01—Abstract
Summary
Summary of the 10-Q filed October 31, 2025. Cited figures are marked; the original filing is the authoritative source.
Reddit, Inc. reported third-quarter 2025 revenue of $584.9 milliona, up 68% year over year from $348.4 million, with advertising revenue of $549.3 million and other revenue of $35.6 million.
Income from operations was $138.5 millionb, compared with $6.9 million a year earlier, and net income was $162.7 million, compared with $29.9 million. Gross margin was 91.0%, and Adjusted EBITDA was $236.0 million, compared with $94.1 million. Net cash provided by operating activities was $185.2 million, and Free Cash Flow was $183.1 million.
For the nine months ended September 30, 2025, revenue was $1.48 billionc, up 69%, and net income was $278.1 million, compared with a net loss of $555.3 million in the prior-year period. User growth and monetization both increased. Daily Active Uniques (DAUq) were 116.0 million, up 19% year over year, with United States DAUq up 7% and rest-of-world DAUq up 31%.
ARPU was $5.04d, up 41%, with United States ARPU of $9.04 and rest-of-world ARPU of $1.84. The filing states that logged-out DAUq comprised 57% of global DAUq in the quarter and that growth was driven in part by third-party search engine and algorithm changes. Cash, cash equivalents, and marketable securities totaled $2.2 billion as of September 30, 2025.
The company amended its revolving credit facility to $500.0 million, maturing in 2030, and was in compliance with its covenants. The filing also flags material risks. In June 2025, Reddit and certain officers and directors were named in a securities class action alleging misleading statements about the impact of Google Search and its AI Overviews feature on the business, and shareholder derivative complaints followed.
The filing notes that substantially all contract value in content licensing relates to two partners, and that the company has filed litigation against companies that used Reddit content without a license. Advance Magazine Publishers Inc. held approximately 22% of outstanding Class A and Class B common stock, and Mr. Huffman was entitled to vote approximately 76% of the voting power of the Class A and Class B common stock under voting agreements.
02—Key points
Key Highlights
- Revenue of $584.9 million for the three months ended September 30, 2025, up 68% year over year, driven primarily by higher advertising impressions and, to a lesser extent, pricing.
- Net income of $162.7 million for the quarter, compared with $29.9 million a year earlier; diluted earnings per share were $0.80, compared with $0.16.
- Adjusted EBITDA of $236.0 million, compared with $94.1 million, and Free Cash Flow of $183.1 million, compared with $70.3 million.
- DAUq reached 116.0 million, up 19% year over year, while ARPU rose 41% to $5.04; United States ARPU was $9.04 and rest-of-world ARPU was $1.84.
- Cash, cash equivalents, and marketable securities totaled $2.2 billion as of September 30, 2025, and the revolving credit facility was amended to $500.0 million, with $494.6 million available.
- Nine-month revenue of $1.48 billion, up 69%, included other revenue of $104.1 million, which the filing attributes in part to content licensing agreements executed in 2024.
- A securities class action filed in June 2025 alleges misleading statements about the impact of Google Search and its AI Overviews feature, and the outcome remains uncertain.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Reddit kept $0.28.
- Revenue$584.9M100.0%
- Cost of revenue−$52.5M9.0%
- Gross profit$532.4M91.0%
- Operating costs−$393.9M67.3%
- Operating income$138.5M23.7%
- Interest, other & tax$24.1M4.1%
- Net income$162.7M27.8%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 31, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $584.91M$348.35M | +67.9% |
| Cost of Revenue | $52.51M$34.63M | +51.6% |
| Gross Profit | $532.40M$313.72M | +69.7% |
| R&D Expenses | $196.38M$166.70M | +17.8% |
| Operating Expenses | $446.37M$341.50M | +30.7% |
| Operating Income | $138.54M$6.85M | +1921.3% |
| Net Income | $162.66M$29.85M | +444.9% |
| EPS (Basic) | $0.87$0.18 | +383.3% |
| EPS (Diluted) | $0.80$0.16 | +400.0% |
| Shares Outstanding (Basic) | 188.04M169.17M | +11.2% |
| Shares Outstanding (Diluted) | 202.73M192.32M | +5.4% |
05—Questions
Frequently Asked Questions
What drove the increase in revenue this quarter?
Revenue rose to $584.9 million from $348.4 million, an increase of 68%. The filing attributes the growth primarily to higher advertising revenue driven by an increase in impressions delivered and, to a lesser extent, an increase in pricing. Advertising revenue was $549.3 million, compared with $315.1 million in the prior-year quarter.
How did user growth and monetization trend?
DAUq was 116.0 million, up 19% year over year, with United States DAUq up 7% and rest-of-world DAUq up 31%. ARPU was $5.04, up 41% from $3.58. The filing notes that global DAUq growth was driven primarily by product initiatives, particularly machine translation, third-party search engine and algorithm changes, and marketing.
What is the company's liquidity position?
As of September 30, 2025, the company had $2.2 billion in cash, cash equivalents, and marketable securities, with $911.7 million in cash and cash equivalents. Net cash provided by operating activities was $424.1 million for the nine months. The company amended its Revolving Credit Facility to $500.0 million, with an aggregate available balance of $494.6 million, and said it believes these sources will be sufficient for at least the next 12 months.
What legal and concentration risks does the filing disclose?
The filing discloses a securities class action filed in June 2025 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, along with shareholder derivative complaints. The outcome is uncertain. The filing also states that substantially all contract value from content licensing is derived from two partners, and that Advance Magazine Publishers Inc. held approximately 22% of outstanding common stock.
06—Continue