NEW YORK, July 20, 2026, 17:06 EDT
- Snap finished at $4.56, gaining 0.7% following a 3.2% decline in the previous week.
- Europe accounted for roughly 60% of Snap’s revenue growth in the first quarter.
- French legislators have moved forward with a proposal to ban social media for those under 15. Debate in the lower house is scheduled for Tuesday.
Shares of Snap Inc. NYSE:SNAP finished Monday at $4.56, rising 0.7%. Trading volume reached 36.1 million shares, 21% less than the 65-day average. U.S. cash trading had closed.
A new policy challenge is emerging in Europe. On Monday, a parliamentary reconciliation committee in France reached agreement on prohibiting social media use for children younger than 15.
This is significant as Europe was responsible for driving Snap’s recent revenue rise. According to company figures, the region contributed $99.8 million of Snap’s $165.6 million increase in the first quarter, which represents around 60%. Europe, however, accounted for just 21% of total quarterly revenue.
Growth was fuelled by yield. The number of daily users in Europe dropped by 2% to 97 million. Average revenue per user increased 48% to $3.34. Revenue climbed 45% to $323.9 million.
Snap’s breakdown by region highlights the difference:
| Q1 2026 region | Revenue | Revenue growth | Daily users | User growth | ARPU |
|---|---|---|---|---|---|
| North America | $851 million | 2% | 92 million | -7% | $9.23, which rose 10% |
| Europe | $324 million | 45% | 97 million | -2% | $3.34, which climbed 48% |
| Rest of world | $354 million | 15% | 294 million | 12% | $1.20, which increased 3% |
Numbers are rounded from Snap’s preliminary first-quarter report.
Snap earned 56% of its quarterly revenue from North America, but this region contributed just $19.6 million in growth compared to the previous year. In contrast, Europe provided an increase five times larger.
The legislation in France is set for a vote in the lower house on Tuesday, before heading to the Senate. Online platforms would be required to implement age verification methods authorized by France’s privacy watchdog. President Emmanuel Macron aims for the ban to be enforced by early September.
France has yet to announce its platform list. Australia’s current ban includes Snapchat, Meta Platforms Inc. NASDAQ:META services, and YouTube from Alphabet Inc. NASDAQ:GOOGL.
Snap edged higher, but this was not enough to offset last week’s 3.2% loss. The stock ended Friday’s session at $4.53, lower than the $4.68 recorded on July 10. Trading activity on Monday was still below the usual level.
UBS analyst Stephen Ju reduced his price target to $5 from $7 last Monday, maintaining a Neutral rating. Ju pointed to a recovery in performance-ad spending in June following softer results in April and May.
The updated target price represents an increase of roughly 10% from Monday’s closing value, suggesting little capacity to absorb extra compliance expenses.
Snap saw its operating performance get better during the first quarter. CEO Evan Spiegel stated, “In Q1, we returned to growth in daily active users, accelerated revenue growth, expanded margins, and generated strong free cash flow.” Revenue increased 12% to $1.53 billion. Free cash flow totaled $286 million. SEC
More company updates will be released following this week. Snap’s annual meeting is scheduled for July 30, and its second-quarter earnings report is expected on August 3 at 5 p.m. EDT.
The company’s initial outlook projects quarterly revenue between $1.52 billion and $1.55 billion. Adjusted EBITDA is forecast to range from $175 million to $200 million. Anticipated restructuring charges are set between $95 million and $130 million.
Potential risks involve broader age limitations, sluggish advertising demand, and increasing compliance expenses. Snap does not report its revenue or user figures for France. The financial impact remains uncertain.
Europe contributed close to $100 million of Snap’s most recent quarterly revenue increase. The vote on Tuesday challenges the area that played the largest role.
