"Differentiating from other social media powerhouses like Facebook or Instagram, Reddit has shifted its niche to a data engine. Spencer Platt/Getty Images Its fourth quarter 2025 earnings: Q4 2025 earnings increased 70% year-over-year to $726 million. Full-year revenue $2.2 billion. Digital advertising increased 75% in Q4. Analysts are focused on Reddit's "human" conversations, like the threads you often see, and are using them to train AI models."
"This allowed the company to reach a 92% gross margin, but despite these metrics, investors boggled down over "logged-out" user growth versus "logged-in" monetization. Reddit has been licensing its 20 years' worth of human conversation, yes, including those "rage bait" threads. More Tech Stocks: For two decades, Reddit has been the place for the internet's most chaotic anonymous conversations, from heated moral debates to literal thousand-comment "rage bait" threads where strangers vent and argue over workplace drama and initiate family blowups in painstaking detail."
Reddit's Q4 2025 revenue rose 70% year-over-year to $726 million, with full-year revenue of $2.2 billion. Digital advertising revenue climbed 75% in Q4. The company achieved a 92% gross margin. Total daily active unique (DAUq) increased 19% to 121 million. Reddit licenses two decades of user conversations to AI companies for model training, creating a high-margin revenue stream less dependent on advertising. One executive filed an SEC Form 4 showing a multi-million-dollar personal purchase of Reddit stock. Market sentiment remains cautious, with investors adopting a "show me" mentality and expecting little room for error.
Read at Macon Telegraph
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