Reddit made $2.20 billion in 2025 and $804.9 million in the second quarter of 2026 alone. Five years earlier, the company earned $228.9 million across an entire year.
Almost all of that money comes from advertising. Most of it comes from the United States, even though most Reddit users do not live there.
Those two facts shape everything else in Reddit’s financials, including why the company turned its first annual profit in 2025 and why it now sits on $2.79 billion in cash.
This article covers Reddit’s revenue quarter by quarter and year by year, the split between advertising and data licensing, U.S. versus international performance, ARPU by region, how much each user is worth, and the margins behind the revenue line.
Reddit Revenue 2026: Key Highlights
- Reddit reported $804.9 million in revenue in Q2 2026, a 61% increase year over year and its eighth straight quarter above 60% growth.
- Full-year 2025 revenue reached $2.20 billion, up 69.4% from $1.30 billion in 2024.
- Advertising brought in 93.6% of Reddit’s 2025 revenue.
- The United States produced 81.1% of 2025 revenue at $1.79 billion, while international markets contributed $416.9 million.
- Global ARPU hit a record $6.18 in Q2 2026, with U.S. ARPU at $11.85 and international ARPU at $2.26, a gap of 5.24x.
- Each daily user was worth $6.18 in Q2 2026, up from $4.53 a year earlier.
- Reddit posted $529.7 million in net income for 2025 after a $484.3 million loss in 2024, a swing of $1.01 billion.
- Adjusted EBITDA margin reached 42.6% in Q2 2026, up from 33.4% a year earlier.
- Net income was $252.8 million in Q2 2026, a 31.4% net margin, nearly triple the $89.3 million posted a year earlier.
- Reddit crossed $1 million in revenue per employee in Q2 2026.
Reddit Revenue 2026
Reddit generated $804.9 million in revenue in the second quarter of 2026, a 61% increase over the $499.6 million it reported in Q2 2025. That followed $663.4 million in Q1 2026, bringing first-half revenue to $1.47 billion.
For the full 2025 fiscal year, revenue came in at $2.20 billion, up 69.4% from $1.30 billion in 2024.
The 2025 quarters climbed steadily. Reddit opened the year at $392.4 million, added $107.2 million in Q2 to reach $499.6 million, moved to $585.0 million in Q3, and closed with $725.6 million in Q4.
Every quarter grew at least 61% year over year, and Q2 2025 was the fastest at 78%.
The quarter-to-quarter pattern matters as much as the annual total. Reddit’s revenue dips in the first quarter of each year because advertising budgets reset after the holiday season.
Q1 2025 fell 8.3% from Q4 2024, and Q1 2026 fell 8.6% from Q4 2025. Both quarters still delivered strong year-over-year growth, so the sequential dip reflects seasonality rather than any slowdown in the business. Q2 confirms the pattern in the other direction.
Revenue rose 21.3% from Q1 2026 to Q2 2026, close to the 27.3% sequential jump seen a year earlier.
Here is Reddit’s reported revenue for each quarter from Q1 2025 to Q1 2026:
| Quarter | Revenue | QoQ Change | YoY Growth |
|---|---|---|---|
| Q1 2025 | $392.4M | -8.3% | +61% |
| Q2 2025 | $499.6M | +27.3% | +78% |
| Q3 2025 | $585.0M | +17.1% | +68% |
| Q4 2025 | $725.6M | +24.0% | +70% |
| Q1 2026 | $663.4M | -8.6% | +69% |
| Q2 2026 | $804.9M | +21.3% | +61% |
| Q3 2026* | $860M to $870M | +6.8% to +8.1% | +47% to +49% |
Reddit guided Q2 2026 to $715 million to $725 million, a midpoint of $720 million. It reported $804.9 million, beating the midpoint by 11.8%. That is almost exactly in line with the 11.95% average beat across the prior four quarters, and it is why the guided 44% growth rate came in at 61% instead.
Reddit has now beaten its own midpoint by roughly 12% for five straight quarters. Applied to the Q3 2026 midpoint of $865 million, that pattern points to somewhere near $965 million, which would be growth of about 65% year over year.
First-half 2026 revenue reached $1.47 billion against $892.0 million in the first half of 2025, an increase of 64.6%.
(Source: Reddit Q2 2026 Results, Reddit Q1 2026 Results, Reddit Q4 and Full Year 2025 Results, Reddit Q3 2025 Results, Reddit Q2 2025 Results, Reddit Q1 2025 Results)
Reddit Revenue: Over the Years
Reddit’s revenue grew from $228.9 million in 2020 to $2.20 billion in 2025, a 9.62x increase across five years. That works out to a compound annual growth rate of 57.3%.
The growth was not smooth. Reddit doubled revenue in 2021 as pandemic-era engagement surged and advertisers followed, then decelerated sharply through 2022 and 2023.
The 2023 figure of $804.0 million represented growth of just 20.6%, the slowest year in the series and the point at which the company’s advertising business looked most vulnerable. Growth then reaccelerated to 61.7% in 2024 and 69.4% in 2025.
Reddit added $137.3 million in new revenue during 2023. Two years later, it added $902.3 million, which is 6.6 times as much new revenue in a single year.
That 2025 increase alone exceeded Reddit’s entire 2023 revenue base.
This table shows Reddit’s annual revenue, growth rate, and dollar change for every year since 2020.
| Year | Revenue | YoY Growth | Absolute Change |
|---|---|---|---|
| 2020 | $228.9M | – | – |
| 2021 | $484.9M | +111.8% | +$256.0M |
| 2022 | $666.7M | +37.5% | +$181.8M |
| 2023 | $804.0M | +20.6% | +$137.3M |
| 2024 | $1,300.2M | +61.7% | +$496.2M |
| 2025 | $2,202.5M | +69.4% | +$902.3M |
Reddit’s 2025 revenue exceeded 2020 through 2023 combined
Reddit earned $2,202.5 million in 2025. The four years from 2020 through 2023 produced $2,184.6 million in total. A single recent year now outweighs the company’s entire pre-IPO revenue history.
Measured from 2021, the last full year before Reddit’s public filings began, the compound growth rate is 46.0% across four years.
The slower four-year figure compared with the 57.3% five-year figure reflects how much of the early compounding came from the unusually strong 2021 base.
(Source: Reddit Q4 and Full Year 2025 Results, Reddit Q1 2025 Results, Macrotrends, Stock Analysis)
Reddit Revenue Streams: Advertising vs Other
Advertising produced 93.6% of Reddit’s 2025 revenue, or $2.06 billion out of $2.20 billion.
The remaining $140 million came from the Other revenue line, which covers data licensing agreements and user-facing products such as Reddit Premium.
Reddit reports only these two segments. Advertising grew 74% in 2025 while Other revenue grew 22%, and that gap is why the mix keeps tilting further toward ads despite active efforts to diversify.
Other revenue rose in dollar terms every year but fell from 8.8% of the total in 2024 to 6.4% in 2025.
Of the $902.3 million Reddit added in 2025, advertising accounted for $877.1 million, or 97.2%.
In Q1 2026, the pattern intensified. Advertising delivered $266.4 million of the $271.0 million year-over-year increase, or 98.3%. Q2 2026 was almost identical, with advertising accounting for $297.0 million of the $305.3 million increase, or 97.3%.
Advertising revenue reached $762 million in Q2 2026, up 64% year over year, while Other revenue grew 24% to $43 million. Advertising was 94.7% of the quarter, just under the record 95.1% set in Q4 2025.
Here is how the two segments have split annually.
| Year | Ad Revenue | Ad Share in % | Other Revenue | Other Share | Total Revenue |
|---|---|---|---|---|---|
| 2023 | $787.9M | 98.0% | $16.1M | 2.0% | $804.0M |
| 2024 | $1,185.4M | 91.2% | $114.8M | 8.8% | $1,300.2M |
| 2025 | $2,062.5M | 93.6% | $140.0M | 6.4% | $2,202.5M |
The 2023 split is derived from Reddit’s IPO prospectus, which disclosed that 98% of that year’s revenue came from third-party advertising.
The quarterly view shows the same pull toward advertising, with Q4 2025 marking the highest ad concentration on record at 95.1%.
Data licensing sits inside Other revenue and is never broken out
Reddit does not disclose data licensing revenue separately. Every AI content agreement it has signed sits inside the Other revenue line alongside subscriptions, which makes the segment impossible to isolate from public filings.
Reddit entered data licensing arrangements in January 2024 with an aggregate contract value of $203.0 million and terms ranging from two to three years, and expected a minimum of $66.4 million to be recognized during 2024.
The agreement with Google has been reported at roughly $60 million per year. Set against $2.20 billion in 2025 revenue, a contract of that size represents less than 3% of the total.
(Source: Reddit Q1 2026 Results, Reddit Q4 and Full Year 2025 Results, Reddit Q3 2025 Results, Reddit Q2 2025 Results, Reddit S-1 Prospectus, TechCrunch)
Reddit Revenue by Geography
The United States generated $1.79 billion of Reddit’s $2.20 billion in 2025 revenue, or 81.1% of the total. International markets contributed $416.9 million, or 18.9%.
International revenue grew faster. It rose 76% in 2025 against 68% for the U.S., and it grew faster in four of the last five reported quarters.
Yet the international share of total revenue moved only 70 basis points across the full year, from 18.2% to 18.9%. When one market is more than four times the size of the other, a faster growth rate takes years to move the mix.
Q1 2026 showed the widest international share Reddit has recorded, at 20.8%, with international revenue of $137.8 million growing 76% against 67% for the $525.6 million U.S. figure. Q2 2026 came in essentially level at 20.7%, though the growth gap widened sharply.
International revenue rose 84% to $166.8 million while U.S. revenue rose 56% to $638.1 million.
The table below breaks out annual revenue by region.
| Year | U.S. Revenue | International Revenue | U.S. Share | International Share |
|---|---|---|---|---|
| 2024 | $1,063.6M | $236.6M | 81.8% | 18.2% |
| 2025 | $1,785.6M | $416.9M | 81.1% | 18.9% |
| H1 2026 | $1,163.7M | $304.6M | 79.2% | 20.8% |
International Revenue added $180 million in 2025
International revenue grew from $236.6 million to $416.9 million during 2025, an increase of $180.3 million. Over the same period, U.S. revenue added $722.0 million, four times as much in absolute dollars.
This is the single clearest constraint on Reddit’s revenue profile. The company’s audience is majority international and getting more so, but the money is overwhelmingly American. Closing that gap is a larger opportunity than anything on the product roadmap, and also the slowest to move.
International revenue grew 80% in the first half of 2026 against 61% in the U.S., and the international share still moved less than two points.
(Source: Reddit Q1 2026 Results, Reddit Q4 and Full Year 2025 Results, Reddit Q3 2025 Results, Reddit Q2 2025 Results, Reddit Q1 2025 Results)
Reddit ARPU (Average Revenue Per Unique)
Reddit’s global ARPU reached a record $6.18 in Q2 2026, a 36% increase year over year. U.S. ARPU stood at $11.85 while international ARPU was $2.26, a gap of 5.24x.
That gap had held between 4.55x and 4.91x for five straight quarters before Q2 2026 broke the range. U.S. ARPU grew 51% in the quarter while international ARPU grew 31%, so American users are now pulling further ahead rather than holding a steady lead.
Q1 2026 had briefly suggested the opposite, with international ARPU growth of 51% nearly matching the U.S. figure of 54%. One quarter later that convergence had reversed.
Here is ARPU by region for each quarter since Q1 2025.
| Quarter | Global ARPU | Global ARPU YoY | U.S. ARPU | International ARPU |
|---|---|---|---|---|
| Q1 2025 | $3.63 | +23% | $6.27 | $1.34 |
| Q2 2025 | $4.53 | +47% | $7.87 | $1.73 |
| Q3 2025 | $5.04 | +41% | $9.04 | $1.84 |
| Q4 2025 | $5.98 | +42% | $10.79 | $2.31 |
| Q1 2026 | $5.23 | +44% | $9.63 | $2.02 |
| Q2 2026 | $6.18 | +36% | $11.85 | $2.26 |
ARPU peaks in Q4 and resets in Q1
Global ARPU hit $5.98 in Q4 2025, then fell 12.5% to $5.23 in Q1 2026. U.S. ARPU dropped from $10.79 to $9.63 across the same two quarters. It recovered to a new high of $6.18 by Q2 2026, confirming the reset is seasonal rather than structural.
This is the same holiday advertising cycle that shapes quarterly revenue, and it means single-quarter ARPU comparisons are only meaningful against the same quarter a year earlier.
On that basis, the trend is unbroken. Global ARPU has grown 77.9% over two years, from $2.94 in Q1 2024 to $5.23 in Q1 2026, and reached $6.18 by Q2 2026.
(Source: Reddit Q1 2026 Results, Reddit Q4 and Full Year 2025 Results, Reddit Q3 2025 Results, Reddit Q2 2025 Results, Reddit Q1 2025 Results)
How Reddit’s User Base Translates Into Revenue
Reddit reached 130.3 million daily active uniques and 514.6 million weekly active uniques in Q2 2026, growing 18% and 24% respectively. The weekly figure crossed half a billion for the first time.
Revenue grew 61% over the same period, which means most of Reddit’s growth still comes from monetizing existing users rather than adding new ones.
18% more users multiplied by 36% higher ARPU produces 60.5% revenue growth, which matches the reported 61%.
Breaking that into contributions, monetization accounts for roughly 65% of the growth and audience expansion for the remaining 35%.
User growth is also decelerating in a predictable way. DAUq growth has slowed from 31% in Q1 2025 to 18% in Q2 2026 as the comparison base gets larger, though it has now held between 17% and 19% for four straight quarters rather than continuing to fall. Revenue growth has not slowed alongside it.
This table tracks Reddit’s audience metrics across the last five quarters.
| Quarter | DAUq (Global) | DAUq YoY | WAUq (Global) | WAUq YoY |
|---|---|---|---|---|
| Q1 2025 | 108.1M | +31% | 401.3M | +31% |
| Q2 2025 | 110.4M | +21% | 416.4M | +22% |
| Q3 2025 | 116.0M | +19% | 443.8M | +21% |
| Q4 2025 | 121.4M | +19% | 471.6M | +24% |
| Q1 2026 | 126.8M | +17% | 493.1M | +23% |
| Q2 2026 | 130.3M | +18% | 514.6M | +24% |
Reddit earns $1.56 per weekly active unique
Reddit generated $804.9 million from 514.6 million weekly uniques in Q2 2026, which works out to $1.56 per weekly user for the quarter. A year earlier, the figure was $1.20, an increase of 30%.
Weekly revenue per user is a harsher measure than ARPU because the weekly audience is roughly four times the daily audience.
Only about a quarter of Reddit’s weekly visitors show up on any given day, and that ratio has drifted down from 26.5% in Q2 2025 to 25.3% in Q2 2026 as logged-out visitors grow faster than logged-in ones. In Q2 2026, logged-out daily uniques grew 27% against 7% for logged-in.
| Quarter | Revenue | WAUq | Revenue per WAUq |
|---|---|---|---|
| Q1 2025 | $392.4M | 401.3M | $0.98 |
| Q2 2025 | $499.6M | 416.4M | $1.20 |
| Q3 2025 | $585.0M | 443.8M | $1.32 |
| Q4 2025 | $725.6M | 471.6M | $1.54 |
| Q1 2026 | $663.4M | 493.1M | $1.35 |
| Q2 2026 | $804.9M | 514.6M | $1.56 |
International users are 59% of the audience and 21% of revenue
International daily uniques reached 77.1 million in Q2 2026 against 53.2 million in the U.S., meaning 59.2% of Reddit’s daily audience sits outside the United States. Those users generated 20.7% of revenue.
The imbalance has widened, not narrowed. International users were 53.7% of the daily audience in Q1 2025 and are 59.2% now, while their revenue share moved only from 20.0% to 20.7%.
Meanwhile, U.S. daily uniques grew just 6% in Q2 2026, yet U.S. revenue grew 56%, which is monetization doing nearly all the work in Reddit’s largest market.
| Quarter | U.S. DAUq | International DAUq | International Share of DAUq | International Share of Revenue |
|---|---|---|---|---|
| Q1 2025 | 50.1M | 58.0M | 53.7% | 20.0% |
| Q2 2025 | 50.3M | 60.1M | 54.4% | 18.2% |
| Q3 2025 | 51.6M | 64.4M | 55.5% | 18.0% |
| Q4 2025 | 52.5M | 68.9M | 56.8% | 19.6% |
| Q1 2026 | 53.5M | 73.3M | 57.8% | 20.8% |
| Q2 2026 | 53.2M | 77.1M | 59.2% | 20.7% |
(Source: Reddit Q1 2026 Results, Reddit Q4 and Full Year 2025 Results, Reddit Q3 2025 Results, Reddit Q2 2025 Results, Reddit Q1 2025 Results)
Reddit Profit and Margins
Reddit posted $529.7 million in net income for 2025 on $2.20 billion in revenue, a net margin of 24.1%. That followed a $484.3 million loss in 2024, making the year-over-year swing $1.01 billion.
Gross margin sits above 91% and has stayed there, reaching 91.3% in Q2 2026 against 90.8% a year earlier. Reddit runs on third-party infrastructure rather than owned data centers, so its cost of revenue is small, and its capital spending is close to negligible.
Capital expenditures were $6.7 million in 2025, or 0.3% of revenue, and $2.2 million across the first half of 2026, or 0.15% of revenue.
The more revealing number is incremental margin. Reddit added $902.3 million in revenue during 2025 and $547.1 million in adjusted EBITDA, meaning 60.6 cents of every new revenue dollar fell through to EBITDA. In Q1 2026 the incremental figure was 55.6%, and in Q2 2026 it was 57.7%.
That is what allows the EBITDA margin to expand as fast as it has, from 22.9% in 2024 to 38.4% in 2025 to 42.6% in Q2 2026. Adjusted EBITDA reached $342.8 million in the quarter, up 106% year over year.
Operating costs fell as a share of revenue across every line
Reddit’s total costs and expenses equaled 143.1% of revenue in 2024 and 79.9% in 2025. Every individual cost line shrank as a percentage of revenue over that period.
The 2024 comparison is distorted by IPO-related stock compensation, which pushed research and development to 71.9% of revenue and general and administrative to 34.7%.
Stripping that distortion out, the durable signal is sales and marketing, which fell from 27.0% to 22.9% of revenue even as spending rose from $350.6 million to $503.9 million. Reddit is spending more to acquire advertisers and getting more back for each dollar.
| Cost Line | 2024 Amount | 2024 % of Revenue | 2025 Amount | 2025 % of Revenue |
|---|---|---|---|---|
| Cost of revenue | $123.6M | 9.5% | $194.2M | 8.8% |
| Research and development | $935.2M | 71.9% | $783.1M | 35.6% |
| Sales and marketing | $350.6M | 27.0% | $503.9M | 22.9% |
| General and administrative | $451.4M | 34.7% | $279.3M | 12.7% |
| Total costs and expenses | $1,860.8M | 143.1% | $1,760.5M | 79.9% |
The first half of 2026 pushed the ratio lower again. Total costs and expenses were $1.05 billion against $1.47 billion in revenue, or 71.8%. Sales and marketing is the one line moving the other way, rising to 24.3% of revenue in Q2 2026 as Reddit spends harder to bring in advertisers.
Net income nearly tripled again in Q2 2026
Reddit earned $252.8 million in Q2 2026 against $89.3 million in Q2 2025, an increase of 2.8 times. Diluted EPS moved from $0.45 to $1.25 across the same quarters. First-half net income reached $456.8 million against $115.5 million a year earlier.
The balance sheet reflects the shift. Reddit held $2.79 billion in cash and marketable securities as of June 30, 2026, up from $1.95 billion two years earlier.
The board authorized a $1 billion share repurchase program in February 2026, and the company has started using it, buying back 1.5 million Class A shares for $235 million in Q2 2026 at an average price of $157.57. A company that lost $484 million in 2024 is now returning cash to shareholders.
(Source: Reddit Q1 2026 Results, Reddit Q4 and Full Year 2025 Results, Reddit Q3 2025 Results, Reddit Q2 2025 Results, Reddit Q1 2025 Results)
Final Thoughts
Reddit’s revenue has grown nearly tenfold in five years, and 2025 was the year the business finally paid for itself.
Gross margin above 91%, capital spending under 0.3% of revenue, and $684.2 million in free cash flow in 2025 describe a company that costs very little to run relative to what it brings in. The first half of 2026 alone produced $571.9 million.
The concentration is what to watch. Advertising is 93.6% of full-year 2025 revenue and drove 97.3% of the growth in Q2 2026. The U.S. is 81.1% of 2025 revenue and 79.2% across the first half of 2026.
Data licensing, the part of the business that attracts the most attention, works out to roughly 3%.
The gap between where Reddit’s users are and where its money comes from is the sharpest number in the whole set. International users make up 59.2% of the daily audience and are worth $2.26 each per quarter, against $11.85 in the U.S.
That ratio held steady for five quarters and then widened in Q2 2026, reaching 5.24x. Reddit has proven it can monetize American users, and it is getting better at it faster than it is anywhere else. Whether international monetization ever closes the distance is the question the next few years will settle.
