Reddit Q4 Revenue Soars 70%, Analysts Lift Targets to $300
Reddit’s Q4 2025 revenue rose 70% to $725.6M, with adjusted EBITDA up 112% to $327M and EPS at $1.72, driven by 75% ad revenue growth and 18% user growth. Needham and Truist held Buy ratings and raised price targets to $300 and $275.
1. Q4 2025 Financial Performance
Reddit reported Q4 2025 revenues of $725.6 million, a 70% increase year-over-year, driven by a 75% surge in advertising revenue. Adjusted EBITDA rose 112% to $327 million and non-GAAP EPS climbed 99% to $1.72, fueled by a 44% ARPU increase and 18% user growth.
2. Analyst Ratings and Price Targets
Needham reiterated a Buy rating and set a $300 price target on Reddit, citing rapid margin expansion, execution excellence, and optional upside from large language model licensing. Truist also maintained a Buy rating, boosting its target to $275 and highlighting the platform’s deep human-created content moat.
3. Jim Cramer Endorsement
Jim Cramer praised Reddit’s advertising value proposition, noting low rates and precise targeting for campaigns while emphasizing its rich user-data store for AI applications. He said he wished he could buy shares for his charitable trust, underscoring confidence despite a 38% year-to-date share decline.
4. Shirofune Reddit Ads Integration
Shirofune rolled out a Reddit ads integration for U.S. advertisers, automating budgeting, bidding, and optimization alongside other major channels. The solution aims to tap high-intent community segments and streamline omnichannel campaign management for brands and agencies.