01—Abstract
Summary
Summary of the 8-K filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Reddit, Inc. (NYSE: RDDT) reported third-quarter 2025 results for the quarter ended September 30, 2025, in a press release and shareholder letter furnished under Item 2.02 of this Form 8-K.
Total revenue rose 68% year-over-year to $585 milliona, with advertising revenue of $549 million (up 74%) and other revenue of $36 million (up 7%). U.S. revenue grew 67% to $480 million and international revenue grew 74% to $105 million. Gross margin was 91.0%, and the company reported net income of $163 million (a 28% net margin), diluted EPS of $0.80, and adjusted EBITDA of $236 million (a 40.3% margin).
User metrics showed continued growth, with global daily active uniques (DAUq) of 116.0 million, up 19% year-over-year, and international DAUq up 31%, versus U.S. DAUq up 7%. Weekly active uniques (WAUq) reached 443.8 million, up 21%. Operating cash flow was $185 millionb and free cash flow was $183 million.
Cash, cash equivalents, and marketable securities totaled $2.23 billionc as of September 30, 2025, and fully diluted shares were 206.1 million, down 0.2% sequentially. For the fourth quarter of 2025, Reddit estimates revenue of $655 million to $665 million and adjusted EBITDA of $275 million to $285 million.
Management also said it will hold a conference call on October 30, 2025 at 2:00 p.m. PT, and will solicit community questions on r/RDDT.
02—Key points
Key Highlights
- Revenue of $585 million, up 68% year-over-year; advertising revenue of $549 million grew 74%
- GAAP net income of $163 million (28% net margin) versus $30 million a year earlier; diluted EPS of $0.80 versus $0.16
- Adjusted EBITDA of $236 million, a 40.3% margin, up from $94 million (27.0% margin) in the prior-year quarter
- Operating cash flow of $185 million and free cash flow of $183 million, both substantially higher than the prior-year quarter
- Global DAUq of 116.0 million (up 19%), with international DAUq up 31% and U.S. DAUq up 7%
- Q4 2025 guidance: revenue of $655 million to $665 million and adjusted EBITDA of $275 million to $285 million
- Cash, cash equivalents, and marketable securities of $2.23 billion; fully diluted shares of 206.1 million, down 0.2% sequentially
03—Questions
Frequently Asked Questions
How strong was Reddit's revenue growth in the third quarter of 2025?
Total revenue rose 68% year-over-year to $585 million. Advertising revenue grew 74% to $549 million, and other revenue grew 7% to $36 million. U.S. revenue grew 67% and international revenue grew 74%.
Did Reddit become profitable on a GAAP basis?
Yes. Net income was $163 million, a 28% net margin, compared with $30 million in the prior-year quarter. Basic EPS was $0.87 and diluted EPS was $0.80, versus $0.18 and $0.16 a year earlier.
What guidance did Reddit provide for the fourth quarter of 2025?
Reddit estimated fourth-quarter revenue of $655 million to $665 million and adjusted EBITDA of $275 million to $285 million. The company stated it did not provide a reconciliation of these non-GAAP guidance measures to GAAP equivalents.
How is user growth trending?
Global DAUq averaged 116.0 million, up 19% year-over-year, and WAUq reached 443.8 million, up 21%. International DAUq grew 31% to 64.4 million, while U.S. DAUq grew 7% to 51.6 million.
How much cash does Reddit have, and how is share count changing?
Cash, cash equivalents, and marketable securities totaled $2.23 billion as of September 30, 2025. Fully diluted shares outstanding were 206.1 million, down 0.2% from the prior quarter and 0.1% from the prior year.
04—Continue