• by Colin Kirkland , February 6, 2026

In its latest performance report, Reddit said the company grew its user base by 5 million daily active users and increased its ad revenue intake by 75% year-over-year as the company focuses on enhancing AI-powered targeting and search capabilities for advertisers. 

Overall, Reddit has 121.4 million DAUs -- up from 116 million last quarter and up 19% year-over-year. The platform currently touts 471 million weekly active users.

While the company continues to add users at a steady rate, Reddit is growing its revenue expeditiously, adding $726 million in Q4 -- an increase of 70% compared to last year’s fourth quarter -- and hitting $2.2 billion in total revenue. 

Advertising revenue saw a 75% year-over-year boost, hitting $690 million for the quarter and $2.1 billion overall.

According to Reddit’s investor letter, ad revenue increases in Q4 were driven by AI-powered targeting abilities and ad delivery system updates, which were designed to drive more efficient results.

The letter states that 11 of Reddit’s top 15 industry verticals grew over 50% year-over-year, while the company launched its AI-powered Reddit Max campaigns to public beta for mid- and lower-funnel objectives. 

The company also likens its ad revenue growth to the addition of Reddit Community Intelligence technology, which attempts to categorize campaign viewers into actionable groups by decoding the platform’s billions of posts, comments, and conversations into audience signals for brands.

“Our focus is on turning Reddit’s authenticity into even more everyday utility,” said Reddit co-founder and CEO Steve Huffman in the performance report, calling this “the next era” of the company. 

Reddit’s report projects that it will bring in around $600 million in revenue next quarter, remaining confident in its growth trajectory for 2026.