What happened
On May 1, 2025, Reddit reported first-quarter revenue of $392.4 million, up about 61% year over year, alongside GAAP net income of $26.2 million, a sharp turnaround from a net loss of $575.1 million in the prior-year quarter that had been weighed down by IPO-related charges. Advertising revenue rose 61% to $358.6 million and other revenue, which includes AI data-licensing deals, climbed 66% to $33.7 million. Gross margin expanded to about 90.5%, and adjusted EBITDA reached $115.3 million, roughly 29% of revenue.
Daily active uniques grew 31% year over year to about 108 million, reflecting continued engagement gains even amid volatility in Google search referrals. The results extended the profitability Reddit first achieved in late 2024 and demonstrated that its combination of advertising and AI content licensing could deliver sustained earnings rather than a one-off quarter. The strong report reinforced Reddit's standing as a maturing public company and provided a financial backdrop for its continued investment in AI search features and its aggressive legal stance against unauthorized data scraping later in the year.