Revenue of $1,173.929 million missed the $1,205.75 million estimate; non-GAAP EPS of $0.46 missed the $0.4863 estimate. Revenue grew 12% on both a reported and constant currency basis.
Q4 guidance: revenue $1,425 million to $1,475 million, or 8% to 12% growth, and adjusted EBITDA $538 million to $588 million; the top of the growth range only matches the Q3 rate of 12%.
Users are not the problem: MAUs reached a record 661 million, up 10%, but global ARPU rose 1% to $1.80. U.S. and Canada carried monetization, with ARPU of $8.38, up 10%, and revenue of $894 million, up 14%.
Europe stalled: revenue flat at $193 million and ARPU down 7% to $1.21, even as European MAUs grew 7%.
The one thing that matters: the miss is a monetization problem outside North America, not an audience problem. Users grew 10% while global ARPU grew 1%, and a Q4 guide that tops out at the Q3 growth rate offers no sign that the gap is closing.
Key metrics
Metric
Reported
Prior year
Change
MAUs - Global (millions)
661
600
10 %
ARPU - U.S. and Canada
$ 8.38
$ 7.64
10 %
ARPU - Europe
$ 1.21
$ 1.31
(7)%
Adjusted EBITDA (thousands)
$ 339,207
$ 306,051
11 %
Net income (thousands)
$ 21,515
$ 92,108
(77)%
Free cash flow (thousands)
$ 300,268
$ 318,421
(6)%
Guidance changes
Item
New guidance
Prior guidance
Q4 2026 revenue
$1,425 million to $1,475 million
—
Q4 2026 revenue growth year over year
8% - 12%
—
Q4 2026 Adjusted EBITDA
$538 million to $588 million
—
Quality of earnings
GAAP profit is collapsing under stock pay and lost interest income. Net income fell 77% to $21.5 million while adjusted EBITDA rose 11% to $339.2 million; share-based compensation rose to $288.2 million from $235.1 million and interest income fell to $6.0 million from $28.5 million.
Share repurchases do the work at the per-share line. Non-GAAP net income grew 3% but non-GAAP EPS rose to $0.46 from $0.38, as diluted shares fell to 582.7 million from 694.5 million after $2,024.9 million of nine-month repurchases, partly funded by $979.9 million of convertible notes.
Cash conversion is intact but slipping. Free cash flow of $300.3 million, down 6%, still ran near adjusted EBITDA of $339.2 million, with operating cash flow down 2% to $315.7 million.
Gotchas & watch items
Some growth is bought, size undisclosed: tvScientific, acquired February 17, 2026, added $375.1 million of goodwill, and the release does not separate its revenue contribution.
The balance sheet is thinner: cash fell to $654.3 million from $969.3 million and marketable securities to $815.7 million from $1,497.8 million, with $982.1 million of convertible notes now outstanding.
Margin is flat, not expanding: adjusted EBITDA margin held at 29% while total non-GAAP costs rose to $840.9 million from $749.2 million.