The news: Snapchat revenues and users grew in Q3—but the company warned that age verification laws would have unpredictable results on its business.

• Revenues increased 10% YoY to $1.5 billion.
• Daily active users increased 8% YoY to 477 million, while monthly active users grew 7% to 943 million.
• Net loss fell to $104 million compared with $153 million in Q3 2024.

Snap also announced a new partnership with Perplexity, which will integrate Perplexity’s AI-powered answer engine into the Snapchat app.

Trouble ahead: Snap did not add users in the US or Europe, two core markets where growth was stagnant. Flat growth could turn negative as both regions eye stricter age-verification rules for social media.

• US legislators proposed the Kids Online Safety Act, a bill that would require social platforms to enable the strictest privacy settings for child users by default, give parents stronger controls to safeguard children, and audit how social platforms affect children and teens. The bill is currently stalled in the House of Representatives.
• California passed a law that forbids platforms from serving minors with addictive feeds without parental consent, while Utah and Arkansas are pushing laws that would ban social media use for children and teens under a certain age.
• Governments across the EU are mandating age verification online—for example, Reddit now requires UK users to prove they are 18 using a selfie or photo ID. The EU is also piloting a centralized age verification app in countries like France and Italy, with plans to replace it with a Digital Identity Wallet by 2026.

Snapchat noted that these policies “are likely to have negative impacts on user engagement metrics that we cannot currently predict” in its Q3 investor letter.