Reddit (RDDT) Q2 Earnings: Revenue and EPS Growth Expected

by MarketNewsData

Earnings Date: Thursday, July 31, 2025 (After Market Close)
Stock Price: $149.66 | Market Cap: ~$19B

🔍 Key Expectations

  • Revenue Estimate: $426–427 million
    → Up ~52% YoY
  • EPS Estimate: $0.19
    → Up from $0.13 last quarter, and a big jump YoY from negative earnings
  • DAU Growth: Slowing, now around 31% YoY (down from 37%+ in prior quarters)

📈 Trends & Themes

  • Strong momentum in ad revenue and data licensing, including AI-focused deals.
  • Reddit’s shift toward AI-powered ad tools and Google partnerships is boosting monetization.
  • Key concern is slowing user growth and how that affects long-term platform engagement.

📉 Risks

  • Declining daily active user growth
  • Potential community backlash on aggressive monetization
  • Data privacy and regulatory scrutiny

📊 Investment Outlook

  • Beat: Strong top-line and margin expansion could push stock above $160
  • In Line: Shares likely hover near current levels ($150)
  • Miss: Weak user or guidance metrics could pull the stock back toward $130–140

Bottom Line:
Reddit is showing improving financials and monetization, but investors will be focused on DAU trends and Q3 guidance. Execution on user engagement and AI/data revenue will determine if momentum continues.

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