Reddit Stock Soars After Q1 Revenue Jumps 61% — Third Straight Quarter of Rapid Growth

Reddit’s stock rose as much as 19% in after-hours trading on Thursday following the release of its earnings for the first quarter of 2025. By the close of extended trading, the stock was still up 7%, reflecting renewed investor interest after several volatile months.

The company reported $392.4 million in revenue for the quarter, a 61% increase compared to the same period last year. This marks the third consecutive quarter in which Reddit’s year-over-year growth has exceeded 60%, a sign of continued momentum across its platform. CEO Steve Huffman attributed the growth to higher engagement and stronger visibility in search results, particularly through Reddit’s growing presence in Google Search.

In February, Reddit’s stock dropped sharply after Huffman noted traffic fluctuations caused by changes in Google’s search algorithm. Speaking to investors this week, he acknowledged that similar disruptions may occur again, as the online search landscape is still undergoing significant changes. Despite this, he said the company remains focused on long-term growth and sees these shifts as manageable.

Huffman also addressed the broader impact of AI on how people search online. He noted that while AI tools are beginning to reshape user behavior, Reddit continues to serve a different purpose by offering real, user-generated discussions. He described Reddit as a place where people look for honest opinions and diverse viewpoints—qualities that automated answers often lack.

He added that Reddit’s role as a source of shared knowledge and discussion has remained consistent through many changes in technology and culture, including the rise of smartphones and the pandemic. Huffman said the company is prepared to navigate whatever changes lie ahead and believes its communities will remain valuable to users in any digital environment.

Reddit’s earnings report comes during a busy earnings season and shows the platform’s ability to maintain steady growth, even as it faces challenges in how people find and use online content. With strong quarterly performance and stable leadership, Reddit appears focused on building long-term value in a rapidly evolving digital space.

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