Reddit’s Evolution in 2025: From Social Platform to AI Powerhouse

11 September 2025 Technology

Record Growth and Financial Success

Reddit has demonstrated remarkable financial performance, achieving $500 million in revenue, with advertising revenue surging 84% year-over-year to $465 million. The company attributes this growth to increased impressions and improved pricing strategies.

User engagement has shown significant expansion, with daily active users (DAUq) growing 21% to 110.4 million, while weekly active users reached 416.4 million, marking a 22% increase from the previous year. International growth has been particularly strong, with international daily active users increasing by 32% compared to 11% growth in the US.

AI Initiatives and Data Protection

As Reddit celebrates its twentieth year, the platform faces new challenges from AI chatbots seeking to utilize its vast data repositories. In response, Reddit has taken a defensive stance, recently filing a lawsuit against Anthropic for allegedly scraping subreddit information unlawfully.

In August 2025, Reddit launched its Pro mobile application for iOS devices, strengthening its position in the AI-driven landscape. The platform has achieved a significant milestone, becoming the “#1 most cited source across all major AI platforms,” highlighting its growing influence in AI-powered search and discovery.

Global Expansion and Business Innovation

Reddit’s international presence continues to expand, with DAUq growing 32% year-over-year. International revenue reached $91 million in Q2 2025, representing a 71% year-over-year increase. This geographic diversification reduces Reddit’s dependence on US markets while expanding its total addressable market opportunities.

Looking ahead, Reddit has provided optimistic guidance for Q3 2025, projecting revenue between $535 million and $545 million, with Adjusted EBITDA expected to range from $185 million to $195 million, indicating continued strong growth and improving profitability trends.

Community and Advertising Evolution

Reddit’s success in advertising stems from its unique position as a community-driven platform. With over 100,000 active communities, advertisers can access highly engaged audiences discussing specific topics. Notably, 40% of posts are commercial in nature, making Reddit an attractive destination for purchase-minded audiences.