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Reddit Q4 Earnings Beat Estimates, Revenues Up Y/Y, Shares Rise
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Key Takeaways
RDDT beat Q4 earnings estimates as revenues surged 69.7% year over year, lifting shares in premarket trading.
Reddit's advertising revenues jumped 75% year over year, driving most of the quarter's top-line growth.
RDDT saw DAUq rise 19% year over year, fueled by faster growth in international users and engagement.
Reddit (RDDT - Free Report) reported fourth-quarter 2025 earnings of $1.24 per share, which beat the Zacks Consensus Estimate by 29.30%. The company reported earnings of 36 cents per share in the year-ago quarter.
Revenues of $725.6 million surpassed the Zacks Consensus Estimate by 8.71%. The reported figure surged 69.7% year over year.
RDDT shares gained 7.60% in the pre-market trading after the company delivered impressive fourth-quarter results.
RDDT’s Q4 Top-Line & Metrics in Detail
For the reported quarter, U.S. revenues (contributing 80% to revenues) surged 67.8% year over year to $583.3 million. International revenues (20% of revenues) soared 77.9% year over year to $142.3 million.
Advertising revenues surged 75% year over year to $690 million, and Other revenues increased 8% year over year to $36 million.
Daily Active Uniques (DAUq) jumped 19% year over year to 121.4 million. U.S. DAUq increased 9% year over year to 52.5 million, whereas International DAUq grew 28% year over year to 68.9 million.
Weekly Active Uniques (WAUq) rose 24% year over year to 471.6 million. U.S. WAUq increased 12% year over year to 193.4 million, whereas International WAUq climbed 34% year over year to 278.2 million.
Average revenue per unique (ARPU) increased 42% year over year to $5.98. U.S. ARPU increased 53% year over year to $10.79, whereas International ARPU climbed 38% on a year-over-year basis to $2.31.
RDDT Operating Details
Reddit reported a GAAP gross margin of 91.9%, contracting 70 bps on a year-over-year basis.
Sales and marketing expenses increased 103.5% year over year to $163.9 million. Research and development expenses rose 5.4% year over year to $198.9 million, while General and Administrative expenses decreased 2% year over year to $72.3 million.
Fourth-quarter 2025 adjusted EBITDA was $327 million, up from $154.3 million reported in the year-ago quarter. In the reported quarter, the adjusted EBITDA margin was 45.1%.
RDDT’s Balance Sheet & Cash Flow
As of Dec. 31, 2025, Reddit had cash and cash equivalents, including marketable securities, of $2.47 billion compared with $2.22 billion as of Sept. 30, 2025.
In the fourth quarter, the company generated $269 million in cash from operating activities compared with $185 million in the previous quarter. Reddit reported a free cash flow of $263.6 million compared with $183 million in the previous quarter.
Reddit Initiates Q1 Guidance
For the first quarter of 2026, RDDT expects revenues between $595 million and $605 million.
RDDT expects adjusted EBITDA between $210 million and $220 million for the first quarter.
Zacks Rank & Stocks to Consider
Currently, Reddit carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Zacks Computer and Technology sector include Arista Networks (ANET - Free Report) , Advanced Energy (AEIS - Free Report) , and Amkor Technology (AMKR - Free Report) . While Amkor Technology sports a Zacks Rank #1 (Strong Buy), Arista Networks and Advanced Energy carry a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Arista Networks have gained 6.1% in the trailing six-month period. Arista Networks is set to report fourth-quarter 2025 results on Feb. 12
Shares of Advanced Energy have surged 82.1% in the trailing six-month period. Advanced Energy is slated to report fourth-quarter 2025 results on Feb. 10.
Amkor Technology shares have surged 97.6% in the trailing six-month period. Amkor Technology is set to report fourth-quarter 2025 results on Feb. 9.
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Reddit Q4 Earnings Beat Estimates, Revenues Up Y/Y, Shares Rise
Key Takeaways
Reddit (RDDT - Free Report) reported fourth-quarter 2025 earnings of $1.24 per share, which beat the Zacks Consensus Estimate by 29.30%. The company reported earnings of 36 cents per share in the year-ago quarter.
Revenues of $725.6 million surpassed the Zacks Consensus Estimate by 8.71%. The reported figure surged 69.7% year over year.
RDDT shares gained 7.60% in the pre-market trading after the company delivered impressive fourth-quarter results.
RDDT’s Q4 Top-Line & Metrics in Detail
For the reported quarter, U.S. revenues (contributing 80% to revenues) surged 67.8% year over year to $583.3 million. International revenues (20% of revenues) soared 77.9% year over year to $142.3 million.
Reddit Inc. Price, Consensus and EPS Surprise
Reddit Inc. price-consensus-eps-surprise-chart | Reddit Inc. Quote
Advertising revenues surged 75% year over year to $690 million, and Other revenues increased 8% year over year to $36 million.
Daily Active Uniques (DAUq) jumped 19% year over year to 121.4 million. U.S. DAUq increased 9% year over year to 52.5 million, whereas International DAUq grew 28% year over year to 68.9 million.
Weekly Active Uniques (WAUq) rose 24% year over year to 471.6 million. U.S. WAUq increased 12% year over year to 193.4 million, whereas International WAUq climbed 34% year over year to 278.2 million.
Average revenue per unique (ARPU) increased 42% year over year to $5.98. U.S. ARPU increased 53% year over year to $10.79, whereas International ARPU climbed 38% on a year-over-year basis to $2.31.
RDDT Operating Details
Reddit reported a GAAP gross margin of 91.9%, contracting 70 bps on a year-over-year basis.
Sales and marketing expenses increased 103.5% year over year to $163.9 million. Research and development expenses rose 5.4% year over year to $198.9 million, while General and Administrative expenses decreased 2% year over year to $72.3 million.
Fourth-quarter 2025 adjusted EBITDA was $327 million, up from $154.3 million reported in the year-ago quarter. In the reported quarter, the adjusted EBITDA margin was 45.1%.
RDDT’s Balance Sheet & Cash Flow
As of Dec. 31, 2025, Reddit had cash and cash equivalents, including marketable securities, of $2.47 billion compared with $2.22 billion as of Sept. 30, 2025.
In the fourth quarter, the company generated $269 million in cash from operating activities compared with $185 million in the previous quarter. Reddit reported a free cash flow of $263.6 million compared with $183 million in the previous quarter.
Reddit Initiates Q1 Guidance
For the first quarter of 2026, RDDT expects revenues between $595 million and $605 million.
RDDT expects adjusted EBITDA between $210 million and $220 million for the first quarter.
Zacks Rank & Stocks to Consider
Currently, Reddit carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Zacks Computer and Technology sector include Arista Networks (ANET - Free Report) , Advanced Energy (AEIS - Free Report) , and Amkor Technology (AMKR - Free Report) . While Amkor Technology sports a Zacks Rank #1 (Strong Buy), Arista Networks and Advanced Energy carry a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Arista Networks have gained 6.1% in the trailing six-month period. Arista Networks is set to report fourth-quarter 2025 results on Feb. 12
Shares of Advanced Energy have surged 82.1% in the trailing six-month period. Advanced Energy is slated to report fourth-quarter 2025 results on Feb. 10.
Amkor Technology shares have surged 97.6% in the trailing six-month period. Amkor Technology is set to report fourth-quarter 2025 results on Feb. 9.