RDDT 8-K: Smart Summary

Reddit, Inc. (NYSE: RDDT) reported Q3 2025 financial results for the quarter ended September 30, 2025, filed via 8-K on October 30, 2025. Revenue grew 68% year-over-year to $585M, with net income of $163M and Adjusted EBITDA of $236M at a 40% margin. The company also provided Q4 2025 guidance of $655–$665M in revenue and $275–$285M in Adjusted EBITDA.

• Total revenue: $585M, +68% YoY (Q3 2024: $348M)
• U.S. revenue: $479.7M, +67% YoY; International revenue: $105.3M, +74% YoY
• Ad revenue: $549M, +74% YoY; Other revenue: $36M, +7% YoY
• GAAP gross margin: 91.0%, an improvement of 90 basis points YoY (Q3 2024: 90.1%)
• Income from operations: $138.5M vs. $6.9M in Q3 2024
• Net income: $163M (net margin 27.8%), an improvement of $133M YoY (Q3 2024: $30M, 8.6% margin)
• Basic EPS: $0.87; Diluted EPS: $0.80 (Q3 2024: Basic $0.18, Diluted $0.16)
• Adjusted EBITDA: $236M (40.3% margin), an improvement of $142M YoY (Q3 2024: $94M, 27.0% margin)
• Operating cash flow: $185M, an improvement of $114M YoY (Q3 2024: $72M); operating cash flow margin 31.7% vs. 20.6% prior year
• Free Cash Flow: $183M, an improvement of $113M YoY (Q3 2024: $70M); Free Cash Flow margin 31.3% vs. 20.2% prior year
• Nine months ended September 30, 2025: Revenue $1.5B (+69% YoY); Net income $278.1M vs. net loss of ($555.3M) in prior year period

• Revenue is reported by geography, not distinct business segments
• U.S. revenue: $479.7M in Q3 2025, +67% YoY ($288M in Q3 2024); U.S. DAUq: 51.6 million, +7% YoY
• International revenue: $105.3M in Q3 2025, +74% YoY ($60.4M in Q3 2024); International DAUq: 64.4 million, +31% YoY
• Advertising revenue: $549M, +74% YoY; growth driven by YoY growth in impressions and pricing
• Other revenue: $36M, +7% YoY
• Global DAUq: 116.0 million, +19% YoY; Global WAUq: 443.8 million, +21% YoY
• Global ARPU: $5.04, +41% YoY; U.S. ARPU: $9.04, +54% YoY; International ARPU: $1.84, +39% YoY
• More than half of top-15 industry verticals grew over 50% YoY

• Cash, cash equivalents, and marketable securities: $2.2B (approximately $2.2B) as of September 30, 2025
• Cash and cash equivalents: $911.7M as of September 30, 2025 (vs. $562.1M as of December 31, 2024)
• Marketable securities: $1.3B as of September 30, 2025 (vs. $1.3B as of December 31, 2024)
• Capital expenditures: $2.1M in Q3 2025, 0.4% of revenue
• Total fully diluted shares outstanding: 206.1 million as of September 30, 2025, down 0.2% sequentially and down 0.1% YoY
• Taxes paid related to net share settlement of RSUs: $28.6M in Q3 2025 (vs. $65.8M in Q3 2024)
• No dividends or share repurchase program mentioned in the filing
• Total liabilities: $265.7M; Total stockholders' equity: $2.6B as of September 30, 2025

• Steve Huffman, Co-Founder and CEO: "Reddit provides something rare on the Internet. 444 million people come here each week for authentic conversations they can't find anywhere else, and increasingly, for engagement with brands, institutions and publishers."
• Steve Huffman, Co-Founder and CEO (shareholder letter): "Revenue came in at $585M, up 68% year-over-year and our financial model is scaling very well. We continue to be GAAP profitable, with net income of $163M and a net margin of 28%—an improvement of $133M from last year. This quarter, we achieved a targeted Adjusted EBITDA margin of 40%, which was a profitability goal we set at our IPO just last year."

• Q4 2025 revenue guidance: $655M to $665M
• Q4 2025 Adjusted EBITDA guidance: $275M to $285M
• No full-year 2025 guidance provided
• No GAAP reconciliation provided for forward-looking non-GAAP guidance due to uncertainty regarding reconciling items