Reddit has published its latest performance report, showing steady increases in ad revenue and usage in Q2 2025, as it continues to refine and improve its business elements.
Though its user growth did slow a little in the last three months, and its costs are rising.
Here’s a look at the latest data from the Reddit team.
First off, on users. Reddit rose to 110.4 million daily active users in Q2, a slight increase on its Q1 numbers.
As you can see in this chart, Reddit’s international growth slowed significantly in Q2, while its U.S. usage remains fairly stagnant. That could suggest that Reddit’s popularity is beginning to plateau, and the fact that it’s losing momentum in international markets could be a concern.
Still, Reddit says that it remains confident in its growth opportunities.
As per Reddit:
“We see tremendous potential to grow our user base and deepen engagement, and we’re moving quickly to align priorities and resources to capture that opportunity. As a first step, we clarified our product strategy and are investing in making Reddit a better experience for everyone who comes to the platform – whether they’re scrolling their favorite subreddit, seeking input on a purchase, or discovering a new community for the first time.”
Reddit says that its improving machine translation tools could help it gain more traction in more markets, while it’s also becoming a more valuable tool for shopping discovery, with users coming to the platform to get real, human insights into products, as opposed to generic, AI-generated summaries.
Indeed, Reddit says that 40% of Reddit posts are “commercial in nature.” And with 80% of Reddit users noting that some questions can only be answered by humans, as opposed to AI-generated summaries, there is a significant crossover of information and opportunity within subreddit groups.
Though Reddit does also have its own AI answers, via “Reddit Answers,” which uses info sourced from relevant subreddits to provide overviews of user notes.
Reddit says that Reddit Answers has grown to 6 million weekly queries, while 70 million users are conducting weekly searches in the app.
A coming expansion of Reddit Answers to all users will enable the platform to capitalize on this, and build a more dedicated AI product built entirely on Reddit’s corpus of responses.
So while Reddit is in some ways eschewing more generalized AI answers, it’s also looking to tap into the power of AI to maximize its own community insights, though given the value of subreddit reviews and informational notes, these could be a more valuable, more insightful approach to such.
In terms of revenue, Reddit brought in $500 million for the quarter, a significant increase from Q1.
The numbers reflect the platform’s increasing focus on monetization, and building its business elements. Which Reddit hadn’t made a significant focus in the past, but now, it’s looking to tap into all the opportunities that it can to increase its revenue intake.
On that front, Reddit says that some of its newer ad offerings, like Conversations Summary Add-Ons, have been gaining traction.
It’s another way for Reddit to make use of its conversations to tap into user interest, though it is also worth noting that Reddit’s increasing investment in AI is also driving up its costs.
That’ll be an element to watch in the coming months, as Reddit looks to deploy smarter ad options and tools via AI, while also maximizing its margins and building profit.
Overall, it’s a good report card for Reddit, though the slowing user growth could be a concern. The fact that Reddit’s making more money out of its userbase is a positive sign, but if that growth does slow, that will also impact its future ad prospects.
