Reddit Inc (NYSE: RDDT) is a social media company that operates a community-based platform where users join interest-specific forums called subreddits to share content, ask questions, and exchange information. The company makes money primarily through advertising sold on its mobile applications and website, with additional revenue from content licensing agreements and products sold directly to users. Advertising is priced on cost-per-click (CPC), cost-per-thousand-impressions (CPM), cost-per-view (CPV), and fixed-fee bases. Content licensing, concentrated in AI and machine learning training data arrangements, represented a smaller but growing revenue stream, with substantially all licensing contract value derived from two partners as of the 10-K filed February 6, 2026. Total revenue reached $2.20 billion in FY2025, up 69% from $1.30 billion in FY2024. The platform averaged 121.4 million daily active uniques (DAUq) globally in Q4 FY2025, growing 19% year over year. United States ARPU was $10.79 in Q4 FY2025 versus $2.31 for the rest of world, reflecting the maturity gap between U.S. and international digital advertising markets.

Revenue model

Advertising (CPC, CPM, CPV, and fixed-fee) on the Reddit website and mobile applications represents the majority of revenue. Secondary revenue streams include content licensing to AI and machine learning partners and direct product sales to users, including virtual goods. FY2025 total revenue was $2.20 billion (10-K, filed 2026-02-06).

Products and services

Reddit platform (website and mobile applications), subreddit communities, interest-based advertising marketplace, content licensing for AI and machine learning training, virtual goods and rewards programs for contributors and developers.

Customers and end markets

Advertisers targeting interest-based communities on the Reddit platform, with a first-party data model built on community membership and content engagement rather than personally identifiable information tracking. AI and machine learning companies licensing Reddit content for model training. End users (Redditors) who consume and generate platform content. U.S. advertisers represent the most developed and highest-ARPU customer segment.

Value-chain role

Platform operator and publisher. Reddit aggregates user-generated content across subreddits, monetizes audience attention through an advertising auction marketplace, and licenses its accumulated content archive to AI training customers. The company does not produce content itself but provides the infrastructure and moderation framework within which communities generate it.

Geographic exposure

Global platform with operations in the United States and international markets. United States DAUq grew 9% year over year in Q4 FY2025; rest-of-world DAUq grew 28% year over year in the same period. U.S. ARPU ($10.79 in Q4 FY2025) substantially exceeds rest-of-world ARPU ($2.31 in Q4 FY2025), with international expansion driven partly by machine translation capabilities.

Source: SEC 10-K, filed 2026-02-06

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