Reddit’s ad revenue up 75%

Reddit, for the quarter ended December 31, 2025, Reddit posted revenue of $726 million. Advertising remained the primary growth engine, with ad revenue rising 75% year over year to $690 million, while other revenue contributed $36 million. Total quarterly revenue increased 70% from the previous year.

The company’s cost structure highlighted a measured approach to growth. Sales and marketing expenses for the quarter came in at $163.9 million, reflecting a controlled investment strategy even as revenue scaled sharply. Gross margin remained strong at 91.9%, only marginally lower than the prior year, while net income rose to $252 million, marking a nearly 255% year-over-year increase. Adjusted EBITDA reached $327 million, supported by operating cash flow of $267 million and free cash flow of $264 million.

On a full-year basis, Reddit reported revenue of $2.2 billion for 2025, up 69% year over year, with advertising contributing $2.1 billion. Annual sales and marketing spend stood at $503.9 million, aligned with the platform’s push to monetise its expanding user base efficiently. Net income for the year reached $530 million, while free cash flow rose to $684 million.

Looking ahead, Reddit forecast first-quarter 2026 revenue between $595 million and $605 million, exceeding market expectations. The company also announced a $1 billion share repurchase programme, reinforcing confidence in its financial trajectory and the sustained momentum of its advertising business.

Reddit shares climbed 5% in after-hours trading after the company delivered a fourth-quarter performance that outpaced expectations across revenue, profitability and forward guidance, underscoring the growing strength of its advertising-led business.