Reddit reported a 111% year-over-year increase in web visits, making it the fastest-growing platform in social media advertising according to LikeFolio data. This surge positions Reddit as a burgeoning player alongside established peers, with digital ad impressions rising by an estimated 85% in 2025 as marketers reallocate budgets to reach its highly engaged communities.

In the fourth quarter, Reddit delivered earnings per share of $1.24, surpassing the Zacks Consensus Estimate of $0.96 and more than tripling the $0.36 earned in the year-ago period. Revenue climbed 70% year-over-year to $726 million, outpacing LSEG’s forecast of $665 million. Net profit jumped to $252 million from $71 million a year earlier.

Weekly active users of Reddit’s search feature grew from 60 million to 80 million over the past year, while adoption of Reddit’s AI-powered Answers expanded from 1 million in Q1 2025 to 15 million by Q4. Non-ad revenue, including content licensing for AI training, contributed $36 million in the quarter (up 8% year-over-year) and $140 million for full-year 2025 (up 22%).

Reddit provided first-quarter revenue guidance of $595 million to $605 million, above consensus of $577 million, and projected adjusted profit of $210 million to $220 million versus StreetAccount’s $203 million. The company also announced a $1 billion share repurchase authorization, underscoring confidence in cash flow generation and long-term growth prospects.