Snapchat might proceed with a share sale in late March, according to the Wall Street Journal, though there is no guarantee this will happen or even that it will achieve a $25bn valuation.
According to estimates from eMarketer, the company is on track to make more than $1bn in revenue by the end of this year. It will make $367m in revenue from advertising this year, with the majority coming from the US.
Rumours of Snapchat's IPO have abounded since the company hired Imran Khan as its chief strategy officer in 2014. Khan is a former investment banker who worked on Alibaba's $167bn IPO the same year.
Chief executive Evan Spiegel also confirmed the company had a plan for an IPO at an unspecified point in time and said it would reject acquisition offers.
The news follows Snapchat's rebrand to Snap Inc to reflect its future as a "camera company". It also launched Snapchat Spectacles, camera-enabled glasses which upload photos and video directly to the app.