Reddit INSIDER sends major vote of confidence after earnings

Reddit (RDDT) is getting a batch of attention, but not each of it is positive. Reddit saw beardown profitability successful 2025, but marketplace sentiment signals a “show me” mentality.

Its maturation gives investors optimism, but tech expectations permission tiny country for error.

Still, a caller SEC Form 4 filing shows 1 enforcement precocious plowed millions of dollars into Reddit’s stock.

Differentiating from different societal media powerhouses similar Facebook oregon Instagram, Reddit has shifted its niche to a information engine.

Its fourth 4th 2025 earnings:

• Q4 2025 net accrued 70% year-over-year to $726 million.

• Full-year gross $2.2 billion.

• Digital advertizing increased 75% successful Q4.

Analysts are focused connected Reddit’s “human” conversations, similar the threads you often see, and are utilizing them to bid AI models.

This allowed the institution to scope a 92% gross margin, but contempt these metrics, investors boggled down implicit “logged-out” idiosyncratic maturation versus “logged-in” monetization.

Reddit has been licensing its 20 years' worthy of quality conversation, yes, including those "rage bait" threads.

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For 2 decades, Reddit has been the spot for the internet's astir chaotic anonymous conversations, from heated motivation debates to literal thousand-comment "rage bait" threads wherever strangers vent and reason implicit workplace play and initiate household blowups successful painstaking detail.

But, it's besides wherever hobbyists stock artwork and knitting designs, wherever engineers statement the mechanics of flamethrowers, and chaotic assemblage threads astir internship proposal oregon grad schoolhouse admissions.

All of that data? Yes, it's being sold to AI companies similar Google's Gemini and OpenAI to assistance bid their models.

This watercourse of “other revenue” is high-marginand comparatively little babelike connected the advertisement gross market.

Total regular progressive unsocial (DAUq) accrued from 19% to 121 million: however overmuch of the integrated maturation is included successful the price?

According to a caller SEC Form 4 filing, Reddit's director, Sarah Farrell, executed a bid of buys connected February 10 and 11.

Through Waygrove Partnership LP, Farrell purchased 50,500 shares valued astatine astir $7.48 million.

Her buys were aggressive.

• On February 10, she bought implicit 43,000 shares astatine prices ranging from $148.13 to $150.00.

• On February 11, she bought different 6,700 shares arsenic the terms decreased to an mean of $139.27.