Reddit has released its financial results for Q2 2025 showing a net income of $89 million, which is a big turnaround from the $10 million net loss the year before. Reddit’s total revenue is up 78% year-over-year to $500 million, primarily driven by an 84% increase in ad revenue to $465 million.
While these figures are good for the company, a deeper look at the numbers reveal that international revenue growth has slowed significantly, lagging behind the United States. Despite this, Reddit CEO Steve Huffman said that the company is “focused on growing globally.”
In terms of the numbers of users on Reddit, the company stated that it saw a 21% year-over-year increase in Daily Active Uniques (DAUq) to 110.4 million.
The results show that US revenue surged by 79% year-over-year to $409 million while international revenue grew at a significantly slower rate of 71% year-over-year to $91 million. The gap between Reddit’s domestic market and international market is a point of concern as the US market is maturing and the company is actively trying to grow internationally.
It was also noted in the report that the Average Revenue Per Unique (ARPU) is also vastly different with it reaching $7.87 in the US versus $1.73 internationally, this further highlights the disparity in monetization. What’s actually pretty interesting too is that the company’s DAUq growth was stronger internationally at 32% compared to 11% in the US, suggesting that the user base is there but not being monetized as well.
While the company’s positive net income is a milestone, it’s supported by a big increase in adjusted EBITDA, which is not a Generally Accepted Accounting Principle. The use of a non-GAAP measure can mean that companies have a lot of flexibility in what they choose to include or exclude.
Given this, it can be difficult to compare Reddit to similar companies or compare it to past performance.