Reddit Inc.
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.54%.
Did RDDT Beat Earnings? Q2 2025 Results
Reddit delivered a blowout second quarter, posting earnings per share of $0.45 against a consensus estimate of $0.19, a beat of 138.35%, while revenue of $499.63 million topped expectations by 17.29% and surged 77.7% year-over-year, marking the company's fastest quarterly revenue growth since 2022. The single most material driver was advertising, which leapt 84% year-over-year to $465.00 million, fueled by gains in both impressions and pricing as brands increasingly recognized Reddit's uniquely engaged, interest-segmented communities. That advertising momentum also powered a dramatic swing to GAAP profitability, with net income reaching $89.30 million compared to a net loss of $10.10 million in the prior-year period. Adjusted EBITDA margin expanded to 33.4% from 14.0% a year ago, reflecting the operating leverage that has characterized <a href="https://247wallst.com/investing/2025/07/31/live-will-reddit-rddt-rally-after-earnings-today/">Reddit's recent growth trajectory</a>. Management guided Q3 2025 revenue of $535 million to $545 million, with continued investment in international expansion and Reddit Answers, the company's AI-powered search product, which grew to 6 million weekly active users, up 5x from Q1.
- Advertising revenue grew 84% YoY driven by growth in both impressions and pricing
- Strong growth across both Brand and Performance revenue
- DAUq grew 21% YoY to 110.4 million with U.S. up 11% and International up 32%
- ARPU increased 47% YoY to $4.53 globally, with U.S. ARPU at $7.87 (up 59%) and International ARPU at $1.73 (up 40%)
- Revenue grew over 2x as fast as total adjusted costs and expenses year-over-year
- Over 50% incremental Adjusted EBITDA margin for the eighth consecutive quarter
“Reddit is built for this moment. In a world where connection is increasingly rare, our communities show how valuable human conversation and knowledge really are.”
Reddit CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2025, Reddit estimates revenue in the range of $535 million to $545 million and Adjusted EBITDA in the range of $185 million to $195 million. The company is prioritizing investments in core product improvements, search (including global expansion of Reddit Answers), and international expansion. Reddit is deprioritizing its user economy initiative to focus resources on these higher-priority areas. Management expressed confidence in continued strong growth driven by advertising momentum, international expansion via machine translation in 23 languages, and the growing adoption of Reddit Answers.
RDDT YoY Financials
RDDT Revenue by Segment
RDDT Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.