Reddit (RDDT) Q4 2025 earnings summary

Executive summary

• Achieved $2.2 billion in revenue for 2025, up 69% year-over-year, with Q4 revenue of $726 million, up 70% year-over-year.

• Net income for 2025 was $530 million, with Q4 net income at $252 million, representing a 35% margin.

• Daily active users reached 121.4 million in Q4, up 19% year-over-year; weekly active users hit 471 million, up 24%.

• Announced a $1 billion share repurchase program with no set expiration, reflecting strong cash generation and commitment to shareholder returns.

• Adjusted EBITDA for Q4 was $327 million (45% margin); full year Adjusted EBITDA was $845 million (38% margin).

Financial highlights

• Q4 ad revenue grew 75% year-over-year to $690 million; other revenue up 8% to $36 million.

• Full year ad revenue increased 74% to $2.1 billion; other revenue up 22% to $140 million.

• Gross margins remained above 90% for the sixth consecutive quarter; full-year gross margin was 91.2%.

• Free cash flow reached $264 million in Q4 and $684 million for the year, more than triple 2024.

• Diluted EPS was $1.24 in Q4 and $2.62 for the year, up from a loss last year.

Outlook and guidance

• Q1 2026 revenue expected between $595 million and $605 million, representing 52%-54% year-over-year growth.

• Q1 2026 adjusted EBITDA projected at $210 million-$220 million, with a 36% margin at the midpoint.

• Stock-based compensation targeted in the high teens as a percentage of revenue for 2026.