Reddit Reports Record Q2 Earnings, User Growth Exceeds Estimates

Reddit, Inc. reported a strong second quarter for 2025, with earnings per share of $0.45, significantly beating analyst estimates of $0.19, and revenue reaching $500 million, up from $426 million the previous year. The company experienced 78% year-over-year sales growth and exceeded consensus revenue expectations by 17%, marking its largest earnings beat since going public. Reddit's global daily active users grew 21% year-over-year to 110.4 million, surpassing estimates, with U.S. revenue notably outperforming projections. The company also raised its third-quarter revenue guidance to a range of $535 million to $545 million, well above Wall Street's $473 million forecast, alongside a projected adjusted EBITDA between $185 million and $195 million. Despite these positive results, investors remain cautious due to the impact of changes in Google's Search algorithm on user traffic, with concerns over slowing daily active user growth in the U.S. and globally. Reddit CEO Steve Huffman highlighted growth in AI-powered features such as Reddit Answers, which now has 6 million weekly users, demonstrating ongoing innovation in monetization and user engagement.