Reddit Rises After Beating Q3 Estimates Amid Slowing User Growth

Reddit (RDDT) shares edged higher in after-hours trading following a stronger-than-expected third-quarter earnings report. The social media platform posted earnings per share of $0.80, surpassing the consensus estimate of $0.53. Revenue jumped 68% year-over-year to $585 million, exceeding forecasts of $549.12 million.

Investor enthusiasm was tempered by slowing user growth in Reddit's Core U.S. market, where logged-in daily active users increased by just 7% to 23.1 million—down from 12% growth in the prior quarter. Globally, daily active uniques grew 19% to 116 million, beating estimates of 114 million. Average revenue per user also outperformed at $5.04 versus expectations of $4.82.

U.S. revenue led with $480 million, while international sales reached $105 million. Data licensing and other revenue streams ROSE 7% to $36 million. The company did not provide full forward guidance, leaving analysts to parse growth sustainability amid shifting user metrics.