Reddit hit with £14.5M fine as Q4 revenue jumps 70% to $726M
U.K. regulator levied a £14.47 million penalty on Reddit for failing to implement effective age checks and unlawfully processing children’s personal data. Q4 FY25 revenue climbed 70% year-over-year to $726 million with a 45% adjusted EBITDA margin, while the new AI-powered Reddit Max platform aims to boost ad conversion rates.
1. Regulatory Fine for Child Privacy Failures
The U.K. Information Commissioner’s Office imposed a £14.47 million fine after finding Reddit lacked robust age-verification and processed under-13 users’ data without adequate safeguards. Regulators cited reliance on self-declared ages and delayed data protection risk reviews as failures to meet children’s privacy requirements.
2. Strong Q4 FY25 Financial Results
Reddit reported Q4 FY25 revenue of $726 million, marking a 70% year-over-year increase driven by robust advertising demand and accelerating average revenue per user. The company achieved a 45% adjusted EBITDA margin, reflecting improved operational leverage and cost controls.
3. Launch of AI-Powered Reddit Max Platform
Reddit introduced Reddit Max, an AI-driven campaign management tool designed to streamline advertiser onboarding and optimize ad performance. The platform is expected to enhance targeting accuracy and boost conversion rates, supporting future ad revenue growth.