Core Insights - Reddit's second-quarter earnings highlight a significant increase in focus on AI, particularly in enhancing its advertising business, which generated $465 million, accounting for 93% of total revenue [1] Advertising Business - The majority of Reddit's revenue is derived from advertising, with a reported $465 million in ad revenue for the second quarter [1] - New advertising features launched include Reddit Insights, which analyzes platform data for campaign strategies, and Conversation Summary Add-ons, allowing user discussions to be included in ads [2] Other Revenue Growth - The "other revenue" category, which includes data licensing deals with AI providers, saw a 24% year-over-year increase to $35 million, up from $28.1 million [3] - Reddit has established content licensing agreements with major AI companies like Google and OpenAI, indicating a steady income stream with long-term potential [4] AI Features - The Reddit Answers tool, launched in December, has gained traction with 6 million weekly users, up from 1 million in the previous quarter [5] - The company aims to integrate the Reddit Answers tool more deeply into the core search experience, enhancing the platform's search functionality [5]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number: 001-41983 _________________________ Reddit, Inc. (Exact name of registrant as specified in its chart ...

Financial Data and Key Metrics Changes - Revenue grew 78% year over year to $500 million, marking the fastest quarterly growth rate since 2022 [7][28] - Daily active users increased to 110 million, up 21% year over year, with growth in both the U.S. and international markets [7] - Adjusted EBITDA reached $167 million, with a margin of 33%, up over 1,900 basis points year over year [28][29] - GAAP net income was $89 million, translating to $0.48 per basic share [40] Business Line Data and Key Metrics Changes - Advertising revenue grew 84% year over year to $465 million, driven by broad-based strength across the business [20][31] - Other revenue, including data licensing, reached $35 million, growing 24% year over year [31] - Average revenue per user (ARPU) increased 47% year over year to $4.53 [31] Market Data and Key Metrics Changes - Revenue in the U.S. grew significantly, with international markets also showing strong performance, particularly in Europe [31] - The total active advertiser count expanded by over 50% year over year [20] Company Strategy and Development Direction - The company is focusing on improving the core product, enhancing search capabilities, and expanding internationally [12][15] - Strategic investments are being made in sales, marketing, and machine learning to drive user engagement and revenue growth [34][38] - The company is deprioritizing some initiatives, such as the user economy, to concentrate resources on areas that will drive immediate results [13][45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the unique role Reddit plays in human conversation and its potential for growth [8][10] - The company sees a significant opportunity in becoming a trusted source of information in an increasingly automated world [10][12] - For Q3 2025, the company estimates revenue in the range of $535 million to $545 million, representing 54% to 56% year-over-year growth [41] Other Important Information - The company is investing in machine translation to unlock Reddit for millions of users across various regions [16] - The launch of new products like Dynamic Product Ads and Reddit Insights is expected to enhance advertiser performance and user engagement [22][24] Q&A Session Summary Question: What is one memorable discussion you had at the Cannes Lions Festival? - Management highlighted a discussion where an advertiser realized a new customer segment and expressed excitement about the quality of the team [43] Question: What projects are being prioritized over the user economy? - The focus is on improving user engagement through core app improvements and diversifying traffic sources [45] Question: How are U.S. user trends evolving? - There was a slower start in April, but traction improved throughout Q2, with higher daily active users reported in July [53][54] Question: What innovations are expected in the advertising business? - Exciting developments include Dynamic Product Ads and automation features that enhance advertiser onboarding and performance [56][57] Question: How is the search experience evolving with Reddit Answers? - The company is unifying the search experience to integrate Reddit Answers, making it more accessible for users [63] Question: How have advertiser relationships evolved? - The company has created a global accounts team to better service larger clients and is seeing increased demand for integrated advertising solutions [66] Question: What are the key learnings from marketing efforts? - There is a need to build awareness and consideration, especially outside the U.S., and to create a unique search experience on Reddit [75][78]

Financial Data and Key Metrics Changes - Revenue grew 78% year over year to $500,000,000, marking the fastest quarterly growth rate since 2022 [6][29] - Daily active users increased to 110,000,000, up 21% year over year, with growth in both the U.S. and international markets [6][32] - Adjusted EBITDA reached $167,000,000, with a margin of 33%, up over 1,900 basis points year over year [30][32] - GAAP net income was $89,000,000, translating to $0.48 per basic share [41] Business Line Data and Key Metrics Changes - Advertising revenue grew 84% year over year to $465,000,000, driven by broad-based strength across the business [20][32] - Other revenue, including data licensing, reached $35,000,000, growing 24% year over year [32] - Average revenue per user (ARPU) grew 47% year over year to $4.53 [32] Market Data and Key Metrics Changes - Revenue in the U.S. grew significantly, with international markets also showing strong performance, particularly in Europe [32] - The total active advertiser count expanded by over 50% year over year [20] Company Strategy and Development Direction - The company is focusing on improving the core product, enhancing search capabilities, and expanding internationally [12][15] - Strategic investments are being made in sales, marketing, and machine learning to drive user engagement and revenue growth [35][36] - The company is deprioritizing certain initiatives, such as the user economy, to concentrate resources on areas that will drive immediate results [12][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting a unique opportunity for Reddit as a community-driven platform in an increasingly automated world [7][16] - The company is focused on building a more personalized user experience to enhance engagement and retention [84] - Future revenue estimates for Q3 2025 are projected to be between $535,000,000 and $545,000,000, representing 54% to 56% year-over-year growth [42] Other Important Information - Machine translation is now live in 23 languages, facilitating international expansion [15] - The company is investing in marketing strategies to increase user awareness and engagement [19][20] Q&A Session Summary Question: What is one memorable discussion you had at the Cannes Lions Festival? - Management highlighted a discussion where an advertiser realized a new customer segment opportunity and praised the quality of the team [44] Question: What projects are being prioritized over the user economy? - The focus is on improving user engagement through core app improvements and diversifying traffic sources [46] Question: What innovations are expected in the ad business? - Exciting innovations include Dynamic Product Ads and automation features to enhance advertiser onboarding and performance [57] Question: How are user trends evolving in the U.S.? - User trends improved throughout Q2, with better traction noted as the quarter progressed [55] Question: How is the advertising relationship evolving? - The company is seeing growth in active advertisers and has created a global accounts team to service larger clients [68] Question: What are the early learnings from testing Reddit Lite internationally? - The test showed that simplifying the app experience leads to better engagement, and the focus is now on incorporating these improvements into the core app [102]

Core Insights - Reddit's shares increased over 10% following the announcement of second-quarter earnings that exceeded sales and guidance expectations [1] - The company reported a 78% year-over-year sales growth in the second quarter, significantly surpassing consensus estimates by 17% [1] - Net income for the second quarter was $89 million, a turnaround from a net loss of $10 million in the same quarter last year [1] Financial Performance - Third-quarter revenue is projected to be between $535 million and $545 million, exceeding Wall Street's estimate of $473 million [2] - Adjusted EBITDA for the third quarter is expected to range from $185 million to $195 million, above the StreetAccount estimate of $160 million [2] - Global daily active users increased by 21% year-over-year to 110.4 million, surpassing analyst estimates of 109 million [2] Revenue Metrics - The second-quarter global average revenue per user was $4.53, exceeding analyst expectations of $3.90 [3] - U.S. sales for the second quarter reached $409 million, significantly higher than the StreetAccount estimate of $335 million [3] - International revenue for the quarter was $91 million, slightly above the projected $89 million [3] - "Other revenue," which includes data licensing, grew 24% year-over-year to $35 million [3] User Engagement - The second-quarter global logged-in daily active users rose 17% year-over-year to 49.3 million, while logged-out daily active users increased 24% to 61.1 million [4] Strategic Developments - The AI-powered Reddit Answers tool now has 6 million weekly users, a significant increase from 1 million last quarter, with plans for deeper integration into the search experience [5] - The CEO expressed excitement about the company's future and indicated a shift in focus by deprioritizing certain initiatives, including the user economy project [6]

Exhibit 99.1 Reddit Announces Second Quarter 2025 Results Daily Active Uniques ("DAUq") increased 21% year-over-year to 110.4 million Revenue grew 78% year-over-year to $500 million Gross margin expanded year-over-year to 90.8% Net income of $89 million, 18% of revenue. Diluted EPS of $0.45 "Reddit is built for this moment. In a world where connection is increasingly rare, our communities show how valuable human conversation and knowledge really are," said Steve Huffman, Reddit Co-Founder and CEO. "We're fo ...

NEW YORK, July 30, 2025 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Reddit, Inc. (NYSE: RDDT) and certain of the Company’s senior executives for potential violations of the federal securities laws. If you invested in Reddit, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases-investigations/reddit-inc-securities-fraud-class-action. Investors have until August 18, 2025, to ask the Court to ...

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Reddit, Inc. securities during the specified Class Period of the upcoming lead plaintiff deadline on August 18, 2025, and the potential for compensation without out-of-pocket costs [1][2]. Group 1: Class Action Details - A class action lawsuit has been filed against Reddit, Inc. for allegedly making false and misleading statements regarding user engagement and advertising revenues during the Class Period [4]. - The lawsuit claims that changes in Google Search's algorithm led to a significant reduction in traffic to Reddit, which was not disclosed by the defendants [4]. - Investors are encouraged to join the class action by submitting a form or contacting the law firm for more information [2][5]. Group 2: Law Firm Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest settlement against a Chinese company at the time and being ranked No. 1 for securities class action settlements in 2017 [3]. - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [3]. - The founding partner has been recognized as a leading figure in the plaintiffs' bar, highlighting the firm's expertise in this area [3].

Core Insights - Class actions have been initiated for investors of Bitfarms Ltd. (NASDAQ: BITF) and Reddit, Inc. (NYSE: RDDT) due to alleged misleading statements and operational issues [1] Bitfarms Ltd. (NASDAQ: BITF) - The class period for Bitfarms is from March 21, 2023, to December 9, 2024, with a lead plaintiff deadline of July 8, 2025 [2] - Allegations include that Bitfarms had deficient internal controls over financial reporting, misclassified cash flows from digital asset sales, and overstated remediation of material weaknesses in internal controls [2] - The company is accused of issuing inaccurate financial statements that may need restatement, leading to materially false public statements throughout the class period [2] Reddit, Inc. (NYSE: RDDT) - The class period for Reddit is from October 29, 2024, to May 20, 2025, with a lead plaintiff deadline of August 18, 2025 [3] - Allegations state that changes in Google Search's algorithm, particularly the introduction of AI features, negatively impacted user traffic to Reddit [4] - Reddit's earnings release on May 1, 2025, indicated three consecutive quarters of deceleration in daily active user growth, resulting in a stock price drop of $4.96 per share (4.2%) [5] - Following analyst downgrades from Wells Fargo and Baird, Reddit's stock experienced further declines, with a notable drop of $9.79 per share (9.3%) on May 21, 2025 [6][8]

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Reddit, Inc. regarding a class action lawsuit alleging that the company made materially false and misleading statements during a specified class period, which negatively impacted its stock value [1][2]. Group 1: Allegations Against Reddit, Inc. - The complaint claims that changes in Google Search's algorithm, including features like AI Overview, led to a decline in user queries on Google Search, which in turn affected traffic to Reddit [1]. - It is alleged that these algorithm changes were significantly different from previous instances of reduced traffic to Reddit's website [1]. - The defendants were reportedly aware that the increase in searches for "Reddit" was due to users finding answers directly on Google Search, rather than intending to visit Reddit [1]. - The phenomenon of zero-click searches is said to have dramatically reduced traffic to Reddit, which the company could not counteract in the short term [1]. - As a result, the defendants lacked a reasonable basis for their forecasts regarding user rates and advertising revenues, leading to materially false and misleading public statements [1]. Group 2: Class Action Details - The class period for the lawsuit is defined as October 29, 2024, to May 20, 2025, with a deadline for shareholders to register as lead plaintiffs set for August 18, 2025 [2]. - Shareholders who register will be enrolled in a portfolio monitoring system to receive updates on the case's progress [2]. - Participation in the case incurs no cost or obligation for the shareholders [2]. Group 3: About the Gross Law Firm - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting the rights of investors affected by deceit, fraud, and illegal business practices [3]. - The firm aims to ensure that companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements or omissions by companies [3].