"Reddit reported on Thursday $690 million in ad revenue for Q4 2025, a 75% year-over-year increase. Which means its ad biz grew by at least 60% each quarter of 2025. Reddit also saw its active advertiser count grow by 75% YOY. In addition, Reddit reported $2.1 billion in total 2025 ad revenue - topping $2 billion in annual ad revenue for the first time and improving on its 2024 revenue by 74%."
"But despite these gains, the company's stock is down 38% over the past month. And Reddit's strong Q4 revenue performance resulted in only a modest 5% rebound in its share price in after-hours trading on Thursday. What gives? It could be due to a recent insider selling spree or analyst concerns about Reddit's small- and mid-sized advertisers. Or it could be a market correction."
"And Reddit COO Jen Wong said the platform's still unmonetized nascent AI search platform, Reddit Answers, is an "enormous" opportunity for future growth. Fully full-funnel AdExchanger Daily Get our editors' roundup delivered to your inbox every weekday. Although Reddit Answers doesn't currently feature ads, Wong said the more conversational search interface should be additive to the platform's current engagement. And engagement is already on the upswing, with Reddit reporting an average of 121.4 millio"
Reddit reported $690 million in ad revenue for Q4 2025, a 75% year-over-year increase, implying at least 60% growth each quarter of 2025. Active advertiser count rose 75% year-over-year. Total 2025 ad revenue reached $2.1 billion, topping $2 billion for the first time and improving 74% from 2024. Despite revenue gains, the company's stock fell 38% over the past month and saw only a modest 5% after-hours rebound following the Q4 report. Potential explanations include insider selling, analyst concerns about small- and mid-sized advertisers, peer stock declines, and an overall tech-sector market downturn. Reddit emphasized its full-funnel ad platform and measurement investments, and noted Reddit Answers as an unmonetized AI search opportunity.
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