01—Abstract
Summary
Summary of the 10-K filed February 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Reddit, Inc. (NYSE: RDDT) reported a sharp turnaround in 2025.
Revenue was $2.2 billiona for the year ended December 31, 2025, an increase of 69% year over year from $1.3 billion, with advertising revenue of $2,062,480 thousand and other revenue of $140,026 thousand. Net income was $529.7 million, compared with a net loss of $(484.3) million in 2024. Adjusted EBITDA was $845.1 million, up from $298.0 million, and Free Cash Flow was $684.2 million, up from $215.8 million.
Stock-based compensation expense fell to $343.2 millionb from $801.6 million, largely because of the cumulative catch-up recognized in 2024 at IPO. User growth remained strong. Average DAUq was 121.4 million in the three months ended December 31, 2025, up 19% year over year, and ARPU was $5.98, up 42%.
International DAUq grew 28% year over year, and about 57% of Redditors visited from outside the United States. Revenue concentration is a notable risk: the top ten advertisers accounted for approximately 21% of 2025 revenue, and substantially all content licensing contract value came from two partners. The company ended 2025 with $2.5 billionc in cash, cash equivalents and marketable securities and a $500.0 million undrawn revolving credit facility (with $494.7 million available).
In February 2026 the Board authorized a share repurchase program of up to $1 billiond of Class A common stock, with no expiration date and no obligation to repurchase. Governance remains concentrated: Class B shares carry ten votes each, and CEO Steven Huffman was entitled to vote approximately 75% of the voting power of Class A and Class B common stock under voting agreements.
02—Key points
Key Highlights
- Revenue of $2.2 billion for 2025, up 69% year over year, with advertising revenue of $2.06 billion.
- Net income of $529.7 million in 2025, compared with a net loss of $(484.3) million in 2024.
- Adjusted EBITDA of $845.1 million and Free Cash Flow of $684.2 million, versus $298.0 million and $215.8 million in 2024.
- Q4 2025 average DAUq of 121.4 million, up 19% year over year; ARPU of $5.98, up 42%.
- Top ten advertisers accounted for approximately 21% of 2025 revenue, versus 25% in 2024.
- $2.5 billion in cash, cash equivalents and marketable securities at year-end, plus a $500.0 million revolving credit facility with $494.7 million available.
- Board authorized a $1 billion Class A share repurchase program in February 2026; the company repurchased no shares in Q4 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Reddit kept $0.24.
- Revenue$2.20B100.0%
- Cost of revenue−$194.2M8.8%
- Gross profit$2.01B91.2%
- Operating costs−$1.57B71.1%
- Operating income$442.0M20.1%
- Interest, other & tax$88.0M4.0%
- Net income$530.0M24.1%
Where FY2025 revenue went
$2.20B- Other operating costs: $783.2M, 36% of revenue
- R&D: $783.1M, 36% of revenue
- Operating income: $442.0M, 20% of revenue
- Cost of revenue: $194.2M, 8.8% of revenue
Kept 20% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 6, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $2.20B$1.30B | +69.4% |
| Cost of Revenue | $194.22M$123.59M | +57.1% |
| Gross Profit | $2.01B$1.18B | +70.7% |
| R&D Expenses | $783.14M$935.15M | −16.3% |
| Operating Expenses | $1.76B$1.86B | −5.4% |
| Operating Income | $441.98M-$560.57M | +178.8% |
| Net Income | $530.00M-$484.00M | +209.5% |
| EPS (Basic) | $2.84$-3.33 | +185.3% |
| EPS (Diluted) | $2.62$-3.33 | +178.7% |
| Shares Outstanding (Basic) | 186.38M145.47M | +28.1% |
| Shares Outstanding (Diluted) | 202.11M145.47M | +38.9% |
05—Questions
Frequently Asked Questions
What drove the swing from a net loss in 2024 to net income in 2025?
Operating income was $442.0 million in 2025 versus an operating loss of $(560.6) million in 2024. Revenue rose by $902.3 million, and stock-based compensation expense fell to $343.2 million from $801.6 million, since 2024 included the cumulative catch-up on RSUs with liquidity-based vesting recognized at the IPO. Operating expenses were $1.6 billion in 2025 versus $1.7 billion in 2024.
How fast are Reddit's users growing, and where?
In the three months ended December 31, 2025, global DAUq grew 19% year over year, driven by 9% growth in the United States and 28% growth in the rest of the world. WAUq grew 24% year over year. The filing notes that DAUq growth is expected to slow over time as the base grows, and that logged-in DAUq reporting will end with the quarter ended September 30, 2026.
What are the main risks to advertising revenue?
About 94% of 2025 revenue came from third-party advertising. Revenue is concentrated among advertisers, with the top ten accounting for approximately 21% of 2025 revenue. Other risks include advertisers' ability to measure campaigns, ad-blocking, reliance on search traffic and changes in search engine algorithms, and reduced monetization of international users, whose ARPU is lower than in the United States.
How much control do existing shareholders retain?
Class B common stock carries ten votes per share, and as of December 31, 2025, CEO Steven Huffman was entitled under voting agreements to vote approximately 75% of the voting power of Class A and Class B common stock. Advance Magazine Publishers Inc. held approximately 22% of Class A and Class B shares and has board designation and approval rights under the Governance Agreement. The company is eligible for NYSE controlled-company status.
What is the status of the securities class action and content licensing revenue?
In June 2025, the company and certain officers and directors were named in a securities class action in the U.S. District Court for the Northern District of California, alleging misleading statements about the impact of Google Search and its AI Overviews feature. Derivative complaints followed, and no responses had been filed. Content licensing revenue is growing from agreements executed in 2024 and 2025, but substantially all licensing contract value comes from two partners.
06—Continue