The news: Reddit reported its 8th consecutive quarter of revenue growth on Thursday, with both revenues and advertising growth continuing to climb. But despite that, investors remained concerned over potential fallout from an ongoing dispute with and declining referral traffic from Google.

By the numbers:

• Revenues: $805 million, +61% YoY
• Advertising revenues: $762 million, +64% YoY
• Daily active uniques (DAUq): 130.3 million, +18% YoY
• Weekly active uniques (WAUq): 514.6 million, +24% YoY
• Global ARPU: $6.18, +36% YoY
• Basic and diluted EPS: $1.31 and $1.25, respectively, more than doubling YoY

In a letter to investors, CEO Steve Huffman tried to suggest that Reddit’s user growth will persist despite its troubles with Google and AI Overviews cutting into traffic. “AI compresses the internet into summaries,” Huffman said. “Reddit delivers the opposite: deep discussions, passionate debates, and lived experiences. People don’t want a summary of Reddit; they want Reddit.”

Reddit stock fell approximately 7% in post-close trading and about 16% at market open.

Ads drive growth: The majority of Reddit’s revenues come from its blossoming ads business. Nearly 94% of Reddit’s total FY25 revenues came from ads, per Bullfincher. We forecast that Reddit’s 2026 US ad revenues will grow 50.7% YoY and remain in the double digits through 2028, more than quadrupling between 2024 and 2028.