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Live: Will Reddit (RDDT) Rally After Earnings Today?

By Eric Bleeker · Updated Jul 31, 4:46pm ET · Published Jul 31, 10:39am ET

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Reddit (RDDT) +19.37%

Reddit proved it’s more than just user growth — it’s a global monetization engine. With 84% ad revenue growth, soaring ARPU, and EBITDA margins above 30%, this quarter was a clear validation of the platform’s profitability potential. At nearly $2B in run-rate revenue, Reddit just earned its growth multiple.

What Changed This Quarter

  • Revenue guidance upgraded significantly to $535M–$545M for Q3.

  • International DAUq growth (32% YoY) is now the primary traffic driver.

  • Ad revenue growth of 84% YoY outpaced total DAUq, suggesting pricing/mix gains.

  • Adjusted EBITDA margin jumped to 33.4%, a 1,940 bps expansion YoY.

  • Free Cash Flow missed expectations despite strong profit — likely a function of working capital or capex timing.

Core numbers

Growth was driven heavily by international logged-out users, while U.S. monetization surged.

KPI Q2 2025 YoY Change
DAUq (Global) 110.4M +21%
ARPU (Global) $4.53 +47%
Ad Revenue $465M +84%
International DAUq 60.1M +32%
U.S. ARPU $7.87 +59%
Logged-out DAUq (Intl) 33.7M +40%

Big Day for Reddit

Reddit earnings are out and after a big day during the market, share are up another 11%.

Headline results:

Metric Reported Consensus Estimate Beat/Miss
Revenue $500M $426M ✅ Beat
GAAP EPS $0.45 $0.19 ✅ Beat
Adjusted EBITDA $167M ~$123M ✅ Beat
Free Cash Flow $111M $123.3M ❌ Miss
Gross Margin 90.8% 77.8% ✅ Beat

 

Reddit did not provide GAAP EPS guidance, but the beat in Q2 and strong forward EBITDA implies likely earnings strength to follow.

Metric Q3 2025 Guide Consensus Beat/Miss
Revenue $535M–$545M $473M ✅ Beat
Adjusted EBITDA $185M–$195M ~N/A ✅ Beat

Reddit Up 7.2%

Eric Bleeker

Reddit shares have been surging all day and are now up 7.2% in late trading. Reddit investors can thank Meta, which has sparked broad gains across social media and advertising stocks.

As a reminder, we’ll be publishing analysis right after Reddit’s earnings release.

What’s Priced In Right Now

Reddit closed at $149.33 on Tuesday — still up from its IPO but well below post-listing highs. Despite growing 60% YoY in Q1, the stock fell double digits afterward. The market is signaling it wants more than beats — it wants vision.

At current levels, Reddit is priced as a high-growth platform with breakout monetization upside. Tonight’s report needs to show clear visibility into future ad scale, as well as operating leverage.

If guidance lands below $470M, or if user growth slows, bulls may retreat again — regardless of headline EPS strength.

How Reddit Stock Performed After Recent Earnings

Reddit shares have traded lower after two of the last four earnings calls, despite strong revenue growth and positive surprises. The most favorable stock response came after Q4 results, suggesting investors are still calibrating expectations.

Quarter 1-Day Move 7-Day Move 14-Day Move
Q2 2025 –5.3% –9.6% –15.0%
Q1 2025 –1.6% –4.3% –7.1%
Q4 2024 +5.3% +8.5% +10.8%
Q3 2024 +2.1% +3.4% +5.0%

Here's What Wall Street Expects from Reddit Tonight

Now that we’ve looked back at Reddit’s first quarter, let’s take a look at Wall Street’s expectations for tonight.

Wall Street Q2 Consensus Estimates for Reddit

Here are the key figures to watch tonight when Reddit reports:

  • Revenue: $426 million
  • EPS (GAAP): $.19
  • Adjusted EPS: $.69
  • Free Cash Flow: $123.3 million

And Wall Street will also be closely watching Reddit’s guidance. Here’s what the Street currently expects in Q3

  • Revenue: $473 million
  • EPS (GAAP): $.33

The company will release revenue and adjusted EBITDA guidance, but Wall Street will use EBITDA to back into other figures like net income.

Live coverage has ended. The full story is below.

Full Coverage

The story so far

Reddit (Nasdaq: RDDT | RDDT Price Prediction) shares are ripping after AI stocks issued blowout earnings last night. Both Meta and Microsoft issued earnings that were significantly ahead of expectations and pointed toward demand for AI being significantly higher than expectations in 2026. 

Is it Reddit’s turn to issue stellar earnings next? The market seems to think so with shares gaining 6% in early trading today. 

We’ll be hosting a live blog with news and analysis the moment Reddit’s earnings go live. All you have to do is leave this article open and new updates will automatically post. After Reddit reports we expect to have a flurry of updates with news and analysis on their second quarter. 

With that said, let’s look back at Reddit’s Q1 performance. 

What Reddit Reported in the First Quarter 

Reddit last reported earnings on May 1st. Shares didn’t have a huge reaction the next day but are up 37% since. 

RDDT | Reddit Q1’25 Earnings Highlights:

  • Diluted EPS: $0.13 [✅]; UP +100% YoY
  • Revenue: $392.4B [✅]; UP +61% YoY
  • Adj. Gross Margin: 90.5% [✅]; UP +190 bps YoY
  • Net Income: $26.2M [✅]; UP +104.6% YoY

Outlook:

  • Revenue: $410M to $430M [➖]
    • Reddit anticipates continued growth driven by increased advertising demand and user engagement.
    • Management expects to maintain strong revenue momentum as the platform evolves and expands its offerings.
  • Adjusted EBITDA: $110M to $130M [➖]

Q1 Segment Performance:

  • U.S. Revenue: $313.9M [✅]; UP +57% YoY
  • International Revenue: $78.5M [✅]; UP +82% YoY

Other Key Q1 Metrics:

  • Adj. Operating Income: $3.9M [✅]; UP +100% YoY
  • Adj. Operating Expenses: $388.5M [✅]; DOWN -53.4% YoY
  • R&D Expenses: $191.3M [✅]; DOWN -56.3% YoY
  • Free Cash Flow: $126.6M; UP +332.5% YoY
  • Cash, Cash Equivalents, and Marketable Securities: $1,951.1M

CEO Commentary:

  • Steve Huffman: “Over 400 million people now come to Reddit each week—because when you want real opinions, you turn to real people. 20 years in, I have never been more excited about Reddit’s future than I am now. We’re growing and building a more valuable platform for community and human perspective.”

Strategic Updates:

  • Reddit continues to enhance its platform to foster community engagement and increase user retention, focusing on innovative advertising solutions to drive revenue growth.

Contact [email protected] for any questions or corrections.

Eric Bleeker

Eric Bleeker has been investing for more than 20 years. He began his career working at Microsoft before joining Motley Fool, one of the largest publishers of financial research. In his 15 years at Motley Fool Eric served as the General Manager for Fool.com and led coverage in the Technology & Telecom sector. In addition, he was a featured columnist and has hosted dozens of investing seminars attended by more than a million total investors. Eric has more than 1,000 financial bylines to his name and has been featured in The Wall Street Journal, CNBC, Fox Business, and many other leading publications. He is currently focused on artificial intelligence investing and is a CFA Charterholoder.

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