• by Colin Kirkland , 9 hours ago

In its latest performance report, Reddit is showing impressive increases in both its ad business and its overall revenue, while seeing only a slight boost in daily active users as growth slowed in international and stateside markets. 

Over the past year, Reddit has increased its total revenue by a whopping 78%, making $500 million in Q2 of this year -- a significant improvement from the $392 the company brought in in Q1 2025.

In its letter to investors, Reddit says Q2 2025 marks the company’s fastest quarterly growth rate since 2022, due to “broad strength across objectives, verticals, geographies, and channels.”

Reddit’s advertising revenue grew by 84% year-over-year, with the company bringing in $465 million in Q2.

The company says its ad revenue intake was driven by growth in impressions, pricing, and brand and performance revenue as Reddit continues to expand and refine its ad stack.

Building on Dynamic Product Ads and updates to its Ads Manager in March, which focused on appealing to smaller businesses, Reddit launched what it calls Community Intelligence at Cannes last month -- an AI-powered engine that powers products and insights that turn content from 20 years of user posts into fodder for feed tools geared toward advertisers and marketers. 

This includes “Reddit Insights,” a Community Intelligence-driven tool brands can use to identify and analyze the meaning and value of words, phrases and other terms within Reddit conversations. Now, advertisers can also use "Conversation Summary Add-ons" to surface positive Reddit conversations directly below ads -- a new feature the company says is delivering 10% boosts in click-through rates compared to standard image ads. 

However, in terms of user growth, Reddit lost momentum in both stateside and international markets over the past quarter.

The company added 2 million daily active users overseas in Q2 compared to 4.3 million in Q1, while only 200,000 new DAUs joined Reddit in the U.S., compared to over 2 million last quarter.

Addressing this matter, Reddit said it has adopted a revised product strategy and is investing in creating a more accessible and seamless user experience across the platform, whether users are “scrolling their favorite subreddit, seeking input on a purchase, or discovering a new community.”

The company also believes that improving its shopping discovery tools and machine translation tools could help it appeal to users in more markets.

In its report, Reddit claims that 40% of its posts are “commercial in nature” and highlighted its recent launch of Shopping Ads, as well as its partnership with Smartly, which has been working to advance conversational commerce via one-on-one customer interactions with AI agents. 

Moving forward, Reddit plans to use AI to further expand its ad options and tools to attract more advertisers and build profit.