On January 12, 2026, Evercore ISI launched its first formal analyst coverage of Reddit, assigning an “Outperform” rating. The firm highlighted Reddit’s transformation into a high-growth digital advertising platform, noting that its proprietary AI-driven ad tools and data licensing agreements have positioned the company to capture market share from larger incumbents. Evercore ISI’s positive outlook underscores confidence in Reddit’s ability to sustain strong revenue momentum and expand margins over the next several quarters.

In Q3 2025, Reddit reported revenues of $585 million, representing a 68% year-over-year increase. Advertising revenue, the company’s primary growth engine, jumped by 74% to $549 million. This surge was driven by the roll-out of enhanced targeting capabilities, AI-powered creative optimization and new self-serve ad formats that have resonated with major brand advertisers. Reddit’s ad business now accounts for over 90% of total revenues, reflecting the platform’s growing appeal to marketers seeking engaged, niche audiences.

Reddit’s community engagement metrics continued to climb, with average daily active users reaching 116 million and weekly active users hitting 444 million—both up approximately 20% year-over-year. Management pointed to ongoing improvements in recommendation algorithms, new community moderation tools and international localization efforts as key drivers of this engagement growth. For Q4, the company guided revenues to a range of $655 million to $665 million, signaling sustained top-line acceleration as it scales ad monetization globally and expands data licensing partnerships with major technology firms.