TLDR
- Reddit spikes after hours as earnings reveal record revenue momentum
- Advertising growth fuels strongest quarterly expansion in company history
- Profit surge highlights major improvement in operating efficiency
- Full-year results confirm scaling strength across global markets
- Cash flow and margins signal durable long-term growth trajectory
Reddit (RDDT)stock ended the session at $151.05, down 1.07%, yet it surged after hours to $159.58. The move followed a sharp earnings release that signaled stronger growth across key revenue categories. Market attention shifted quickly as the platform delivered its strongest quarterly expansion to date.
Revenue Strength Drives Sharp Post-Earnings Reaction
Reddit reported fourth-quarter revenue of $726 million, and the figure marked a 70% rise from last year. The company posted $690 million in advertising revenue, and the segment expanded 75% due to stronger global activity. Other revenue reached $36 million, and the growth reflected steady interest in newer commercial offerings.
Gross margin stood at 91.9%, and it remained near last year’s level despite heavier operational activity. Net income reached $252 million, and the result improved by $181 million from the prior period. Adjusted EBITDA rose to $327 million, and the company benefited from higher monetization efficiency.
Operating cash flow totaled $267 million, and the increase signaled improved cost discipline across the platform. Free cash flow reached $264 million, and the gain reflected stronger execution in financial planning. Total diluted shares held steady at 206.1 million, and the stability supported overall earnings clarity.
Full-Year Growth Highlights Momentum Across Core Operations
Reddit recorded full-year revenue of $2.2 billion, and the figure rose 69% from the previous year. Advertising revenue reached $2.1 billion, and the segment grew 74% with expanding commercial demand. Other revenue totaled $140 million, and the increase showed rising adoption of secondary services.
Net income for the year reached $530 million, and the shift marked a $1.01 billion improvement from a prior loss. Adjusted EBITDA climbed to $845 million, and the expansion reflected operational leverage across global markets. Free cash flow reached $684 million, and the gain underscored higher efficiency across product initiatives.
Gross margin improved to 91.2%, and the rise showed structural benefits from scaled infrastructure. Operating cash flow reached $691 million, and the improvement highlighted stronger financial flexibility. Basic earnings per share reached $2.84, and diluted earnings per share stood at $2.62.
Platform Strategy Supports Ongoing Expansion Efforts
Reddit continued focusing on global adoption, and the platform expanded its reach across core regions. The company strengthened its product roadmap, and each update supported higher engagement across conversational features. Management emphasized execution, and the approach reinforced consistent revenue acceleration across the year.
The company maintained a strong liquidity position with $2.47 billion in cash and securities. Leadership prioritized financial stability, and the framework supported ongoing investment in platform modernization. Operational gains positioned Reddit for sustained long-term expansion across competitive digital markets.
Reddit ended the year with improved profitability, and the trend reflected strategic gains across advertising and operations. The company advanced its international presence, and momentum remained strong across user-focused developments. The performance supported a sharp after-hours jump, and the market reacted to clear revenue strength.
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