Reddit Sets Profit Record, Driven by Ad and AI Growth

Reddit reported its most profitable quarter ever, posting $89 million in net income and $500 million in revenue—a 78% year-over-year increase—driven largely by an 84% surge in advertising revenue. Daily active users grew 21% to 110.4 million, with international user growth outpacing the US, though international monetization remains a challenge. AI-powered ad tools and features like Reddit Answers have spurred advertiser demand and user engagement, helping fuel expansion. Reddit's Q3 revenue guidance of $535–$545 million exceeded analyst expectations, indicating strong momentum. However, analysts expressed concerns about Reddit's heavy reliance on advertising and gaps in international monetization. Despite this, Reddit's emphasis on authentic conversation and AI innovation continues to solidify its standing in social media and digital advertising.