Reddit, Inc.

redditinc.com

What Do They Do?

Sells contextual advertising to businesses and runs an online platform where people join interest-based communities to share conversations and recommendations.

How Do They Make Money?

Businesses pay Reddit to show ads on its mobile apps and website; Reddit also earns from content licensing and products sold directly to users. Payments are usually due within 30 to 60 days.

revenue

Segment	Share	Revenue
Advertising revenue	94% FY2022: 98%
Other revenue	6.4% FY2022: 2.1%

Who Are Their Customers?

Advertisers use Reddit to reach audiences in interest-based communities, while publishers, brands and companies use it to connect with their audiences.

Do Revenues Turn Into Profits?

Yes. It kept 24 cents of every revenue dollar as net income in FY2025 and turned 31 cents into free cash flow.

Operating income, FY2025

20% of revenue

▲ Now profitable vs FY2024 (−$560.6M, −43%)

Net income, FY2025

24% of revenue

▲ Now profitable vs FY2024 (−$484.3M, −37%)

Free cash flow, FY2025

31% of revenue

▲ +217% vs FY2024 ($215.8M, 17%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +61%; vs $499.6M in Q2 FY2025
Net income: ▲ +183%; vs $89.3M in Q2 FY2025

Advertising revenue share of revenue vs 93.0% in Q2 FY2025

Jul 30, 2026 Provided third-quarter revenue and adjusted EBITDA guidance Revenue was estimated at $860 million to $870 million and adjusted EBITDA at $385 million to $395 million.

Revenue over time

Advertising revenue Other revenue

$2.5B$1.3B$0

FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with Google, Amazon, Meta, Snap, TikTok, Roblox, Discord, Pinterest, Nextdoor, Craigslist, Poshmark, Etsy, and Anthropic

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