Reddit, Inc. (NASDAQ:RDDT) stock is trading higher Friday after the company reported strong fourth-quarter and full-year financial results, signaling continued momentum in its business performance.
Investor optimism around the earnings update and stronger profitability appears to be driving the early move, supported by solid revenue growth and upbeat forward guidance.
The stock’s advance also comes alongside a generally upbeat tone across markets, as major benchmarks such as the Nasdaq and S&P 500 posted gains in the prior session, providing additional support for risk-on sentiment.
Reddit’s Q4 Revenue Soars 70%, Announces $1B Buyback
In the fourth quarter of 2025, Reddit delivered strong financial results, with revenue rising 70% year over year to $726 million. Net income reached $252 million, while adjusted EBITDA grew to $327 million, reflecting improving profitability. User engagement also expanded, as Daily Active Uniques (DAUq) increased 19% to 121.4 million, highlighting continued platform growth.
For the full year 2025, Reddit reported revenue growth of 69% to $2.2 billion, driven largely by a 74% increase in advertising revenue. The company also generated solid cash flow, supported by strong margins near 45% in the quarter.
For the first quarter of 2026, Reddit expects revenue in the range of $595 million to $605 million, above the analyst estimate of $577.170 million, and adjusted EBITDA of …