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Communication Services · NYSE: RDDT

Reddit: how the business works

Reddit runs a website and app of more than 100,000 active communities and sells ads on them. FY2025 revenue was $2.20 billion.

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Reddit, Inc. · San Francisco, California · Founded 2005

Last updated

Revenue, FY2025
$2.20B
Net income, FY2025
$529.7M
Daily users, Q3 FY2026 (Reddit's own measure)
130.3 million
Employees, Dec 31, 2025
2,555
Steven Huffman's share of votes, Sep 30, 2026
About 75%

For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

The short version

Reddit in 5 points

  1. 1 · What it sells

    Reddit sells ads inside its website and app of more than 100,000 active communities, plus licenses to use its content, with $2,202.5 million of revenue in FY2025.

    More: what it sells

  2. 2 · Who pays it

    In FY2025, advertisers paid 93.6% of Reddit's revenue, and content licensing partners plus users buying products paid the other 6.4%.

    More: who pays it

  3. 3 · What it keeps from $100

    Of every $100 that came in during FY2025, Reddit kept $23.1 as net income, which includes $86.7 million of other income, mostly interest; its operating income was $442.0 million, or $20.07 per $100 of revenue.

    More: what it keeps from $100

  4. 4 · Where the operating profit comes from

    Reddit reports one segment and does not split profit by product, so its $442.0 million of FY2025 operating income comes from a business where ads were 93.6% of revenue.

    More: where the operating profit comes from

  5. 5 · The one thing to watch

    In Q3 FY2026, Reddit's revenue rose 53% from a year earlier, while its 130.3 million daily users were flat on the prior quarter.

    More: the one thing to watch

Sources: From Reddit's FY2025 10-K, Q3 FY2026 10-Q and Q3 FY2026 earnings release · checked

See the full receipt and the management scorecard below

Sources (3)
Next: Where $100 goes

01Where the money goes · FY2025

Where does $100 of Reddit's money go?

Of every $100 that came in (revenue plus other income), this is where it went.

Reddit · FY2025

Receipt for every $100

Where $100 of Reddit's money went in FY2025
Research and development$34.2
Sales and marketing$22.0
General and administrative$12.2
Running the site and apps$8.5
Kept as profit$23.1
Total$100

Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.

How this is worked out

Cityfort calculation from FY2025 10-K. Of every $100 that came in during FY2025 (revenue $2,202.5 million + other income $86.7 million = $2,289.2 million). Each line = line ÷ total money in × 100. Costs are grouped by function as Reddit reports them, so stock-based pay sits inside each line. Income tax was a $1.0 million benefit, about $0.05, so it has no line. Net income was $23.1 per $100 that came in. Measured on revenue alone, operating income was $20.07 per $100 and net income $24.05.

Sources (1)
Next: The business in one line

Each week: one company explained in 5 points, picked by earnings date.

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02The business in one line

What does Reddit do?

Advertisers pay Reddit to reach the people who use its communities; research and development takes the most, and about $23 of every $100 was profit in FY2025.

  • In FY2025 advertising brought in $2,062.5 million, 93.6% of revenue. Content licensing and products sold to users made up the rest.
  • Reddit made a net loss every year from FY2022 to FY2024, then net income of $529.7 million in FY2025.
Next: Who pays it

03Who pays it

Who pays Reddit?

  • Advertisers

    94%

    of revenue

    Businesses of all sizes that pay to reach Reddit's users. They have no long-term commitments.

  • Content licensing partners and users

    6%

    of revenue

    Other revenue: companies that license Reddit's content, plus users buying products such as Reddit Premium. Reddit does not split the two in numbers.

  • Advertisers94%
  • Content licensing partners and users6%

How spread out the customers are

Reddit's top ten advertisers gave about 21% of FY2025 revenue, down from about 25% in FY2024. Substantially all of its licensing contract value comes from two partners, which the filings used here do not name.

Top 10 customers
21%
Sources (1)
Next: Why it makes money

04Why it makes money

Why does Reddit make money?

Reddit keeps $91.2 of each $100 of revenue after hosting and ad-delivery costs, so revenue growth can reach profit

From FY2023 to FY2025 revenue rose from $804.0 million to $2,202.5 million, while total costs rose from $944.2 million to $1,760.5 million. Operating income per $100 of revenue reached $20.07 in FY2025 and $29.2 in Q3 FY2026 (Cityfort calculation from the FY2025 10-K and Q3 FY2026 earnings release). US revenue per daily user was $13.82 in Q3 FY2026, up 53%.

Operating income per $100 of revenue

−$17.4$20.1

FY2023 to FY2025

  1. People join communities and post
  2. Conversations draw more readers, many through search
  3. Advertisers pay to appear beside related topics
  4. Revenue grows faster than total costs
  5. Profit and cash pay for engineers and marketing
  6. Marketing and new features aim to bring in more users

↺ Step 6 feeds back into step 1.

Sources (1)
Next: Business segments

05Business segments · FY2025

Which businesses make up Reddit?

  • Advertising

    94%

    Reddit reports one business segment; this is a revenue line within it, with no separate profit. It was $847.0 million in Q3 FY2026, up 54% from a year earlier.

    Revenue $2.1B

  • Other revenue

    6%

    Also a revenue line, not a segment: content licensing and products sold to users. It was $48.0 million in Q3 FY2026, up 35% from a year earlier.

    Revenue $140M

How the mix changed

  • Advertising
  • Other revenue

Revenue by segment, FY2022 to FY2025.

US$

See the numbers
How the mix changed (US$)
YearAdvertisingOther revenue
FY2022$653M$14.1M
FY2023$789M$15.2M
FY2024$1.2B$115M
FY2025$2.1B$140M
Sources (3)
Next: How has it done

06The numbers · Consolidated · US$

How has Reddit done?

Revenue

$2.2BFY2025

Revenue grew every year from $666.7 million in FY2022 to $2,202.5 million in FY2025, and reached $895.0 million in Q3 FY2026, up 53% from a year earlier.

US$

See the numbers
Revenue (US$)
PeriodRevenue (US$)
FY2022$667M
FY2023$804M
FY2024$1.3B
FY2025$2.2B
Q4 FY2024$428M
Q1 FY2025$392M
Q2 FY2025$500M
Q3 FY2025$585M
Q4 FY2025$726M
Q1 FY2026$663M
Q2 FY2026$805M
Q3 FY2026$895M

Net profit

$530MFY2025

Reddit made a net loss every year from FY2022 to FY2024; the FY2024 loss of $484.3 million included a stock-pay catch-up at the March 2024 IPO.

US$

See the numbers
Net profit (US$)
PeriodNet profit (US$)EPS ($)
FY2022−$159M−$2.77
FY2023−$90.8M−$1.54
FY2024−$484M−$3.33
FY2025$530M$2.62
Q4 FY2024$71M$0.36
Q1 FY2025$26.2M$0.13
Q2 FY2025$89.3M$0.45
Q3 FY2025$163M$0.80
Q4 FY2025$252M$1.24
Q1 FY2026$204M$1.01
Q2 FY2026$253M$1.25
Q3 FY2026$283M$1.40

Profit kept per $100 of revenue

$24.1FY2025

Reddit kept $24.05 of net income per $100 of revenue in FY2025, after a $37.25 loss in FY2024; stock-based pay was $343.2 million, 15.6% of FY2025 revenue.

$ of profit per $100 of revenue (net margin)

See the numbers
Profit kept per $100 of revenue ($ of profit per $100 of revenue (net margin))
YearNet marginEBITDA margin
FY2022−23.8%−24.6%
FY2023−11.3%−15.7%
FY2024−37.2%−41.9%
FY202524.1%20.8%

Free cash flow

$684MFY2025

Free cash flow rose from a negative $100.3 million in FY2022 to $684.2 million in FY2025, with $6.7 million spent on property and equipment.

US$ · cash from operations minus spending on plants and equipment

See the numbers
Free cash flow (US$ · cash from operations minus spending on plants and equipment)
YearCash from operationsCapital spendingFree cash flow
FY2022−$94M$6.2M−$100M
FY2023−$75.1M$9.7M−$84.8M
FY2024$222M$6.2M$216M
FY2025$691M$6.7M$684M
See all yearly numbers
Reddit annual financials, FY2022–FY2025, US$
YearRevenueEBITDANet profitEPS ($)Operating cashCapexFree cash
FY2022$667M−$164M−$159M−$2.77−$94M$6.2M−$100M
FY2023$804M−$127M−$90.8M−$1.54−$75.1M$9.7M−$84.8M
FY2024$1.3B−$545M−$484M−$3.33$222M$6.2M$216M
FY2025$2.2B$458M$530M$2.62$691M$6.7M$684M

EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (Fiscal year ends on Dec 31 (Reddit's fiscal year is the calendar year)). Net profit is the share belonging to the company's owners.

Learn: Fiscal years that don't end in December: Nvidia's FY2027 explained · Stock-based compensation and dilution: pay that becomes shares

Sources (10)
Next: What they said, and what happened

07Who runs it

Who runs Reddit, and did they deliver?

  • Steven Huffman

    Co-founder, chief executive officer and president · since 2015

    CEO since July 2015. Pay was $3,101,009 in 2025 and $193,249,486 in 2023, when stock and option awards were $192.1 million. The median employee earned $274,953 in 2025.

  • Jennifer Wong

    Chief operating officer · since 2018

    COO since April 2018. Held 1.6% of Class A in the 2026 proxy table.

  • Andrew Vollero

    Chief financial officer · since 2021

    CFO since March 2021.

What they said, and what happened

2 delivered · 2 too early to tell · 1 withdrawn

  1. Said on Apr 30, 2026

    Q2 FY2026 revenue of $715–725 million.

    What happened

    Q2 FY2026 revenue was $804.9 million, above the top of the range.

    Delivered

  2. Said on Jul 30, 2026

    Q3 FY2026 revenue of $860–870 million.

    What happened

    Q3 FY2026 revenue was $895.0 million, above the top of the range. Revenue beat the top of the range in all ten quarters from Q2 FY2024 to Q3 FY2026.

    Delivered

  3. Said on Oct 29, 2026

    Q4 FY2026 revenue of $1,000–1,030 million.

    What happened

    Q4 FY2026 results have not been reported.

    Too early to tell

  4. Said on Feb 5, 2026

    Reddit's Feb 5, 2026 letter said it planned to phase out reporting logged-in and logged-out daily users "later this year". Its FY2025 10-K, filed Feb 6, 2026, said this would begin in the quarter ended Sep 30, 2026.

    What happened

    The Q3 FY2026 10-Q kept reporting them for that quarter, citing volatility in referral traffic.

    Withdrawn

  5. Said on Oct 29, 2026

    Reddit said it would begin fully testing a logged-in-only experience in select markets outside the U.S. in Q4 FY2026.

    What happened

    Q4 FY2026 has not been reported.

    Too early to tell
Sources (16)
Next: What could go wrong

08What could go wrong

What could go wrong for Reddit?

  • Technology

    Fewer visitors from search engines

    Reddit says third-party search changes "have adversely affected our DAUq growth in the current quarter". Its Oct 29, 2026 letter says October search referrals fell by more than 1 million a week on average. US daily users fell 5% on the prior quarter in Q3 FY2026.

    Watch Total daily users in Q4 FY2026, against 130.3 million in Q3.

  • Competition

    AI tools answer questions without a visit

    Reddit says AI features from Google, Meta, OpenAI and Anthropic may give users answers without visiting Reddit, including tools trained on Reddit's content. It also names AI agents and unauthorized scraping as risks.

    Watch Logged-out daily users (76.8 million in Q3 FY2026), if Reddit keeps reporting them.

  • Concentration

    Almost all revenue comes from ads

    Advertising was 93.6% of FY2025 revenue. The top ten advertisers gave about 21%, and advertisers have no long-term commitments.

    Watch Advertising revenue growth (+54% in Q3 FY2026) and what Reddit says about pricing.

  • Concentration

    Licensing deals near the end of their terms

    Substantially all licensing contract value comes from two partners. Reddit's Q3 FY2026 10-Q says those agreements are approaching the end of their current terms, and that its existing licensing agreements may be terminated or not renewed by its partners. Its FY2025 10-K said the two partners' arrangements may not be renewed, or may be renewed on less favorable terms. Remaining performance obligationsSigned contracts with customers that have not been billed yet. fell to $62.4 million from $143.7 million in nine months.

    Watch Any renewal filing, and other revenue each quarter ($48.0 million in Q3 FY2026).

  • Governance

    One person controls the votes

    Class B shares carry ten votes each. Under a voting agreement, Steven Huffman could vote approximately 75% of voting power on Sep 30, 2026, with certain exceptions. Advance can also designate two directors.

    Watch Class B conversions, which reduce the class's share of votes.

  • Execution

    Larger cloud commitments

    In 2026 Reddit committed $880.0 million to Amazon Web Services and $580.0 million to Google Cloud through 2029. Cost of revenue was $75.8 million in Q3 FY2026.

    Watch Cost of revenue per $100 of revenue each quarter.

  • Execution

    Dependence on volunteers and users

    Reddit's FY2025 10-K says it depends on volunteer moderators and on content from users. Moderators enforce each community's own rules.

    Watch Logged-in daily users (53.5 million in Q3 FY2026).

  • Legal

    Securities lawsuit over search statements

    A class action filed in June 2025 alleges false or misleading statements and omissions about the impact of Google Search and its AI Overviews feature. A second amended complaint was filed on Oct 23, 2026, after the court dismissed the earlier one with leave to amend. The outcome is uncertain.

    Watch Any motion to dismiss, due by Nov 23, 2026, and the court's ruling.

Sources (5)
Next: Supporters vs. critics

09Both sides

What do supporters and critics point to?

Facts each side points to. We don't say which side is right.

What supporters point to

  • Revenue grew 69% in FY2025 and 53% in Q3 FY2026, when it reached $895.0 million.
  • Operating income was $29.2 per $100 of revenue in Q3 FY2026, up from $23.7 a year earlier.
  • Revenue came in above the top of Reddit's range in all ten quarters from Q2 FY2024 to Q3 FY2026.
  • US revenue per daily user rose 53% in Q3 FY2026 to $13.82, and international daily users grew 24%.
  • Reddit had no borrowings and $3,033.4 million of cash and marketable securities on Sep 30, 2026.

What critics point to

  • Reddit said on Oct 29, 2026 that total daily users could fall by a low-double-digit percentage in Q4 if October's decline in search traffic continues.
  • US daily users fell 2% from a year earlier in Q3 FY2026, to 50.7 million.
  • Advertising was 93.6% of FY2025 revenue, and advertisers have no long-term commitments.
  • Licensing agreements with two partners are approaching the end of their terms, and remaining performance obligations fell to $62.4 million.
  • Steven Huffman could vote approximately 75% of voting power on Sep 30, 2026, and a securities class action alleges false or misleading statements and omissions about the impact of Google Search and its AI Overviews.
Next: What to watch next

10What to watch next

What should you watch next at Reddit?

Next event

Q4 FY2026 results

Date not announced yet.

  • Daily users

    Total daily users against 130.3 million in Q3 FY2026, and whether Reddit's Oct 29, 2026 statement about a possible low-double-digit fall is borne out.

  • Q4 FY2026 revenue

    Reported revenue against Reddit's estimate of $1,000–1,030 million, given on Oct 29, 2026.

  • The logged-in test

    What Reddit reports from its Q4 tests of a logged-in-only experience in select markets outside the U.S.

  • Licensing renewals

    Whether Reddit reports renewals with its two main licensing partners, and remaining performance obligations against $62.4 million.

  • The securities lawsuit

    Any motion to dismiss the second amended complaint is due by Nov 23, 2026.

Next: Key facts

11Key facts

Key facts about Reddit

What does Reddit do?
Reddit, Inc. runs a website and mobile apps with over 100,000 active communities, called subreddits, where people post and comment on shared interests. Reddit counted an average of 130.3 million daily users in Q3 FY2026 (the quarter to Sep 30, 2026), using its own measure, daily active uniques.
How does Reddit make money?
Reddit makes most of its money by selling ads. In FY2025 (the year to Dec 31, 2025) advertising brought in $2,062.5 million, 93.6% of Reddit's total revenue of $2,202.5 million. The other $140.0 million came from content licensing and products sold directly to users.
What is Reddit's business model?
Reddit's business model is to host community conversations and sell advertisers access to the people reading them. Reddit states a gross margin of 91.2% for FY2025, so it kept $91.2 of each $100 of revenue after cost of revenue. Research and development ($783.1 million) was its largest cost.
Who are Reddit's customers?
Reddit's customers are mainly advertisers, who gave 93.6% of FY2025 revenue and have no long-term commitments. Reddit's top ten advertisers gave about 21% of FY2025 revenue. Customers billed in the United States gave 81.1% of Reddit's FY2025 revenue.
How big is Reddit?
Reddit had revenue of $2,202.5 million and net income of $529.7 million in FY2025, and 2,555 employees on Dec 31, 2025. Revenue for the 12 months to Sep 30, 2026 was $3,088.9 million (Cityfort calculation from the Q4 FY2025 and Q3 FY2026 earnings releases).
Is Reddit profitable?
Reddit was profitable in FY2025, with operating income of $442.0 million and net income of $529.7 million. Reddit made net losses in FY2022, FY2023 and FY2024; the FY2024 net loss was $484.3 million. In Q3 FY2026 Reddit's net income was $283.3 million.
What is Reddit's revenue by segment?
Reddit reports one segment, so it gives no segment revenue or segment profit. By source, Reddit's FY2025 revenue was $2,062.5 million from advertising and $140.0 million from other revenue. By customer billing address, the United States gave $1,785.6 million and the rest of the world $417.0 million.
How much does Reddit earn from advertising?
Reddit's advertising revenue was $847.0 million in Q3 FY2026, up 54% from $549.3 million a year earlier. Reddit's FY2025 advertising revenue was $2,062.5 million, up from $1,185.5 million in FY2024.
How much does Reddit earn from content licensing?
Reddit does not report content licensing alone. Reddit's other revenue, which is content licensing plus products sold to users, was $140.0 million in FY2025 and $48.0 million in Q3 FY2026. Reddit says revenue from products sold directly to users, such as Reddit Premium and Reddit Gold, was not material in FY2025.
Who owns and controls Reddit?
Steven Huffman, Reddit's co-founder and CEO, could vote approximately 75% of Reddit's voting power at Sep 30, 2026, mostly through a voting proxy over other holders' shares. Advance held approximately 22% of Class A and Class B shares at that date. Class A shares carry one vote each and trade on the NYSE as RDDT.
Sources (5)
Next: Go deeper

Go deeper

More detail from the same filings. Open any section.

12What it sells

12What it sells

What does Reddit sell?

Reddit is a website and app made of communities, called subreddits, each built around an interest. People post, comment and vote on what others share. Businesses pay to show ads there, and some companies pay to license the content.

  • Ads in the app and on the website

    Businesses pay to show ads beside related conversations. Ads are sold per click, per thousand views, per video view or for a fixed fee. Advertising was $2,062.5 million, 93.6% of FY2025 revenue.

  • The communities themselves

    Over 100,000 active communities, run by volunteer moderators. Reddit counts over 2 billion posts and over 22 billion comments through Dec 31, 2025.

  • Content licensing

    Companies pay to access, search and analyze Reddit's data under license. In January 2024 Reddit signed deals with an aggregate contract value of $203.0 million and terms of two to three years, its IPO prospectus says.

  • Reddit Premium and Reddit Gold

    Products sold directly to users. Reddit says revenue from them was not material in FY2025.

  • Reddit Answers and search

    An AI-powered conversational search tool inside Reddit. Reddit says over 80 million people searched on Reddit weekly in Q4 FY2025. It reports no separate revenue for search.

Think of it like this

Like a set of discussion clubs, one for each interest: members come to talk and read, and advertisers pay to appear beside the conversations.

What it does

  • Does: Sells ads shown beside conversations in its app and on its website
  • Does: Licenses its content to companies under multi-year contracts
  • Does: Sells Reddit Premium and Reddit Gold directly to users
  • Does: Relies on volunteer moderators to enforce each community's own rules

What it does not do

  • Does not: Does not require users to disclose who they are
  • Does not: Does not earn material revenue from products sold directly to users
  • Does not: Does not run its own cloud: it uses Amazon Web Services and Google Cloud Platform
  • Does not: Does not pay a dividend, and has never paid one
Sources (2)
13How the money flows

13How the money flows · FY2025

How does money flow through Reddit?

Money in

  • Revenue (ads, content licensing, products sold to users)$2.2B
  • Other income, mostly interest$86.7M

The company

Reddit

$2.3B came in

Money out

  • Research and development$783M
  • Sales and marketing$504M
  • General and administrative$279M
  • Running the site and apps (cost of revenue)$194M
  • Net income$530M
  1. Advertisers paid Reddit $2,062.5 million in FY2025. Content licensing and products sold to users added $140.0 million.
  2. Research and development was the biggest cost, at $783.1 million. It is mainly pay for engineers and other staff, including stock-based pay.
  3. Sales and marketing took $503.9 million, general and administrative costs $279.3 million, and running the site and apps $194.2 million.
  4. That left operating income of $442.0 million. Other income, mostly interest on Reddit's cash and securities, added $86.7 million.
  5. Income tax was a $1.0 million benefit, not a cost, so net income came to $529.7 million.
Sources (1)
14What it needs to run

14What it needs to run

What does Reddit need to run?

  • Rented computing

    Reddit runs on Amazon Web Services and Google Cloud Platform. Addenda signed in 2026 commit $880.0 million to Amazon from Jul 2026 to Jun 2029 and $580.0 million to Google from Sep 2026 to Aug 2029.

  • Volunteer moderators and user posts

    Volunteers enforce community rules, and users write the content. Reddit names its dependence on both as a risk in its FY2025 10-K.

  • Visitors from search engines

    Logged-out daily users, a group that includes search-engine visitors, were 76.8 million of the 130.3 million total in Q3 FY2026.

  • Engineers and other staff

    Reddit had 2,555 employees on Dec 31, 2025, up from 2,233 a year earlier. 1,981 of them were in the US.

Sources (4)
15Where it sells

15Where it sells · FY2025

Where does Reddit sell?

  • United States (by customer billing address)81%
  • Rest of world (no other country at 10% or more)19%
Sources (1)
16Competitors and what protects it

16Competitors and what protects it

Who does Reddit compete with?

Reddit's FY2025 10-K says it competes for people seeking information, for entertainment and hobbies, and for ad budgets. It also names large language models such as ChatGPT, Gemini and Anthropic's as rivals for people seeking information.

  • Google

    Named as a rival for people seeking information and for ad budgets. Reddit also relies on Google Search for visitors.

  • Meta

    Named as a rival for entertainment and ad budgets. Facebook Groups competes for hobbies and Facebook Marketplace for peer-to-peer selling.

  • TikTok

    Named as a rival for entertainment and for ad budgets.

  • Snap

    Named as a rival for entertainment; Snapchat is named among ad platforms.

  • Pinterest

    Named as a rival for hobbies and for ad budgets.

What protects the business

Each strength is scored 1 (weak) to 5 (strong) for the business, with the reason. It is not a rating of the share.

  • Archive of conversations4 of 5

    Over 2 billion posts and over 22 billion comments through Dec 31, 2025, across over 100,000 active communities.

  • Number of people reached3 of 5

    130.3 million daily users and 515.2 million weekly users in Q3 FY2026, by Reddit's own measures. US daily users fell 2% from a year earlier.

  • Volunteer moderators3 of 5

    Communities set their own rules and volunteers enforce them. Reddit also names its reliance on them as a risk.

  • Cash to fund spending4 of 5

    $3,033.4 million of cash and marketable securities and no borrowings on Sep 30, 2026.

Weak spot

Reliance on search engines

Reddit relies on search engines such as Google for visitors. Its Q3 FY2026 10-Q says third-party search changes caused declines in referral traffic and hurt daily user growth that quarter.

Sources (3)
17Where growth could come from

17Where growth could come from

Where could Reddit's growth come from?

In its Q3 FY2026 earnings release (Oct 29, 2026) Reddit estimated Q4 FY2026 revenue of $1,000–1,030 million. Its letter to shareholders that day said search traffic fell by more than 1 million referrals a week on average during October. It added: "If this rate of decline continues, current trends would suggest that total DAUqs could fall in Q4, by a low-double-digit percentage." That is measured from a base of 130 million daily users.
Management statement, Oct 29, 2026. Reported as a statement, not our forecast.

  • Higher ad prices and more ads

    Working

    Ad revenue +54%, Q3 FY2026

    Ad revenue was $847.0 million in Q3 FY2026, against $549.3 million a year earlier. Reddit says higher pricing drove this and, to a lesser extent, more impressions (ad views).

    Status: Working, on track against what the company said.

  • More revenue per user

    Working

    $6.87 per user, Q3 FY2026

    Average revenue per daily user rose 36% from a year earlier. It was $13.82 in the US and $2.43 outside it.

    Status: Working, on track against what the company said.

  • Users outside the US

    Working

    79.6 million a day, +24%

    International daily users grew 24% from a year earlier in Q3 FY2026, and international revenue grew 67% to $176.1 million.

    Status: Working, on track against what the company said.

  • Total and US daily users

    Behind

    130.3 million, flat on Q2 FY2026

    Global daily users were up 12% from a year earlier but flat on the prior quarter. US daily users were 50.7 million, down 5% on the prior quarter. Reddit says marketing drove daily user growth; sales and marketing costs rose 63%.

    Status: Behind, behind the company's own plan.

  • Logged-in users

    Early

    53.5 million a day, Q3 FY2026

    Reddit's Oct 29, 2026 letter says logged-in and app users give over 80% of monetization. It says Reddit is shifting to a logged-in-only experience, with Q4 tests in select markets outside the U.S.

    Status: Early, too early to judge.

  • Content licensing

    Mixed

    Other revenue $48.0 million, +35%

    Other revenue grew in Q3 FY2026, but remaining performance obligations, mostly licensing, fell to $62.4 million on Sep 30, 2026 from $143.7 million on Dec 31, 2025.

    Status: Mixed, partly on track.

Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.

Sources (4)
18The company's own measures (non-GAAP)

18The company's own measures · FY2025 and Q3 FY2026

What do Reddit's own measures show?

These are Reddit's own measures, shown next to the nearest official (GAAP) figure. They are never added together.

  • Official (GAAP): Net income, FY2025

    $530M

    Company's own measure: Adjusted EBITDA, FY2025

    $845M

    Net income before net interest, tax, depreciation and amortization, stock-based payPay given as shares instead of cash, which spreads ownership more thinly. Learn more and its related taxes ($387.1 million), and other income or expense.

  • Official (GAAP): Net income, Q3 FY2026

    $283M

    Company's own measure: Adjusted EBITDA, Q3 FY2026

    $402M

    Same definition; stock-based pay and related taxes were $136.4 million. Reddit's estimate was $385–395 million (Jul 30, 2026). On Oct 29, 2026 it estimated $480–510 million for Q4 FY2026.

  • Official (GAAP): Net cash from operating activities, FY2025

    $691M

    Company's own measure: Free cash flow, FY2025

    $684M

    Operating cash flow less purchases of property and equipment. Reddit's definition is the same as this page's.

  • Official (GAAP): Net cash from operating activities, Q3 FY2026

    $364M

    Company's own measure: Free cash flow, Q3 FY2026

    $363M

    Operating cash flow less $1.2 million of purchases of property and equipment.

  • Official (GAAP): Revenue, Q3 FY2026 (US$ million)

    $895M

    Company's own measure: Daily active uniques (DAUq), Q3 FY2026

    130.3 million users

    Reddit's count of identified unique visitors in a day, averaged over the quarter: 50.7 million in the US and 79.6 million elsewhere. Logged-in users were 53.5 million and logged-out users, including search-engine visitors, 76.8 million.

  • Official (GAAP): Revenue, Q3 FY2026 (US$ million)

    $895M

    Company's own measure: Weekly active uniques (WAUq), Q3 FY2026

    515.2 million users

    Reddit's count of identified unique visitors in a trailing seven days, averaged over the quarter. It was 514.6 million in Q2 FY2026.

  • Official (GAAP): Revenue, Q3 FY2026 (US$ million)

    $895M

    Company's own measure: Average revenue per unique (ARPU), Q3 FY2026

    6.9 US$ per user

    Quarterly revenue in a geography ÷ average daily users there. For this measure ad revenue is placed where ads were shown, so it differs from the billing-address split. US $13.82, international $2.43.

These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.

Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out · Stock-based compensation and dilution: pay that becomes shares

Sources (3)
19Financial strength and debt

19Financial strength · Sep 30, 2026

How much debt does Reddit have?

On Sep 30, 2026 Reddit had no borrowings and $3,033.4 million of cash and marketable securities. Total liabilities were $380.3 million.
  • Total debt$0M
  • Cash and investments$3.0B
  • Net cash (cash minus debt)$3.0B
  • Net worth (shareholders' money)$3.6B
Debt to equity
0×
$ of debt for every $1 of shareholders' money
  • Net cash = cash $1,357.6 million + marketable securities $1,675.8 million − no debt = $3,033.4 million (Cityfort calculation from Q3 FY2026 10-Q).
  • Reddit has a $500 million five-year secured revolving credit line, amended and restated on Jul 1, 2025. None was drawn, and $494.3 million was available after $5.7 million of letters of credit.
  • Not counted as debt: operating lease liabilities of $31.4 million.
  • Cloud commitments: a June 2026 addendum commits $880.0 million to Amazon Web Services (Jul 2026 to Jun 2029), and an August 2026 addendum $580.0 million to Google Cloud (Sep 2026 to Aug 2029). The FY2025 10-K showed $372.2 million of purchase obligations on Dec 31, 2025. The filings do not say how the new amounts overlap with it.
  • Retained earnings turned positive, reaching $69.0 million on Sep 30, 2026, from an accumulated deficit of $671.1 million on Dec 31, 2025.
Sources (4)
20Who owns it

20Who owns it · ownership as of Mar 31, 2026

Who owns Reddit?

Steven Huffman could vote approximately 75% of Reddit's voting power on Sep 30, 2026, mostly through proxies over shares he does not own. The 12 officers and directors held 3.5% of Class A, 97.1% of Class B and 76.3% of votes in the proxy table of Mar 31, 2026. Reddit can use the NYSE's "controlled company" exemptions and says it does not currently expect to. Class C has no votes, and none is issued. Baillie Gifford (4.9%, filed Oct 21, 2026) and FMR (2.3%, filed Apr 7, 2026) reported holdings under 5%. The Vanguard Group reported none after an internal realignment (filed Mar 27, 2026). Reddit's insider trading policy prohibits hedging Reddit shares or using them as collateral.
Officers and directors (as a group), votes
76.3%

Shares vs votes by class

Reddit has more than one class of shares, and the classes carry different votes. The share of votes a class holds can differ a lot from its share of the shares.

  • Class A common stock: share of all votes24.2%
  • Class B common stock: share of all votes75.8%

Each class's part of all votes = its shares outstanding × votes per share ÷ the total for all classes.

Share classes
Reddit share classes: shares outstanding (millions) and votes per share
ClassShares (millions)Votes per shareHeld by% of shares% of votesTraded
Class A common stock (Shares outstanding on Oct 28, 2026 (10-Q cover). Share and vote percentages are a Cityfort calculation from the Q3 FY2026 10-Q cover.)146.91Public and institutional investors; trades on the NYSE as RDDT76.1%24.1%Yes
Class B common stock (Shares outstanding on Oct 28, 2026 (10-Q cover). Converts into Class A one for one at the holder's option and automatically on most transfers. Share and vote percentages are a Cityfort calculation from the Q3 FY2026 10-Q cover.)46.210Mainly Advance, Tencent-affiliated entities and Steven Huffman23.9%75.9%No
Holders of 5% or more
Reddit holders of 5% or more, from the proxy statement or later Schedule 13G filings; each row shows its own date
HolderSharesVotesAs ofSourceNote
Steven Huffman (co-founder, CEO), including shares under voting proxy97.1%76.1%Mar 31, 2026S29, S497.1% of Class B: 49,732,848 shares, of which 45,946,264 are under a voting proxy. His own holdings alone carry 6.1% of votes. The Q3 FY2026 10-Q puts his voting power at approximately 75% on Sep 30, 2026.
Advance Magazine Publishers83.5%65.2%Mar 31, 2026S29, S483.5% of Class B (42,191,092 shares), in the 2026 proxy table, based on its Schedule 13G dated Nov 14, 2024. Steven Huffman holds an irrevocable proxy over these votes, with exceptions, so this row overlaps his. Advance held approximately 22% of Class A and Class B shares on Sep 30, 2026.
Entities affiliated with Tencent7.4%6.1%Mar 31, 2026S297.4% of Class B (3,755,172 shares), plus 2,150,425 Class A shares, in the 2026 proxy table, based on a Schedule 13G/A dated Nov 12, 2025. These votes are also under Steven Huffman's proxy, with exceptions.
Vanguard Capital Management7.4%–Sep 30, 2026S3510,783,433 shares, from its Schedule 13G/A filed Oct 30, 2026. The percentage is as filed. Vanguard entities report separately and are not added together.
BlackRock7.3%–Sep 30, 2026S3410,695,258 Class A shares, from its Schedule 13G/A filed Oct 27, 2026.
Vanguard Portfolio Management5.1%–Sep 30, 2026S367,482,714 shares, from its Schedule 13G filed Oct 30, 2026. The percentage is as filed.

From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.

Learn: Dual-class shares: when votes and ownership don't match · How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes

Sources (6)
21What it does with profit

21What it does with profit

What does Reddit do with its profit?

Reddit has never paid a dividend, and its FY2025 10-K says it expects to pay none. It bought back no shares in FY2025. Fully diluted shares were 206.3 million on Sep 30, 2026.

  • Buyback · Mar 31, 2026

    Class A shares repurchased in Q1 FY2026, under the program of up to $1.0 billion authorized on Feb 4, 2026, which has no expiry.

    $5M

  • Buyback · Jun 30, 2026

    Class A shares repurchased in Q2 FY2026.

    $235M

  • Buyback · Sep 30, 2026

    Class A shares repurchased in Q3 FY2026: 669,959 shares. In the first nine months of 2026 Reddit bought 2,193,461 shares for $340.0 million, and $660.0 million of the authorization remained.

    $100M

  • Money raised · Mar 21, 2024

    IPO at $34.00 a share (prospectus dated Mar 20, 2024, filed Mar 21): Reddit sold 18,576,527 Class A shares, including 3,300,000 from the underwriters' over-allotment option, exercised in full, and selling stockholders sold 6,723,473. Reddit's net proceeds were $600.0 million after $31.6 million of underwriting costs.

    $600M

Sources (7)
22Governance signals

22Governance signals

What do Reddit's governance filings show?

Auditor
KPMG LLP
Auditor changes
None in the period covered
Audit qualifications
None reported
Related-party dealings
Reddit subleases offices from Advance, which held approximately 22% of Class A and Class B shares on Sep 30, 2026. Chicago: 14,043 sq ft to 2027, $0.5 million of rent in 2025. New York: 47,800 sq ft to 2028, $3.1 million of rent in 2025. Advance can designate two directors and one nonvoting observer.
Credit rating
No public credit rating found

Flags to know about

  • other · Sep 30, 2026

    One person controls the votes

    Steven Huffman could vote approximately 75% of voting power on Sep 30, 2026, most of it through an irrevocable proxy over Advance's and Tencent-affiliated entities' shares, with exceptions. Reddit can use the NYSE's "controlled company" exemptions and says it does not currently expect to.

  • other · Oct 23, 2026

    Securities class action and derivative complaints

    A class action filed in June 2025 in the Northern District of California names Reddit and certain officers and directors as defendants. It alleges that Reddit and certain officers made false or misleading statements and omissions about the impact of Google Search and its AI Overviews feature. The court dismissed the complaint with leave to amend on Aug 13, 2026. A second amended complaint followed on Oct 23, 2026, and any motion to dismiss is due by Nov 23, 2026. Derivative complaints with similar allegations were also filed. Damages are unspecified.

  • disclosure

    What the filings do not show

    The filings used here do not name Reddit's two main licensing partners, split licensing from other revenue, give search engines' share of daily users or state a credit rating.

  • auditor

    Audit focus on ad delivery

    KPMG's critical audit matter for FY2025 was the sufficiency of evidence over ad delivery used in advertising revenue ($2.1 billion). KPMG also reported on internal controls.

  • other · Aug 12, 2026

    Chief Legal Officer change

    Reddit's Aug 12, 2026 filing said Benjamin Lee would step down effective Sep 14, 2026, and that it expected to appoint Paul Cappuccio.

Sources (4)
23What the market paid

23What the market paid · price as of Nov 4, 2026

What did the market pay for Reddit on Nov 4, 2026?

Price as of Nov 4, 2026 (shown for education; prices change daily).

Price as of Nov 4, 2026: Reddit Class A shares closed at $101.89, from Nasdaq's historical table (the shares are listed on the NYSE). Market value = $101.89 × 193.1 million Class A and Class B shares (Oct 28, 2026) = about $19,674 million (Cityfort calculation from the Nov 4, 2026 closing price and the Q3 FY2026 10-Q cover); Class B shares are not listed, so this counts them at the Class A price. P/E (price ÷ earnings per share) = $101.89 ÷ $4.90, the diluted earnings per share of the four quarters to Sep 30, 2026 = 20.8 (Cityfort calculation from the same price and the Q4 FY2025 to Q3 FY2026 earnings releases). The same table shows closes of $129.60 on Oct 29, 2026 and $91.73 on Oct 30, 2026. The IPO price was $34.00 (prospectus dated Mar 20, 2024).

Share price
$101.89
Market value (market cap)
$19.7B
P/E
20.8×

Source: RDDT historical closing prices, Oct 26 to Nov 4, 2026 (Nasdaq historical table); Form 10-Q, Q3 FY2026 (quarter ended Sep 30, 2026); Q3 FY2026 earnings release, 8-K Ex. 99.1 and 4 more

Sources (7)
24How it got here

24How it got here

How did Reddit get here?

  1. 2005

    Milestone

    Reddit begins

    Reddit's FY2025 10-K dates the site to 2005. Reddit, Inc. was incorporated in Delaware in May 2011.

  2. 2015

    Milestone

    Co-founder returns as CEO

    Steven Huffman has been CEO since July 2015.

  3. 2024

    Business-model change

    Content licensing adds a second revenue line

    In January 2024 Reddit signed data licensing deals with an aggregate contract value of $203.0 million, over two to three years. Other revenue rose from $15.2 million in FY2023 to $114.7 million in FY2024.

  4. 2024

    Milestone

    IPO at $34.00

    Class A shares listed on the NYSE on Mar 21, 2024. A stock-pay catch-up at the IPO made Q1 FY2024's net loss $575.1 million.

  5. 2025

    Milestone

    First yearly profit in these filings

    FY2025 net income was $529.7 million, on revenue up 69% to $2,202.5 million.

  6. 2026

    Milestone

    $1.0 billion share buyback program

    On Feb 4, 2026 the board authorized up to $1.0 billion of repurchases. Reddit's Oct 29, 2026 letter also says it joined the S&P 500 earlier in the quarter, without giving a date.

  7. 2026

    Business-model change

    A shift toward logged-in users

    Daily users stayed at 130.3 million in Q3 FY2026 as search traffic fell. Reddit said on Oct 29, 2026 that it is shifting to a logged-in-only experience.

Sources (7)

25Sources and changes

Where every number on this page comes from

Sources (28 documents)
  1. S1Form 10-K, fiscal year 2025 (ended Dec 31, 2025) · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 6, 2026
  2. S2Form 10-K, fiscal year 2024 (ended Dec 31, 2024) · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 13, 2025
  3. S3Form 424B4 final IPO prospectus, Class A common stock · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Mar 21, 2024
  4. S4Form 10-Q, Q3 FY2026 (quarter ended Sep 30, 2026) · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 30, 2026
  5. S13Q3 FY2026 earnings release, 8-K Ex. 99.1 · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 29, 2026
  6. S14Q2 FY2026 earnings release, 8-K Ex. 99.1 · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 30, 2026
  7. S15Q1 FY2026 earnings release, 8-K Ex. 99.1 · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 30, 2026
  8. S16Q4 FY2025 earnings release, 8-K Ex. 99.1 · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 5, 2026
  9. S17Q3 FY2025 earnings release, 8-K Ex. 99.1 · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 30, 2025
  10. S18Q2 FY2025 earnings release, 8-K Ex. 99.1 · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 31, 2025
  11. S19Q1 FY2025 earnings release, 8-K Ex. 99.1 · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · May 1, 2025
  12. S20Q4 FY2024 earnings release, 8-K Ex. 99.1 · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 12, 2025
  13. S21Q3 FY2024 earnings release, 8-K Ex. 99.1 · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 29, 2024
  14. S22Q2 FY2024 earnings release, 8-K Ex. 99.1 · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Aug 6, 2024
  15. S23Q1 FY2024 earnings release, 8-K Ex. 99.1 · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · May 7, 2024
  16. S24Q3 FY2026 letter to shareholders, 8-K Ex. 99.2 · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 29, 2026
  17. S27Q4 FY2025 letter to shareholders, 8-K Ex. 99.2 · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 5, 2026
  18. S292026 proxy statement (DEF 14A); record date Apr 13, 2026 · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 23, 2026
  19. S30Form 8-K, Item 5.02: Chief Legal Officer change · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Aug 12, 2026
  20. S31Form 8-K, Item 1.01: $500M revolving credit facility · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 2, 2025
  21. S32Form 8-K, Items 2.02 and 8.01: results and $1B share repurchase program · Reddit, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 5, 2026
  22. S34Schedule 13G/A, BlackRock, Inc. (event Sep 30, 2026) · BlackRock, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 27, 2026
  23. S35Schedule 13G/A, Vanguard Capital Management (event Sep 30, 2026) · Vanguard Capital Management (SEC EDGAR) · Tier 1: company or exchange filing · Oct 30, 2026
  24. S36Schedule 13G, Vanguard Portfolio Management (event Sep 30, 2026) · Vanguard Portfolio Management (SEC EDGAR) · Tier 1: company or exchange filing · Oct 30, 2026
  25. S37Schedule 13G/A, Baillie Gifford & Co (event Sep 30, 2026) · Baillie Gifford & Co (SEC EDGAR) · Tier 1: company or exchange filing · Oct 21, 2026
  26. S38Schedule 13G/A, FMR LLC (event Mar 31, 2026) · FMR LLC (SEC EDGAR) · Tier 1: company or exchange filing · Apr 7, 2026
  27. S39Schedule 13G/A, The Vanguard Group (event Mar 13, 2026) · The Vanguard Group (SEC EDGAR) · Tier 1: company or exchange filing · Mar 27, 2026
  28. S40RDDT historical closing prices, Oct 26 to Nov 4, 2026 (Nasdaq historical table) · Nasdaq · Tier 1: company or exchange filing · Nov 5, 2026
Changes to this page (v1 · Nov 5, 2026)
  1. v1 · Nov 5, 2026First version (US edition), from the FY2025 10-K, the Q3 FY2026 10-Q and earnings releases from Q1 FY2024 to Q3 FY2026. (first version)

Numbers come only from tier 1 and tier 2 sources. Read how we research.

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All information is taken from publicly available sources, mainly company filings with the SEC, which are listed on each page with dates. We work to keep it accurate and correct errors publicly, but we do not guarantee that it is complete, accurate or up to date. Any market price or price-based ratio shown is dated, may be out of date by the time you read it, and is included only to explain concepts.

Statements by company management, including forward-looking statements and guidance, are reported as the company's statements, with their date and source; they are not our forecasts. Adjusted (non-GAAP) figures are the company's own measures and are shown next to the official (GAAP) figures.