# Reddit, Inc. (RDDT) Q2 2025 Financial Results Summary
**Release Date:** July 31, 2025
Reddit, Inc. (NASDAQ: RDDT) has reported its financial results for the second quarter of 2025, ending June 30, showing significant growth and an improved profitability profile compared to the same quarter last year. Here’s a summary of the key financial metrics:
### Key Financial Metrics
– **Daily Active Users (DAUq):**
– Increased by **21%** year-over-year to **110.4 million**.
– **Revenue:**
– Total revenue grew by **78%** year-over-year to **$500 million**.
– Advertising revenue rose by **84%** year-over-year to **$465 million**.
– Other revenue categories grew by **24%** year-over-year to **$35 million**.
– **Gross Margin:**
– Expanded to **90.8%**, an improvement of **130 basis points** from the prior year.
– **Net Income:**
– Reported net income of **$89 million**, this reflects a notable turnaround from a net loss of **$(10 million)** in the same quarter last year.
– Net margin stands at **17.9%**, compared to -3.6% in Q2 2024.
– **Earnings Per Share (EPS):**
– Basic EPS reported at **$0.48**, while diluted EPS was **$0.45**, up from a loss of **$(0.06)** per share in the prior year.
– **Adjusted EBITDA:**
– Adjusted EBITDA reached **$167 million**, an increase of **$127 million** from last year, representing an adjusted EBITDA margin of **33.4%**, compared to **14.0%** in Q2 2024.
– **Operating Cash Flow:**
– Operating cash flow improved significantly to **$111 million**, up by **$83 million** compared to the previous year.
– **Free Cash Flow:**
– Free cash flow also stood at **$111 million**, marking an increase of **$84 million** year-over-year.
– **Shares Outstanding:**
– Total fully diluted shares outstanding were **206.6 million**, reflecting an increase of **0.3%** since the previous quarter.
### Revenue Breakdown
– **U.S. Revenue:**
– U.S. revenue grew by **79%** year-over-year to **$409 million**.
– **International Revenue:**
– International revenue increased by **71%** year-over-year to **$91 million**.
### Financial Position
– **Total Assets:**
– As of June 30, 2025, total assets amounted to **$2.632 billion**, an increase from **$2.337 billion** at the end of 2024.
– **Cash and Cash Equivalents:**
– Cash and cash equivalents were reported at **$734 million**, compared to **$562 million** at the end of 2024.
– **Total Liabilities:**
– Total liabilities increased slightly to **$245 million**, up from **$206 million** as of December 31, 2024.
### Cash Flow Details
– **Cash Flows from Operating Activities:**
– Increased from **$28 million** in Q2 2024 to **$111 million** in Q2 2025.
– **Cash Flows from Investing Activities:**
– Negative cash flows were reported at **$(2.1 million)** in the current quarter due to ongoing investment activities.
– **Cash Flows from Financing Activities:**
– Reported a cash outflow of **$(10.9 million)** in Q2 2025.
### Future Outlook
– **Revenue Guidance for Q3 2025:**
– Projected revenue is expected to be in the range of **$535 million to $545 million**.
– **Adjusted EBITDA Guidance for Q3 2025:**
– Estimated to be between **$185 million and $195 million**.
### Dividend and Share Repurchase
During the quarter, Reddit, Inc. did not declare a quarterly dividend or announce any share repurchase program.
In summary, Reddit’s Q2 2025 financial results demonstrate strong growth across all metrics, reflecting the company’s robust operational performance and significant recovery from the previous year. The company’s focus appears concentrated on sustainable growth and enhancing user engagement across its platform. For further details, please refer to Reddit’s official investor relations publications.
| Three months ended | June 30, 2025 | June 30, 2024 | Six months ended | June 30, 2025 | June 30, 2024 |
|---|---|---|---|---|---|
| Revenue | $ 499,627 | $ 281,184 | $ 891,988 | $ 524,147 | |
| Costs and expenses: | |||||
| Cost of revenue | 45,900 | 29,501 | 82,989 | 57,117 | |
| Research and development | 196,610 | 142,777 | 387,881 | 579,807 | |
| Sales and marketing | 120,619 | 71,458 | 211,304 | 195,553 | |
| General and administrative | 68,787 | 68,487 | 138,200 | 311,964 | |
| Total costs and expenses | 431,916 | 312,223 | 820,374 | 1,144,441 | |
| Income (loss) from operations | 67,711 | -31,039 | 71,614 | -620,294 | |
| Other income (expense), net | 21,147 | 20,724 | 41,681 | 35,278 | |
| Income (loss) before income taxes | 88,858 | -10,315 | 113,295 | -585,016 | |
| Income tax expense (benefit) | -439 | -216 | -2,160 | 149 | |
| Net income (loss) | $ 89,297 | $ -10,099 | $ 115,455 | $ -585,165 | |
| Net income (loss) per share attributable | |||||
| to Class A and Class B common stock | |||||
| Basic | $ 0.48 | $ -0.06 | $ 0.63 | $ -4.99 | |
| Diluted | $ 0.45 | $ -0.06 | $ 0.58 | $ -4.99 | |
| Weighted-average shares used to compute | |||||
| net income (loss) per share attributable | |||||
| to common stockholders | |||||
| Basic | 185,437,777 | 164,382,736 | 183,730,992 | 117,311,614 | |
| Diluted | 199,522,433 | 164,382,736 | 200,681,458 | 117,311,614 |
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $ 734,060 | $ 562,092 |
| Marketable securities | 1,325,881 | 1,278,717 |
| Accounts receivable, net | 407,228 | 349,534 |
| Prepaid expenses and other current | 62,761 | 33,058 |
| assets | ||
| Total current assets | 2,529,930 | 2,223,401 |
| Property and equipment, net | 11,394 | 12,652 |
| Operating lease right-of-use assets, net | 22,118 | 23,249 |
| Intangible assets, net | 20,469 | 25,424 |
| Goodwill | 42,174 | 42,174 |
| Other noncurrent assets | 6,117 | 9,695 |
| Total assets | $ 2,632,202 | $ 2,336,595 |
| Liabilities and stockholders’ equity (deficit) | ||
| Current liabilities | ||
| Accounts payable | $ 63,942 | $ 45,423 |
| Operating lease liabilities | 6,572 | 6,137 |
| Accrued expenses and other current | 140,317 | 124,464 |
| liabilities | ||
| Total current liabilities | 210,831 | 176,024 |
| Operating lease liabilities, noncurrent | 18,611 | 20,565 |
| Other noncurrent liabilities | 15,780 | 9,257 |
| Total liabilities | 245,222 | 205,846 |
| Commitments and contingencies | ||
| Stockholders’ equity (deficit): | ||
| Preferred stock | — | — |
| Class A common stock | 13 | 12 |
| Class B common stock | 5 | 5 |
| Class C common stock | — | — |
| Additional paid-in capital | 3,468,618 | 3,331,546 |
| Accumulated other comprehensive income | 3,727 | 24 |
| (loss) | ||
| Accumulated deficit | -1,085,383 | -1,200,838 |
| Total stockholders’ equity (deficit) | 2,386,980 | 2,130,749 |
| Total liabilities and stockholders’ | $ 2,632,202 | $ 2,336,595 |
| equity (deficit) |
