Reddit (RDDT) Q4 2025 earnings
reddit Shares rose 6% before rising nearly 4% in after-hours trading on Thursday after the company reported fourth-quarter earnings at the top and bottom lines and gave strong guidance for the start of 2026.
Here’s how the company compares to LSEG forecasts:
- Earnings per share: $1.24 versus 94 cents expected
- Revenues: 726 million dollars, while the expectation was 665 million dollars
The company said it expects first-quarter sales to be in the range of $595 million to $605 million, above Wall Street expectations of $577 million. Adjusted earnings in the first quarter are estimated to be between $210 million and $220 million, above StreetAccount’s estimates of $203 million.
Reddit also announced a $1 billion share buyback program.
While the company’s fourth quarter revenue increased by 70% compared to the same period last year, its net income increased by approximately 255% compared to the previous year, reaching 252 million dollars.
Reddit’s sales in the U.S. market totaled $583 million in the fourth quarter, topping analysts’ estimates of $529 million.
The company’s global daily active uniques (DAUq) rose 19% year over year to 121.4 million in the fourth quarter; this was above the 120 million Wall Street had expected.
US DAUq in the fourth quarter increased 9% year over year to 52.5 million; this figure was slightly above the 52.3 million analysts had predicted.
The company said logged-in DAUq, which refers to users who have signed up for Reddit accounts in the U.S., rose 5% from last year to 23 million. This was slower than the 7% annual growth Reddit recorded in the third quarter, when logged-in DAUq for the US reached 23.1 million. This is the sixth consecutive quarter in which Reddit’s US logged-in user growth has slowed.
Investors watch Reddit’s DAUq metric because users who create accounts are more profitable for the company’s online advertising business. These Reddit account holders often use the platform and communicate with other users more frequently than those who have entered Reddit by chance. Google Calling what the company calls logged-out DAUq.
Reddit CEO Steve Huffman said in an investor letter that the company “plans to phase out login and logout reporting later this year” because there is now less of a difference between the two metrics than in the past. Huffman said that’s because the company is working on features aimed at keeping both logged-in and non-logged-in users on the platform.
“As the industry evolves, how we think about our product and our users must evolve as well,” Huffman wrote. “We’ve reported logged-in and logged-out users in the past, but some of the work we’ve done to streamline the onboarding process (for example, instant personalization) blurs the lines between these states, making the distinction between them less meaningful.”
Reddit finance chief Drew Vollero told analysts during an earnings call that the company “will continue to report sign-in and sign-out metrics for the first two quarters of 2026.”
Regarding the company’s data licensing deals with Google and OpenAI, Huffman said during the earnings call that “relationships with both companies are very healthy” and that “the conversation is shifting from a pure business deal to more of a product partnership.”
“What we’re looking for specifically in a relationship like this is to be able to bring users into the community sections of Reddit,” Huffman said.
When an analyst asked Huffman to discuss what OpenAI and Google would change about the way they quote Reddit posts in their AI-powered chat and summarization tools, Huffman presented a hypothetical scenario in which a person uses these AI services to find information about speakers.
If Huffman could “wave a magic wand,” a person could ask a question about speakers to one of the third-party AI chat apps and then more easily view a variety of results originating from audiophile-related subreddits.
“I want to make this user aware of, ‘Hey, you can go to the r/audiophile community and talk to other speaker enthusiasts,'” Huffman said.
Regarding Reddit’s efforts to merge its traditional search tool with its newer generative AI search feature, Huffman said the company has learned that “GenAI search results will be better for most queries.”
Unlike traditional search, the more advanced GenAI search and chat tools excel at providing results that include “multiple perspectives from many people,” he said.
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