The news: Reddit beat Wall Street expectations in Q3 by delivering revenues of $585 million—up 68% YoY and well above the $546 million consensus, per LSEG.

• Earnings came in at $0.80 per share, topping the expected $0.51, while net income rose 23% to $163 million.
• US revenues came in at $480 million, while international sales totaled $105 million, both slightly above expectations.
• The company also issued strong guidance for the fourth quarter, projecting revenues between $655 million and $665 million, ahead of analysts’ estimates of $638 million.

Reddit’s global daily active uniques grew 19% YoY to 116 million, exceeding forecasts of 114 million. However, US logged-in daily users—the platform’s most lucrative audience—grew just 7% YoY to 23.1 million, down from 12% growth the prior quarter.

Why it matters: Reddit’s performance proves it can scale its ad business profitably. The large jump in revenues shows advertisers are responding to the platform’s high-intent communities, where purchase-driven engagement outperforms traditional social media.

Yet the slowdown in US user growth suggests Reddit’s audience expansion may be reaching a ceiling in its most valuable market. For a company that depends on logged-in users to serve targeted ads, that’s a potential pressure point.

What advertisers should do: For marketers, Reddit’s results reaffirm its role as one of the most efficient paid social platforms. With ad revenues surging and engagement remaining strong, brands should consider Reddit not just as an experimental channel, but as a core performance driver—especially for tech, gaming, and consumer electronics.

However, the slowdown in US user growth is a warning not to over-index. Brands should balance Reddit investment with first-party data development and explore cross-platform synergies (search, video, CTV) to maintain reach. And as AI-driven search tools like Google’s “AI Overview” increasingly summarize Reddit content without clicks, advertisers will need to design creative that rewards participation inside the platform—not just visibility beyond it.