Reddit reported a strong financial performance for the quarter ended December 31, 2025, driven by rapid growth in its advertising business. The platform posted total quarterly revenue of $726 million, marking a 70% increase year over year. Advertising remained the key growth engine, with ad revenue rising 75% to $690 million, while other revenue streams contributed $36 million.
The results reflect Reddit’s ability to scale revenue while maintaining cost discipline. Sales and marketing expenses stood at $163.9 million for the quarter, indicating a measured investment approach even as the company accelerated monetization. Gross margin remained robust at 91.9%, only slightly lower than the previous year, underscoring the efficiency of Reddit’s business model.
Profitability improved significantly, with net income reaching $252 million-up nearly 255% year over year. Adjusted EBITDA came in at $327 million, supported by strong operating cash flow of $267 million and free cash flow of $264 million, highlighting Reddit’s growing financial strength.
On a full-year basis, Reddit reported revenue of $2.2 billion for 2025, a 69% increase compared to the previous year. Advertising accounted for $2.1 billion of this total, reaffirming its central role in the company’s monetization strategy. Annual sales and marketing spend was $503.9 million, aligned with efforts to efficiently monetize an expanding user base. Net income for the year reached $530 million, while free cash flow rose to $684 million.
Looking ahead, Reddit forecast first-quarter 2026 revenue in the range of $595 million to $605 million, exceeding market expectations. The company also announced a $1 billion share repurchase programme, signalling confidence in its growth trajectory. Following the announcement, Reddit shares rose 5% in after-hours trading, reflecting investor optimism around its advertising-led momentum.
