Reddit’s Big Bet on AI & Video: Will It Finally Break Out of the U.S. Market?

Reddit has reported a strong third quarter in 2025, demonstrating solid financial performance and user growth. The company achieved a notable 68% year-over-year increase in revenue, totaling $585 million, and remains profitable with a net income of $163 million. Reddit’s DAUs and WAUs grew by around 20% year-over-year, indicating healthy user engagement. The company’s strategic focus included balancing organic product improvements with successful marketing efforts, contributing to its growth. The introduction of Reddit Pro tools for publishers is a strategic move aimed at increasing engagement on the platform, particularly from publishers. This initiative has already seen early positive feedback from major organizations like the Associated Press. On the product front, Reddit is working on a more modern interface that simplifies user onboarding and enhances user experience by leveraging AI technology to streamline community engagement.