Online community and discussion platform Reddit (NYSE: RDDT) will be announcing earnings results this Thursday after the bell. Here’s what to look for.
Reddit beat analysts’ revenue expectations by 6.3% last quarter, reporting revenues of $584.9 million, up 67.9% year on year. It was a very strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates. It reported 51.6 million daily active users, up 7.1% year on year.
Is Reddit a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Reddit’s revenue to grow 56.1% year on year to $667.5 million, slowing from the 71.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.45 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Reddit has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 10% on average.
Looking at Reddit’s peers in the consumer internet segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Meta delivered year-on-year revenue growth of 23.8%, beating analysts’ expectations by 2.5%, and Take-Two reported revenues up 24.9%, topping estimates by 7.5%. Meta traded up 10.4% following the results.
Read our full analysis of Meta’s results here and Take-Two’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the consumer internet stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 13.4% on average over the last month. Reddit is down 32.1% during the same time and is heading into earnings with an average analyst price target of $252.39 (compared to the current share price of $165.51).
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