RDDT 8-K: Smart Summary

Reddit, Inc. (NYSE: RDDT) reported Q4 and full year 2025 financial results on February 5, 2026, exceeding strong growth across revenue, net income, and Adjusted EBITDA. Q4 revenue grew 70% year-over-year to $726M and full year revenue grew 69% to $2.2B, while the company also announced a $1B share repurchase program authorized by its Board of Directors.

• Q4 total revenue: $726M, +70% YoY; FY2025 total revenue: $2.2B, +69% YoY
• Q4 Ad revenue: $690M, +75% YoY; Q4 Other revenue: $36M, +8% YoY
• FY2025 Ad revenue: $2.1B, +74% YoY; FY2025 Other revenue: $140M, +22% YoY
• Q4 GAAP gross margin: 91.9% vs. 92.6% prior year; FY2025 gross margin: 91.2%, +70 bps YoY
• Q4 operating income: $231.8M vs. $52.9M prior year; FY2025 operating income: $442M vs. operating loss of ($560.6M) prior year
• Q4 net income: $252M (35% net margin), improvement of $181M YoY; FY2025 net income: $530M (24% net margin), improvement of $1B YoY
• Q4 basic/diluted EPS: $1.32 / $1.24 vs. $0.40 / $0.36 prior year; FY2025 basic/diluted EPS: $2.84 / $2.62 vs. $(3.33) / $(3.33) prior year
• Q4 Adjusted EBITDA: $327M (45.1% margin), improvement of $173M YoY; FY2025 Adjusted EBITDA: $845M (38.4% margin), improvement of $547M YoY
• Q4 operating cash flow: $267M, improvement of $177M YoY; FY2025 operating cash flow: $691M, improvement of $469M YoY
• Q4 Free Cash Flow: $264M, improvement of $174M YoY; FY2025 Free Cash Flow: $684M, improvement of $468M YoY
• Q4 ARPU (Global): $5.98, +42% YoY; U.S. ARPU: $10.79, +53% YoY; International ARPU: $2.31, +38% YoY

• U.S. revenue Q4: $583M, +68% YoY; FY2025: $1.8B, +68% YoY
• International revenue Q4: $142M, +78% YoY; FY2025: $416.9M, +76% YoY
• Ad revenue Q4: $690M, +75% YoY; driven by year-over-year growth in impressions and pricing, with 11 of top-15 industry verticals growing over 50% YoY
• Other revenue Q4: $36M, +8% YoY; FY2025: $140M, +22% YoY
• Global DAUq Q4: 121.4 million, +19% YoY; U.S. DAUq: 52.5 million, +9% YoY; International DAUq: 68.9 million, +28% YoY
• Global WAUq Q4: 471.6 million, +24% YoY; U.S. WAUq: 193.4 million, +12% YoY; International WAUq: 278.2 million, +34% YoY
• Logged-in DAUq Global: 50.7 million, +10% YoY; Logged-out DAUq Global: 70.7 million, +27% YoY

• Board of Directors authorized a share repurchase program to purchase up to $1B of Class A common stock with no expiration date; may be suspended or discontinued at any time
• Repurchases may occur on the open market (including via pre-set trading plans), in privately negotiated transactions, or through other transactions in accordance with applicable securities laws
• Cash, cash equivalents, and marketable securities: $2.5B (approximately $2.5B) as of December 31, 2025
• Cash and cash equivalents: $953.6M as of December 31, 2025 vs. $562.1M as of December 31, 2024
• Marketable securities: $1.5B as of December 31, 2025 vs. $1.3B as of December 31, 2024
• Total fully diluted shares outstanding: 206.1 million as of December 31, 2025, flat sequentially and down from 206.2 million as of December 31, 2024
• Taxes paid related to net share settlement of RSUs: $104M for FY2025 vs. $294.6M for FY2024
• Capital expenditures: $3.2M in Q4 (0.4% of revenue); $6.7M for FY2025 (0.3% of revenue)
• No dividends mentioned

• "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. Our focus is on turning Reddit's authenticity into even more everyday utility." — Steve Huffman, Reddit Co-Founder and CEO
• "2025 was a breakout year for Reddit. We surpassed bold targets, built real momentum across our business, and proved our unique community model at scale. We crossed $2.2B in revenue, up 69% year-over-year, and delivered $530M in net income." — Steve Huffman, Co-Founder & Chief Executive Officer

• Q1 2026 estimated revenue: $595M to $605M
• Q1 2026 estimated Adjusted EBITDA: $210M to $220M
• No GAAP reconciliation provided for forward-looking non-GAAP guidance due to uncertainty regarding reconciling items

• Authorization: up to $1B of Class A common stock
• Repurchases may occur on the open market (including via pre-set trading plans), in privately negotiated transactions, or through other transactions in accordance with applicable securities laws
• No expiration date on the program
• Program may be suspended or discontinued at any time at Reddit's discretion
• Program does not obligate Reddit to acquire any particular amount of Class A common stock

• Q4 2025 total revenue: $726M, up 70% year-over-year; Ad revenue $690M (up 75% Y/Y); Other revenue $36M (up 8% Y/Y)
• Full year 2025 total revenue: $2.2B, up 69% year-over-year; Ad revenue $2.1B (up 74% Y/Y); Other revenue $140M (up 22% Y/Y)
• Q4 2025 net income: $252M (35% of revenue); Full year 2025 net income: $530M (24% of revenue)
• Q4 2025 Adjusted EBITDA: $327M (45% margin); Full year 2025 Adjusted EBITDA: $845M (38% margin)
• Q4 2025 DAUq: 121.4 million, up 19% year-over-year; WAUq: 471.6 million, up 24% year-over-year
• Cash, cash equivalents, and marketable securities: $2.5B as of December 31, 2025; total fully diluted shares outstanding: 206.1 million as of December 31, 2025