Snap Enhances Parental Oversight Tools Amid Legal and Financial Milestones

Snap Inc. has rolled out a significant expansion to its Family Centre, providing guardians with more granular insights into how younger users engage with the platform. This update, announced on January 28, introduces detailed metrics on average daily screen time and breaks down activity across core features: Camera, Snap Map, Spotlight, and Stories. Furthermore, the enhanced tools now offer context for new friend additions, indicating whether connections are suggested through mutual contacts or shared phone numbers. The company frames this development as part of its ongoing commitment to transparency and safety.

In a separate but consequential development, Snap settled a class-action lawsuit in the United States related to addiction allegations on January 21. This resolution removes a notable legal uncertainty from the investment landscape, as it averts a protracted civil trial. However, the company has not disclosed the financial terms of the settlement, leaving the precise material impact on its finances unclear for the time being.

Strategic Focus on AI and Upcoming Earnings

Concurrently, Snap is advancing its artificial intelligence strategy. A previously announced partnership with Perplexity, valued at approximately $400 million and disclosed on November 5, 2025, aims to integrate conversational search capabilities. Management anticipates that these AI-powered discovery tools will begin contributing to revenue within the current fiscal year.

Should investors sell immediately? Or is it worth buying Snap?

All eyes are now on the company's forthcoming financial results. Snap is scheduled to release its Q4 and full-year 2025 earnings after the market closes on February 4, followed by an analyst conference call at 5:00 p.m. ET.

Key Data Points for the Upcoming Report:
* Q4 EPS Consensus Estimate: $0.15 (per MarketBeat)
* Q4 Revenue Consensus Estimate: Approximately $1.70 billion

Market participants will scrutinize whether Snap meets or exceeds these consensus figures. A positive performance could shift investor focus toward growth drivers like the AI integration. Should the results fall short, the stock may continue to face downward pressure. The combination of new product safeguards, a settled lawsuit, and strategic AI investments sets a complex backdrop for Snap's next chapter.