Reddit gains after Q4 revenue and earnings exceed expectations, Q1 sales guidance tops estimates
Reddit reported fourth-quarter earnings Thursday.
Social media platform Reddit is jumping in premarket trading after reporting impressive fourth-quarter 2025 earnings after the bell Thursday. The company posted:
Earnings per share of $1.24, beating analysts’ expectations of $0.94. For the same quarter in 2024, Reddit had posted $0.36.
Revenue of $726 million, above the $666 million FactSet analyst consensus estimate and up 70% from last year.
121.4 million “daily active uniques,” up 19% year on year, over Wall Street’s expectation of 120 million.
Sales guidance for Q1 2026 of $595 million to $605 million, above analysts’ estimates of $577 million.
The stock has struggled lately, dropping about 35% year to date amid AI-related market weakness, but the bumper earnings, guidance, and the announcement of a $1 billion share buyback program have investors enthused.
“We’re entering the next era of Reddit — defined by sharper execution, global expansion, and product innovation that puts real people and conversations at the center,” Steve Huffman, Reddit cofounder and CEO, said in a statement. “Our focus is on turning Reddit’s authenticity into even more everyday utility.”
Investors will be looking for reassurance that Reddit can turn its ad platform and data licensing deals into a lasting business.
