Reddit $RDDT RDDT is benefiting from strong user growth, which underscores its potential for continued expansion and increased revenue opportunities. In the fourth quarter of 2025, Reddit reported 121 million daily active users (DAUs), a 19% year-over-year increase, and 471 million weekly active users (WAUs), up 24% year over year.
A key driver of this growth has been Reddit’s focus on enhancing its consumer product offerings. The company has prioritized improving new user onboarding and integrating its search interfaces, which have been a key catalyst. Reddit Answers, its AI-powered search feature, has seen a remarkable increase in usage, with weekly queries growing from 1 million to 15 million over the past year. In the fourth quarter of 2025, Weekly search activity on Reddit increased significantly, with more than 80 million people searching directly on the platform, up from 60 million a year ago.
Reddit’s strong user growth is also driving its advertising business, which grew 75% year over year in the fourth quarter of 2025 to $690 million. The platform's investments in machine learning and new ad formats, such as shopping ads and Reddit Max campaigns, are enhancing ad performance and attracting a broader base of advertisers. With a total active advertiser count growing by more than 75% year over year, Reddit is successfully expanding its reach across large customers, mid-market businesses and small-to-medium businesses.
RDDT’s expanding portfolio and rising user engagements are expected to drive the company’s top-line growth. For the first quarter of 2026, RDDT expects revenues between $595 million and $605 million.