"Investors are now asking whether the July blowout marks the start of a structural inflection or a one-time surge ahead of the holiday ad cycle. The company's next phase depends on maintaining ad performance gains, scaling its new search experience, and sustaining international adoption. Management has described this period as a "once-in-a-generation opportunity" for Reddit to redefine how human conversations power both advertising and AI ecosystems."
"Year-over-year sales growth is projected at roughly 58% for the current quarter and 49% for Q4, reflecting broad confidence in the company's ad modernization and search monetization efforts. Reddit has topped consensus EPS in each of the past four quarters, delivering upside surprises ranging from +44% to +870%, and finished Q2 with GAAP EPS of $0.45 on $499.6M in revenue."
Reddit will report third-quarter 2025 earnings after the close following a record second quarter that featured 78% year-over-year revenue growth and the company’s highest net income. Advertising revenue rose 84% in Q2 to $465 million, driven partly by Dynamic Product Ads and conversion API integrations and expansion from existing advertisers. Management guided Q3 revenue to $535–$545 million and expects a 35% adjusted EBITDA margin at the midpoint. Analysts project roughly 58% year-over-year sales growth for the current quarter and 49% for Q4. Key priorities include sustaining ad performance, scaling a new search experience, and expanding internationally while managing moderation and safety investments.
Read at 24/7 Wall St.
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