Snowflake (SNOW) Financials

Snowflake Inc. (NYSE: SNOW) has exhibited strong revenue growth over the last several years, with quarterly operating revenues increasing from $334 million in Q3 2022 to over $1.14 billion by Q2 2026. This represents a substantial top-line expansion, demonstrating the company's ability to scale its cloud data platform business effectively.

Despite impressive revenue growth, Snowflake continues to operate at a net loss, with losses widening in recent quarters. For example, consolidated net loss was approximately $165.8 million in Q1 2023 and increased to nearly $298 million by Q2 2026. The net loss per share followed a similar pattern, from -$0.53 in early 2023 to -$0.89 in mid-2026. This rise in losses suggests ongoing heavy investments and expenditures.

Gross profit margins have been relatively healthy, consistently showing sizeable gross profit despite high operating costs. For instance, gross profit in Q2 2026 was roughly $773 million on $1.14 billion in revenue, indicating a gross margin of approximately 67.6%. However, selling, general & administrative (SG&A), marketing, and research & development (R&D) expenses remain substantial and are key drivers of operating losses. Marketing expenses consistently range around $300-500 million per quarter, while R&D expenses are also very large, indicating significant investment in product development and customer acquisition.

Cash flow metrics reveal some positive trends. Cash flow from continuing operating activities turned positive in recent quarters, with $74.9 million generated in Q2 2026, improving from previous quarters though fluctuating considerably in prior periods. Investing activities consistently show significant outflows, mainly related to acquisitions, investments, and property and equipment purchases, reflecting growth initiatives. Financing activities usually show significant outflows related to share repurchases and net repayments, indicating capital return efforts and capital structure management.

Snowflake’s balance sheet remains strong with a large cash and equivalents balance of $1.88 billion and significant short-term and long-term investments totaling over $2.7 billion combined by Q2 2026. However, the company also carries considerable long-term debt of $2.28 billion. Total equity is approximately $2.37 billion with retained earnings in significant deficit, reflecting accumulated losses over its growth phase. Total assets increased steadily from about $6.16 billion in late 2022 to $8.2 billion by Q3 2025.

• Strong revenue growth with operating revenue expanding from $334M in Q3 2022 to $1.14B in Q2 2026.
• Improving operational cash flow, with positive net cash from continuing operating activities in recent quarters ($74.9M in Q2 2026).
• Robust gross margins near 67% despite increasing scale and costs.
• Large cash and investment reserves exceeding $4.5B provide liquidity flexibility.
• Substantial ongoing investment in marketing and R&D expenses, indicating commitment to growth but pressuring profitability.
• High levels of capital expenditures and acquisitions supporting future capabilities and expansion.
• Significant long-term debt of about $2.3B which requires manageable servicing given cash position but adds leverage risk.
• Net losses increased in recent quarters, with net income of -$298M in Q2 2026 compared to -$166M in early 2023, pointing to ongoing profitability challenges.
• Consistent net loss per share of approximately -$0.89 by mid-2026 from around -$0.53 in early 2023.
• Negative retained earnings indicating accumulated losses from historical and ongoing spending exceeding income.

In summary, Snowflake is demonstrating strong top-line growth and improving operational cash flow which are important positive signals for a growth company. However, the company is still incurring significant losses driven by high marketing, R&D, and operating expenses. Their large cash position and liquidity are strengths, but ongoing net losses and leverage highlight risks. Retail investors should weigh Snowflake’s rapid growth and innovative platform against its continued path to profitability and capital consumption.