Reddit Inc. RDDT reports third-quarter 2025 results after the market closes on October 30. Analysts expect earnings of $0.52 per share on revenue of about $549 million. The stock is up 27% this year as advertising and data-licensing growth lift investor confidence.
This could be Reddit’s fifth profitable quarter in a row. The company turned a corner after years of losses leading up to its IPO. Ad sales remain the biggest driver, helped by stronger demand and better campaign tools. Reddit has also been cashing in on its data. AI firms are paying for access to its pool of user posts to train language models, adding a new revenue stream that’s less dependent on ad cycles.
Investors now want to see if that momentum continues. Last quarter, revenue rose 78% from a year earlier, with ad sales up 84%. The focus this time will be on how much of Reddit’s topline comes from AI partnerships and how quickly that business scales. Daily active users and engagement will also matter as Reddit tries to convert traffic into steady income. ARPU will be another focus.
Reddit trades at about 44x forward P/E, above most social media peers. Investors expect that multiple to hold only if margins keep expanding and AI partnerships bring in predictable revenue. A strong quarter with confident guidance could sustain the rally. But a headline miss or softer outlook would make the valuation harder to justify.
