will process over 150 million transactions per day.
FIS Data Integrity Manager delivers a modernized platform that supports the automation and management of all reconciliations across the enterprise. The platform uses real-time visibility and insights for more informed decision making, with automated alerts for discrepancies and a unified view across business lines—enabling teams to identify and resolve issues in minutes.
Delivered as Software as a Service (SaaS) via Microsoft Azure, upgrades to the solution will be managed by FIS, to support faster delivery of new capabilities. The platform's high-performance architecture enables the processing of exceptionally large data volumes in minutes rather than hours.
The engagement also leverages FIS' enterprise-grade risk, security, and compliance capabilities, including SOC1 and SOC2 certifications1, while supporting CommBank's federated software architecture.
Andrés Choussy, President, Capital Markets at FIS, said: “FIS is proud to partner with CommBank to deliver a cutting-edge reconciliation solution that meets the demands of a rapidly evolving financial landscape. By bringing reconciliation onto a single, intelligent platform, we are enabling CommBank to unlock seamless integration and operational efficiency while ensuring the stability, security, and compliance essential to supporting Australia's largest bank.”
David Pont, General Manager Financial Control & Transformation, Commonwealth Bank, said: “This implementation reflects our focus on investing in technology to continue to strengthen operations to ultimately benefit our customers. With FIS Data Integrity Manager, as a strategic partner we gain a platform that can scale with our business and support our continued growth.”
This strategic partnership highlights FIS’ leadership in financial technology innovation, showcasing its ability to help clients manage money seamlessly as it moves through the global economy.
About FIS
FIS is a financial technology company providing solutions to financial institutions, businesses, and developers. We unlock financial technology to the world across the money lifecycle underpinning the world’s financial system. Our people are dedicated to advancing the way the world pays, banks and invests, by helping our clients to confidently run, grow, and protect their businesses. Our expertise comes from decades of experience helping financial institutions and businesses of all sizes adapt to meet the needs of their customers by harnessing where reliability meets innovation in financial technology. Headquartered in Jacksonville, Florida, FIS is a member of the Fortune 500® and the Standard & Poor’s 500® Index. To learn more, visit www.fisglobal.com. Follow FIS on Facebook, LinkedIn and X.
1 SOC1 (System and Organization Controls 1) and SOC2 (System and Organization Controls 2) are independent audit reports that verify a service provider's internal controls. SOC1 focuses on controls relevant to financial reporting, while SOC2 evaluates controls related to security, availability, processing integrity, confidentiality, and privacy.
More News From Fidelity National Information Services
Fidelity National Information Servcs Inc (NYSE:FIS) reported upbeat earnings for the first quarter on Friday.
The company posted quarterly earnings of $1.36 per share which beat the analyst consensus estimate of $1.29 per share. The company reported quarterly sales of $3.295 billion which beat the analyst consensus estimate of $3.277 billion.
Fidelity National Info said it sees second-quarter adjusted EPS of $1.45-$1.49 and sales of $3.375 billion-$3.395 billion.
“We delivered a strong start to 2026, with disciplined execution driving margin expansion and robust cash flow generation,” said FIS CEO and President Stephanie Ferris. “The market is strong, banks are investing, and the innovation that is redefining financial services runs through FIS. As evidenced by our recent announcements and partnerships, we are positioning ourselves at the forefront of this new era of modern banking.”
Fidelity National Info shares fell 2.7% to trade at $42.30 on Monday.
These analysts made changes to their price targets on Oshkosh following earnings announcement.
Cantor Fitzgerald analyst Ramsey El-Assal maintained Fidelity National Info with an Overweight rating and lowered the price target from $62 to $55. RBC Capital analyst Daniel R. Perlin maintained the stock with an Outperform rating and lowered the price target from $69 to $57. Goldman Sachs analyst Will Nance maintained the stock with a Buy and lowered the price target from $65 to $57. Considering buying FIS stock? Here’s what analysts think:
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Glencore’s $2.55B oil and gas trade securitization is one of the largest oil and gas trade receivables transactions ever executed. Powering the transaction, the highly scaled FIS Supply Chain Finance Platform enables real-time monitoring and transparent receivables reporting across multiple jurisdictions. JACKSONVILLE, Fla.--(BUSINESS WIRE)--Global financial technology leader FIS® (NYSE: FIS) announced today that its Supply Chain Finance Platform (formerly Demica) was selected by Glencore PLC to support the inaugural trade receivables securitization program for its oil and gas commodity business.
Trade receivables securitization is a specialized form of structured trade finance enabling corporates to monetize large pools of receivables, thereby unlocking liquidity. Glencore’s $2.55B facility, backed by a consortium of six leading financial institutions, marks a significant milestone in the evolution of structured trade finance for the commodities sector.
Glencore PLC, one of the world's largest diversified natural resources companies and a leading marketer and producer of commodities across metals, minerals and energy products, selected the FIS Supply Chain Finance Platform to provide the technology infrastructure, reporting capabilities and operational support for this complex, multi-jurisdictional transaction.
The FIS Supply Chain Finance Platform provides the flexibility and functionality needed to deliver working capital solutions at scale. Deal set up, portfolio monitoring and reporting, securely hosted on Microsoft Azure, support programs across industries and client sizes.
The platform delivers:
Seamless onboarding capabilities that enable deployment across multiple counterparties and jurisdictions Real-time monitoring and reporting providing comprehensive visibility into receivables performance for all stakeholders Automated regulatory reporting that helps ensure adherence to regulatory reporting requirements throughout the facility lifecycle Scalable infrastructure supporting the processing and management of a diversified portfolio of global trade receivables “The size and scale of Glencore’s oil and gas trade securitization exemplifies how the FIS Supply Chain Finance Platform enables sophisticated financial structures that optimize working capital for global enterprises,” said Steve Sabin, SVP, Lending at FIS. “Our technology and expertise enable our clients to execute complex, cross-border receivables programs with confidence and transparency. By optimizing the movement of capital across the money lifecycle, we are helping businesses like Glencore to unlock money at work through liquidity and drive growth in global markets.”
About FIS
FIS is a financial technology company providing solutions to financial institutions and businesses. We unlock financial technology to the world across the money lifecycle underpinning the world’s financial system. Our people are dedicated to advancing the way the world pays, banks and invests, by helping our clients to confidently run, grow, and protect their businesses. Our expertise comes from decades of experience helping financial institutions and businesses of all sizes adapt to meet the needs of their customers by harnessing where reliability meets innovation in financial technology. Headquartered in Jacksonville, Florida, FIS is a member of the Fortune 500® and the Standard & Poor’s 500® Index. To learn more, visit FISglobal.com. Follow FIS on LinkedIn, Facebook and X.
More News From Fidelity National Information Services
JACKSONVILLE, Fla.--(BUSINESS WIRE)--FIS® (NYSE: FIS), a global leader in financial technology, will present on Tuesday, May 19, 2026 at the J.P. Morgan 54th Annual Global Technology, Media and Communications Conference at 4:15 pm ET.
A live audio webcast, as well as a replay, will be accessible on the Investor Relations section of FIS’ homepage, www.fisglobal.com.
About FIS
FIS is a financial technology company providing solutions to financial institutions and businesses globally. We unlock financial technology to the world across the money lifecycle underpinning the world’s financial system. Our people are dedicated to advancing the way the world pays, banks and invests, by helping our clients to confidently run, grow, and protect their businesses. Headquartered in Jacksonville, Florida, FIS is a member of the Fortune 500® and the Standard & Poor’s 500® Index. To learn more, visit FISglobal.com.
More News From Fidelity National Information Services
On May 18, 2026, Fidelity National Information Services Inc FIS shares rose 3.8% to $43.37. The stock is currently trading within a 52-week range of $41.33 to $82.74, reflecting a significant decline over the past year.
GF Value™ verdict: Current price of $43.37 is 49.6% below the GF Value™ of $85.97.GF Score™: 65/100, indicating an above-average ranking.Most notable signal: Insiders have purchased $1.1 million worth of shares in the last three months, with no selling activity reported. Is FIS Overvalued or Undervalued? Fidelity National Information Services Inc FIS currently trades at $43.37, which is significantly below the GF Value™ estimate of $85.97. This presents a margin of safety of approximately 49.6%, suggesting that the stock may be undervalued at its current price level. However, it is important to exercise caution as the GF Valuation label indicates that FIS is a possible value trap, advising investors to think twice before making decisions based solely on the undervaluation signal.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Although the current price appears attractive relative to GF Value™, the context of the broader market and specific company challenges should be considered before drawing conclusions about FIS's investment potential.
How Does FIS's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 8.4x 67.5x Forward P/E 6.9x N/A The current P/E (TTM) of 8.4x is significantly below its historical 5-year median P/E of 67.5x, indicating that the stock is trading at a much lower valuation compared to its past. The forward P/E of 6.9x further supports the notion that FIS is undervalued relative to its historical performance. This P/E analysis aligns with the GF Value™ verdict, reinforcing the perspective that FIS may represent an attractive investment opportunity, albeit with caution regarding the potential value trap warning.
What Does FIS's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021).
Metric Rating GF Score™ 65 Financial Strength 4/10 Profitability 7/10 Growth 7/10 Valuation 2/10 Momentum 2/10 The GF Score™ of 65/100 indicates that FIS is in an above-average position overall. Its strongest aspects lie in Profitability (7/10) and Growth (7/10), suggesting a solid operational foundation and potential for future performance. However, the Valuation (2/10) and Momentum (2/10) scores indicate significant concerns, reflecting the current market sentiment and valuation challenges. Overall, while FIS shows promise in certain areas, weaknesses in valuation and momentum pose risks that investors should monitor closely.
What Are Insiders Doing with FIS Stock? Recent insider activity for Fidelity National Information Services Inc FIS has shown that insiders have purchased $1.1 million worth of shares in the last three months, with no reported selling. This buying trend may suggest that insiders have confidence in the company's future prospects, which could be a bullish signal for potential investors. However, it is essential to consider that insider purchasing does not guarantee future stock performance and should be evaluated in the context of other fundamental and market factors.
What This Means for Investors Based on the analysis of GF Value™, Fidelity National Information Services Inc FIS is currently undervalued. While the significant discount from GF Value™ presents an opportunity, caution is warranted due to the classification as a possible value trap and the lower scores in valuation and momentum. Investors are encouraged to conduct thorough research and consider all aspects of the company's performance before making investment decisions.
For the complete analysis, visit the Fidelity National Information Services Inc FIS stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is FIS's GF Score™?
FIS's GF Score™ is 65/100, indicating an above-average ranking based on key factors that influence long-term returns.
Is FIS overvalued or undervalued?
FIS is currently undervalued, with a GF Value™ of $85.97 compared to its current price of $43.37, representing a 49.6% discount.
What is FIS's P/E ratio?
FIS has a P/E (TTM) ratio of 8.4x, which is significantly below its 5-year median P/E of 67.5x, indicating that the stock is trading at a much lower valuation compared to its historical performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Launch of FIS Enterprise Risk Suite on AWS delivers a cloud-native risk management platform that gives financial institutions non-stop access to the latest risk functionality without disruptive upgrade cycles. Deployment eliminates the trade-off between staying current and staying operational. JACKSONVILLE, Fla.--(BUSINESS WIRE)--Global financial technology leader FIS® today announced the launch of FIS Enterprise Risk Suite on Amazon Web Services (AWS). Upgrading risk software has always meant disruption and for firms managing risk in real-time, that’s a trade-off they can’t afford. This deployment on AWS reduces this by delivering a cloud-native risk management platform that keeps financial institutions on the latest version of the software, continuously and without operational disruption.
In today's volatile, highly regulated markets, financial institutions face mounting pressure to track a growing range of risks, but upgrading to a new software version has historically forced firms to choose between staying current and staying operational. Enterprise Risk Suite on AWS resolves that tension, and represents a fundamental shift in how clients deploy, scale and consume enterprise risk technology, by replacing the lengthy, disruptive upgrade cycles of legacy infrastructure with continuous, seamless delivery of the latest capabilities.
With Enterprise Risk Suite now available on AWS, FIS manages upgrades on behalf of its clients through a CI/CD model, meaning institutions always run the most current version of the software without needing to divert focus from risk management to infrastructure.
The platform's microservice-based, cloud-native architecture enables clients to linearly scale their risk architecture in the cloud and run higher volumes of calculations with lossless performance, and through burst computing, clients can instantly acquire additional processing power for large calculations or peak workloads, without maintaining costly on-premise hardware.
The launch builds on FIS' recognition as a Category Leader across all quadrants in the Chartis Credit Risk Management Systems report, validating the platform's strength across both market and credit risk.
Andrés Choussy, President of the Capital Markets at FIS said: “The move to a cloud-native architecture on AWS showcases our commitment to unlock financial technology across the money lifecycle, and removes the trade-off between staying current and staying operational. Our clients can now run the latest, most powerful version of Enterprise Risk Suite at all times, while scaling their risk infrastructure dynamically to meet whatever the market demands. This modern framework combined with comprehensive risk coverage enables smarter, faster and more capital-efficient risk management decisions that drive revenue growth.”
John Kain, Head of Financial Services Market Development, Amazon Web Services said: "Financial institutions need risk management infrastructure that keeps pace with market volatility without sacrificing operational continuity. By deploying Enterprise Risk Suite on AWS, FIS is delivering exactly that — a cloud-native platform that gives clients continuous access to the latest capabilities, elastic compute power for peak workloads, and the scalability to grow without the burden of legacy upgrade cycles. We're proud to support FIS in transforming how the insurance industry manages risk."
About FIS
FIS is a financial technology company providing solutions to financial institutions and businesses. We unlock financial technology to the world across the money lifecycle underpinning the world’s financial system. Our people are dedicated to advancing the way the world pays, banks and invests, by helping our clients to confidently run, grow, and protect their businesses. Our expertise comes from decades of experience helping financial institutions and businesses of all sizes adapt to meet the needs of their customers by harnessing where reliability meets innovation in financial technology. Headquartered in Jacksonville, Florida, FIS is a member of the Fortune 500® and the Standard & Poor’s 500® Index. To learn more, visit FISglobal.com. Follow FIS on LinkedIn, Facebook and X.
More News From Fidelity National Information Services
Fidelity National Information Services, Inc. (FIS) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript
BankSouth, a community bank with $1.6 billion in assets under management, has selected FIS as its core banking platform provider to power its retail and business banking businesses. The agreement will enable BankSouth to accelerate integration with existing partners and reduce time-to-market for new fintech partnerships from months to weeks. JACKSONVILLE, Fla.--(BUSINESS WIRE)--FIS® (NYSE: FIS), a global leader in financial technology, today announced that BankSouth, a top-performing community bank in Georgia, has selected FIS to power its retail and business banking businesses.
BankSouth's decision to replace its existing core platform was driven by the bank’s need to better serve its customers by integrating AI capabilities and third-party fintech solutions more rapidly. The bank sought a technology partner that could scale with its ambitions, enable faster innovation, and support modern API-based integrations.
"BankSouth’s growth ambitions align perfectly with what FIS can deliver," said Andrew Beatty, Head of Global Cores, FIS. "With strong data capabilities and a future-ready architecture, FIS gives BankSouth the scalability and speed to innovate with confidence. We’re proud to support BankSouth in this next phase of its modernization journey, helping the bank manage the full money lifecycle on an integrated platform while unlocking new opportunities to serve its customers with excellence."
As the center of a fully connected financial ecosystem, FIS gives BankSouth access to:
FIS Code Connect, an open API platform that simplifies integrations and enables speed to market with innovative technologies Advanced payments and card capabilities, including disputes, digital card functionality, and tools to help drive non-interest income Enhanced fraud protection, utilizing predictive analytics to identify and prevent threats before they occur Standardized data feeds, enabling BankSouth to more seamlessly implement AI-based fraud detection applications, personalized product recommendations, and enhance back-office automation "Even as the pace of technological change ramps up, personal relationships remain at the heart of community banking," said Harold Reynolds, President and CEO, BankSouth. "FIS gives us seamless connectivity to the fintech partners we need, and their data strategy and commitment to data-driven banking set them apart. That, combined with their payments depth, innovation and genuine focus on client success, positions us to implement a real AI strategy — one that makes our consumer customers' lives easier and keeps our business customers competitive and responsive as commerce rapidly evolves."
About FIS
FIS is a financial technology company providing solutions to financial institutions and businesses. We unlock financial technology to the world across the money lifecycle underpinning the world's financial system. Our people are dedicated to advancing the way the world pays, banks and invests, by helping our clients to confidently run, grow and protect their businesses. Our expertise comes from decades of experience helping financial institutions and businesses of all sizes adapt to meet the needs of their customers by harnessing where reliability meets innovation in financial technology. Headquartered in Jacksonville, Fla., FIS is a member of the Fortune 500® and the Standard & Poor's 500® Index.
More News From Fidelity National Information Services
Key Takeaways FIS launched Enterprise Risk Suite on AWS with cloud-native risk management capabilities.FIS uses CI/CD deployment to deliver automatic software updates without disruptions.FIS could benefit as financial firms shift toward subscription-based cloud platforms. Fidelity National Information Services Inc. (FIS - Free Report) is accelerating its cloud transformation strategy with the launch of Enterprise Risk Suite on Amazon Web Services (AWS). The new offering introduces a cloud-native risk management platform designed to help financial institutions access the latest software capabilities without the disruption of traditional upgrade cycles. As market volatility and regulatory scrutiny intensify globally, the ability to run uninterrupted risk operations is becoming a critical requirement for banks, insurers and capital market firms.
The platform operates through a continuous integration and continuous delivery (CI/CD) framework, allowing institutions to automatically access the latest software version without lengthy upgrade processes or system disruptions. This approach modernizes how enterprise risk systems are deployed and maintained, replacing traditional upgrade cycles that often required additional time, resources and operational adjustments.
Built on a microservices-based cloud architecture, the suite enables firms to scale computing capacity according to workload demands. Financial institutions can run larger and more complex calculations while accessing additional processing power during periods of elevated market activity. The cloud-based structure also reduces dependence on costly on-premise infrastructure.
The launch further strengthens FIS’ standing in enterprise risk technology following its recognition as a Category Leader in the Chartis Credit Risk Management Systems report. The broader financial services industry is rapidly adopting cloud-based infrastructure to improve operational resilience and real-time analytics. Partnerships between fintech providers and cloud companies such as AWS are becoming increasingly central to modernization strategies across banking and capital markets.
The AWS deployment could support stronger recurring revenue growth for FIS over the long term as clients increasingly transition toward subscription-oriented cloud platforms. Competition remains intense from firms that are investing heavily in cloud-enabled analytics and risk systems. However, FIS benefits from a diversified technology ecosystem spanning payments, banking and capital markets, which may help the company deepen enterprise relationships and expand adoption of integrated financial infrastructure solutions in the years ahead.
FIS’ Price PerformanceOver the past year, FIS shares have declined 45.1% compared with the industry’s fall of 22%.
Image Source: Zacks Investment Research
FIS’ Zacks Rank & Key PicksFIS currently carries a Zacks Rank #3 (Hold).
Some top-ranked stocks in the business services space are Sezzle Inc. (SEZL - Free Report) , Dave Inc. (DAVE - Free Report) and Priority Technology Holdings, Inc. (PRTH - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sezzle’s current-year earnings is pinned at $5.09 per share and has witnessed four upward revisions in the past 30 days against no movement in the opposite direction. Sezzle beat earnings estimates in each of the trailing four quarters, with the average surprise being 17.4%. The consensus estimate for current-year revenues is pegged at $592.6 million, implying 31.6% year-over-year growth.
The Zacks Consensus Estimate for Dave’s current-year earnings is pinned at $15.46 per share and has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. Dave beat earnings estimates in each of the trailing four quarters, with the average surprise being 45.8%. The consensus estimate for current-year revenues is pegged at $710.2 million, implying 28.1% year-over-year growth.
The Zacks Consensus Estimate for Priority Technology’s current-year earnings is pinned at $1.24 per share and has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Priority Technology beat earnings estimates in two of the trailing four quarters and missed twice, with the average surprise being 4.4%. The consensus estimate for current-year revenues is pegged at $1 billion, implying 8.5% year-over-year growth.
JACKSONVILLE, Fla.--(BUSINESS WIRE)--FIS® (NYSE: FIS), a global leader in financial technology, and InvestCloud, a global leader in wealth technology, today announced the launch of FIS digital wealth solutions, designed to give advisors and their clients a streamlined experience and a more complete financial picture across trust, advisory, and externally held accounts.
As financial institutions work with fragmented systems and disparate data sources, their wealth clients increasingly expect an intuitive, always-on digital experience. FIS digital wealth solutions are designed to help firms deliver interactions that are personalized, secure, and actionable. For wealth firms, that means advisors are working from a connected dashboard. For advisors, that means a system that reasons across client data, portfolio positions, compliance requirements, and transaction history - surfacing what matters, when it matters.
The new solution leverages InvestCloud’s Advisor Workspace and Client Experience capabilities, which today support trillions in wealth assets worldwide, and is integrated with FIS’s core processing platforms to provide a single connected environment spanning advisor tools, client-facing experiences, and AI capabilities-without requiring institutions to replace their existing infrastructure. InvestCloud’s unified data model brings together client data, interactions, and portfolio activity to power agentic AI capabilities that help advisors surface timely insights and actions. The new solution is designed to help firms modernize the front office while continuing to rely on the FIS platforms that power their operations.
Leveraging FIS Code Connect, institutions can deploy FIS’ digital wealth solutions without disrupting current framework. Built-in security controls, audit capabilities, and data governance features support supervision and regulatory requirements, while AI safeguards are designed to prevent client data from being stored or used to train models, helping to protect sensitive personal information.
“Financial institutions want to modernize the wealth experience without disrupting the foundation they've built,” said Jim Johnson, Co-President, Banking Solutions, FIS. “With InvestCloud, we're giving clients the flexibility to deliver an intelligent front office while continuing to rely on the FIS platforms that already power their operations.”
“The FIS partnership is a unique platform to expand our footprint to bring differentiated capabilities to financial institutions to help them delight their wealth clients. InvestCloud brings the digital experience and AI-enabled expertise that today’s advisors and clients expect,” said Jeff Yabuki, Chairman and CEO, InvestCloud. “At a time of transformative change, we are working together to deliver the personalized, high-touch service that strengthens relationships and keeps the human connection at the center of wealth management.”
FIS currently serves more than 600 financial institutions, representing approximately $5.5 trillion in assets supported by the platforms, across large financial institutions, community and regional banks, private banks, trust companies, family offices, registered investment advisors (RIAs), and other specialized wealth management firms.
About FIS
FIS is a financial technology company providing solutions to financial institutions and businesses globally. We unlock financial technology to the world across the money lifecycle underpinning the world’s financial system. Our people are dedicated to advancing the way the world pays, banks and invests, by helping our clients to confidently run, grow, and protect their businesses. Headquartered in Jacksonville, Florida, FIS is a member of the Fortune 500® and the Standard & Poor’s 500® Index. To learn more, visit FISglobal.com.
About InvestCloud
InvestCloud, a global leader in wealth technology, aspires to enable a smarter financial future. Driving the digital transformation of wealth management, the company serves a broad array of clients globally, including Wealth and Asset Managers, Financial Institutions, RIAs, and TAMPs. As a leader in delivering personalization and scale across advisory programs, including unified managed accounts (UMA) and separately managed accounts (SMA), the company is committed to the success of its clients and is an industry leader with more than $4 trillion in managed accounts assets. The company is extending this leadership through Altic and PM+, bringing access and scale to alternative investments and enabling advisors to manage public and private assets in a single, connected experience. InvestCloud delivers leading digital wealth management and financial planning solutions, complemented by a unified data platform and agentic AI capabilities. Headquartered in the United States, InvestCloud serves clients around the world.
Key Takeaways FIS will help BankSouth replace legacy banking systems with an API-driven core platform.BankSouth expects fintech integration timelines to shrink from months to weeks using FIS Code Connect.FIS reported 45% Banking Solutions revenue growth in Q1 2026 amid modernization demand. Fidelity National Information Services Inc. (FIS - Free Report) has secured a new core banking agreement from BankSouth, strengthening its position in the fast-growing digital banking infrastructure market. The partnership will allow BankSouth to modernize its retail and commercial banking operations while improving its ability to integrate artificial intelligence tools and fintech applications more quickly.
BankSouth selected FIS to replace its legacy core banking platform with a more flexible and API-driven system. Through FIS Code Connect, the company’s open API integration platform, the transition is expected to significantly reduce the time required to launch new fintech partnerships, cutting implementation timelines from months to weeks. The bank will also gain access to enhanced payments capabilities, digital card tools and fraud prevention solutions through the FIS platform.
The deal reflects a broader trend across the banking sector, where regional and community banks are increasing technology investments to remain competitive against larger institutions and digital-first fintech firms. Many smaller banks are now prioritizing cloud-enabled infrastructure and open banking systems that can support faster innovation, real-time payments and AI-driven customer services without requiring large internal technology teams.
FIS is also benefiting from rising demand for AI-ready banking systems. Through standardized data feeds and integrated analytics tools, BankSouth plans to strengthen fraud detection, improve automation and deliver more personalized banking experiences.
For FIS, the agreement adds to its growing momentum in core banking modernization and embedded financial technology services. The company has been focusing heavily on cloud-based banking platforms, payment innovation and scalable software solutions for financial institutions of all sizes. As banks continue upgrading legacy systems to improve efficiency and customer engagement, FIS could see stronger recurring revenue opportunities and deeper long-term client relationships. In the first quarter of 2026, the company’s total revenues rose 30% year over year, along with 45% growth in its Banking Solutions segment’s revenues.
FIS’ Price PerformanceOver the past year, FIS shares have declined 45.5% compared with the industry’s fall of 22.7%.
Image Source: Zacks Investment Research
FIS’ Zacks Rank & Key PicksFIS currently carries a Zacks Rank #3 (Hold).
Some top-ranked stocks in the business services space are Sezzle Inc. (SEZL - Free Report) , Dave Inc. (DAVE - Free Report) and Priority Technology Holdings, Inc. (PRTH - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sezzle’s current-year earnings is pinned at $5.09 per share and has witnessed four upward revisions in the past 30 days against no movement in the opposite direction. Sezzle beat earnings estimates in each of the trailing four quarters, with the average surprise being 17.4%. The consensus estimate for current-year revenues is pegged at $592.6 million, implying 31.6% year-over-year growth.
The Zacks Consensus Estimate for Dave’s current-year earnings is pinned at $15.46 per share and has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. Dave beat earnings estimates in each of the trailing four quarters, with the average surprise being 45.8%. The consensus estimate for current-year revenues is pegged at $710.2 million, implying 28.1% year-over-year growth.
The Zacks Consensus Estimate for Priority Technology’s current-year earnings is pinned at $1.24 per share and has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Priority Technology beat earnings estimates in two of the trailing four quarters and missed twice, with the average surprise being 4.4%. The consensus estimate for current-year revenues is pegged at $1 billion, implying 8.5% year-over-year growth.
Key Takeaways FIS is seeing strong demand for digital banking, payments modernization and AI-driven automation.Banking Solutions revenues jumped 44% in Q1 2026, while EBITDA margin rose to 39.6%.FIS faces lending market weakness and rising interest costs tied to its $16.8B debt load. Fidelity National Information Services, Inc. (FIS - Free Report) is well-poised for growth, driven by strong segment performances, digital transformation and innovations, international market presence, partnerships and solid cash flow generation abilities. Its forward P/E of 6.68X is significantly lower than the industry average of 16.32X. The company has a Value Score of A.
With a market capitalization of $22.5 billion, Fidelity National is a Jacksonville, FL-based financial technology company that provides solutions to financial institutions and businesses globally. Over the past year, shares of FIS have fallen 45.5% compared with the industry’s 23% decline.
Courtesy of solid prospects, FIS currently carries a Zacks Rank #3 (Hold).
Where Do Estimates for FIS Stand?The Zacks Consensus Estimate for Fidelity National’s 2026 earnings is pegged at $6.28 per share, indicating a 9.2% year-over-year rise. In the past seven days, it has witnessed one upward estimate revision against none in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $13.8 billion for 2026, implying a 29.3% year-over-year rise. FIS beat earnings estimates in three of the past four quarters and met once, with an average surprise of 1.9%.
FIS’ Growth DriversFIS is benefiting from rising demand for digital banking, payments modernization and AI-driven automation as financial institutions continue increasing technology investments. The company delivered strong recurring contract momentum during the quarter, with annual contract value growth accelerating across banking, capital markets, lending and digital solutions. Products such as Money Movement Hub, digital banking tools and lending platforms are gaining traction among regional and community banks, supporting a stronger long-term revenue pipeline.
FIS continues to witness solid revenue growth, thanks to the robust performances from its Banking Solutions and Capital Market Solutions segments. Adjusted revenues from Banking Solutions and Capital Market Solutions businesses increased 44% and 3% year over year in the first quarter of 2026, respectively. The company’s adjusted EBITDA margin improved 176 basis points year over year to 39.6%, primarily driven by acquisitions of Total Issuing Solutions business, a favorable business mix and cost savings initiatives.
AI is emerging as a key growth driver for FIS. Its partnership with Anthropic focuses on developing AI-powered banking agents for financial crimes investigations, leveraging FIS’ data, compliance expertise and regulatory infrastructure. The recently secured BankSouth contract further strengthens FIS’ push into AI-enabled banking modernization, with initial AI agent rollout expected in the second half of 2026.
The company is also expanding its digital asset and next-generation payments capabilities through initiatives such as Project Keystone and the Lyriq platform. These solutions are designed to help banks adopt tokenized deposits and digital currency capabilities in a secure and compliant way. Growing interest from banks in digital payments, stablecoin infrastructure and tokenized deposits is creating additional opportunities for FIS to strengthen its role in the evolving financial ecosystem.
Cost optimization initiatives and a disciplined capital allocation strategy are also helping the company strengthen free cash flow, with a long-term target of exceeding $3 billion by 2028. Its cash generation abilities enable it to continue elevating shareholder value through share buybacks and dividend payouts. In the first quarter of 2026, the company rewarded its shareholders with share buybacks worth $30 million and paid dividends of $232 million.
FIS’ Key RisksThere are some factors, however, that investors should keep a careful eye on.
FIS continues to face pressure from macroeconomic uncertainty, particularly within its Capital Markets segment. Volatility in lending markets and weaker debt issuance activity are weighing on loan syndication-related revenues, with softness expected to continue through 2026.
Fidelity National’s debt-laden balance sheet induces an increase in interest expenses, which can limit financial flexibility. As of March 31, 2026, long-term debt, excluding the current portion, amounted to $16.8 billion. Net interest expenses of $197 million increased 146.3% year over year in the first quarter of 2026. Its net debt-to-capital of 49.2% is well above the industry average of 24.3%.
Key PicksSome top-ranked stocks in the business services space are Priority Technology Holdings, Inc. (PRTH - Free Report) , Sezzle Inc. (SEZL - Free Report) and Dave Inc. (DAVE - Free Report) . PRTH is sporting a Zacks Rank #1 (Strong Buy) at present, while SEZL and DAVE carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Priority Technology’s current-year earnings is pinned at $1.24 per share and has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Priority Technology beat earnings estimates in two of the trailing four quarters and missed twice, with the average surprise being 4.4%. The consensus estimate for current-year revenues is pegged at $1 billion, implying 8.5% year-over-year growth.
The Zacks Consensus Estimate for Sezzle’s current-year earnings is pinned at $5.09 per share and has witnessed four upward revisions in the past 30 days against no movement in the opposite direction. Sezzle beat earnings estimates in each of the trailing four quarters, with the average surprise being 17.4%. The consensus estimate for current-year revenues is pegged at $592.6 million, implying 31.6% year-over-year growth.
The Zacks Consensus Estimate for Dave’s current-year earnings is pinned at $15.46 per share and has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. Dave beat earnings estimates in each of the trailing four quarters, with the average surprise being 45.8%. The consensus estimate for current-year revenues is pegged at $713.7 million, implying 28.8% year-over-year growth.
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Stock to Watch: Fidelity National Information Services (FIS - Free Report) Headquartered in Jacksonville, FL, Fidelity National Information Services, Inc. provides banking and payments technology solutions, processing services and information-based services to the financial services industry. The company came into existence, following the merger with Certegy Inc., a provider of credit cards, debit cards, other transaction processing and check risk management services to financial institutions in 2006.
FIS is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 6.69; value investors should take notice.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.01 to $6.28 per share. FIS boasts an average earnings surprise of +1.9%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, FIS should be on investors' short list.
There was a time when issuer processing was defined by what happened after the sale. Approve the transaction. Move the money. Reconcile the ledger. Manage the exception. It was essential plumbing invisible to the consumer, disconnected from the commercial decision, and measured almost entirely by issuers on uptime and cost efficiency.
That era is ending.
In a conversation with PYMNTS CEO Karen Webster, Jim Johnson, co-president of banking solutions at FIS, laid out a case that the issuer processing stack is undergoing a fundamental repositioning, from back office to front of house, from cost center to competitive differentiator.
The forces driving the shift are converging simultaneously, he said. Digital wallets are aggregating credentials at the point of purchase, real-time rails are compressing settlement into seconds, artificial intelligence is reshaping discovery and purchase intent, and new forms of programmable money are introducing logic into the payment itself.
The implication for banks is unquestionable, he said. Institutions that continue to treat issuing as an operational line item, something that happens downstream of the customer relationship, risk being disintermediated not by a single competitor, but by the architecture of modern commerce itself.
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“The issuer and issuer processor really [have] to be much more involved on the front end of the transaction,” Johnson said.
The opportunity now sits earlier in the cycle, where offers are presented, funding sources are selected and incentives are matched to consumer behavior, he said.
From Settlement Engine to Strategic Asset The traditional issuer processing model was built for a linear world. The consumer chose a card, the merchant submitted a request, and the processor authorized, cleared and settled. The bank’s value was embedded in risk management and balance sheet funding. Processing was a throughput game.
What has changed is where the payment decision now forms. Digital wallets present multiple credentials simultaneously. AI-driven shopping agents evaluate funding options on behalf of the consumer. Merchant checkout flows route toward preferred rails. By the time a transaction reaches the traditional authorization layer, the most consequential decisions have already been made. The issuer may not have been part of any of them.
FIS’ response is a deliberate effort to push issuer capabilities upstream, Johnson said. SKU-level data, originally developed for restricted purchasing environments such as EBT, is now being applied to commercial and issuer programs to connect payment activity directly to product-level outcomes. Merchants want tighter accountability for marketing spend. Issuers want proof that incentives drive behavior. Both require intelligence that lives inside the processing layer, not bolted on after the fact.
Webster pointed to Smart Basket capabilities as an example of infrastructure designed to attach intelligence directly to credentials and checkout decisions, creating a layer where consumers, merchants and issuers each derive value at the point of sale.
The message to banks is that the processing stack is no longer downstream of strategy. It is strategy. Institutions that can’t surface relevant offers, optimize funding selection and deliver real-time incentives through their credentials will find themselves invisible at the moment that matters most.
Real-Time Rails Make Latency Fatal The FedNow® Service and other instant payment rails have done more than accelerate settlement, Johnson said. They have compressed the window in which issuer data has economic value. In a batch-processing world, overnight reconciliation was adequate. In a real-time world, insight that arrives after the money has moved is worthless.
The modernization work inside FIS began with exactly this recognition, he said. The company’s legacy monolithic platforms, built over decades, needed to be re-architected not just for cloud efficiency but for data immediacy.
“We made the decision that to be around another 50 years, we really had to modernize our monolithic platforms, get them into the cloud, but more importantly, get the data into modern storage technology that allows us to unlock that in real time,” Johnson said.
For banks, this is more than a technology migration story. It is a question of whether the institution can act on what it knows before someone else does. Real-time rails reward real-time intelligence. An issuer that can detect a shift in repayment behavior, flag a life event or match a loyalty incentive to an in-session purchase has a fundamentally different competitive position than one still working from yesterday’s batch file.
AI is the accelerator of this shift, not the origin.
“To use and make AI valuable, data is the fuel,” Johnson said.
The takeaway for issuers is that AI investments are only as valuable as the data infrastructure feeding them. Modernized processing is the prerequisite, not the afterthought.
Programmable Money Widens the Gap The pressure on legacy issuer infrastructure intensifies further as new forms of money emerge. Stablecoins, tokenized deposits and smart credentials introduce capabilities that traditional payment instruments were never designed to carry, including conditional logic, automated execution and cross-system coordination.
Stablecoins have drawn attention for settlement speed and portability. Tokenized deposits offer a different value proposition by keeping funds inside regulated banking frameworks while enabling programmability. Both represent an expansion of what payment infrastructure can do, and both raise the stakes for issuers whose systems cannot support them, Johnson said.
New rails will not uniformly displace existing ones. Different transactions will continue to prioritize different outcomes, such as immediacy in some cases, and economics or exception handling in others. The complexity for issuers is that they must support multiple rails simultaneously while helping their institutions understand where each creates value, he said.
For banks, the strategic question is whether their processing partner can navigate that multiplicity or whether they are locked into a single-rail architecture that leaves them unable to participate in new flows. The issuer processor, in this framing, becomes the bridge between the bank’s balance sheet and the expanding universe of payment endpoints.
The Disintermediation Risk Is Architectural Consumer behavior is already moving in this direction, Webster said. Consumers are showing up at the doorsteps of AI-driven discovery models, even if they remain hesitant to delegate the full transaction. When they arrive, the credential they present needs to carry memory, rewards and intelligence, not simply serve as a funding instrument.
The observation sharpens the disintermediation risk. Banks aren’t losing transactions to a single FinTech or tech platform. They’re losing relevance because the architecture of payment selection is moving to a layer where their credentials have no voice. If the wallet presents the options, the AI agent evaluates them, and the merchant’s checkout optimizes the outcome. The issuer that hasn’t embedded intelligence into its credential is simply not in the conversation.
Johnson connected this directly to FIS’ broader data strategy and to the expanded visibility created through the TSYS integration. Adding credit activity to the company’s dataset strengthened its ability to understand how consumers manage obligations alongside deposits, lending and payment behavior.
“What you get when you add the credit activity is you get a great insight on how a consumer manages obligations,” Johnson said.
That broader perspective allows issuers to move beyond risk models weighted toward negative outcomes and instead build more complete, forward-looking views of customer financial health, he said.
Processing Is the Strategy Issuer processing has outgrown its back-office identity. For banks evaluating their payments roadmap, the question is no longer whether processing infrastructure is modern enough to handle volume. It is whether that infrastructure is positioned to influence the decisions that determine where volume goes.
Being part of the flow, not routed around it, requires issuers to treat their processing stack as the connective tissue between data, decisioning, credentials and commerce. Banks that recognize issuing as a front-of-house strategic function will shape the next generation of payment experiences. Those that do not will settle other people’s transactions.
“Our job is to make sure transactions go through our clients, not around them,” Johnson said.
For issuers, that statement is both the opportunity and the warning.
JACKSONVILLE, Fla.--(BUSINESS WIRE)--FIS® (NYSE: FIS), a global leader in financial technology, will present on Tuesday, June 9, 2026, at the Mizuho Technology Conference at 10:30am ET.
A live audio webcast, as well as a replay, will be accessible on the Investor Relations section of FIS’ homepage, www.fisglobal.com.
About FIS
FIS is a financial technology company providing solutions to financial institutions, businesses, and developers. We unlock financial technology to the world across the money lifecycle underpinning the world’s financial system. Our people are dedicated to advancing the way the world pays, banks and invests, by helping our clients to confidently run, grow, and protect their businesses. Our expertise comes from decades of experience helping financial institutions and businesses of all sizes adapt to meet the needs of their customers by harnessing where reliability meets innovation in financial technology. Headquartered in Jacksonville, Florida, FIS is a member of the Fortune 500® and the Standard & Poor’s 500® Index. To learn more, visit FISglobal.com. Follow FIS on LinkedIn, Facebook and X.
More News From Fidelity National Information Services
Key Takeaways The FIS and Fuse partnership aims to replace slow, manual loan origination processes.Faster approvals and automation could boost funded loans and reduce costs.The partnership will likely strengthen FIS' recurring revenue and client retention. Fidelity National Information Services, Inc. (FIS - Free Report) recently formed a strategic partnership with Fuse, a cloud-native loan origination platform, to build a modern end-to-end origination solution for indirect auto and equipment lenders across the United States and Canada.
The core problem they're solving is: lenders often get stuck on legacy systems, patching broken integrations, doing manual underwriting and losing deals because they simply couldn't move fast enough. Under the alliance, Fuse's platform integrates with FIS Asset Finance and FIS AutoSuite, while open API tools simplify connections to dealer systems and third-party data providers. Lenders can now change pricing and policies on their own, no hard-coding required.
Slower speed kills deals in lending. Many lenders face growing pressure to improve decision speed and dealer experience as competition across the lending market intensifies. This alliance gives them a credible path to modernization without ripping out everything they already have.
Financial ImplicationsThe math is straightforward. Faster decisions mean more funded loans. Fewer manual steps mean lower operational costs. Built-in automation is designed to reduce manual underwriting activity, improve efficiency, and deliver quicker lending decisions. Stronger dealer relationships follow naturally when approvals stop stalling.
A stronger origination offering can make FIS more competitive when lenders evaluate technology vendors, helping the company attract new customers and deepen existing relationships. The partnership can also create opportunities to sell additional products across the lending workflow, increasing the value of each client relationship. Over time, broader adoption could support recurring software revenue, improve customer retention and strengthen FIS' standing in the market.
FIS’ Price PerformanceShares of Fidelity National have declined 39.6% year to date, underperforming the 17.5% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key PicksFIS currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader Business Services space are Klarna Group plc (KLAR - Free Report) , Paymentus Holdings, Inc. (PAY - Free Report) and Repay Holdings Corporation (RPAY - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Klarna’s current-year earnings indicates a 105.1% year-over-year improvement. KLAR has witnessed four upward estimate revisions over the past month against no movement in the opposite direction. The consensus estimate for current-year revenues is pegged at $4.44 billion, indicating 26.5% year-over-year growth.
The Zacks Consensus Estimate for Paymentus’ current-year earnings indicates a 19.7% year-over-year jump. PAY beat earnings estimates in each of the trailing four quarters, with the average surprise being 12%. The consensus estimate for current-year revenues implies 19.9% year-over-year growth.
The consensus estimate for Repay Holdings’ current-year earnings indicates an 11% year-over-year increase. It has witnessed one upward estimate revision and no downward movement over the past 60 days. The consensus estimate for RPAY’s current-year revenues is pegged at $342.39 million, implying 10.7% year-over-year growth.
FIS has been named a winner in two categories at the 2026 WatersTechnology Asia Awards, its third consecutive year of recognition from the program. FIS Post Trade Processing Platform won Best Back-Office Platform, recognized for its cloud-native architecture and ability to support capital markets firms across multiple asset classes and markets. FIS Market Data Analyzer won Best Reference Data Service, recognized for its comprehensive approach to consolidating and managing market data across global asset classes. JACKSONVILLE, Fla.--(BUSINESS WIRE)--Global financial technology leader FIS® (NYSE: FIS) has been named a winner in two categories at the 2026 WatersTechnology Asia Awards. FIS took home Best Back-Office Platform for its FIS Post Trade Processing Platform and Best Reference Data Service for its FIS Market Data Analyzer. The WatersTechnology Asia Awards recognize excellence in the deployment and management of financial information and technology across Asia's capital markets community.
The Best Back-Office Platform win recognizes FIS Post Trade Processing Platform for helping capital markets firms move away from legacy, siloed systems toward a cloud-based platform that handles the full range of middle and back-office operations. Built on Amazon Web Services (AWS), the platform supports multiple asset classes, currencies, and entities in a single system, and can process over 100 million transactions daily. Over the past year, FIS has expanded its client base across Asia Pacific, with growing adoption of the platform among institutions running high-frequency trading operations across the region and globally.
FIS Market Data Analyzer earned Best Reference Data Service for consolidating real-time and historical market data from multiple sources into a single platform covering equities, fixed income, energy, commodities, and foreign exchange. Over the past year, FIS has added data versioning to improve visibility into historical changes, enhanced transparency into underlying data sources for administrators, and expanded the use of AI and machine learning to support risk management and compliance. A Python-based framework also allows clients to extract and process data from a wide range of sources and file formats.
"Receiving recognition at the WatersTechnology Asia Awards for the third year running is a reflection of the work we do every day to help clients in the region manage their operations more effectively," said Andrés Choussy, President, Capital Markets at FIS. "FIS has deep expertise across the capital markets technology stack, and our goal is to put that expertise to work for clients, helping them run their businesses with greater efficiency, accuracy, and confidence as markets continue to evolve."
The WatersTechnology Asia Awards are among the most respected measures of technology performance in the region's financial markets. This recognition adds to FIS's broader momentum in capital markets, which includes continued investment in cloud infrastructure and AI capabilities across its solutions portfolio.
About FIS
FIS is a financial technology company providing solutions to financial institutions and businesses. We unlock financial technology to the world across the money lifecycle underpinning the world’s financial system. Our people are dedicated to advancing the way the world pays, banks and invests, by helping our clients to confidently run, grow, and protect their businesses. Our expertise comes from decades of experience helping financial institutions and businesses of all sizes adapt to meet the needs of their customers by harnessing where reliability meets innovation in financial technology. Headquartered in Jacksonville, Florida, FIS is a member of the Fortune 500® and the Standard & Poor’s 500® Index. To learn more, visit FISglobal.com. Follow FIS on LinkedIn, Facebook and X.
More News From Fidelity National Information Services
The allure of low stock prices is obvious, but also potentially dangerous. A lot of stocks with single-digit stock prices are there for a reason. Many of them are also small or iffy outfits that are more likely to continue getting cheaper in the future.
I think I have some ideas that will fare well, and these companies are small -- but not tiny. Archer Aviation (ACHR 4.06%), Snap (SNAP 1.31%), and Stubhub (STUB +7.91%) all have market caps of at least $2 billion. These are the three stocks under $10 that I think are worth buying in May.
Image source: Getty Images.
1. Archer Aviation Like the promise of its speedy short-haul flights, Archer Aviation stock has its ups and downs. The market is just starting to crystallize for electric vertical takeoff and landing (eVTOL) aircraft. Archer and rival Joby Aviation (JOBY 2.24%) have captured investor interest ahead of the scaling of their businesses.
There has been some turbulence. Near-term revenue targets have been pared back by Wall Street pros as the industry gets ready to take off, literally and figuratively. The next few years should see a pretty dramatic top-line ramp-up based on current analyst projections.
2026: $14 million 2027: $114 million 2028: $512 million 2029: $1,609 million
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Archer's Midnight aircraft has a clear path on the growth runway when it does get rolling. Its high-end air taxi service has attracted airline carriers as partners. It will be the official air taxi provider for the 2028 Olympic Games, even buying a small regional airport near Los Angeles International Airport to make sure it can handle its moment in the spotlight. Even the U.S. Air Force is exploring the potential of Archer's aircraft for military missions.
It will take a few years for Archer to become profitable, and it will remain a high-beta stock. However, with higher annual revenue forecasts than Joby starting in 2028 -- but trading at a third of the enterprise value -- this Archer is primed to hit its target when it's time to let the arrows fly.
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2. Snap It's fair to say that Snapchat's parent company Snap isn't as popular as other visual social hubs like Instagram, TikTok, or YouTube. It's probably still more popular than you think.
Did you know that there are 956 million monthly active users on Snapchat? The platform that made filters or augmented reality lenses cool is also still growing. The audience has grown by 5% over the past year. Tack on a 7% increase in average revenue per user, and Snap's revenue rose 12% in its latest quarter. It posted back-to-back years of double-digit revenue growth before that. Wall Street pros see low double-digit growth through at least the next couple of years.
Reported profitability has been a problem, but the losses are narrowing. Analysts see Snap turning a profit by next year. It's generating healthy and positive free cash flow, more than doubling in its latest quarter. On an adjusted basis, Snap stock is actually cheap. The shares are trading for 10 times forward adjusted earnings and just 8 times next year's target.
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3. StubHub The popular online marketplace for resale tickets to concerts and sporting events has undergone a few ownership changes over the years. It went public in its present form at $23.50 a share just eight months ago. Since it's on the list of stocks below $10, you already know it has not gone well for its IPO investors.
StubHub has shed nearly two-thirds of its value since going public, but it's been rallying in recent weeks. It wound up on the favorable side of two legal rulings. One win was just StubHub settling a lawsuit alleging that it wasn't disclosing customer costs up front. The hub settled with the Federal Trade Commission for a reasonable $10 million. The other courtroom win came in a case for rival Live Nation (LYV +0.10%). The jury in that case found it liable for monopolistic pricing, and now some states want Live Nation separated from its Ticketmaster subsidiary.
There is still a potentially catastrophic legal headwind for StubHub. The United Kingdom and some Canadian provinces have moved to prevent platforms from selling event tickets above face value. This is naturally the lion's share of any third-party marketplace, so StubHub's business model is at risk if this continues to gain traction closer to home.
It's not the only thing holding StubHub back. After four years of heady growth, revenue dipped 1% last year. If inflation and gas prices keep revving higher, there will likely be less money spent on live events. The good news -- if you stomach the risk of court-mandated obsolescence -- is that you can buy StubHub for just six times next year's projected earnings.
Have you evaluated the performance of Snap's (SNAP - Free Report) international operations during the quarter that concluded in March 2026? Considering the extensive worldwide presence of this company behind Snapchat, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
In our recent assessment of SNAP's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter amounted to $1.53 billion, marking an increase of 12.2% from the year-ago quarter. We will next turn our attention to dissecting SNAP's international revenue to get a clearer picture of how significant its operations are outside its main base.
A Closer Look at SNAP's Revenue Streams AbroadOf the total revenue, $323.85 million came from Europe during the last fiscal quarter, accounting for 21.2%. This represented a surprise of +21.94% as analysts had expected the region to contribute $265.57 million to the total revenue. In comparison, the region contributed $341.13 million, or 19.9%, and $224.02 million, or 16.4%, to total revenue in the previous and year-ago quarters, respectively.
Rest of World accounted for 23.1% of the company's total revenue during the quarter, translating to $353.69 million. Revenues from this region represented a surprise of -2.91%, with Wall Street analysts collectively expecting $364.28 million. When compared to the preceding quarter and the same quarter in the previous year, Rest of World contributed $349.83 million (20.4%) and $307.51 million (22.6%) to the total revenue, respectively.
Prospective Revenues in International MarketsWall Street analysts expect Snap to report $1.54 billion in total revenue for the current fiscal quarter, indicating an increase of 14.5% from the year-ago quarter. Europe and Rest of World are expected to contribute 20.3% (translating to $311.9 million), and 20.1% ($309.95 million) to the total revenue, respectively.
For the entire year, the company's total revenue is forecasted to be $6.73 billion, which is an improvement of 13.4% from the previous year. The revenue contributions from different regions are expected as follows: Europe will contribute 19.7% ($1.32 billion), and Rest of World 21.4% ($1.44 billion) to the total revenue.
Closing RemarksSnap's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
At present, Snap holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Exploring Recent Trends in Stock PriceThe stock has increased by 26.1% over the past month compared to the 9.1% increase of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes Snap,has increased 19.1% during this time frame. Over the past three months, the company's shares have experienced a gain of 25.9% relative to the S&P 500's 7.1% increase. Throughout this period, the sector overall has witnessed a 17.5% increase.
Concept of augmented reality technology being used in futuristic smart tech glasses
getty
Snap’s first-quarter results gave investors something they have not always had from the company: evidence of operating discipline.
Revenue rose 12% year-on-year to $1.53 billion. Daily active users returned to growth, reaching 483 million. Adjusted EBITDA more than doubled to $233 million, while free cash flow climbed to $286 million. Net loss narrowed to $89 million.
On the surface, this was a cleaner Snap story: stronger engagement, better margins and a more credible path toward sustained cash generation.
But the more important strategic question sits outside the quarter. Snap is still asking investors to believe in Specs, its augmented reality glasses that are a bid to compete with Meta, Apple and Google for the next consumer computing surface.
Evan Spiegel used the results to reaffirm Snap’s commitment to “intelligent eyewear,” saying the company would keep investing in Specs and share more at AWE on June 16. Snap also pointed to an expanded Qualcomm collaboration, growth in Specs Lens creation, and use cases across learning, gaming and AI-powered experiences.
Why Snap Is Betting On Specs AR GlassesSpecs is Snap’s attempt to define the next computing interface before Apple, Meta or Google fully normalize it. Snap argues that it already owns several ingredients that should matter in AR: the camera habit, a large visual messaging network, a Lens creator ecosystem and a young audience comfortable using the camera as a communication layer.
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If augmented reality moves from the phone screen to the face, Snap wants to be more than an app inside someone else’s operating system. That is also what makes Specs vulnerable.
Specs Inc. And Irenic Capital’s Activist PressureIn January, Snap established Specs Inc. as a wholly-owned subsidiary, telling investors the structure “enables new partnerships and capital flexibility including the potential for minority investment” and “supports clearer valuation of the business.” The subsidiary was an acknowledgement that Specs needs to be financed and valued differently from the core advertising and subscription business.
Activist investor Irenic Capital took that signal further, urging Snap to spin off or shut down Specs.
Snap’s response, set out in an 8-K filing on 15 April, was a different kind of discipline: approximately 1,000 team members cut, 16% of full-time employees, more than 300 open roles closed and an annualized cost reduction of more than $500 million by the second half of 2026. The cuts created room for the conviction instead of retreating from it.
So the central tension in Snap’s Q1 is not whether the company is improving. It is whether that improvement earns management the right to keep funding one of the most speculative bets in consumer technology.
For shareholders aligned with Irenic, Specs can look like capital misallocation dressed up as vision. For Snap, abandoning it carries a different risk. The company remains subscale against Meta and Google in advertising and exposed to platform shifts it does not control. A successful AR glasses platform would give Snap something more defensible: a hardware-software interface built around the camera, not just another ad product inside a crowded social market.
The better question, then, is not whether Specs is expensive. By any reasonable measure, it is. The question is whether Snap can turn operating discipline into strategic permission.
Can AR Lenses scale into a real platform?Q1 helps Spiegel’s case. Snap showed stronger cash generation, tighter cost control and continuing AR engagement, with Snapchatters using AR Lenses more than 9 billion times per day on average and more than 400,000 Lenses submitted in the quarter, up more than 150% year-on-year.
But activist pressure means the clock is now louder. Specs does not need to become a mass-market hit immediately. It does need to prove that Snap’s AR advantage can travel from playful lenses to a developer platform with use cases, distribution and eventual monetization.
That is the real bet inside Snap’s earnings: not just that the company can recover, but that recovery can buy it enough time to invent what comes next.
Meta Platforms: Evaluating Revenue ExpansionMeta Platforms (META 0.14%) primarily generates revenue through advertising, and by offering digital communication applications and virtual reality hardware to users worldwide.
It recently expanded an infrastructure partnership with Broadcom to develop custom hardware for its operations, and it reported an approximately 48% net income margin for the quarter ended March 31, 2026.
Snap: Navigating Revenue FluctuationsSnap (SNAP 1.31%) operates a visual communication application and provides wearable camera products and advertising services globally.
It announced a strategic agreement with Qualcomm to power future generations of its wearable hardware, while posting an approximately negative 6% net income margin for the quarter ended March 31, 2026.
Why Revenue Matters for Retail InvestorsRevenue serves as a foundational metric that shows investors the total amount of money a business brings in before operating expenses are deducted. This helps investors gauge raw business scale and growth.
Image source: The Motley Fool.
Quarterly Revenue for Meta Platforms and SnapQuarter (Period End)Meta Platforms RevenueSnap RevenueQ2 2024 (June 2024)$39.1 billion$1.2 billionQ3 2024 (Sept. 2024)$40.6 billion$1.4 billionQ4 2024 (Dec. 2024)$48.4 billion$1.6 billionQ1 2025 (March 2025)$42.3 billion$1.4 billionQ2 2025 (June 2025)$47.5 billion$1.3 billionQ3 2025 (Sept. 2025)$51.2 billion$1.5 billionQ4 2025 (Dec. 2025)$59.9 billion$1.7 billionQ1 2026 (March 2026)$56.3 billion$1.5 billionData source: Company filings. Data as of May 10, 2026.
Foolish TakeComparing the revenue for Meta Platforms and Snap reveals insightful trends. Both operate in the social media space, rely heavily on digital advertising for income, and are experiencing rising revenue. Beyond that, their stories diverge.
Meta is seeing spectacular sales growth. Its first quarter revenue of $56.3 billion represented a 33% year-over-year jump. Compare that to Snap’s 12% Q1 sales increase to $1.5 billion, which is a solid result, but not the outsized performance delivered by Meta.
The Facebook parent’s enormous revenue increase shows its business strategies are working. Meta invested heavily in artificial intelligence in recent years, and its strong sales suggests AI is helping.
The company has also extended its AI use into hardware with virtual reality headsets and AI-infused sunglasses. The latter saw the number of people using them triple year over year in Q1.
Snap’s sales trend indicates the company is growing. Its daily active users rose 5% year over year in Q1.
However, unlike Meta, Snap isn’t profitable, posting a Q1 net loss of $89 million. Its modest revenue gains contrasted against unprofitable operations is concerning when AI is expensive technology to implement.
Snap’s sales trend reveals its use of AI to date hasn’t supercharged its income to the same degree as Meta. Unless revenue starts to accelerate, as an unprofitable enterprise, investing in Snap stock is not as appealing as owning shares in Meta.
Robert Izquierdo has positions in Broadcom, Meta Platforms, and Qualcomm. The Motley Fool has positions in and recommends Broadcom, Meta Platforms, and Qualcomm. The Motley Fool has a disclosure policy.
Teenagers pose for a photo while holding smartphones in front of a Youtube logo in this illustration taken September 11, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
May 15 (Reuters) - Alphabet's (GOOGL.O), opens new tab YouTube, Snap (SNAP.N), opens new tab and TikTok have reached settlements in the first case set for trial in litigation seeking to force social media platforms to cover the costs school districts incur to combat a youth mental health crisis they say the companies fueled.
The settlements were detailed in court filings on Friday in federal court in Oakland, California, and resolve claims by a Kentucky school district that is still due to take Facebook and Instagram parent Meta Platforms (META.O), opens new tab to trial on June 15.
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Terms of the settlements with Breathitt County School District in rural Eastern Kentucky were not disclosed.
"This matter has been amicably resolved and our focus remains on building age-appropriate products and parental controls that deliver on that promise," a YouTube spokesperson said in a statement.
Snap, the parent company of Snapchat, said it resolved the case amicably. TikTok did not immediately respond to a request for comment.
More than 3,300 lawsuits involving addiction claims are pending in California state court against the social media companies. Another 2,400 cases brought by individuals, municipalities, states and school districts have been centralized in California federal court.
In a landmark trial, a Los Angeles jury on March 25 found Meta and Alphabet's Google negligent for designing social media platforms that are harmful to young people. It awarded a combined $6 million to a 20-year-old woman who said she became addicted to social media as a child.
The companies have denied the allegations and say they take extensive steps to keep teens and young users safe on their platforms.
Breathitt is one of about 1,200 school districts suing the social media companies over claims they caused a mental health crisis among students and then saddled schools with the fallout.
The school district has been seeking over $60 million to cover the costs of counteracting social media's impact on students’ mental health and to fund a 15-year mental health program to abate the problem.
It also seeks a court order requiring the companies to modify their platforms to reduce addictive features.
Its case is a bellwether, or test case, for over a thousand similar school districts' lawsuits.
Judges and attorneys often use bellwether verdicts to assess the potential value of remaining claims and guide settlement talks. Typically, several bellwether cases are tried before reaching a broader resolution.
Reporting by Diana Novak Jones in Chicago and Nate Raymond in Boston; Editing by Tom Hogue
Our Standards: The Thomson Reuters Trust Principles., opens new tab
It's been a tough ride for long-term Snap (SNAP 1.31%) investors. Once touted as a close rival to Meta Platforms' Instagram, the relatively small social media company remains unprofitable and is down by more than 30% year to date. Investors who are betting on a turnaround may want to cut their losses and review other investment opportunities.
Growth is slow and profits are nonexistent Snap's revenue trajectory does not reflect what investors have come to expect from unprofitable, high-stakes companies. The social media company only has an annualized 8.8% revenue growth rate over the past three years. That's much lower than Meta Platforms' 19.9% compound annual growth rate (CAGR) over the same stretch.
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It's impossible to even compare the two tech companies anymore. A few years ago, investors would look at Snap's earnings to gauge how Meta Platforms would perform, and vice versa. Few investors do that anymore. Meta Platforms earned more than $200 billion in revenue over the past year, while Snapchat generated less than $10 billion over the same stretch.
Image source: Getty Images.
The better comparison is Pinterest, but even then, it grows faster and actually makes a profit. Snap reported an $89 million net loss in the first quarter. It's still unprofitable almost 15 years after its launch, but it's not posting the type of revenue growth that warrants waiting for a flip to profitability.
Snap has limited ways to fuel meaningful improvements Snap wrapped up Q1 with 956 million monthly active users, up 5% year over year. The company touted it as a win and a return to positive monthly active user growth. However, Snap must increase its average revenue per user to maintain its status as a growth stock, but it hasn't made sizable progress on that front.
Sponsored Snaps were a bright spot, as that segment generated a 226% year-over-year increase in per-impression clickthrough rates, but 12% overall revenue growth is nothing to write home about for a company that lacks profitability.
Snap's outlook suggests Q2 revenue of $1.535 billion, a 14.6% year-over-year increase. That's good, but it also suggests flat sequential growth. Revenue isn't budging by much quarter over quarter.
Meaningful growth rates remain an issue, and Snap is competing with social media giants that are gaining market share faster. Instagram and TikTok are both more popular than Snapchat. Users are gravitating toward those apps, and advertisers are following consumers.
Strong competition and a history of low growth rates don't bode well for Snap shareholders. Perhaps investors would be more patient with Snap if it were producing 20% to 30% year-over-year revenue growth at this stage, as Meta Platforms is doing right now.
Shares of Pinterest (NYSE:PINS | PINS Price Prediction) are down 6% in midday trading on Tuesday, changing hands near $18.75. The selling is sharper than what’s happening at the rest of the social media group, with Meta Platforms (NASDAQ:META) off 1% and Snap (NYSE:SNAP) lower by 2%.
The move extends an ugly stretch for Pinterest stock. Shares are down 28% year to date and 42% over the past year, well off the levels Pinterest held heading into February’s Q4 2025 report.
The longer-term picture is messier still. Pinterest stock is down 68% over five years, a chart pattern that points to structural issues, not just a bad Tuesday.
Why PINS Is Lagging the Group Today Today’s drop lacks a single confirmed catalyst. Pinterest is bearing the brunt of broader social media weakness because it sits at the intersection of several pressure points investors are reassessing.
The biggest is competition for visual discovery. Instagram Reels, TikTok, and YouTube Shorts have steadily encroached on the “ideas and inspiration” use case Pinterest pioneered, and generative AI tools like Google AI Overviews and ChatGPT visual search threaten to absorb the top-of-funnel search behavior that drives engagement.
Monetization is the other concern. Pinterest’s Q1 2026 guidance of $951 million to $971 million implies 11% to 14% growth, well below Meta Platforms’s Q1 2026 revenue growth of 33%. When budgets tighten, brand ad dollars tend to consolidate with Meta and Alphabet (NASDAQ:GOOGL), leaving Pinterest more exposed.
Putting the Three Stocks Side by Side Today’s headline reads “Pinterest is trailing,” but the longer windows tell a more nuanced story. SNAP stock has actually been the worst performer year to date and over five years, even though it’s holding up better than Pinterest in today’s session.
Stock Today YTD 1-Year 5-Year PINS -6% -28% -42% -68% META -1% -7% -4% +96% SNAP -2% -30% -35% -89% Meta Platforms is the clear quality name in the group, with operating leverage from its “year of efficiency.” The platform reports Q1 2026 revenue growth of 33% and multiple growth surfaces from Reels to WhatsApp to its Llama AI stack.
Snap’s relative resilience today is partly mechanical. After years of underperformance, the bear case is largely priced in, leaving less room for fresh sentiment damage. Pinterest, by contrast, still has investors actively repricing the franchise.
The Bull Case for Pinterest Hasn’t Disappeared It’s worth noting that Pinterest remains a viable franchise. The platform still posted 619 million global monthly active users, up 12% year over year, and processed more than 80 billion monthly searches with strong commercial intent.
Pinterest’s free cash flow remains healthy at $380 million in Q4 2025, and the company repurchased $927 million of stock for the full year. CEO Bill Ready stated the company is “laser-focused on execution and transforming our sales and go-to-market efforts so monetization better reflects the valuable commercial intent we see on Pinterest.”
Pinterest’s international monetization is also accelerating, with Europe revenue up 25% and Rest of World up 64% last quarter. Those are the data points that the bulls will want to keep an eye on.
What to Watch Prudent investors should track whether Pinterest stock can stabilize near current levels, or whether today’s break extends into a deeper retest of the $15.18 level seen after the Q4 2025 report. A close back above $20 would help reset the technical tone.
The next real information catalyst is management’s commentary on user growth, AI search competitive impact, and advertiser concentration. Until those data points improve, expect Pinterest to remain the high-beta name in any social media drawdown.
Key Takeaways Reddit's Q1 2026 ARPU rose 44% year over year to $5.23 on stronger monetization. RDDT saw active advertisers jump 75% and performance ads exceed 60% of ad revenue. Reddit's international revenue surged 74.7% in Q1 2026, while international ARPU climbed 51%. Reddit (RDDT - Free Report) is benefiting from solid growth in Average Revenue Per User (ARPU), which is emerging as a key growth driver for the company. In the first quarter of 2026, ARPU increased 44% year over year to $5.23, indicating that portfolio expansions are driving higher monetization per user.
Reddit’s unique community-driven model also plays a significant role. With nearly 500 million weekly users globally and 200 million in the United States, Reddit’s deeply engaged user base generates high-intent, authentic conversations. Around 40% of conversations on Reddit are commercial in nature, and 84% of shoppers report feeling more confident in their decisions after researching on Reddit. This high level of commercial intent has further boosted ARPU.
The company’s focus on expanding its advertiser base and introducing new ad formats, such as Dynamic Product Ads, has also contributed to ARPU growth. In the first quarter of 2026, the number of active advertisers grew more than 75% year over year, and performance-oriented revenue now represents more than 60% of total ad revenue.
Reddit’s ARPU growth is supported by its expanding advertiser base and improved ad automation. The company has integrated more automation and AI into its ad platform through the launch of Reddit Max, which enables advertisers to achieve better performance with less manual input. Advertisers using Max campaigns have seen a 17% reduction in cost per action and 25% more conversion outcomes.
Reddit’s international expansion has also played a pivotal role in boosting ARPU. In the first quarter of 2026, International revenues soared 74.7% year over year to $138 million. International ARPU increased 51% year over year to $2.02, signaling improving monetization intensity across regions.
RDDT Faces Stiff CompetitionRDDT is facing stiff competition from competitors like Pinterest (PINS - Free Report) and Snap (SNAP - Free Report) . Both Pinterest and Snap are also expanding their footprint into advertising to compete in the rapidly growing digital ad market.
Pinterest is seeing strong user engagement in all regions. In the first quarter of 2026, Pinterest’s global ARPU stood at $1.61 compared with the year-ago quarter’s figure of $1.52. ARPU in Europe improved 17% year over year to $1.17, while the United States and Canada rose 9% year over year to $7.12. ARPU from the Rest of World increased 38% year over year to 20 cents.
Snap is seeing steady user engagement. In the first quarter of 2026, Snap’s ARPU increased 7% year over year to $3.17. North America's ARPU climbed 10% to $9.23, while Europe’s ARPU surged 48% to $3.34. ARPU for the Rest of World rose 3% year over year to $1.20.
RDDT’s Share Price Performance, Valuation, and EstimatesRDDT shares have plunged 32.6% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector's increase of 16% and the Internet - Software industry’s decline of 13.2%.
RDDT Stock's Performance
Image Source: Zacks Investment Research
RDDT shares are overvalued, with a forward 12-month Price/Sales of 8.15X compared with the Computer & Technology sector’s 6.78X. RDDT has a Value Score of D.
RDDT's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $4.83 per share, which has increased 21% over the past 30 days. This suggests 84.35% year-over-year growth.
RDDT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SANTA MONICA, Calif.--(BUSINESS WIRE)--Snap Inc. (NYSE: SNAP) announced today that Luke Wood, former President of Beats by Dr. Dre and Vice President at Apple Inc., has been appointed to the company’s board of directors, effective as of May 20, 2026.
“We are excited to welcome Luke to Snap’s board,” said Evan Spiegel, co-founder and Chief Executive Officer of Snap Inc. “Luke has helped build and scale iconic products and brands at the intersection of technology and culture, and we look forward to benefiting from his insights.”
“Luke’s creative and operating experience will bring a valuable perspective to our board,” said Michael Lynton, Chairperson of the board of directors of Snap Inc. “We are pleased to welcome him and look forward to his contributions in the years ahead.”
“I’m thrilled to join Snap’s board at such an exciting time for the company,” said Wood. “Snap has a strong track record of innovation, and I look forward to working with Evan, Michael, and the other directors.”
Mr. Wood, age 57, is a co-founder and has served as Chief Executive Officer of Violet St Holdings, LLC since September 2022. From August 2014 to April 2020, Mr. Wood served as President of Beats by Dr. Dre and as a Vice President at Apple Inc. following Apple’s acquisition of Beats. Prior to that, he served as President of Beats by Dr. Dre from February 2011 to August 2014. Earlier in his career, Mr. Wood held various leadership positions at Interscope Geffen A&M and imprint DGC Records. Mr. Wood currently serves as a member of the board of directors of Fender Musical Instruments Corp. He holds a B.A. in American Studies from Wesleyan University.
About Snap Inc.
Snap Inc. is a technology company. We believe the camera presents the greatest opportunity to improve the way people live and communicate. We contribute to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together. For more information, visit snap.com.
Shares of Snap (SNAP - Free Report) have gained 2.2% over the past four weeks to close the last trading session at $5.69, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $7.87 indicates a potential upside of 38.3%.
The mean estimate comprises 35 short-term price targets with a standard deviation of $2.35. While the lowest estimate of $5.75 indicates a 1.1% increase from the current price level, the most optimistic analyst expects the stock to surge 163.6% to reach $15.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in SNAP. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why SNAP Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, six estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 44.1%.
Moreover, SNAP currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much SNAP could gain, the direction of price movement it implies does appear to be a good guide.
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Block CEO Jack Dorsey, Salesforce CEO Marc Benioff, IBM CEO Arvind Krishna (left to right). Joe Raedle/Getty Images, AP Photo/Markus Schreiber, Sajjad Hussain/Getty Images Worries about AI one day replacing human workers have intensified recently — and as it turns out, that future may be here.
A number of companies have recently announced staff cuts and cited AI efficiencies as a major rationale.
A March report from career transition firm Challenger, Gray, and Christmas found that, so far this year, AI has been cited in 8% of job-cut plans.
Amid this rash of layoffs, some have asked whether AI is replacing so many roles once held by humans or whether some degree of "AI washing" is at work. OpenAI's Sam Altman said some companies are blaming AI for layoffs that would've happened regardless.
An MIT study released last year said that 95% of corporate AI investments have generated "zero return" so far.
As some companies replace human workers with the technology, they may end up hiring more people because of it — or rehiring at least some of the roles they eliminated. A 2025 survey conducted by consulting firm Robert Half found that 29% of 2,000 hiring managers said they reopened positions that had been previously got rid of after implementing AI.
Here's a list of companies that have done AI-related layoffs:
Angi
Angi said it was cutting 350 jobs in January. Bloomberg/Getty Images Angi, the popular contractor listing site previously known as Angie's List, said in January that it was cutting roughly 350 jobs in part because of "AI-driven efficiency improvements."
The company added that the cuts were part of a plan "to reduce operating expenses and optimize the organizational structure in support of long-term growth."
Atlassian
Atlassian CEO Mike Cannon-Brookes. Brendan McDermid/Reuters Atlassian announced cuts of 1,600 jobs in March, totaling about 10% of its global workforce. The move comes as the Australian-American software company says it is restructuring to focus on AI and enterprise growth.
In a filing with the US Securities and Exchange Commission, the company said the reduction was part of a broader effort to reposition the business for what CEO Mike Cannon-Brookes described as the "AI era."
"It would be disingenuous to pretend AI doesn't change the mix of skills we need or the number of roles required in certain areas. It does," Cannon-Brookes wrote in a message to employees.
On the "20VC" podcast in October last year, prior to the cuts, Cannon-Brookes said he planned to have more engineers at the company in five years.
"They will be more efficient, but technology creation is not output-bound," Cannon-Brookes said.
Block
Block CEO Jack Dorsey. Joe Raedle/Getty Images In a post on X in February, billionaire and Block CEO Jack Dorsey said he was slashing nearly half of Block's workforce, cutting its over 10,000-person staff to under 6,000. The move came as he said business was strong and profits were growing, but a new way of working was emerging.
"We're already seeing that the intelligence tools we're creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company," Dorsey said in his memo on X.
In the company's earnings call following the memo, Dorsey said that more companies will follow suit by using AI to drive efficiency gains. Block is already ahead of the trend that "all companies will eventually" adopt, the CEO said.
Cisco
Cisco CEO Chuck Robbins announced on May 13 that the company would lay off about 4,000 employees. Kent NISHIMURA / AFP via Getty Images Cisco said on May 13 that it would cut "fewer than 4,000 jobs" as the networking company reorganizes around artificial intelligence, according to a memo CEO Chuck Robbins sent to employees.
"The companies that will win in the AI era will be those with focus, urgency, and the discipline to continuously shift investment toward the areas where demand and long-term value creation are strongest," Robbins said in the memo. "This means making hard decisions — about where we invest, how we're organized, and how our cost structure reflects the opportunity in front of us."
The layoffs, which account for less than 5% of Cisco's workforce, were announced alongside a stronger-than-expected third-quarter earnings report in which the company raised its revenue outlook amid surging demand for AI infrastructure.
In the memo, Robbins said Cisco is redirecting investments toward areas "where demand and long-term value creation are strongest," including silicon, optics, security, and employees' use of AI across the company.
Cloudflare
Cloudflare CEO Matthew Prince. IMF Cloudflare announced on May 7 that it will be slashing more than 1,100 roles as it reorganizes for the "agentic AI era." The cybersecurity company said in a memo that its AI usage has increased by over 600% in the last three months, and employees across departments run thousands of agent sessions each day.
"That means we have to be intentional in how we architect our company for the agentic AI era in order to supercharge the value we deliver to our customers," the company said in the memo to staff.
Cloudflare CEO Matthew Prince responded to a critical post on X, saying that "very few engineers or customer-facing sales people impacted by our layoff."
He wrote that the company will continue to hire "like crazy in those roles," as it did as a startup. Cloudflare employed 5,483 people as of the end of March, meaning the cuts affected about 20% of its workforce.
Coinbase
Coinbase CEO Brian Armstrong. Bloomberg/Getty Coinbase CEO Brian Armstrong announced that the company will be slashing 14% of its workforce, or about 700 workers.
In a post on X on May 5, Armstrong shared an email that he said he sent to workers earlier that day. In the post, he cited two factors: a volatile market and AI changing the way people work.
"Over the past year, I've watched engineers use AI to ship in days what used to take a team weeks," Armstrong said, adding that, "the pace of what's possible with a small, focused team has changed dramatically."
Armstrong said the company isn't just reducing head count and cutting costs, but "fundamentally changing" the way it operates. The CEO said Coinbase is rebuilding itself "as an intelligence, with humans around the edge aligning it."
He shared plans to concentrate the workforce around AI-native pods that will manage fleets of agents. Armstrong said the company will also experiment with "one person teams" of engineers, designers, and product managers.
Crypto.com
Kris Marszalek announced 12% cuts at Crypto.com on March 19. Marco Bello/Reuters Crypto.com announced on March 19 that it would cut 12% of its staff. The CEO, Kris Marszalek, wrote in a post on X that those impacted were in "roles that do not adapt in our new world."
"We are joining the list of companies integrating enterprise-wide AI," Marszalek wrote on X. "Companies that move immediately and pair the best AI tools with top-performers will achieve a level of scale and precision that was previously impossible. This is where we must go."
The company previously cut jobs in 2022 during a cryptocurrency slump and another 20% of its workforce in 2023, following the collapse of FTX.
GitLab
GitLab said it is cutting 350 employees. Joan Cros/NurPhoto via Getty Images On a June 2 earnings call, GitLab said it is cutting 350 employees, or about 14% of its workforce, as part of an overhaul it announced last month.
The coding software company, which had 2,580 employees as of January, said in May that it was restructuring to meet the "agentic era." GitLab added that it wanted to remove up to three layers of management and reinvest savings from the restructuring into internal AI resources.
The company said it also expects to exit 22 countries and reduce its team members' geographic footprint by about 37%, opting for customers in those regions to be served by partners.
In June 2025, GitLab's chief financial officer, Brian Robins, said that AI coding has been good for its business, as customers added more employees to their subscriptions and produced more code, which GitLab's services help manage.
HP
HP CEO Enrique Lores. HP Inc. HP said it's reducing the size of its corporate workforce due to AI initiatives. In an earnings report last November, the company said it plans to cut between 4,000 and 6,000 jobs by the end of 2028, estimating the changes would save around $1 billion.
HP's earnings presentation at the time said part of its strategy was to cut costs through "workforce reductions, platform simplification, programs consolidation, and productivity measures" and to increase customer satisfaction, innovation, and productivity with "artificial intelligence adoption and enablement."
IBM
IBM's CEO has said the company has replaced hundreds of employees with AI. Sajjad Hussain/Getty Images Arvind Krishna, CEO of IBM, told The Wall Street Journal last year that it had replaced hundreds of human resources employees with AI.
More recently, the company announced last November that it would cut thousands of workers in the fourth quarter of 2025, affecting a "single-digit percentage of its global workforce." Its CEO, Arvind Krishna, said the company is shifting priorities to hire more people around AI and quantum. He also said the company plans to increase hiring among recent college graduates over the next year.
Krishna has also said that AI adoption has led the company to hire more employees in programming and sales.
In 2023, Krishna told Bloomberg that IBM had halted or slowed hiring for back-office roles, like in human resources, that could be replaced by AI.
"I could easily see 30% of that getting replaced by AI and automation over a five-year period," he told the outlet at the time.
Salesforce
Salesforce CEO Marc Benioff. AP Photo/Markus Schreiber Salesforce cut fewer than 1,000 workers in February, including employees from marketing, product management, data analytics, and its Agentforce AI product.
In an episode of "The Logan Bartlett Show" released last August, Salesforce CEO Marc Benioff said the company was using AI agents in its customer support division to replace humans and handle more sales leads.
"I was able to rebalance my head count on my support," he said in the interview. "I've reduced it from 9,000 heads to about 5,000 because I need less heads."
A Salesforce spokesperson previously told Business Insider that Benioff was referring to an organizational transformation that took place over several months to reshape its customer support function.
After deploying Agentforce, the company no longer needed to "actively backfill support engineer roles," the spokesperson said, adding that it successfully redeployed hundreds of employees into other areas of the company, like professional services, sales, and customer success.
Snap
Evan Spiegel is the CEO of Snap. Bloomberg/Getty Images In a memo to employees released in a regulatory filing on April 15, Snap CEO Evan Spiegel said the company would cut 1,000 employees, or about 16% of its global workforce. The CEO cited "rapid advancements" in AI and "small squads" using it to become more efficient.
Spiegel said Snap would also close more than 300 open roles, and that US-based employees would receive four months of severance, healthcare coverage, and equity vesting. In an investor update included in the company's filing, it said the layoffs would result in roughly $500 million in annualized cost savings.
Standard Chartered
Bill Winters is the CEO of Standard Chartered. Bloomberg/Getty Images Global bank Standard Chartered announced plans on May 19 to slash 15% of its staff by 2030.
CEO Bill Winters said in a media briefing in Hong Kong that the move isn't a cost-cutting effort, but rather, "replacing, in some cases, lower-value human capital with the financial capital and the investment capital that we are putting in," Bloomberg reported.
"We don't have job losses, but we do have job role reductions in favor of the machines, and that will accelerate as we go forward into AI," he said at the briefing.
The company added in a statement: "We are combining the best human talent with AI, investing to support our people into higher-value roles."
Wisetech
Wisetech is cutting 2,000 jobs. Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images Zubin Appoo, the CEO of Wisetech, said the logistics software maker is cutting 2,000 jobs, or 30% of its staff, because of AI-led efficiency.
In a conference call on February 25, Appoo said that AI enables greater productivity in less time and with fewer employees. The Sydney-based company employed about 7,000 people, according to an annual report released in October.
"I am prepared to say this clearly: the era of manually writing code as the core act of engineering is over," Appoo said. The technology is "unlocking levels of efficiency gains across WiseTech that were previously out of reach."
In some parts of the workforce, such as customer service, one in two workers will disappear, he added.
Wix
Wix CEO Avishai Abrahami shared the layoff memo he sent to staff on X. Wix; BI Wix announced it would be cutting 20% of its workforce, citing currency challenges and AI. In a post on X on May 28, Wix CEO Avishai Abrahami shared the layoff memo he sent to the team, saying that the first reason for the cuts was that the "exchange rate between the Shekel and the US dollar has shifted significantly."
He also cited "the fast evolution of AI capabilities."
"This is not just about adopting new tools - it is about rewiring how companies are built, how they think, how they manage and how they operate," Abrahami wrote in the post.
Abrahami said the company will operate leaner and flatter, and will continue to take steps toward an AI-native way of working. The company previously employed just under 5,300 workers, meaning roughly 1,000 roles will be affected.
Correction: May 19, 2026 — An earlier version of this story included Klarna. The company says it has not done AI-related layoffs.
SANTA MONICA, Calif.--(BUSINESS WIRE)--Snap Inc. (NYSE: SNAP) today announced that S&P Global Ratings has upgraded the company’s issuer credit rating to BB- from B+, with a positive outlook. S&P also upgraded its issue-level ratings on Snap’s unsecured notes to BB- from B+.
In its report, S&P cited Snap’s improving operating and financial performance, including:
Lower S&P Global Ratings-adjusted gross leverage; Improved free operating cash flow to debt; Expected revenue growth, supported by subscriptions and newer monetization initiatives; and Snap’s recently announced cost savings program, which S&P expects to support accelerated deleveraging. S&P’s positive outlook reflects the potential for a higher rating over the next year if Snap successfully executes its cost savings initiatives and continues growing revenue, supporting further improvement in leverage.
“This upgrade reflects the progress we are making to strengthen Snap’s financial profile while continuing to invest in our long-term growth opportunities,” said Doug Hott, Chief Financial Officer of Snap Inc. “We remain focused on disciplined execution, durable revenue growth, and building a more efficient business that supports long-term value creation.”
Recent Snap highlights include:
Growth: Q1 revenue grew 12% year-over-year to $1.53 billion. Profitability path: Net loss improved to $89 million and adjusted EBITDA improved to $233 million. Cash flow: Operating cash flow reached $327 million and free cash flow reached $286 million in Q1. Revenue diversification: Other Revenue grew 87% year-over-year to $285 million. Cost discipline: Snap expects more than $500 million in annualized cost reductions in the second half of 2026. Long-term investment: Snap continues to invest with discipline in Specs and the future of computing. About Snap Inc.
Snap Inc. is a technology company. We believe the camera presents the greatest opportunity to improve the way people live and communicate. We contribute to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together.
Snap Inc. operates Snapchat, a visual messaging app that enhances your relationships with friends, family, and the world, and Specs Inc., a wholly-owned subsidiary dedicated to making computing more human, in addition to Bitmoji, Saturn, and other digital services. For more information, visit snap.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this press release, including statements regarding Snap’s financial profile, cost savings initiatives, revenue growth, leverage, monetization opportunities, long-term growth opportunities, disciplined execution, business efficiency, investments in Specs, and long-term value creation. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “going to,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. Snap cautions you that the foregoing may not include all of the forward-looking statements made in this press release.
You should not rely on forward-looking statements as predictions of future events. Snap has based the forward-looking statements contained in this press release primarily on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. For more information, please refer to Snap’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, and Snap’s other filings with the SEC, which are available on the SEC’s website at www.sec.gov. In addition, any forward-looking statements contained in this press release are based on assumptions that Snap believes to be reasonable as of this date. Snap undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
It has been about a month since the last earnings report for Snap (SNAP - Free Report) . Shares have added about 1.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Snap due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Snap Inc. before we dive into how investors and analysts have reacted as of late.
SNAP's Q1 Revenues Climb Y/Y, Adjusted EBITDA More Than DoublesSnap reported a first-quarter 2026 net loss of 5 cents per share. Adjusted earnings came in at 10 cents per share compared with the Zacks Consensus Estimate of 9 cents.
Revenues rose 12% year over year to $1.529 billion and beat the Zacks Consensus Estimate by 0.55%. The figure came in at the top end of the company's prior guidance range of $1.5-$1.53 billion.
Adjusted EBITDA more than doubled, climbing 115% year over year to $233 million, materially favorable to the company's prior guidance.
Snap returned to growth in daily active users, accelerated revenue growth, expanded margins and generated strong free cash flow in the reported quarter.
Top-Line Details of SNAPRevenues from North America (56% of total revenues) rose 2% year over year to $851 million. Revenues from Europe (21% of revenues) jumped 45% to $324 million. Revenues from the Rest of World (ROW) (23% of revenues) were $354 million, up 15% year over year.
The average revenue per user (ARPU) increased 7% year over year to $3.17. North America's ARPU climbed 10% to $9.23, while Europe's ARPU surged 48% to $3.34. ARPU for ROW rose 3% year over year to $1.20.
Advertising revenues reached $1.24 billion in the quarter, up 3% year over year, driven primarily by growth in direct response advertising. The performance was partially offset by continued headwinds in the North America large-client advertising business and an estimated $20-$25 million impact from geopolitical headwinds in the Middle East during March. Global impression volume increased approximately 17% year over year, while total eCPMs declined approximately 12% year over year.
Other Revenue, which includes Snapchat+ subscriptions, Memories Storage and the newly introduced Lens+ tier, increased 87% year over year to $285 million in the first quarter, reaching an annualized run rate of approximately $1.14 billion. Memories Storage was a key driver of acceleration, with a larger-than-anticipated share of new subscribers acquired through Memories choosing higher-ARPU subscription offerings, including Snapchat+.
Snap's Q1 User Engagement MetricsSNAP's global community reached 483 million daily active users (DAU) in the first quarter, up 5% year over year, marking a return to DAU growth following a sequential decline in the prior quarter. Snap added nine million DAU on a quarter-over-quarter basis.
North America's DAU was 92 million, which decreased 7% year over year. Europe's DAU was 97 million, down 2% year over year. The ROW's DAU was 294 million at the end of the reported quarter, which increased 12% year over year. Snap reached 956 million monthly active users in the first quarter, representing 5% year-over-year growth.
The number of Spotlight posters in the United States grew nearly 74% year over year, while global Spotlight posters increased more than 61% year over year. Spotlight shares and reposts grew 62% year over year globally and 124% year over year in the United States. Total time spent watching Spotlight increased 11% year over year. Games on Snapchat reached 255 million monthly active users.
Snap's augmented reality ecosystem also expanded, with more than 75% of Snapchatters engaging with AR every day on average and Lenses being used in the Snapchat camera 9 billion times per day on average. More than 400,000 Lenses were submitted in the quarter, up over 150% year over year, driven primarily by the adoption of new creation tools such as Easy Lens. The Snap Map reached over 450 million global monthly active users.
Snap's Advertising Details in Q1Sponsored Snaps drove strong performance gains, with per-impression click-through rates increasing 226% and 7-day conversion volume rising 59% in the first quarter. Nearly 75% of U.S. Chat DAU viewed ads in Chat, and roughly one-third of the Sponsored Snaps reach was unique to Chat. The company launched AI Sponsored Snaps, a new format that enables brands to engage Snapchatters through interactive, AI-powered conversations in Chat.
Promoted Places campaigns generated more than 20 million incremental visits and double-digit growth in foot traffic, with Carl's Jr. achieving an 18% lift in incremental visits.
Dynamic Product Ads revenues grew more than 30% year over year, while adoption among small and medium-sized customers more than doubled. App goal-based bidding revenues grew 27% year over year, and App Purchases revenues grew 87% year over year. Across Pixel Purchase campaigns, 7-0 purchases generated per dollar of revenues grew more than 23% year over year. Nearly 70% of advertising spend now uses at least one of Snap's AI-powered automation solutions, including Smart Audience, Smart Budget or Smart Placement.
Small and medium-sized businesses (SMBs) grew spending by more than 30% year over year in North America and accounted for over 30% of global ad revenues, remaining the largest ad-growth driver for the seventh consecutive quarter. North America upfront commitments for 2026 grew approximately 10% year over year. Large advertisers in North America remained a headwind, but Snap noted early signs of improvement.
Snap's Operating DetailsCost of revenues increased 4% year over year to $665 million. In the first quarter, research and development expenses rose 13% to $478 million, sales and marketing expenses decreased 7% to $239 million, and general and administrative expenses declined 6% to $221 million.
Adjusted EBITDA was $233 million, up 115% from the year-ago quarter. Adjusted EBITDA margin expanded approximately 7 percentage points to 15%. Adjusted Gross Margin improved 3 percentage points year over year to 57%.
Operating loss narrowed to $74 million from $194 million in the prior year. Net loss was $89 million compared with a net loss of $140 million in the prior-year quarter.
Significant Q1 2026 DevelopmentsSnap announced that it had amicably ended its previously announced relationship with Perplexity in the first quarter, and its forward guidance assumes no contribution from this partnership. The company also disclosed that, in April, it took action to make Snap a faster, more focused and more efficient company, with the restructuring expected to reduce its annualized cost structure by more than $500 million in the second half of 2026.
Balance Sheet and Cash FlowAs of March 31, 2026, cash, cash equivalents and marketable securities were approximately $2.8 billion compared with approximately $2.9 billion as of Dec. 31, 2025.
Operating cash flow was $327 million compared with $270 million in the prior quarter and $152 million in the year-ago quarter. Free cash flow was $286 million compared with $206 million in the prior quarter and $114 million in the year-ago quarter.
Snap completed $350 million in share repurchases during the first quarter, with $400 million remaining under its previously authorized share repurchase program at quarter-end.
GuidanceSnap expects second-quarter 2026 revenues to be in the range of $1.52-$1.55 billion. The guidance assumes no contribution from Perplexity and that the operating environment in the Middle East region remains consistent with the magnitude of headwinds experienced in March and April. The company projects adjusted EBITDA between $175 million and $200 million for the second quarter.
Snap also expects to incur pre-tax restructuring charges of $95-$130 million related to its recent restructuring, with the majority to be incurred in the second quarter. Infrastructure costs are expected to grow modestly year over year in the second quarter, while All Other Cost of Revenue is expected to remain at 16-17% of revenues.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates flatlined during the past month.
The consensus estimate has shifted -11.91% due to these changes.
VGM ScoresAt this time, Snap has a strong Growth Score of A, a score with the same score on the momentum front. However, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook Snap has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerSnap belongs to the Zacks Internet - Software industry. Another stock from the same industry, Meta Platforms (META - Free Report) , has gained 1.7% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Meta Platforms reported revenues of $56.31 billion in the last reported quarter, representing a year-over-year change of +33.1%. EPS of $7.31 for the same period compares with $6.43 a year ago.
Meta Platforms is expected to post earnings of $7.11 per share for the current quarter, representing a year-over-year change of -0.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.2%.
Meta Platforms has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
