Shares of Reddit (RDDT) are up 8% after the social media company reported strong fourth-quarter 2025 financial results and announced a new $1 billion U.S. stock buyback program.
Reddit, which operates online message boards, posted earnings per share (EPS) of $1.24 U.S., which topped the $0.94 U.S. expected among analysts.
Revenue of $726 million U.S. came out ahead of the $665 million U.S. expected on Wall Street. Sales were up 70% from a year ago.
Reddit’s sales in the U.S. market came in at $583 million U.S. in Q4 2025, beating analyst estimates of $529 million U.S.
The company’s global daily active users grew 19% year-over-year to 121.4 million in the fourth quarter, ahead of the 120 million that Wall Street was forecasting.
Reddit also announced a $1 billion U.S. share repurchase program.
Looking ahead, management said they expect sales of $595 million U.S. to $605 million U.S. in the current first quarter. That’s above Wall Street expectations of $577 million U.S.
Earnings in the first quarter are projected at $210 million U.S. to $220 million U.S., ahead of analyst estimates of $203 million U.S.
Regarding the company’s data-licensing deals with Alphabet (GOOGL) and OpenAI, Reddit said “relationships with both companies are very healthy.”
Alphabet and OpenAI are using Reddit data to help train their artificial intelligence (A.I.) large language models.
Before today (Feb. 6), RDDT stock had declined 30% over the last 12 months to trade at $151.05 U.S. per share.
