Core Insights - Reddit Inc. reported a revenue of $725.61 million for the quarter ended December 2025, marking a year-over-year increase of 69.7% and exceeding the Zacks Consensus Estimate by 8.71% [1] - The earnings per share (EPS) for the same period was $1.24, compared to $0.36 a year ago, resulting in an EPS surprise of 29.3% over the consensus estimate of $0.96 [1] Financial Performance - Reddit's shares have declined by 40.2% over the past month, while the Zacks S&P 500 composite has increased by 0.5% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance against the broader market in the near term [3] Key Metrics - Daily Active Users (DAUq) globally reached 121.4 million, surpassing the average estimate of 120.04 million [4] - Average Revenue Per User (ARPU) globally was $5.98, exceeding the average estimate of $5.59 [4] - U.S. DAUq was 52.5 million, slightly above the average estimate of 52.05 million [4] - International DAUq was 68.9 million, also exceeding the average estimate of 67.99 million [4] - U.S. ARPU was $10.79, higher than the estimated $10.05 [4] - International ARPU was $2.31, surpassing the estimate of $2.02 [4] - Logged-in DAUq globally was 50.7 million, below the average estimate of 51.65 million [4] - Weekly Active Users (WAUq) globally reached 471.6 million, exceeding the average estimate of 456.07 million [4] - Revenue from international markets was $142.3 million, representing a year-over-year increase of 77.9% and surpassing the average estimate of $139.58 million [4] - Revenue from the United States was $583.3 million, reflecting a year-over-year increase of 67.8% and exceeding the average estimate of $529.94 million [4]

Core Insights - Reddit's AI-powered search engine is viewed as a significant business opportunity, with potential to impact revenue despite not being monetized yet [1] - The company believes generative AI search will outperform traditional search for many queries, particularly those requiring multiple perspectives [1][2] - Weekly active users for search increased by 30% over the past year, from 60 million to 80 million, while AI-powered Reddit Answers grew from 1 million to 15 million users [2] Product Development - Reddit is modernizing its AI answers interface to include more media-rich responses, with pilot programs already in progress [3] - The company plans to merge its AI search feature with traditional search to enhance user experience, having made significant progress in this unification [5] User Engagement and Personalization - Starting in Q3 2026, Reddit will eliminate the distinction between logged-in and logged-out users to personalize the site using AI and machine learning [4] - The content licensing business, which allows other companies to train their AI models on Reddit's data, is also growing, contributing to non-ad revenue [5] Financial Performance - Reddit's "other" revenue, which includes content licensing, increased by 8% year-over-year to $36 million in Q4 and rose 22% to $140 million for the year 2025 [5]

Core Insights - Reddit Inc. reported quarterly earnings of $1.24 per share, exceeding the Zacks Consensus Estimate of $0.96 per share, and showing significant growth from $0.36 per share a year ago, resulting in an earnings surprise of +29.30% [1] - The company achieved revenues of $725.61 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 8.71% and increasing from $427.71 million year-over-year [2] Earnings Performance - Over the last four quarters, Reddit Inc. has consistently surpassed consensus EPS estimates, achieving this four times [2] - The company also topped consensus revenue estimates in each of the last four quarters [2] Stock Performance and Outlook - Reddit Inc. shares have declined approximately 33.6% since the beginning of the year, contrasting with the S&P 500's gain of 0.5% [3] - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $0.56 for the upcoming quarter and $3.73 for the current fiscal year [4][7] Estimate Revisions and Industry Context - The trend for estimate revisions prior to the earnings release was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The Internet - Software industry, to which Reddit belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) For the transition period from ______ to ______ Commission File Number: 001-41983 _________________________ For the fiscal year ended December 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Reddit, Inc. (Exact name of registrant as specified in its charter) ...

Financial Data and Key Metrics Changes - Reddit achieved total revenue of $2.2 billion in 2025, representing a 69% year-over-year increase, with Q4 revenue reaching $726 million, up 70% year-over-year [4][12][23] - Net income for the full year was $530 million, with Q4 net income hitting $252 million, which is 35% of revenue [23][25] - Adjusted EBITDA for Q4 was $327 million, representing a 45% margin, while full-year adjusted EBITDA was $845 million, with a 38% margin [23][25] - Free cash flow crossed $250 million in Q4, totaling $684 million for the year, more than triple the previous year [23][25][29] Business Line Data and Key Metrics Changes - Advertising revenue in Q4 grew 75% year-over-year to $690 million, driven by strong performance across various objectives and channels [12][23] - Other revenue, including content licensing, reached $36 million, up 8% [25] - The total active advertiser count grew by over 75% year-over-year in Q4, with significant growth in both large and small to medium businesses [14][15] Market Data and Key Metrics Changes - U.S. revenue increased by 68%, while international revenue grew by 78% year-over-year [14][25] - Daily active users reached over 121 million, up 19% year-over-year, and weekly active users exceeded 471 million, up 24% [4][12] Company Strategy and Development Direction - Reddit is focusing on enhancing user experience through improved onboarding and search functionalities, aiming to drive user growth and engagement [6][9][19] - The company is investing in automation and unique advertising solutions to enhance advertiser value across the full funnel [19][21] - A $1 billion share repurchase program was announced, reflecting confidence in growth and commitment to shareholder returns [10][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted a significant shift in the internet landscape, emphasizing the importance of community and authentic conversations on Reddit [5][6] - The company is optimistic about its positioning for 2026, with plans to scale automation and enhance measurement capabilities [19][22] - Management expressed confidence in the ongoing momentum and the ability to deliver strong financial results [10][23] Other Important Information - Reddit plans to phase out the distinction between logged-in and logged-out users in reporting, focusing instead on overall user engagement [9][32] - The company is committed to maintaining a strong cash position while pursuing growth opportunities through investments and potential acquisitions [30][31] Q&A Session Summary Question: Why do a buyback instead of putting that money towards future growth and product initiatives? - Management stated that the strategy allows for capital return to shareholders while still investing in the business and pursuing M&A opportunities [36][39] Question: Can you elaborate on the revamped onboarding and its impact on retention? - Management noted that streamlining onboarding improves retention and that integrating search with answers has shown positive early results [42][44] Question: How do you see AI-generated content evolving on the platform? - Management acknowledged the potential for AI-generated content but emphasized the importance of transparency and maintaining human interaction [51][53] Question: What is the monetization opportunity with logged-out users? - Management clarified that both logged-in and logged-out users see ads, and the focus is on increasing engagement to enhance monetization opportunities [59][63] Question: How are partnerships with Google and OpenAI evolving? - Management indicated that partnerships are shifting towards product collaboration, aiming to enhance user engagement and community interaction [66][68]

Financial Data and Key Metrics Changes - Reddit achieved total revenue of $2.2 billion in 2025, representing a 69% year-over-year increase, with Q4 revenue reaching $726 million, up 70% year-over-year [4][12][23] - Net income for the full year was $530 million, with Q4 net income hitting $252 million, which is 35% of revenue [23][25] - Adjusted EBITDA for Q4 was $327 million, representing 45% of revenue, and full-year adjusted EBITDA was $845 million, with a 38% margin [23][25] - Free cash flow crossed $250 million in Q4, reaching $264 million, which is 36% of revenue [23][24] Business Line Data and Key Metrics Changes - Advertising revenue in Q4 grew 75% year-over-year to $690 million, driven by strong performance across various objectives and channels [12][25] - Other revenue, including content licensing, reached $36 million, up 8% [25] - Average revenue per user (ARPU) grew 42% year-over-year to $5.98 [26] Market Data and Key Metrics Changes - U.S. revenue grew 68% year-over-year, while international revenue increased by 78% [14][26] - Total active advertiser count grew by over 75% year-over-year in Q4, indicating strong demand across all segments [15] Company Strategy and Development Direction - Reddit is focusing on enhancing user experience through improved onboarding and search functionalities, aiming to drive user growth and engagement [9][19] - The company is investing in automation and unique advertising solutions to improve advertiser performance and streamline onboarding processes [15][19] - A $1 billion share repurchase program was announced, reflecting confidence in growth and commitment to shareholder returns [10][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted a significant shift in the internet landscape, emphasizing the importance of community and authentic interactions on Reddit [5][6] - The company is optimistic about its growth trajectory, with plans to enhance product offerings and user engagement in 2026 [10][22] - Management acknowledged the challenges posed by AI-generated content but emphasized the need for transparency and maintaining human-centric interactions [54][70] Other Important Information - Reddit plans to phase out the distinction between logged-in and logged-out users in reporting, focusing instead on overall user engagement [9][32] - The company is committed to maintaining a strong cash position while pursuing growth opportunities through investments and potential acquisitions [30][31] Q&A Session Summary Question: Why do a buyback instead of investing in future growth? - Management stated that the buyback is part of a balanced capital allocation strategy, allowing for investment in the business, M&A, and shareholder returns [36][39] Question: Can you elaborate on the revamped onboarding and its impact? - Management noted that streamlining onboarding improves retention and that integrating search with answers has led to increased query volumes [44][45] Question: How do you view AI-generated content on the platform? - Management acknowledged the role of AI in enhancing communication but emphasized the importance of maintaining human interactions and transparency [54][68] Question: What is the monetization opportunity with logged-out users? - Management clarified that both logged-in and logged-out users see ads, and the focus is on increasing engagement to enhance monetization opportunities [63][64] Question: How are partnerships with Google and OpenAI evolving? - Management indicated that partnerships are shifting towards product collaboration, aiming to enhance user engagement and community interaction [68][70]

Financial Data and Key Metrics Changes - Reddit achieved total revenue of $2.2 billion in 2025, representing a 69% year-over-year increase, with Q4 revenue reaching $726 million, up 70% year-over-year [3][11][21] - Net income for the full year was $530 million, with Q4 net income hitting $252 million, which is 35% of revenue [21][23] - Adjusted EBITDA for Q4 was $327 million, representing 45% of revenue, while full-year adjusted EBITDA was $845 million, with a margin of 38% [21][23] - Free cash flow crossed $250 million in Q4, totaling $684 million for the year, more than triple the previous year [21][23] Business Line Data and Key Metrics Changes - Advertising revenue grew 75% year-over-year in Q4, reaching $690 million, driven by performance ads and strong growth across various channels and verticals [11][21][23] - Other revenue, including content licensing, reached $36 million, up 8% [23] - Average revenue per user (ARPU) grew 42% year-over-year to $5.98 [24] Market Data and Key Metrics Changes - U.S. revenue increased by 68%, while international revenue grew by 78% year-over-year [12][24] - The total active advertiser count grew by over 75% year-over-year in Q4, indicating strong demand across all segments [12][13] Company Strategy and Development Direction - Reddit is focusing on enhancing user experience through improved onboarding and search functionalities, aiming to drive user growth and engagement [5][8][18] - The company is investing in automation and unique advertising solutions to improve advertiser performance and streamline onboarding processes [12][18] - A $1 billion share repurchase program was announced, reflecting confidence in growth and commitment to shareholder returns [9][27] Management's Comments on Operating Environment and Future Outlook - Management highlighted a significant shift in internet usage, with more users seeking authentic community interactions, positioning Reddit as a trusted platform [4][5] - The company is optimistic about 2026, expecting continued growth driven by enhanced product offerings and advertising solutions [20][32] Other Important Information - Reddit plans to phase out the distinction between logged-in and logged-out users in reporting, focusing instead on overall user engagement [8][30] - The company is committed to maintaining a strong cash position while pursuing growth opportunities through investments and potential acquisitions [27][28] Q&A Session Questions and Answers Question: Why do a buyback instead of putting that money towards future growth and product initiatives? - Management stated that the strategy allows for capital return to shareholders while still investing in the business and pursuing M&A opportunities [34][36] Question: Can you elaborate on the revamped onboarding and its impact on retention? - Management noted that streamlining onboarding improves retention and that integrating search with answers has shown positive early results [40][42] Question: How do you see AI-generated content evolving on the platform? - Management emphasized the importance of transparency and labeling for AI-generated content, ensuring that Reddit remains a platform for human interaction [49][51] Question: What is the monetization opportunity with logged-out users? - Management clarified that both logged-in and logged-out users see ads, and the focus is on increasing engagement to enhance monetization opportunities [57][62] Question: Can you discuss the partnerships with Google and OpenAI? - Management highlighted the growing importance of Reddit as a cited source in AI answers and the shift towards product partnerships with these companies [64][66]

Reddit Stock Gains After Earnings Fly Past Estimates - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# Reddit Stock Jumps on Earnings. CFO Cites Modest AI Spending.By [Angela Palumbo]ShareResize---ReprintsIn this article[RDDT]Reddit stock has ...

Core Insights - The social media company reported a quarterly profit of $252 million, which represents a significant increase from $71 million in the same quarter of the previous year [1] Financial Performance - Quarterly profit increased by $181 million year-over-year, reflecting a growth of approximately 255% [1]

Exhibit 99.1 Reddit Reports Fourth Quarter and Full Year 2025 Results; Announces $1 Billion Share Repurchase Program Daily Active Uniques ("DAUq") increased 19% year-over-year to 121.4 million Q4 Revenue grew 70% year-over-year to $726 million. 2025 Revenue grew 69% to $2.2 billion Q4 Net Income $252 million, 35% of revenue. 2025 Net Income $530 million, 24% of revenue Q4 Adj. EBITDA $327 million, 45% of revenue. 2025 Adj. EBITDA $845 million, 38% of revenue 1 1 Reddit's Board of Directors authorized repurc ...