Reddit Projects Strong Ad Sales, Authorizes Share Buyback
Summary
Reddit Inc. has announced current-quarter sales projections that exceed Wall Street expectations, highlighting the company's expanding advertising business just two years after going public. This growth signals a promising future for the popular social media platform.
Key Insights
What is a share buyback program?
A share buyback, or repurchase program, is when a company purchases its own shares from the open market to reduce the number of outstanding shares, which can increase earnings per share and signal confidence in future growth. Reddit announced a $1 billion share repurchase program alongside its strong 2025 financial results.
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How has Reddit's advertising revenue grown recently?
Reddit's ad revenue surged to $2.1 billion for full year 2025, up 74% year-over-year, with Q4 2025 ad revenue at $690 million, up 75%. This follows surpassing $1 billion in 2024 from $788 million in 2023, exceeding Wall Street expectations and highlighting robust growth just two years post-IPO.