Reddit Posts 78% Revenue Growth on AI-Driven Advertising

Reddit has experienced remarkable growth in its advertising revenue, reporting $465 million in Q2 2025, an increase exceeding 78% year-over-year, largely driven by its strategic integration of artificial intelligence. AI-powered advertising tools such as Reddit Insights and Conversation Summary Add-ons have enhanced ad targeting and engagement by leveraging real-time user sentiment and trends from Reddit’s vast community discussions. The platform’s daily active users grew 21% year-over-year to 110.4 million, with average revenue per user rising 47%, reflecting both increased user engagement and improved monetization. In addition to ads, Reddit has expanded its data licensing partnerships with leading AI firms like Google and OpenAI, providing valuable datasets to train advanced models and diversifying its revenue streams. The company is also focusing on AI-driven search capabilities with its Reddit Answers feature, which has grown fivefold in usage, positioning Reddit as an innovative answer engine that synthesizes community knowledge for complex queries. This multifaceted AI-driven approach is central to Reddit’s most profitable quarter since going public and underpins its continued expansion in digital advertising and AI data markets.