Reddit Inc.
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.27%.
Did RDDT Beat Earnings? Q3 2025 Results
Reddit delivered a blowout third quarter, posting revenue of $584.91 million, up 67.9% year-over-year and ahead of the $549.53 million consensus, while earnings per share of $0.80 beat estimates of $0.52 by 53.79%, underscoring how quickly the platform's financial model is scaling. The primary engine behind the beat was advertising, which grew 74% year-over-year to $549 million, fueled by broad strength across verticals, geographies, and channels, with more than half of Reddit's top-15 industry verticals expanding over 50% year-over-year. Improved ad automation and ML-powered optimization also lifted lower-funnel conversion performance by more than 20%, giving marketers measurable returns that are drawing deeper budget commitments. <a href="https://247wallst.com/investing/2025/10/30/live-complete-reddit-earnings-coverage/">Coverage of the quarter</a> highlights how the company also reached a 40.3% adjusted EBITDA margin, a milestone Reddit had flagged at its IPO. Daily Active Uniques rose 19% to 116 million, with international users growing at a notably faster clip. Looking ahead, Reddit guided Q4 revenue of $655 million to $665 million with adjusted EBITDA of $275 million to $285 million, pointing to continued momentum as international expansion and monetization efforts deepen.
- Advertising revenue growth driven by year-over-year growth in both impressions and pricing
- More than half of top-15 industry verticals grew over 50% year-over-year
- DAUq grew 19% year-over-year to 116.0 million
- ARPU expanded 41% year-over-year to $5.04
- U.S. ARPU grew 54% year-over-year to $9.04
- International DAUq grew 31% year-over-year driven by machine translation and marketing
- Revenue grew 1.8 times as fast as total adjusted costs and expenses year-over-year
- Over 50% incremental Adjusted EBITDA margin for ninth consecutive quarter
“Reddit provides something rare on the Internet. 444 million people come here each week for authentic conversations they can't find anywhere else, and increasingly, for engagement with brands, institutions and publishers.”
Reddit CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2025, Reddit estimates revenue in the range of $655 million to $665 million and Adjusted EBITDA in the range of $275 million to $285 million. The company's strategic priorities for the near term include growing app users through improved experience and retention, broadening user and community types in the U.S. and globally, increasing top-of-funnel growth through diversified traffic sources (organic, paid, and publisher-driven), and scaling ads and monetization formats. International expansion continues with machine translation in 30 languages and local content frameworks being applied in Australia, Brazil, Germany, and France.
RDDT YoY Financials
RDDT Revenue by Segment
RDDT Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.