RDDT 8-K: Smart Summary

Reddit, Inc. filed an 8-K on July 31, 2025 reporting financial results for the quarter ended June 30, 2025. Revenue grew 78% year-over-year to $500M, marking the company's fastest quarterly growth rate since 2022, with GAAP net income of $89M compared to a net loss of ($10M) in the prior year. The filing also includes a shareholder letter from CEO Steve Huffman and CFO Drew Vollero, and provides Q3 2025 financial guidance.

• Revenue: $500M, up 78% year-over-year (Q2 2024: $281M)
• U.S. revenue: $408.8M, up 79% year-over-year; International revenue: $90.8M, up 71% year-over-year
• GAAP gross margin: 90.8%, an improvement of 130 basis points year-over-year (Q2 2024: 89.5%)
• Income from operations: $67.7M vs. loss from operations of ($31M) in Q2 2024
• Net income: $89M (net margin 17.9%) vs. net loss of ($10M) (net margin (3.6)%) in Q2 2024
• Basic EPS: $0.48 vs. $(0.06) in Q2 2024; Diluted EPS: $0.45 vs. $(0.06) in Q2 2024
• Adjusted EBITDA: $167M (33.4% margin) vs. $40M (14.0% margin) in Q2 2024, an improvement of $127M
• Operating cash flow: $111M, an improvement of $83M year-over-year (Q2 2024: $28M)
• Free Cash Flow: $111M, an improvement of $84M year-over-year (Q2 2024: $27M)
• Capital expenditures: $500,000, approximately 0.1% of revenue

• Advertising revenue: $465M, up 84% year-over-year; growth driven by year-over-year growth in impressions and pricing, with strength across both Brand and Performance revenue
• Other revenue: $35M, up 24% year-over-year
• U.S. revenue: $408.8M, up 79% year-over-year
• International revenue: $90.8M, up 71% year-over-year
• Global DAUq: 110.4 million, up 21% year-over-year; U.S. DAUq: 50.3 million, up 11%; International DAUq: 60.1 million, up 32%
• Global WAUq: 416.4 million, up 22% year-over-year
• Global ARPU: $4.53, up 47% year-over-year; U.S. ARPU: $7.87, up 59%; International ARPU: $1.73, up 40%

• Cash, cash equivalents, and marketable securities: $2.1B (approximately $2.1B) as of June 30, 2025
• Cash and cash equivalents: $734.1M as of June 30, 2025 (vs. $562.1M as of December 31, 2024)
• Marketable securities: $1.3B as of June 30, 2025 (vs. $1.3B as of December 31, 2024)
• Total fully diluted shares outstanding: 206.6 million as of June 30, 2025, up 0.3% sequentially from the prior quarter
• Taxes paid related to net share settlement of restricted stock units: $15.2M in Q2 2025
• Proceeds from exercise of employee stock options: $4.3M in Q2 2025
• No dividends or share repurchase programs mentioned in the filing
• Total liabilities: $245.2M as of June 30, 2025; total stockholders' equity: $2.4B

• "Reddit is built for this moment. In a world where connection is increasingly rare, our communities show how valuable human conversation and knowledge really are. We're focused on growing globally, scaling sustainably, and making Reddit the most trusted place on the internet." — Steve Huffman, Reddit Co-Founder and CEO
• "Revenue grew 78% year-over-year to $500M—our fastest quarterly growth rate since 2022. Daily active users grew to 110 million, up 21% year-over-year, with growth in both the U.S. and international markets... And this was our most profitable quarter yet." — Steve Huffman, Reddit Co-Founder and CEO

• Q3 2025 revenue estimated in the range of $535M to $545M
• Q3 2025 Adjusted EBITDA estimated in the range of $185M to $195M
• No full-year guidance provided
• No GAAP reconciliation provided for forward-looking non-GAAP guidance due to uncertainty and potential variability of reconciling items