Reddit’s AI-Fueled Surge: Record Profits and Analyst Optimism Drive Shares Higher

Reddit is redefining market expectations with an explosive third-quarter 2025 performance that has sent its stock soaring. The social media platform’s remarkable growth trajectory is capturing Wall Street’s attention, though questions remain about sustainability in the evolving digital landscape.

The company has firmly established its financial footing, reporting its fifth consecutive profitable quarter since going public. Reddit posted a net income of $163 million, achieving an impressive 28% margin. The operational strength was even more pronounced, with adjusted EBITDA surging 82% to $236 million. Current guidance suggests this momentum will continue, with fourth-quarter revenue projections between $655 million and $665 million—significantly outpacing analyst expectations of $638 million.

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