Reddit, Inc.

Previous wording

•Daily Active Uniques (“DAUq”) were 110.4 million for the three months ended June 30, 2025, an increase of 21% year over year

Current wording

•Daily Active Uniques (“DAUq”) were 116.0 million for the three months ended September 30, 2025, an increase of 19% year over year

Previous wording

•Average revenue per unique (“ARPU”) was $4.53 for the three months ended June 30, 2025, an increase of 47% year over year

Current wording

•Average revenue per unique (“ARPU”) was $5.04 for the three months ended September 30, 2025, an increase of 41% year over year

Previous wording

•Cash, cash equivalents, and marketable securities were $2.1 billion as of June 30, 2025

Current wording

•Cash, cash equivalents, and marketable securities were $2.2 billion as of September 30, 2025

Previous wording

In the three months ended June 30, 2025, global DAUq grew 21% compared to the prior year period, driven by 11% growth in DAUq in the United States and 32% growth in DAUq in the rest of world. Global DAUq grew 2% compared to the prior quarter period, driven primarily by 4% growth in DAUq in the rest of world. The growth in global DAUq in the three months ended June 30, 2025 compared to the prior year period was primarily driven by traction in our growth strategies, particularly product initiatives such as machine translation and marketing, and to a lesser extent, by third-party search engine and algorithm changes. The growth in global DAUq in the three months ended June 30, 2025 compared to the prior quarter period was driven by traction in our growth strategies, particularly product initiatives such as machine translation and marketing, partially offset by third-party search engine and algorithm changes.

Current wording

In the three months ended September 30, 2025, global DAUq grew 19% compared to the prior year period, driven by 7% growth in DAUq in the United States and 31% growth in DAUq in the rest of world. Global DAUq grew 5% compared to the prior quarter period, driven by 3% growth in DAUq in the United States and 7% growth in DAUq in the rest of world. The growth in global DAUq in the three months ended September 30, 2025 compared to the prior year and prior quarter periods was primarily driven by product initiatives, particularly machine translation, and relatedly, third-party search engine and algorithm changes, as well as marketing.

Previous wording

In the three months ended June 30, 2025, global WAUq grew 22% compared to the prior year period, driven by 8% growth in WAUq in the United States and 35% growth in WAUq in the rest of world. In the three months ended June 30, 2025, global WAUq increased 4% compared to the prior quarter period, driven by 2% growth in WAUq in the United States and 6% growth in WAUq in the rest of world. For the three months ended June 30, 2025, the proportion of DAUq to WAUq was 27%.

Current wording

In the three months ended September 30, 2025, global WAUq grew 21% compared to the prior year period, driven by 6% growth in WAUq in the United States and 37% growth in WAUq in the rest of world. In the three months ended September 30, 2025, global WAUq increased 7% compared to the prior quarter period, driven by 4% growth in WAUq in the United States and 9% growth in WAUq in the rest of world. For the three months ended September 30, 2025, the proportion of DAUq to WAUq was 26%.

Previous wording

We monetize our business primarily through advertising on our mobile applications and website. In the six months ended June 30, 2025, we recorded revenue of $892.0 million, as compared to revenue of $524.1 million for the six months ended June 30, 2024, representing an increase of 70% compared to the prior year period.

Current wording

We monetize our business primarily through advertising on our mobile applications and website. In the nine months ended September 30, 2025, we recorded revenue of $1.5 billion, as compared to revenue of $0.9 billion for the nine months ended September 30, 2024, representing an increase of 69% compared to the prior year period.

Previous wording

During the three months ended June 30, 2025, ARPU was $4.53, an increase of 47% compared to $3.08 for the prior year period, United States ARPU was $7.87, compared to $4.94 for the prior year period, and rest of world ARPU was $1.73, compared to $1.24 for the prior year period. The increase in global ARPU compared to the prior year and prior quarter periods was due primarily to an increase in advertising revenue driven by an increase in impressions delivered, and to a lesser extent, an increase in pricing.

Current wording

During the three months ended September 30, 2025, ARPU was $5.04, an increase of 41% compared to $3.58 for the prior year period, United States ARPU was $9.04, compared to $5.88 for the prior year period, and rest of world ARPU was $1.84, compared to $1.32 for the prior year period. The increase in global ARPU compared to the prior year period was due primarily to an increase in advertising revenue driven by an increase in impressions delivered, and to a lesser extent, an increase in pricing. The increase in global ARPU compared to the prior quarter period was due primarily to an increase in advertising revenue driven by an increase in pricing, and to a lesser extent, an increase in impressions delivered.

Previous wording

We have a full valuation allowance against our United States deferred tax assets and will continue to maintain it until there is sufficient evidence to support the future utilization of these assets. Given our recent history of generating net income in the U.S., we believe that there is a reasonable possibility that sufficient positive evidence may become available in a future period to allow us to release a significant portion of the U.S. valuation allowance. The reversal would result in a significant income tax benefit in the period when we release it. However, the exact timing and amount of the valuation allowance release are subject to change based on our actual operating results.

Current wording

We have a full valuation allowance against our United States deferred tax assets and will continue to maintain it until there is sufficient evidence to support the future utilization of these assets. Given our recent history of generating net income in the U.S., we believe that there is a reasonable possibility that sufficient positive evidence may become available within the next 18 months to allow us to release a significant portion of the U.S. valuation allowance. The reversal would result in a significant income tax benefit in the period when we release it. However, the exact timing and amount of the valuation allowance release are subject to change based on our actual operating results.

Previous wording

Revenue for the three and six months ended June 30, 2025 increased by $218.4 million and $367.8 million, or 78% and 70%, respectively, compared to the prior year periods. The growth in revenue was due primarily to an increase in advertising revenue driven by an increase in impressions delivered and to a lesser extent, an increase in pricing. In addition, other revenues increased as a result of content licensing agreements executed in 2024.

Current wording

Revenue for the three and nine months ended September 30, 2025 increased by $236.6 million and $604.4 million, or 68% and 69%, respectively, compared to the prior year periods. The growth in revenue was due primarily to an increase in advertising revenue driven by an increase in impressions delivered and to a lesser extent, an increase in pricing. In addition, other revenue increased during the nine months ended September 30, 2025 as a result of content licensing agreements executed in 2024.

Previous wording

Cost of revenue for the three and six months ended June 30, 2025 increased by $16.4 million and $25.9 million, or 56% and 45%, respectively, compared to the prior year periods. The increase in cost of revenue was primarily attributable to increased hosting usage to support user growth and product enhancements on our platform, as well as an increase in advertising measurement and other services, partially offset by lower hosting prices.

Current wording

Cost of revenue for the three and nine months ended September 30, 2025 increased by $17.9 million and $43.7 million, or 52% and 48%, respectively, compared to the prior year periods. The increase in cost of revenue was primarily attributable to increased hosting usage to support user growth and product enhancements on our platform, as well as an increase in other services related to advertising, partially offset by lower hosting prices.

Previous wording

Research and development expenses for the three and six months ended June 30, 2025 increased by $53.8 million, or 38%, and decreased by $191.9 million, or 33%, compared to the prior year periods, respectively. The increase in the three months ended June 30, 2025 compared to the prior year period was driven primarily by an increase in stock-based compensation expense and an increase in other employee-related costs, driven in part by an increase in headcount. The decrease in the six months ended June 30, 2025 compared to the prior year period was driven primarily by the cumulative catch-up upon IPO of stock-based compensation expense and related taxes for RSUs with a liquidity event vesting condition recognized in the prior year period, partially offset by an increase in other employee-related costs in the current period.

Current wording

Research and development expenses for the three and nine months ended September 30, 2025 increased by $29.7 million, or 18%, and decreased by $162.2 million, or 22%, compared to the prior year periods, respectively. The increase in the three months ended September 30, 2025 compared to the prior year period was driven primarily by an increase in employee-related costs, driven in part by an increase in headcount, and an increase in stock-based compensation expense. The decrease in the nine months ended September 30, 2025 compared to the prior year period was driven primarily by the cumulative catch-up upon IPO of stock-based compensation expense and related taxes for RSUs with a liquidity event vesting condition recognized in the prior year period, partially offset by an increase in other employee-related costs in the current period.

Previous wording

Sales and marketing expenses for the three and six months ended June 30, 2025 increased by $49.2 million and $15.8 million, or 69% and 8%, respectively, compared to the prior year periods. The increase in the three months ended June 30, 2025 compared to the prior year period was driven primarily by an increase in employee-related costs, driven in part by an increase in headcount, and an increase in marketing expense. The increase in the six months ended June 30, 2025 compared to the prior year period was driven primarily by an increase in employee-related costs and an increase in marketing expense, partially offset by the cumulative catch-up upon IPO of stock-based compensation expense and related taxes for RSUs with a liquidity event vesting condition recognized in the prior year period.

Current wording

Sales and marketing expenses for the three and nine months ended September 30, 2025 increased by $54.2 million and $69.9 million, or 73% and 26%, respectively, compared to the prior year periods. The increase in sales and marketing expenses in both the three and nine months ended September 30, 2025 was driven primarily by an increase in marketing expense and in employee-related costs, driven in part by an increase in headcount. In the nine months ended September 30, 2025 the increase was partially offset by the cumulative catch-up upon IPO of stock-based compensation expense and related taxes for RSUs with a liquidity event vesting condition recognized in the prior year period.

Previous wording

General and administrative expenses decreased by $173.8 million, or 56%, for the six months ended June 30, 2025 compared to the prior year period. The decrease in the six months ended June 30, 2025 compared to the prior year period was driven primarily by the cumulative catch-up upon IPO of stock-based compensation expense and related taxes for RSUs with a liquidity event vesting condition recognized in the prior year period.

Current wording

General and administrative expenses for the three and nine months ended September 30, 2025 increased by $3.1 million, or 5%, and decreased by $170.6 million, or 45%, compared to the prior year periods, respectively. The decrease in the nine months ended September 30, 2025 compared to the prior year period was driven primarily by the cumulative catch-up upon IPO of stock-based compensation expense and related taxes for RSUs with a liquidity event vesting condition recognized in the prior year period.

Previous wording

Other income (expense), net increased by $6.4 million, or 18%, for the six months ended June 30, 2025 compared to the prior year period. The increase compared to the prior year period was primarily due to higher interest earned on our cash and investments driven by a higher invested balance.

Current wording

Other income (expense), net for the three and nine months ended September 30, 2025 decreased by $(0.9) million, or (4)%, and increased by $5.5 million, or 9%, compared to the prior year periods, respectively. The increase in the nine months ended September 30, 2025 compared to the prior year period was primarily due to higher interest earned on our cash and investments driven by a higher invested balance.

Previous wording

Income tax expense (benefit) for the six months ended June 30, 2025 decreased by $2.3 million compared to the prior year period. The income tax benefit in the current year period was primarily attributable to an excess tax benefit from stock-based compensation in a foreign subsidiary.

Current wording

Income tax expense (benefit) for the three and nine months ended September 30, 2025 decreased by $2.1 million and $4.4 million compared to the prior year periods, respectively. The income tax benefit in the current year periods was primarily attributable to an excess tax benefit from stock-based compensation in a foreign subsidiary.

Previous wording

As of June 30, 2025, we had $2.1 billion in cash, cash equivalents, and marketable securities. Our cash and cash equivalents consist of cash in bank accounts, money market accounts, certificates of deposit, and other highly liquid investments with original maturities of 90 days or less from the date of purchase. Marketable securities consist of U.S. government securities, investment-grade corporate and government agency securities, and commercial paper. As of June 30, 2025, approximately 2% of our cash, cash equivalents, and marketable securities was held outside of the United States.

Current wording

As of September 30, 2025, we had $2.2 billion in cash, cash equivalents, and marketable securities. Our cash and cash equivalents consist of cash in bank accounts, money market accounts, certificates of deposit, and other highly liquid investments with original maturities of 90 days or less from the date of purchase. Marketable securities consist of U.S. government securities, investment-grade corporate and government agency securities, and commercial paper. As of

Previous wording

On October 8, 2021, we entered into a five-year, $750.0 million, revolving loan and standby letter of credit facility agreement (“Revolving Credit Facility”) of which $100.0 million can be issued as letters of credit. As of June 30, 2025, we have issued two letters of credit, one of which is denominated in a foreign currency, for an aggregate of $5.2 million, which reduced the letter of credit borrowings available under the Revolving Credit Facility to $94.8 million. The aggregate available balance under the Revolving Credit Facility was $744.8 million as of June 30, 2025.

Current wording

On July 1, 2025, we entered into an Amended and Restated Credit and Guarantee Agreement, which amended and restated our prior Credit and Guarantee Agreement dated October 8, 2021 (as amended on May 23, 2023), and provides for a five-year, $500.0 million, revolving loan and standby letter of credit facility (“Revolving Credit Facility”) of which $100.0 million can be issued as letters of credit and another $100.0 million of which can be borrowed in certain non-U.S. dollar currencies. As of September 30, 2025, we have issued three letters of credit, two of which are denominated in a foreign currency, for an aggregate of $5.4 million, which reduced the letter of credit borrowings available under the Revolving Credit Facility to $94.6 million. The aggregate available balance under the Revolving Credit Facility was $494.6 million as of September 30, 2025.

Previous wording

On May 23, 2023, we amended the terms of the Revolving Credit Facility to replace LIBOR with Term SOFR as the interest rate benchmark. Under the amended terms of the Revolving Credit Facility, borrowings can be either ABR Loans, Term Benchmark Loans, or SONIA Loans. Outstanding ABR Loans bear interest at a rate equal to the greatest of (A) the Prime Rate, (B) the NYFRB Rate plus 0.5%, (C) the Adjusted Term SOFR Rate plus 1.0%, or (D) 1.0% (each as defined in the amended Revolving Credit Facility), in each case plus 0.25%. Outstanding Term Benchmark Loans bear interest at the Adjusted Term SOFR Rate, the Adjusted EURIBOR Rate, or the Adjusted AUD Rate (each as defined in the amended Revolving Credit Facility), as applicable, in each case, plus 1.25%. Outstanding SONIA Loans bear interest at a rate equal to the Adjusted Daily Simple SONIA (as such term is defined in the amended Revolving Credit Facility) plus 1.25%. We are required to pay a quarterly commitment fee that accrues at 0.15% per annum on the unused portion of the aggregate commitments under the credit facility.

Current wording

Under the terms of the Revolving Credit Facility, borrowings can be ABR Loans, Term Benchmark Loans, or RFR Loans. Outstanding ABR Loans bear interest at a rate equal to the greatest of (A) the Prime Rate, (B) the NYFRB Rate plus 0.5%, or (C) the Adjusted Term SOFR Rate plus 1.0% (each as defined in the Revolving Credit Facility), in each case plus 0.25%. Outstanding Term Benchmark Loans bear interest at the Adjusted Term SOFR Rate, the Adjusted EURIBOR Rate, the Adjusted Term CORRA Rate, or the Adjusted AUD Rate (each as defined in the Revolving Credit Facility), as applicable, in each case plus 1.25%. Outstanding RFR Loans bear interest at a rate equal to the Adjusted Daily Simple RFR (as such term is defined in the Revolving Credit Facility) plus 1.25%. We are required to pay a quarterly commitment fee that accrues at 0.15% per annum on the unused portion of the aggregate commitments under the Revolving Credit Facility.

Previous wording

The Revolving Credit Facility contains customary conditions on our borrowings, including events of default and covenants. Covenants include restrictions on our and certain of our subsidiaries’ ability to incur indebtedness, grant liens, make distributions to holders of our preferred and common stock, make investments, or engage in transactions with our affiliates, and require us to maintain a minimum liquidity. The obligations under the Revolving Credit Facility are secured by liens on substantially all of our assets, including intellectual property assets. We were in compliance with all covenants as of June 30, 2025.

Current wording

The Revolving Credit Facility contains customary conditions on our borrowings, including events of default and covenants. Covenants include restrictions on our and certain of our subsidiaries’ ability to incur indebtedness, grant liens, make distributions to holders of our preferred and common stock, make investments, or engage in transactions with our affiliates, and require us to adhere to a maximum total leverage ratio. The obligations under the Revolving Credit Facility are secured by liens on substantially all of our assets, including intellectual property assets. However, the Revolving Credit Facility provides for the permanent release of guarantees and collateral upon our achievement of certain investment grade ratings. We were in compliance with all covenants as of September 30, 2025.

Previous wording

We believe our cash flows from operations, existing cash, cash equivalents, and marketable securities, and amounts available under our Amended Revolving Credit Facility will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months and for the foreseeable future. We continuously evaluate our liquidity and capital resources, including our access to external capital, to ensure we can finance our future capital needs.

Current wording

We believe our cash flows from operations, existing cash, cash equivalents, and marketable securities, and amounts available under our Revolving Credit Facility will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months and for the foreseeable future. We continuously evaluate our liquidity and capital resources, including our access to external capital, to ensure we can finance our future capital needs.

Previous wording

Net cash provided by operating activities was $238.9 million in the six months ended June 30, 2025, resulting primarily from net income of $115.5 million in the six months ended June 30, 2025, adjustments for non-cash items, primarily related to stock-based compensation expense of $174.5 million, and an increase in accounts payable and accrued expenses and other current liabilities of $41.2 million due to the timing of payments. These amounts were partially offset by an increase in accounts receivable of $57.8 million due to the timing of cash collections and an increase in prepaid expenses and other assets of

Current wording

Net cash provided by operating activities was $424.1 million in the nine months ended September 30, 2025, resulting primarily from net income of $278.1 million in the nine months ended September 30, 2025, adjustments for non-cash items, primarily related to stock-based compensation expense of $258.0 million, and an increase in accounts payable and accrued expenses and other current liabilities of $60.9 million due to the timing of payments. These amounts were partially offset by an increase in accounts receivable of $138.8 million due to the timing of cash collections and an increase in prepaid expenses and other assets of $23.4 million. Net cash provided by operating activities was $132.1 million in the nine months ended September 30, 2024, resulting primarily from adjustments for non-cash items, primarily related to stock-based compensation expense of $716.5 million, and an increase in accounts payable and accrued expenses and other current liabilities of $44.6 million due to the timing of payments. These increases were partially offset by net loss of $(555.3) million in the nine months ended September 30, 2024, an increase in accounts receivable of $38.9 million due to the increase in revenue, and net amortization of premium (accretion of discount) on marketable securities of $(31.9) million.

Previous wording

Net cash used in investing activities was $(29.6) million in the six months ended June 30, 2025, primarily due to additional purchases of marketable securities of $1.1 billion, partially offset by maturities and proceeds from the sale of marketable securities of $1.0 billion. Net cash used in investing activities was $(405.5) million in the six months ended June 30, 2024, primarily due to additional purchases of marketable securities of $997.5 million, partially offset by maturities of marketable securities of $596.1 million.

Current wording

Net cash used in investing activities was $(13.1) million in the nine months ended September 30, 2025, primarily due to additional purchases of marketable securities of $1.6 billion, partially offset by maturities and proceeds from the sale of marketable securities of $1.6 billion. Net cash used in investing activities was $(397.6) million in the nine months ended September 30, 2024, primarily due to additional purchases of marketable securities of $1.4 billion and cash paid for acquisitions, net of cash acquired of $17.1 million, partially offset by maturities of marketable securities of $1.0 billion.

Previous wording

Net cash used in financing activities was $(37.4) million in the six months ended June 30, 2025 and consisted primarily of cash payments for taxes related to net share settlement of restricted stock units of $51.9 million, partially offset by proceeds from exercises of employee stock options of $14.5 million. Net cash provided by financing activities was $411.9 million in the six months ended June 30, 2024 and consisted primarily of cash proceeds from issuance of Class A common stock in our initial public offering, net of underwriting discounts and commissions, of $600.0 million and proceeds from exercises of employee stock options of $24.9 million, partially offset by cash payments for taxes related to net share settlement of restricted stock units of $202.3 million.

Current wording

Net cash used in financing activities was $(61.5) million in the nine months ended September 30, 2025 and consisted primarily of cash payments for taxes related to net share settlement of restricted stock units of $80.5 million, partially offset by proceeds from exercises of employee stock options of $20.5 million. Net cash provided by financing activities was $380.2 million in the nine months ended September 30, 2024 and consisted primarily of cash proceeds from issuance of Class A common stock in our initial public offering, net of underwriting discounts and commissions, of $600.0 million and proceeds from exercises of employee stock options of $62.9 million, partially offset by cash payments for taxes related to net share settlement of restricted stock units of $268.1 million.

Previous wording

Free Cash Flow was $237.4 million for the six months ended June 30, 2025, and was composed of net cash provided by operating activities, resulting primarily from net income and adjustments for non-cash items and changes in working capital. Free Cash Flow was $56.4 million for the six months ended June 30, 2024, and was composed of net cash provided by operating activities, resulting primarily from adjustments for non-cash items and changes in working capital, partially offset by net loss. Free Cash Flow also included purchases of property and equipment of $1.5 million and $4.1 million for the six months ended June 30, 2025 and 2024, respectively. For the six months ended June 30, 2025, the increase in Free Cash Flow as compared to the prior year period was driven primarily by the increase in net income.

Current wording

Free Cash Flow was $420.5 million for the nine months ended September 30, 2025, and was composed of net cash provided by operating activities, resulting primarily from net income and adjustments for non-cash items and changes in working capital. Free Cash Flow was $126.7 million for the nine months ended September 30, 2024, and was composed of net cash provided by operating activities, resulting primarily from adjustments for non-cash items and changes in working capital, partially offset by net loss. Free Cash Flow also included purchases of property and equipment of $3.5 million and $5.4 million for the nine months ended September 30, 2025 and 2024, respectively. For the nine months ended September 30, 2025, the increase in Free Cash Flow as compared to the prior year period was driven primarily by the increase in net income.

Previous wording

We have non-cancellable contractual obligations and commitments primarily related to third-party cloud infrastructure agreements under which we are granted access to certain cloud services as well as operating lease agreements. During the six months ended June 30, 2025, there were no material changes outside the normal course of business to the purchase obligations as disclosed in the audited consolidated financial statements as of and for the year ended December 31, 2024 included in the Annual Report.

Current wording

We have non-cancellable contractual obligations and commitments primarily related to third-party cloud infrastructure agreements under which we are granted access to certain cloud services as well as operating lease agreements. During the nine months ended September 30, 2025, there were no material changes outside the normal course of business to the purchase obligations as disclosed in the audited consolidated financial statements as of and for the year ended December 31, 2024 included in the Annual Report.