Reddit stock rose 18% in after-hours trading after the company reported quarterly results that crushed Wall Street expectations.
The platform posted earnings of 13 cents per share on revenue of $392.4 million—easily beating analyst estimates of 2 cents per share and $369.5 million in sales.
For everyday investors and Reddit fans alike, this is a major win. It shows that Reddit isn’t just a place for memes and AMA threads—it’s becoming a serious digital business with real revenue muscle.
Daily active users hit 108.1 million, marking a 31% year-over-year surge, edging past projections of 107.3 million.
Why this matters
Reddit’s advertising revenue jumped 61% to $358.8 million in the first quarter of 2025. That’s a clear sign advertisers are betting big on Reddit’s niche communities and search-friendly content.
Nearly all of Reddit’s income comes from advertising, and with growth like this, it’s starting to challenge the ad models of bigger rivals like Meta and X.
For users, this signals that Reddit’s long-discussed monetization journey is finally real—and not just a WallStreetBets fever dream.
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Reddit CEO: We’re different—and it works
CEO Steve Huffman summed it up in a shareholder letter:
“Our unique advantage is that people come to Reddit with intent—they’re not just scrolling, they’re also seeking.”
Translation: Redditors aren’t zombies lost in doomscrolling—they’re actively searching for answers, opinions, and, yes, even product recommendations. That “intent to act” is advertising gold.
What’s next for Reddit stock?
The company is forecasting second-quarter revenue between $410 million and $430 million, with adjusted EBITDA (a measure of profitability) expected to land between $110 million and $130 million.
That forward guidance gives Wall Street another reason to stay bullish.
Still, there’s a catch: Reddit stock has been a wild ride. Despite this earnings bump, shares remain about 50% below their 52-week high of $225, set back in February.
Much of that drop came from fears around user stagnation—a concern these latest numbers help put to rest, at least for now.
What analysts are saying
Analysts at B. Riley recently pointed out that Reddit’s top-line growth depends heavily on daily users and ad impressions.
In April, Oppenheimer initiated coverage with an “outperform” rating, noting that Reddit is the sixth-most-searched term on Google—a stat that speaks to its massive presence in internet culture and SEO advantage.
A stock shaped by sentiment
Reddit stock surged last October after posting its first profit, peaking in early February. But its journey since has been anything but stable. The platform, ironically known for fueling meme-stock mania, is now becoming a case study in how communities can drive value and valuation.
Think of it like this: Reddit used to be the internet’s backroom. Now it’s opening a storefront—with a surprisingly strong cash register.
Disclaimer:
This article is for informational purposes only and doesn’t offer financial, investment, or trading advice. Stock markets are volatile, and risks are involved. Always do your own research or consult a financial advisor before making any investment decisions. We are not responsible for any losses.
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