Social media platform Reddit reported a sharp jump in both revenue and profit for the third quarter of 2025, handily beating Wall Street expectations and sending its stock up more than 13% in Friday trading.
From July to September, Reddit posted net income of $163 million, compared with $30 million in the same quarter last year, a 5.4-fold increase.
Earnings came in at $0.80 per share, far above the $0.51 analysts had projected, though down from $1.16 per share in the year-earlier period due to share count adjustments following the company’s 2024 IPO.
Quarterly revenue surged 68% to $585 million, up from $348 million a year earlier and well above market expectations of $546 million, according to data from LSEG.
Daily active unique users rose 19% year-on-year to 116 million, surpassing forecasts of 114 million, as the company benefited from strong engagement across its communities and improved monetization of ad placements and premium memberships.
Reddit projected fourth-quarter revenue between $655 million and $665 million, topping analysts’ consensus estimate of $638 million, signaling continued growth into the year’s final stretch.
Following the earnings release, Reddit’s shares climbed 13.1%, marking one of their strongest single-day gains since the company went public in 2024.
Founded in 2005, Reddit has long been known as a crowdsourced discussion hub, where users, including politicians, celebrities, and experts, engage directly through themed communities known as subreddits.
In recent years, the platform gained fame for hosting grassroots investor movements, particularly the retail trading frenzy that shook U.S. equity markets in 2021 and beyond. That cultural influence helped fuel Reddit’s IPO and strengthen its advertising appeal among younger, high-engagement demographics.
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