Reddit’s Q3 advertising revenue surges 74% YoY to $549 million

Reddit posted a strong set of third-quarter results, with both revenue and profitability showing sharp year-over-year gains.

Advertising revenue led the performance, rising 74% year-over-year to $549 million, while other revenue stood at $36 million, up 7% year-over-year. Total revenue reached $585 million, a 68% increase from the same period last year. The company attributed its ad growth to higher impressions and pricing, noting strength across the full funnel, with more than half of its top 15 industry verticals growing over 50% year-over-year.

Machine translation, now available in 30 languages, continued to be a major driver of international user growth. Total U.S. revenue grew 67% year-over-year, while international revenue jumped 74%, underscoring Reddit’s widening global footprint across objectives, verticals, and channels.

Reddit also achieved GAAP profitability, reporting net income of $163 million and a net margin of 28%, an improvement of $133 million from the prior year. Gross margin came in at 91.0%, up 90 basis points year-over-year. Adjusted EBITDA rose to $236 million, representing a 40% margin—an improvement of $142 million from the previous year.

Operationally, operating cash flow reached $185 million, up $114 million year-over-year, and free cash flow totaled $183 million, improving by $113 million. Capital expenditures were minimal at $2.1 million, accounting for just 0.4% of revenue. Reddit ended the quarter with $2.23 billion in cash, cash equivalents, and marketable securities as of September 30, 2025.

On the shareholder front, basic and diluted earnings per share were $0.87 and $0.80, respectively. Total fully diluted shares outstanding stood at 206.1 million, down 0.2% from the prior quarter and 0.1% from the prior year.

In terms of audience growth, Daily Active Uniques (DAUq) averaged 116 million, up 19% year-over-year, while Weekly Active Uniques (WAUq) averaged 443.8 million, an increase of 21%. Logged-in users grew 14%, while logged-out users rose 24% year-over-year. Regionally, U.S. DAUq grew 7%, and international DAUq surged 31%, reflecting the platform’s accelerating global reach.

In its Q3 2025 letter to shareholders, Reddit emphasized that its next phase of growth will center on search, international expansion, and diversified monetization.

“Search is one of our biggest opportunities because Reddit conversations are uniquely authentic, contextual, and helpful,” the company said, adding that it is investing in making Reddit a true search destination. During the quarter, over 75 million people searched on Reddit weekly, and that number continues to rise.

Reddit spotlighted the growth of Reddit Answers, which provides users with curated, community-powered insights that are often more useful than traditional web results. The feature has now been integrated into core search, expanded in visibility across conversations, and is being rolled out to non-English languages. “Our aim is to have a single, great search experience on Reddit,” the company stated.

On international growth, Reddit noted that its momentum continues to accelerate. Machine translation is now available in 30 languages and remains a major driver of top-of-funnel user growth outside the U.S. The company has also built a local content framework to identify top interests in each country — guiding partnerships, content, and marketing. This strategy, Reddit said, has been successful in India and is now being replicated in Australia, Brazil, Germany, and France.

Looking ahead, Reddit outlined its strategic priorities for 2026, which include:

Growing app users by improving the experience and retention.

Broadening user and community types across the U.S. and globally.

Diversifying top-of-funnel growth through organic, paid, and publisher-driven traffic sources.

Scaling ads and monetization formats for users and partners.

The company concluded by stating that it is focused on finishing the year strong while laying the foundation for a robust 2026.