### Reddit's Q3 Earnings Report: A Strong Performance Amidst Market Challenges Reddit has recently reported its third-quarter earnings for 2025, showcasing impressive financial results that exceeded Wall Street's expectations. The company achieved a **68% increase in revenue**, totaling **$585 million**, and a **net income of $163 million**, translating to **80 cents per share**, significantly surpassing the anticipated **51 cents** per share. This performance is particularly noteworthy given the backdrop of slowing audience growth in the U.S. market, indicating that Reddit's strategies, particularly in advertising and AI data licensing, are yielding positive results [https://www.marketscreener.com/news/reddit-exceeds-expectations-despite-slowing-audience-growth-in-the-us-ce7d5cdbd88df42d]. ### Breakdown of Reddit's Q3 Performance 1. **Revenue and Earnings Growth** - Reddit's revenue surged by **68%** year-over-year to **$585 million**. - The net income reached **$163 million**, or **80 cents per share**, well above the expected **51 cents** [https://www.marketscreener.com/news/reddit-exceeds-expectations-despite-slowing-audience-growth-in-the-us-ce7d5cdbd88df42d]. 2. **User Engagement Metrics** - Despite a slowdown in audience growth in the U.S., Reddit reported an increase in **daily active users**, which contributed to the overall revenue growth [https://finance.yahoo.com/news/reddit-stock-soars-after-q3-revenue-daily-active-users-beat-wall-street-estimates-151600388.html?guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAK-QirR2m7ymTJSy-Zr5fhtmWZyTfsyDvLetL9-3ZYhhz9iwdp49jj-fmgZ3LZFSt1giOkUNTAwjw-B5OcE3GkCBCE8QBOL3LvVv0SDhd7qo3z2OFprROfdwoCDSSNktvdmIZhNntD4ZMH1U3IICx-uRwQae3qHcjKndvOmRTKc2]. 3. **Advertising and AI Data Licensing** - The growth in revenue was driven by strong advertising sales and strategic partnerships in AI data licensing, which have become increasingly important for the platform's monetization efforts [https://winbuzzer.com/2025/10/31/reddit-crushes-q3-earnings-stock-surges-on-strong-ad-growth-and-ai-data-deals-xcxwbn]. 4. **Market Reaction** - Following the earnings announcement, Reddit's stock experienced a notable increase, rising more than **5%** in after-hours trading, reflecting investor confidence in the company's future prospects [https://news.az/news/reddit-shares-jump-following-strong-quarterly-results]. ### Summary of Reddit's Q3 Earnings Insights In summary, Reddit's Q3 2025 earnings report reveals a **strong financial performance** characterized by significant revenue and profit growth, despite challenges in user growth. The key findings are as follows: 1. **Revenue Growth**: Reddit achieved a **68% increase** in revenue, reaching **$585 million**. 2. **Earnings Surpass Expectations**: The net income of **$163 million** equates to **80 cents per share**, exceeding analyst predictions. 3. **User Engagement**: Daily active users increased, contributing positively to revenue despite a slowdown in U.S. audience growth. 4. **Stock Market Response**: The stock surged over **5%** in after-hours trading, indicating strong investor confidence. These results underscore Reddit's effective strategies in advertising and AI, positioning the company favorably for future growth [https://finance.yahoo.com/news/reddit-set-to-report-q3-earnings-with-user-growth-ai-deals-in-focus-151600345.html?.tsrc=ios&enableAutoplay=true&externalFeatures=enableFollowMWebview&feature.enableDigDeeperArticlesWebview=1&theme=auto&webviewbucket=dcr,donotselllink_control_bucket,external-crossplatform-community-access,finance_price_movement_bucket_Control,fmi-102909-telemetry-disabled,privacysdk_control_bucket].