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 ...

Core Insights - Reddit forecasts first-quarter revenue exceeding Wall Street estimates, driven by enhancements to its ad platform powered by artificial intelligence [1] Group 1: Financial Performance - The company anticipates first-quarter revenue to surpass analyst expectations, indicating strong demand for its advertising services [1] - The integration of AI technology into the ad platform is expected to attract more marketers, contributing to revenue growth [1] Group 2: Market Position - The enhancements to the ad platform position Reddit favorably in the competitive social media landscape, potentially increasing its market share among advertisers [1]

Core Insights - Reddit shares increased by 6% in after-hours trading following the release of fourth-quarter earnings that exceeded expectations on both revenue and earnings, along with strong guidance for early 2026 [1] Financial Performance - Fourth-quarter revenue rose 70% year-over-year to $726 million, surpassing analyst expectations of $665 million [8][2] - Net income for the fourth quarter was $252 million, reflecting a nearly 255% increase compared to the previous year [2] - Earnings per share were reported at $1.24, exceeding the expected 94 cents [8] Future Guidance - The company anticipates first-quarter sales to be between $595 million and $605 million, above Wall Street's expectation of $577 million [1] - Adjusted earnings for the first quarter are projected to be between $210 million and $220 million, ahead of estimates of $203 million [1] User Metrics - Global daily active uniques (DAUq) grew 19% year-over-year to 121.4 million, exceeding the expected 120 million [2] - U.S. DAUq increased by 9% year-over-year to 52.5 million, slightly above the projected 52.3 million [3] - Logged-in U.S. DAUq rose 5% year-over-year to 23 million, although this growth rate has slowed compared to the previous quarter [4] Strategic Initiatives - Reddit announced a $1 billion share repurchase program [2] - The CEO indicated plans to phase out the reporting of logged-in and logged-out user metrics later this year, as the distinction between these user types has become less relevant [6][7]

Company Overview - Reddit is set to report earnings with estimates of 96 cents for EPS on revenue of approximately $667.48 million [1] - The stock has experienced a significant decline, down over 30% in 2026 [1][3] Market Performance - Reddit has underperformed compared to the broader market, with the communication sector and S&P both up around 12-13% over the past year [3] - The company's revenue primarily comes from advertising, and recent earnings from Meta indicate a favorable environment for ad spending [3] Technical Analysis - Key price levels to watch include 150 and 178, which are identified as support and resistance points respectively [6][8] - The stock has crossed below its 251-day exponential moving average, currently near 183, indicating a bearish trend [9] - The RSI is at a low of 21.6%, suggesting the stock is oversold [9] Options Activity - There has been a slight increase in options activity, with a 1.73% sizzle relative to the 5-day options volume [11] - The expected move for February 20th is approximately ±19.5%, indicating a significant potential price movement [11] - A notable trade involved selling 500 puts at a 150 strike for a $12 credit, suggesting a possible opening position [12]

Social media stock Reddit Inc (NYSE:RDDT) is plummeting today, down 6.8% at $154.07 at last glance and trading at its lowest levels since July, after reports that CEO Steve Huffman sold $3.3 million in shares. The equity was already mired in an extended pullback before today, now pacing for its eighth-straight loss ahead of the company's fourth-quarter earnings report, due out after the close tomorrow, Feb. 5. Per Zacks Investment Research, Wall Street analysts anticipate profits of 96 cents per share on re ...