Reddit reported its financial results for the second quarter of 2025, showing a 78% year-on-year increase in revenue to US$500 million.

Reddit is a US-based social media platform known for its online discussion forums.

The company’s daily active uniques (DAUq) rose 21% to 110.4 million.

Ad revenue surged 84% to US$465 million, while other revenue climbed 24% to US$35 million.

Reddit posted a net income of US$89 million and a gross margin of 90.8%, reversing last year’s loss.

Operating cash flow for the quarter stood at US$111 million.

The company had 206.6 million fully diluted shares outstanding as of June 30, 2025, a 0.3% increase from the prior quarter.

Reddit projects third-quarter revenue between US$535 million and US$545 million, with adjusted EBITDA expected to be US$185 million to US$195 million.

🔗 Source: Reddit

🧠 Food for thought

1️⃣ Reddit’s international expansion is reshaping its user base composition

Reddit’s growth story reveals a platform becoming increasingly global, with international users now representing 50.41% of daily active users compared to 49.59% from the US 1.

This shift represents a significant change from Reddit’s historically US-dominated user base, supported by the company’s machine translation capabilities across 23 languages and targeted expansion in markets like France and Brazil 2.

The international revenue growth of 71% year-over-year, while still trailing domestic growth of 79%, demonstrates meaningful progress in monetizing these global audiences 2.

This geographic diversification provides Reddit with multiple growth opportunities and reduces dependence on US advertising markets, particularly important given the platform’s heavy reliance on advertising for 98% of its revenue 1.

2️⃣ AI-driven advertising optimization is delivering measurable performance gains

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