Reddit Q2 revenue forecast tops estimates with AI tools

Reddit forecast second quarter revenue of US$715 million to US$725 million on April 30, above analysts’ US$711.6 million estimate.

The company said AI tools are helping advertisers target users and manage campaigns.

It also projected adjusted EBITDA of US$285 million to US$295 million, above estimates of US$277.1 million.

Its shares rose about 3% in extended trading though they remain down about 35% this year.

First quarter revenue rose 69% to US$663 million, beating estimates of US$610.9 million, while daily active unique visitors increased 17% to 126.8 million.

Active advertiser count rose 75% from a year earlier, Reuters reported.

Reddit recently partnered with Shopify to let merchants advertise products on the platform.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Reddit’s AI business reaches past advertising

Reddit used AI to sharpen ad targeting and manage campaigns. It also brought in US$140 million in 2025 by licensing user posts and comments to train AI models 1.
That approach can feed itself. When AI tools cite Reddit for human viewpoints, more people may visit the platform and create more data for future licensing 1.
That wider AI push may help explain the 75% rise in active advertisers. Brands want access to a user base with distinct habits and active discussions about what to buy.
Internal research found that about 30% of Reddit users are not active on Facebook. That gives advertisers a group they may not reach easily elsewhere 2.

Human-created data is turning into a digital asset

Reddit’s results offer a model for other platforms built on user content. Their archives could become useful infrastructure for the AI industry 1.
A new way to value these companies is taking shape. They sell ads, and they can supply verified human data, which is scarce and useful for training large language models, the AI systems behind tools like ChatGPT 1.
This also puts pressure on traditional search engines. Platforms like Reddit can answer nuanced questions when many viewpoints matter 1.
Reddit’s stock has fallen 35% this year despite strong financial results. Investors still seem split on whether to value it mainly as a social media company or as an AI infrastructure provider 1.