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International Business Times UK
International Business Times UK
Business
Angelo dela Dingco

Reddit Cashes in on AI Craze: 68% Revenue Jump and 443% Profit Surge Stun Wall Street

Reddit's Q1 hits record user growth and revenue, boosted by AI features. (Credit: Pexels)

Reddit, the popular online social media and forum platform, announced remarkable financial results on 30 October 2025. The company reported a 68% increase in sales and a 19% rise in Daily Active Users (DAUq) to 116 million — its highest ever. Artificial intelligence played a significant role in powering this record-breaking quarter, aligning with the tech giants' focus on AI-driven growth.

DAUq, a key metric for Reddit, measures the number of unique users engaging with the platform daily. Alongside the impressive growth in sales and DAUq, Reddit's net income in the third quarter of fiscal 2025 surged 443% to $163 million. Free cash flow also climbed 161%, reaching $183 million compared to the previous year.

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