Reddit (RDDT): Stock, Financials, Earnings & Company Overview

Quick Facts

What Is Reddit?

Reddit is a social media and discussion platform organized around thousands of user created communities called subreddits, each dedicated to a specific topic ranging from personal finance and gaming to niche hobbies and news. Members submit posts, comments, images, and videos, and other users vote content up or down, which determines what rises to the top of each community and the site wide front page.

Reddit brands itself as a network of communities built on shared interests, and it has grown into one of the largest repositories of authentic human conversation online. That scale has become a key selling point in the AI era, since large language model developers increasingly value real, unscripted text for training and for grounding chatbot answers with current, human generated context.

As a public company, Reddit, Inc. trades on the New York Stock Exchange under the ticker RDDT and reports quarterly financial results like any other publicly listed technology business.

Company History

Reddit traces its roots to the summer of 2005, when University of Virginia roommates Steve Huffman and Alexis Ohanian pitched a mobile food ordering idea to startup accelerator Y Combinator. After that concept was rejected, Y Combinator founder Paul Graham encouraged the pair to build something closer to a front page of the internet. The result was reddit.com, accepted into Y Combinator’s very first batch of startups.

Later that year the founders merged with Aaron Swartz’s company Infogami, and Swartz joined as an equal owner and contributor. In October 2006, Conde Nast Publications acquired Reddit for a sum reported to be between 10 million and 20 million dollars. The platform operated as a Conde Nast property before becoming an independent subsidiary of parent company Advance Publications in 2011.

The years that followed brought rapid growth alongside real growing pains, including leadership turnover and public controversy over content moderation. Huffman returned as chief executive in 2015 after an interim period led by Ellen Pao, and he has remained CEO since. Under his second stint, Reddit rebuilt its infrastructure, launched a modernized design and mobile apps, expanded internationally, and pursued new revenue lines including advertising and data licensing.

Reddit filed to go public in early 2024 and completed its initial public offering on March 21, 2024, pricing shares at 34 dollars and notably reserving a meaningful share allocation for long time users and volunteer moderators. Since the listing, the company has posted several consecutive quarters of profitability and accelerating revenue growth, marking a turnaround from years of losses as a private company.

Founders

Reddit is generally credited to two primary co-founders, Steve Huffman and Alexis Ohanian, who met as roommates at the University of Virginia and launched the site in June 2005 through Y Combinator. Aaron Swartz joined shortly afterward when his company Infogami merged with the fledgling site, and he is widely recognized as a third co-founder, though his direct involvement ended in 2007. Christopher Slowe, who joined as an early engineer in late 2005, later returned to Reddit and has served for years as chief technology officer.

• Steve Huffman: Co-founder, current chairman and chief executive officer. Left the company in 2009, co-founded travel site Hipmunk, and returned to lead Reddit again in 2015.
• Alexis Ohanian: Co-founder and former executive chairman. Stepped back from day to day operations years before the IPO and resigned from the board in 2020. He now runs venture firm Seven Seven Six and has since backed the relaunch of rival platform Digg.
• Aaron Swartz: Joined via the Infogami merger in late 2005 and contributed to early development before departing in 2007. Swartz later became known for his digital rights activism and passed away in 2013.
• Christopher Slowe: Early engineer who later rejoined as chief technology officer, overseeing the platform’s technical rebuild and mobile expansion.

CEO

Steve Huffman has served as Reddit’s chief executive officer since 2015, after returning to the company he co-founded a decade earlier. Under his leadership, Reddit rebuilt its core infrastructure, redesigned its consumer apps, launched a self serve advertising platform, expanded its international user base, and guided the company through its 2024 initial public offering.

Huffman has also positioned Reddit as a foundational data source for artificial intelligence, striking licensing agreements with major AI developers and publicly pushing for higher, usage based pricing on future contract renewals. His public statements frequently emphasize Reddit’s status as an archive of authentic, unscripted human conversation, a quality he argues is increasingly scarce and valuable as AI systems compete on the accuracy and freshness of their training data.

Other members of Reddit’s senior leadership team include Jen Wong as chief operating officer, Chris Slowe as chief technology officer, and Jim Squires as chief marketing officer.

Headquarters

Reddit, Inc. is headquartered in San Francisco, California, placing it firmly within the concentration of major internet and social media companies based in the San Francisco Bay Area. The company also maintains additional offices supporting its international operations, engineering teams, and advertising sales functions across other US cities and select overseas markets.

Business Segments

Reddit organizes its financial reporting into two primary revenue categories.

Advertising

Advertising is by far Reddit’s largest revenue segment, encompassing both brand advertising and performance advertising formats designed to drive direct actions such as purchases, app installs, or sign ups. In Q1 2026, company leadership noted that performance ads made up more than 60 percent of total advertising revenue, reflecting a broader shift toward measurable, direct response campaigns across Reddit’s ad funnel.

Other Revenue (Data Licensing)

Reddit’s other revenue line consists primarily of data licensing agreements, through which the company provides access to its user generated content for purposes including AI model training and search grounding. This segment is smaller than advertising in absolute dollars but has become strategically significant as Reddit negotiates higher value, usage based licensing terms with AI companies for future contract periods.

Products and Services

• Reddit platform and subreddits: The core product, a network of topic based communities supporting posts, comments, images, video, and community moderation by volunteer moderators.
• Reddit mobile apps and redesigned web experience: Native iOS and Android apps along with a modernized web interface, while a legacy old.reddit.com version remains available for users who prefer it.
• Reddit Ads and Reddit Max: A self serve advertising platform for brand and performance campaigns, plus Reddit Max, an AI powered automated bidding and campaign optimization tool that the company says has lowered cost per action for advertisers.
• Interactive and shoppable ad formats: Newer formats such as Interactive Ads, Collection Ads, and community or deal overlays, along with a dynamic product ads integration built with Shopify to streamline advertiser onboarding for e-commerce brands.
• Data licensing and API access: Commercial agreements that license Reddit’s content corpus to AI companies and other partners, alongside developer API access for third party applications.
• Reddit Premium: A subscription tier offering an ad reduced experience and other perks for individual users.

Revenue Breakdown

Reddit’s revenue mix remains heavily weighted toward advertising, with data licensing representing a smaller but fast growing complementary line. In the first quarter of 2026, advertising revenue totaled 625 million dollars against 39 million dollars of other revenue, meaning advertising accounted for roughly 94 percent of total revenue for the quarter.

Reddit revenue by segment, recent periods

Period	Advertising Revenue	Other Revenue	Total Revenue
Q1 2025	Approx. $358M	Approx. $34M	$392M
Q4 2025	Approx. $683M	Approx. $43M	$726M
Full Year 2025	Approx. $2.06B	Approx. $140M	$2.2B
Q1 2026	$625M	$39M	$663M

On a geographic basis, international revenue has been growing faster than the US business on a percentage basis, though the United States still generates the majority of total dollars and by far the highest revenue per user.

Financial Performance

Reddit has now strung together multiple consecutive quarters of revenue growth above 60 percent year over year along with sustained profitability, a notable shift from its history of losses as a private company. Full year 2025 revenue reached 2.2 billion dollars, up 69 percent from the prior year, with net income of 530 million dollars, equal to 24 percent of revenue.

Key Reddit financial metrics, Q1 2026 versus Q1 2025

Metric	Q1 2026	Q1 2025	Change
Total Revenue	$663 million	$392 million	+69%
Advertising Revenue	$625 million	$359 million	+74%
Net Income	$204 million	$26 million	+684%
Diluted EPS	$1.01	$0.13	+677%
Adjusted EBITDA	$266 million	~$115 million	+131%
Operating Cash Flow	$312 million	~$127 million	+145%
Global DAUq	126.8 million	108.1 million	+17%

Beyond user growth, average revenue per user (ARPU) has climbed meaningfully. In Q1 2026, global ARPU reached 5.23 dollars, a 44 percent increase year over year, while US ARPU hit 9.63 dollars, up 54 percent, reflecting stronger ad pricing and deeper advertiser participation rather than user growth alone. Reddit’s board authorized a 1 billion dollar share repurchase program in February 2026, signaling confidence in the durability of its cash generation.

Stock Information

Reddit shares began trading on the New York Stock Exchange on March 21, 2024, under the ticker symbol RDDT, with the IPO priced at 34 dollars per share. The stock has been notably volatile since listing, at times moving more than 5 percent in a single session dozens of times over a twelve month span, largely in reaction to earnings surprises, AI licensing headlines, and shifting sentiment toward high growth internet advertising names.

RDDT trading snapshot, July 2026

Metric	Approximate Value
Recent Share Price	$190 to $198
52 Week High	$282.95
52 Week Low	$119.27
Market Capitalization	Roughly $37 to $38 billion
Trailing P/E Ratio	Around 55
Annual EPS	Around $2.62
Beta	Around 2.1, indicating high volatility relative to the broader market
Exchange	New York Stock Exchange

Wall Street sentiment toward RDDT has generally leaned positive. Multiple sell side analysts carry Buy or equivalent ratings, with published twelve month price targets that have ranged from roughly 200 dollars to 300 dollars depending on the firm and timing of the note. Reddit’s next quarterly earnings report is expected in the second half of 2026, and management has guided second quarter revenue toward the 715 to 725 million dollar range.

Dividends

Reddit does not currently pay a dividend to shareholders. Like most growth stage technology companies, Reddit has chosen to reinvest its cash flow into product development, AI data licensing initiatives, international expansion, and its 1 billion dollar share buyback program rather than distribute income directly to investors. Investors seeking income through dividends would typically need to look elsewhere, while those focused on capital appreciation and reinvestment driven growth may find Reddit’s current capital allocation approach more aligned with their goals.

Competitors

Reddit competes broadly for both user attention and advertising dollars against a wide range of social media, search, and content discovery platforms.

• Meta Platforms (Facebook, Instagram, Threads): Meta has launched features and standalone products aimed more directly at forum style, community based discussion, competing for some of the same engagement Reddit relies on.
• Alphabet (Google, YouTube): Competes for both advertising budgets and search style discovery traffic, while also serving as one of Reddit’s data licensing partners.
• Pinterest: A similarly sized public social platform competing for performance advertising budgets, often benchmarked against Reddit by investors comparing growth and margin profiles.
• Snap Inc.: Competes for younger user attention and a share of digital advertising spend.
• X (formerly Twitter): Overlaps with Reddit in real time discussion and news commentary use cases.
• TikTok (ByteDance): Competes heavily for daily user attention and time spent, particularly among younger demographics.
• Discord and Quora: Compete more directly in community, chat, and question and answer formats.
• Bluesky and Digg: Smaller, newer entrants in the decentralized and relaunched forum discussion space, with Digg notably relaunched in 2025 and 2026 by original founder Kevin Rose alongside Reddit co-founder Alexis Ohanian.

Recent News

• AI data licensing leverage: Reddit is pushing Google and OpenAI toward higher, usage based dynamic pricing for licensing renewals expected in 2027, building on existing agreements reported to be worth roughly 50 to 60 million dollars annually each.
• Shopify integration: Reddit announced an integration with Shopify designed to streamline advertiser onboarding and scale its e-commerce advertising ecosystem, alongside new dynamic product ad formats.
• Meta competition: Shares fell around 6 percent in May 2026 after Meta launched a standalone app aimed at online forum style discussion, seen by investors as a direct competitive threat to Reddit’s core use case.
• Reddit v. Anthropic litigation: Reddit filed a lawsuit against AI company Anthropic in the Northern District of California, alleging that Anthropic scraped and used large volumes of Reddit’s user generated content to train its Claude models without a licensing agreement, in what Reddit’s complaint frames as a breach of its terms of service rather than a copyright claim. The case remains an important test of how AI companies must compensate platforms for training data going forward.
• Share buyback program: The Reddit board authorized a 1 billion dollar Class A share repurchase program alongside its fourth quarter 2025 earnings report.
• Continued profitability streak: Reddit has now posted multiple consecutive profitable quarters since its 2024 IPO, a milestone that has helped shift investor perception of the company from a speculative growth story toward a more established, cash generating internet business.

Frequently Asked Questions

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