Reddit is rated a Strong Buy with a $250 price target, implying 20% upside driven by robust growth and engagement. RDDT posted 68% YoY revenue growth and a 5x EPS surge in FQ3 2025, with a premium 91% gross margin and strong operating cash flow. Advertising revenue soared 74% YoY, fueled by automation, higher ARPU, and international expansion through machine translation and local partnerships.
Australia's internet watchdog on Wednesday widened its world-first teen social media ban to include Reddit and video live streaming platform Kick, and said more sites could be added if their main role was to enable online social interaction.
Reddit is well-positioned for growth and profitability, driven by strong Q3 results, robust user engagement, and AI training deal optionality. RDDT's Q3 revenue grew 68% YoY, with international revenues up 74% and ARPU rising 41%, supporting a healthy growth outlook. Gross margins near 90% and EBITDA margins above 40% highlight strong operating leverage, with expectations for further margin expansion as Reddit scales.
Reddit‘s (RDDT) Q3 earnings showed 68% revenue growth, a 25% user increase, and a 52% rise in ARPU. Much of my skepticism previously focused on Reddit's ad business and user engagement since its IPO.
RDDT's third-quarter results benefit from strong ad gains and rising user engagement.
Reddit (RDDT) remains a top growth story, with robust user and revenue expansion driving a fresh rally and justifying a continued buy rating. RDDT's Q3 results showcased 68% year-over-year revenue growth and a strong rebound in U.S. daily active users, alleviating saturation concerns. International growth is accelerating due to machine translation, while rising ARPU and data licensing further enhance RDDT's monetization potential.
Reddit (RDDT) shares surged Friday after the social media platform posted better-than-expected earnings and an upbeat outlook.
The social-media platform is reaping the benefits of its globalization effort, and there's room for more international growth ahead.
Major U.S. equities indexes climbed Friday afternoon, helped by a rally in shares of Amazon (AMZN) after the tech giant posted better-than-expected earnings. The Dow, S&P 500, and Nasdaq all advanced.
Reddit (RDDT) shares surged Friday after the social media platform posted better-than-expected earnings and an upbeat outlook.
Oppenheimer & Co analysts late Thursday weighed in on Reddit (NYSE:RDDT)'s third quarter earnings and revenue results, which exceeded Wall Street expectations. Reddit's Q3 sales rose 68% year over year, while its earnings per share of $0.80 surpassed the analyst consensus estimate of $0.51.
Reddit, Inc. ( RDDT ) Q3 2025 Earnings Call October 30, 2025 5:00 PM EDT Company Participants Jesse Rose - Head of Investor Relations Steven Huffman - Co-Founder, CEO, President & Director Jennifer Wong - Chief Operating Officer Andrew Vollero - Chief Financial Officer Conference Call Participants Ronald Josey - Citigroup Inc., Research Division Thomas Champion - Piper Sandler & Co., Research Division John Colantuoni - Jefferies LLC, Research Division Naved Khan - B. Riley Securities, Inc., Research Division Jason Helfstein - Oppenheimer & Co. Inc., Research Division Andrew Boone - Citizens JMP Securities, LLC, Research Division Josh Beck - Raymond James & Associates, Inc., Research Division Douglas Anmuth - JPMorgan Chase & Co, Research Division Richard Greenfield - LightShed Partners, LLC Benjamin Black - Deutsche Bank AG, Research Division Kenneth Gawrelski - Wells Fargo Securities, LLC, Research Division Rohit Kulkarni - ROTH Capital Partners, LLC, Research Division Robert Zeller - Truist Securities, Inc., Research Division Presentation Operator Good afternoon.