Q: What is Reddit(RDDT) 2025Q4 Earnings Summary?

**Bullish Points:**

1. Revenue for the year ended December 31, 2025, was $2.2 billion, marking a significant increase of 69% year over year, primarily driven by an increase in advertising revenue.

2. Net income for the year was $529.7 million, a substantial improvement from a net loss of $484.3 million in the prior year.

3. Gross margin improved slightly to 91.2% from 90.5% in the previous year.

4. Operating expenses decreased to $1.6 billion from $1.7 billion, with a notable reduction in research and development expenses.

5. Adjusted EBITDA saw a remarkable increase of 184% year over year, reaching $845.1 million.

6. Free Cash Flow increased significantly to $684.2 million from $215.8 million in the prior year.

7. The company holds a strong cash position with $2.5 billion in cash, cash equivalents, and marketable securities.

8. The increase in advertising revenue was driven by both an increase in impressions delivered and higher pricing.

9. The company has a $500 million revolving credit facility with a substantial available balance of $494.7 million.

10. Reddit, Inc. was in compliance with all covenants under the Revolving Credit Facility as of December 31, 2025.

**Bearish Points:**

1. The company recorded a high stock-based compensation expense of $343.180 million for the year.

2. Future payments under non-cancellable purchase obligations totaled $372.179 million.

3. The company has significant federal and state net operating loss carryforwards of $1.7 billion and $806.1 million, respectively, which may indicate past financial challenges.

**Summary:**

Reddit, Inc. has demonstrated strong financial performance for the year ended December 31, 2025, with substantial revenue growth, a return to profitability, and improved cash flow metrics. The company's ability to increase advertising revenue and manage operating expenses effectively has contributed to these positive results. However, the high stock-based compensation expense and significant future purchase obligations are areas to monitor. Overall, the financial outlook appears positive, supported by a strong cash position and compliance with credit facility covenants.

For more information, you can read the original text of Reddit(RDDT)'s financial report .