Reddit, Inc. Class A ( (RDDT) ) has released its Q3 earnings. Here is a breakdown of the information Reddit, Inc. Class A presented to its investors.
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Reddit, Inc. is a prominent online platform known for its vast network of communities where users engage in discussions on a wide range of topics. Operating in the social media and online community sector, Reddit stands out for its user-driven content and unique community dynamics.
In its Q3 2025 earnings report, Reddit, Inc. showcased significant financial growth and strategic advancements. The company reported a substantial increase in revenue, reaching $585 million, marking a 68% rise year-over-year. This growth was complemented by a strong net income of $163 million, reflecting a net margin of 28%.
Key financial metrics highlighted in the report include a gross margin of 91%, an adjusted EBITDA of $236 million with a 40% margin, and a free cash flow of $183 million. Reddit also experienced a notable increase in user engagement, with Daily Active Uniques (DAUq) rising by 19% year-over-year, and advertising revenue growing by 74%. The company’s strategic initiatives, such as the introduction of Reddit Pro tools for publishers and enhancements in search capabilities, have contributed to its robust performance.
Looking ahead, Reddit’s management remains optimistic about its growth trajectory, focusing on expanding its user base, enhancing user experience, and scaling its advertising and monetization strategies. The company aims to maintain its position as a leading platform for authentic and engaging online discussions.