Reddit Reports 68% Revenue Growth, $163M Net Income Q3 2025

Reddit, Inc. reported strong financial results for Q3 2025, with revenue increasing 68% year-over-year to $585 million, largely driven by a 74% surge in advertising revenue that accounted for 94% of total revenue. Daily Active Uniques rose 19% to 116 million, with international user growth outpacing U.S. growth, while the number of active advertisers increased by 75%. The company achieved a net income of $163 million, a net margin of 28%, and an adjusted EBITDA margin of 40%, supported by a gross margin of 91% and free cash flow of $183 million. Reddit's AI-powered advertising tools have been credited for attracting increased marketing spending, with initiatives such as an end-to-end automated campaign platform leveraging AI to streamline advertising. The platform's extensive content library is valuable for AI training data, leading to licensing agreements with Google and OpenAI, alongside ongoing legal actions to protect its data. Looking ahead, Reddit projects Q4 2025 revenue between $655 million and $665 million and adjusted EBITDA between $275 million and $285 million, indicating continued growth and monetization momentum despite slower user growth in the U.S.