Reddit’s crushing it this quarter but those tariffs could still spoil the party

Reddit reported $500 million in revenue for the second quarter of 2025, a 78% increase from last year. “Ad revenue alone rose 84% to $465 million,” the company stated.
https://investor.redditinc.com/news-events/news-releases/news-details/2025/Reddit-Announces-Second-Quarter-2025-Results/default.aspx

Net income reached $89 million with earnings per share of $0.45, marking its most profitable quarter so far. Daily active users increased 21% to 110 million, while international users grew 32%.
https://www.marketwatch.com/story/reddits-stock-is-soaring-after-earnings-this-is-why-7086fff3

Looking ahead, Reddit expects third-quarter revenue between $535 million and $545 million and adjusted EBITDA of $185 million to $195 million.
https://www.investopedia.com/reddit-turns-a-profit-as-user-gains-boost-revenue-11783214

Trade tensions remain a concern. “Most tariff rates are finalized and set to take effect on August 7,” said U.S. Trade Representative Jamieson Greer.
https://nypost.com/2025/08/03/us-news/trump-trade-adviser-pledges-tariffs-pretty-much-set-as-several-countries-scramble-for-deals/

  • Revenue beat estimates by 17%

  • Earnings turned positive from a loss last year

  • Daily users grew strongly worldwide

  • Tariffs finalized, possibly causing market disruption

Despite strong earnings, Reddit faces risks from rising trade tensions and shifting global policies. Investors should watch for market reactions to these developments.


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