In a bid to enhance online safety, the company said users aged 13 to 15 will soon be able to create, save and display Stories and Spotlight videos on a dedicated profile that can only be viewed by friends who have mutually accepted each other.

Their content will no longer be distributed to people outside their friends list through Spotlight.

Previously, teenagers under 16 could post videos to Spotlight, Snapchat’s short-form video feature, but the content was not linked to their profiles.

While this prevented direct contact from strangers, the posts could still be viewed by a wider audience.

Under the new system, younger teens will share content in a more private environment. Snapchat will also remove engagement metrics such as favourite counts from profiles belonging to users in this age group.

The company said the changes are designed to help teenagers express themselves creatively without the pressure that usually comes with public posting and visible performance metrics.

Snapchat outlined different levels of access based on age. Users between 13 and 15 will be limited to sharing content with mutual friends.

Those aged 16 and 17 can choose to share content more broadly, but distribution will remain restricted to friends, followers and users with mutual connections.

Adults aged 18 and above will still have full access to public profiles and wider content distribution tools.

Alongside the latest changes, Snapchat said it will maintain several existing protections for users under 16.

The platform blocks messages from people teens have not added as friends or saved in their contacts. It also limits friend requests from people users may not know and displays warning messages when it detects a teenager may be chatting with a stranger.

The company says it will continually moderate public content before recommending it to larger audiences and take action against accounts that attempt to promote inappropriate material to teenagers.

Parents will also be able to monitor aspects of their children’s activity through Snapchat’s Family Centre.

The feature allows parents and caregivers to view their teenager’s friends list, see who they have communicated with recently, apply content restrictions, disable access to the My AI chatbot, share location information and report accounts they find concerning.

The update follows a trend across social media platforms, with services such as Instagram launching additional protections and specialised account settings for younger users.

Snap’s latest feature also comes as the company focuses on mitigating the impact of social media on young people.

Earlier this year, Snap settled a lawsuit that accused it of contributing to social media addiction and is still defending similar cases in courts across the United States.

Speaking to CNBC, Snap chief executive officer, Evan Spiegel, said Snapchat has a “positive impact” on users because it helps people stay connected with friends.

He argued that the platform should not be grouped together with competitors such as TikTok and Instagram.

The new feature will strengthen the company’s focus on artificial intelligence and conversational marketing, building on Sponsored Snaps, the adverts already placed in users’ Chat inboxes.

Until now, those ads were one-way messages, but with this update, users can reply, ask questions and receive recommendations from AI agents representing brands.

Snap said the aim is to place advertising inside spaces where people already talk and interact, rather than sending them elsewhere.

Ajit Mohan, chief business officer at Snap Inc., said: “Conversation is becoming the most valuable real estate in advertising. AI is accelerating that shift, turning chat into the place where people discover products, ask questions, and make decisions in real time. 

“The real opportunity isn’t just putting ads into those environments, it’s designing formats that feel native to how people already talk.”

The company said the format gives advertisers access to Snapchat’s nearly one billion monthly active users. Brands can bring their own AI tools onto the platform and use them to drive awareness, app installs and purchases.

Snapchat also shared new usage figures to support the launch, saying users sent more than 950 billion chats during the first quarter of 2026 alone. The company added that more than half a billion users have messaged its My AI chatbot since it launched in 2023.

According to Snap, 85% of users regularly use the Chat feed. It also said 57% of teenage users send messages daily, while four in ten do so several times a day.

The company further noted that Sponsored Snaps already deliver 22% more conversions with nearly 20% lower cost per action. It added that full-screen ad views generate twice as many conversions compared with some other ad placements.

Snapchat is starting the new product with an alpha launch alongside credit reporting and data firm Experian.

Steve Hartmann, head of Integrated Marketing at Experian, said: “This partnership reflects our commitment to meeting consumers where they are, with trusted insights that empower smarter financial decisions.

“AI Sponsored Snaps delivers a natural, conversational experience, allowing Snapchatters to connect with Experian about credit and money management right where they already feel comfortable. 

“We’re making financial education more accessible and intuitive by becoming part of their everyday conversations.”

The two companies confirmed that future Specs devices will run on Qualcomm’s Snapdragon XR platform, extending a partnership that already spans several generations of Snap’s earlier Spectacles hardware.

Those earlier devices mainly targeted developers and never reached wide consumer distribution in their AR form.

Snap has been building smart glasses for years. It first entered the category in 2016 with camera-equipped Spectacles.

Since then, it has moved towards more advanced augmented reality designs that place digital elements into the real world through see-through lenses. Those newer versions stayed within limited releases, largely focused on developers and testing.

Now the company is preparing a wider consumer rollout under its Specs unit, which it formally separated earlier this year to focus entirely on wearable computing.

The upcoming glasses will run standalone and are designed to overlay digital content onto physical surroundings, with built-in audio, visuals and interaction features.

The companies say the new hardware will rely on edge computing and on-device processing. This allows data to be handled directly on the device instead of relying heavily on cloud systems.

The approach is important to Snap’s vision for faster responses and more private interactions in everyday use.

Snap’s leadership sees the project as a step towards a more integrated form of computing.

“We believe the future of computing will be more human and grounded in the real world,” said Evan Spiegel, co-founder and chief executive of Snap Inc.

Qualcomm also described the partnership around more responsive and context-aware devices.

“The next era of computing will be defined by devices that understand what you see, hear and say,” said Cristiano Amon, president and chief executive of Qualcomm Incorporated.

The collaboration builds on more than five years of joint work between both firms. Qualcomm chips have powered earlier Snap Spectacles, particularly models aimed at developers experimenting with augmented reality tools.

This time, both companies say they want to scale that work for consumers. The agreement covers long-term roadmap planning, shared technical development, and support for developers building applications for the Specs platform.

Snap says this should help create a more stable environment for software creators working on AR experiences.

Competition in the smart glasses space is also intensifying. Meta Platforms has already gained early traction with its Ray-Ban smart glasses built with EssilorLuxottica.

Other major players, including Google, Samsung and Apple, are also developing their own versions of AR eyewear, with launches expected over the next few years.

This development comes at a sensitive time for Snap as it tries to expand beyond social media into hardware and immersive computing.

The Specs unit now sits at the centre of that strategy, with plans to attract external investment and build a long-term product line.

The agreement gives the unit a clearer technical base as it prepares for its first consumer product launch.

The probe, announced on Thursday, falls under the Digital Services Act, which requires large platforms to protect against harmful and illegal content or face heavy penalties.

EU officials say they are investigating how the app handles risks such as child grooming, exposure to drugs and other illegal goods, and weak account protections for younger users.

“From grooming ⁠and exposure to illegal products to account settings that undermine minors’ safety, Snapchat appears to have overlooked that the Digital Services Act demands high safety standards for all users,” EU tech chief Henna Virkkunen said in a statement.

At the centre of the case is whether Snapchat has put in place enough precautions to stop adults from contacting or exploiting minors. Regulators are also examining how easily illegal goods such as drugs, vapes and alcohol can be promoted or sold through the platform.

The European Commission said Snapchat’s content moderation tools may not be strong enough to prevent such activity.

It also spoke about the company’s age verification system, which largely relies on users declaring their own age, as well as default settings that could leave younger users exposed.

Another issue under review is the platform’s design, including features regulators describe as “dark patterns”, which may make it harder for users to report problems or understand privacy settings.

Snapchat, owned by Snap Inc., said it is working with regulators and reviewing its systems to ensure child safety and general protection.

“We have fully cooperated with the Commission to date – engaging proactively, transparently and working in good faith to meet the DSA’s high safety standards – and we will continue to do so throughout this ‌investigation,” a spokesperson said.

The Commission has also taken over an earlier investigation by Dutch authorities into the alleged sale of vapes to minors on the platform.

Snapchat has about 97 million monthly users across the EU, most of them teenagers and young adults. Regulators believe this makes the platform particularly vulnerable to abuse, including cases where adults pose as minors to target younger users.

Under the Digital Services Act, companies found in breach can be fined up to 6% of their global annual revenue. With Snap reporting about $5.2 billion in revenue last year, any penalty could run into hundreds of millions of dollars.

Generally, investigations regarding child safety and other aspects are already underway into TikTok, Meta Platforms, and AliExpress, among others, as regulators step up enforcement of the law, hence, this isn’t limited to Snapchat.

Brussels has made known it wants the Digital Services Act to set the standard for online safety, especially when it comes to protecting children.

This immediately sent the company’s shares up by 16% after trading hours.

Under the one-year deal, paid in cash and equity, Perplexity’s AI-powered “answer engine” will become part of Snapchat’s chat interface, letting users ask questions and receive verified, real-time responses without leaving the app. 

Revenue contributions from the partnership are expected to begin in 2026.

Snap CEO Evan Spiegel confirmed that the new feature will be ad-free. “Perplexity AI will control the responses from their chatbot inside of Snapchat. So, we won’t be selling advertising against the Perplexity responses,” he said.

The collaboration will enable Snap to compete more aggressively with social media giants like TikTok and Meta’s Facebook and Instagram, both of which have long topped the advertising market. 

Analysts see mutual benefits as Perplexity gains exposure among younger audiences, while Snap strengthens user engagement within its platform.

“Perplexity needs a way to build its profile among young consumers, and Snap needs an AI chat partner that will allow its users to stay engaged without leaving its app,” said Max Willens, principal analyst at Emarketer.

Snap’s own AI tool, “My AI,” will be available, but users will now have the option to interact with Perplexity’s chatbot instead. Spiegel described the initiative as part of Snap’s goal to make artificial intelligence “more personal, social, and fun.” He also noted that more third-party AI integrations could follow.

The announcement came alongside Snap’s third-quarter earnings, which showed a 10% year-on-year revenue increase to $1.51 billion, beating analyst expectations of $1.49 billion, according to LSEG data. 

The company’s net loss narrowed to $104 million, down from $153 million a year earlier, while daily active users climbed 8% to 477 million globally.

Snap’s focus on direct-response advertising continued to pay off, with that segment rising 8% during the quarter. Growth was driven by demand for its “Pixel Purchase” and “App Purchase” tools, which help businesses reach users more likely to complete transactions.

Still, the company warned of possible challenges in the coming quarter. Snap expects daily active users could decline slightly due to new regulatory changes, including Australia’s Social Media Minimum Age Bill, which takes effect in December and will tighten access for younger users.

For the final quarter of 2025, Snap projected revenue between $1.68 billion and $1.71 billion, broadly in line with market expectations of $1.69 billion.

The tool is exclusive to Snapchat+ Platinum and Lens+ members.

Unlike earlier effects, Imagine Lens is the first within the app that works with fully open prompts. Users can type instructions ranging from casual edits to more complex creations, such as “turn me into an alien” or “create an image of a grumpy cat.” 

The Lens also comes with preset options, including “Turn me into a four to five panel comic where something unexpected but heroic happens” and “Make this person skydive.”

Subscribers can find the tool at the front of the Lens Carousel or in the Exclusive section. After choosing it, they can tap the caption bar to enter or refine a prompt. The subscription costs $15.99 a month for Platinum and $8.99 for Lens+.

This release follows a series of product updates as Snap pushes deeper into artificial intelligence and augmented reality. In recent months, the company introduced its first video-based generative Lenses and launched Lens Studio apps for iOS and the web, allowing creators to design AR features more easily.

Commenting on the launch, Snap said: “With the Imagine Lens, Snapchatters can create, edit, and recreate Snaps simply by entering their own prompts, then seamlessly share them with friends, post to their Story, or outside of Snapchat.”

More than 400 million users have already experimented with generative tools on Snapchat, producing over four billion creations, according to the company. Imagine Lens is Snap’s strategy to strengthen its drive in immersive media while offering premium features to subscribers.

Snap Inc. revealed a turnaround in its latest earnings report, reaching net income of $9 million for Q4 2024, a dramatic reversal from the $248 million loss recorded in the same period last year. 

The company also reported a 528% increase in annual Free Cash Flow, moving from $35 million in 2023 to $219 million in 2024.

Snap’s revenue for Q4 grew 14% year-over-year (YoY) to $1.56 billion, driven by strong advertiser performance and increased user engagement. Full-year revenue climbed 16% to $5.36 billion, with Daily Active Users (DAUs) reaching 453 million, a 9% YoY increase.

The company may also be reaping the benefits of the recent issues surrounding TikTok in the U.S. CEO Evan Spiegel acknowledged this during Snap’s earnings call on Tuesday, noting that while the company isn’t drawing definitive conclusions, the situation has had a noticeable impact.

“We’re not trying to draw too many conclusions from some of the engagement lift we saw when [TikTok] went dark for that brief period of time. I would say that the overall environment of uncertainty is benefiting our business,” Spiegel said.

One of Snapchat’s strongest assets in this space is Spotlight, the company’s short-form video platform that competes directly with TikTok. 

With the situation regarding TikTok’s operations in the U.S., creators have been exploring alternative platforms, and Snap has capitalised on this by expanding its Snap Star program, which saw a 40% YoY increase in the number of creators posting content in Q4.

Snapchat public content ecosystem is also thriving. “I think in Q4 we actually reached a billion public posts a month on Snapchat. So the public content ecosystem is growing in a really nice and healthy way, and so we’re just going to continue our focus there when it comes to our strategy and participation,” Spiegel added.

This shift isn’t just benefiting Snap—other platforms like YouTube, Meta, and even the Chinese-owned RedNote have reportedly seen an increase in engagement as TikTok works to settle the uncertainties.

Financial Rebound and Revenue Diversification

Snapchat’s financial performance showed great improvements across the board. The company’s Adjusted EBITDA for Q4 surged 73% to $276 million, up from $159 million in Q4 2023. Full-year Adjusted EBITDA saw an even more dramatic increase, jumping 215% YoY to $509 million.

Operating cash flow for Q4 rose to $231 million, a 40% YoY increase, while Free Cash Flow surged 65% to $182 million.

“Active advertisers more than doubled in Q4, with the improvements we have made to our advertising platform driving improved advertiser performance and helping to grow revenue 14% year-over-year,” Spiegel stated.

Snap Inc. also credited part of its success to its Snapchat+ subscription model, which saw 131% YoY growth in 2024. The service ended the year with an annualised revenue run rate well over $500 million.

Augmented Reality (AR) engagement also helped in driving user activity. In Q4 alone, over 400 million Snapchatters engaged with new Gen AI Lenses more than 4 billion times, reiterating the company’s increasing focus on AI-powered features.

Advertising & Creator Economy Expansion

Snap’s advertising segment also grew, with Sponsored Snaps and Promoted Places increasing ad reach by 30% on average in the U.S. The company also launched a unified monetisation program for creators, expanding revenue-sharing opportunities through Spotlight and Stories.

Again, Snapchat’s Snap Star program led to a 40% YoY increase in the number of creators posting content, showing the platform’s focus on supporting digital creators.

What’s Next?

With the sharp reduction in losses, improved cash flow, and strong advertiser momentum, Snap Inc. is striving to make 2025 even better. The company will discuss its Q1 2025 outlook in its upcoming earnings call.

The decision, disclosed in a Form 8-K filing with the United States Securities and Exchange Commission, outlines plans to reduce the global headcount by approximately 10% of Snapchat parent company’s full-time employees.

The restructuring initiative, revealed on February 5, 2024, highlights Snap Inc.’s focus on aligning its resources with its highest priorities and positioning the business for sustained growth and innovation in the dynamic digital landscape. The move comes amidst changing market dynamics and the company’s strategic imperative to enhance operational efficiency and scalability.

According to the filing, Snap Inc. anticipates incurring pre-tax charges ranging from $55 million to $75 million, primarily attributable to severance and related costs, as well as other charges associated with the restructuring. Of these charges, an estimated $45 million to $55 million are expected to represent future cash expenditures, with the majority of expenses anticipated to materialize during the first quarter of 2024.

The workforce reduction initiative, while reflecting Snap Inc.’s proactive approach to resource optimization, is subject to local law requirements and consultation processes in each country where the company operates. As a result, the execution timeline may extend into the second quarter of 2024 or beyond in certain jurisdictions, ensuring compliance with regulatory frameworks and procedural protocols.

In a statement accompanying the filing, Snap Inc. noted its commitment to transparent communication and accountability, reaffirming its dedication to upholding the highest standards of corporate governance and stakeholder engagement. The company emphasized that the charges associated with the restructuring are subject to various assumptions and may deviate from the estimated figures disclosed in the filing.

The decision to implement a workforce reduction points to Snap Inc.’s continuous dedication to driving long-term value creation and sustaining its position as a global leader in the digital media and technology sector. In optimizing its organizational structure and reallocating resources to strategic growth areas, Snap Inc. seeks to enhance its competitive agility and fortify its foundation for future success.

In addition to the workforce reduction initiative, Snap Inc. reiterated its aim to enable a culture of innovation and collaboration, emphasizing the importance of talent development and retention in driving sustained business performance and operational excellence. The company remains focused on delivering clear experiences to its global user base while scaling the growing dynamics of the digital ecosystem.