Reddit (RDDT) Q3 2025 Earnings Call Transcript | The Motley Fool
Briefly

Reddit (RDDT) Q3 2025 Earnings Call Transcript | The Motley Fool
"Daily Active Unique Users (DAUQ) -- 116 million DAUQ, supported by both organic product improvements and marketing. Total Revenue -- $585 million total revenue, up 68% year over year, with strength from both advertising and international channels. Advertising Revenue -- $549 million, growing 74% year over year, driven by broad-based demand across large, mid-market, and SMB advertisers. Net Income -- $163 million net income, with a net income margin of 28%, improving by $133 million over the previous year."
"Adjusted EBITDA -- Adjusted EBITDA reached $236 million, with an adjusted EBITDA margin of 40%, surpassing the IPO target for the first time. Gross Margin -- 91%, up 90 basis points year over year and exceeding 90% for five consecutive quarters. Incremental Adjusted EBITDA Margin -- with an incremental adjusted EBITDA margin of 60%, marking a new high for Reddit . Cash and Equivalents -- with cash and equivalents of $2.2 billion at quarter end."
"Fully Diluted Shares Outstanding -- 206.1 million fully diluted shares outstanding, with stock-based compensation expense declining from 19% to 16% of revenue. Active Advertiser Count -- Expanded over 75% year over year across all segments. ARPU -- $5.40, up 41% year over year, with impressions as the primary growth driver. International Revenue Growth -- International revenue grew 74% year over year, outpacing the 67% increase in the U.S, supported by machine translation in 30 la"
DAUQ reached 116 million, driven by organic product improvements and marketing. Total revenue was $585 million, up 68% year over year, with advertising and international strength. Advertising revenue totaled $549 million, growing 74% year over year across large, mid-market, and SMB advertisers. Net income was $163 million, with a 28% margin and a $133 million improvement. Adjusted EBITDA reached $236 million with a 40% margin, surpassing the IPO target. Gross margin was 91%, and incremental adjusted EBITDA margin hit 60%. Free cash flow was $183 million and cash and equivalents totaled $2.2 billion.
Read at The Motley Fool
Unable to calculate read time
[
|
]