Reddit and why it will fly in the year 2026 and beyond (NOT LLM GENERATED)
I have been a follower of RDDT since the IPO. For me I just used this app after I become old enough to open up an investing account and saw the NFLX documentary on the whole (stock that is not to be named) fiasco. Since then I have had lots of fun on this sub. I have learned lots and laughed a lot. At first I became interested in RDDT because of the amount of hate that this stock had on WSB, but the more and more I began looking into the sector and the numbers that reddit is putting up I have become more and more convinced that this stock is severely underappreciated. I am making this because the management at RDDT doesn't know how to pump its stock and it is really REEEEAAALY hurting my wallet lol.
Competitors:
**META** \- Q4 2025: $59.9B revenue (+24% YoY), 41% operating margin, $22.8B net income.
**SNAP** \- \~$8.9B market cap. Q4 2025: $1.72B revenue (+10% YoY), but still losing money with -$45M net income. DAU is 474M (+5% YoY) but basically stagnant in the US. ARPU is only $3.62.
**PINS** \- \~$13B market cap. Q3 2025: $1.05B revenue (+17% YoY), 29% EBITDA margin. 600M MAUs but growth is slowing. It's fine. It's also basically just a visual search engine for people remodeling their kitchen. Not really competing for the same attention.
**REDDIT:**
**Q4 2025:**
* Revenue: $726M (**+70% YoY**)
* DAUq: 121.4M (+19% YoY)
* WAUq: 471.6M (+24% YoY)
* ARPU: $5.98 (**+42% YoY**)
* Adjusted EBITDA: $327M (**45% margin**)
* Net income: $252M (35% margin)
* FCF: $264M
**Full Year 2025:**
* Revenue: $2.2B (+69% YoY)
* Net income: $530M (was losing $484M a year ago)
* FCF: $684M
|Metric|RDDT (Q4'25)|SNAP (Q4'25)|PINS (Q3'25)|META (Q4'25)|
|:-|:-|:-|:-|:-|
|Revenue Growth YoY|70%|10%|17%|24%|
|ARPU Growth YoY|42%|5%|5%|16%|
|EBITDA Margin|45%|21%|29%|\~45%|
|Net Margin|35%|\-3%|9%|38%|
Reddit's growing revenue **7x faster than Snap** and **4x faster than Pinterest** while already printing cash. They're matching Meta's EBITDA margins while still in hyper-growth mode.
**User Growth is Real:**
* 19% YoY DAU growth despite being pretty saturated in the US
* Int'l DAU up 28% thanks to machine translation in 35 languages
* 80M+ people searching on Reddit every week (up from 60M a year ago)
**ARPU is Accelerating:** The gap between Reddit's ARPU and competitors is closing fast:
* US ARPU growing 53% YoY (vs Snap's 12%, Pinterest's 20%)
* Still only $10.79 vs Meta's $16.56 - huge room to run
Reddit has 20+ years of genuine human conversations. That's what people want now that the internet's flooded with AI slop. You can't fake that overnight. Meta can copy features but they can't copy 20 years of authentic community discussions.
When you Google "best running shoes," the most valuable result is literally the Reddit thread where real people argue about it. That's the moat.
https://preview.redd.it/66wi3sk0cxhg1.png?width=303&format=png&auto=webp&s=633ab8ed92a217e6b1bff12eec4db62a1317a81c
Reddit has grown 19% YOY from q4 2024 to q4 2025. This was largely driven by growth in international DAU (daily average user) as a result of machine translation. US DAUq has been a bit slow given that it only grew 4.5 million only 22.8% of the yearly growth.
https://preview.redd.it/w0gcyacrcxhg1.png?width=549&format=png&auto=webp&s=54f330f383e71a6d2fb5544dd88b50543aa991ab
What Could Go Wrong
I'm not completely regarded, so here are the risks:
* **User growth could plateau** \- US is pretty saturated, int'l needs to keep accelerating
* **Monetization could disappoint** \- ARPU needs to keep climbing or growth story falls apart
* **Google could change algorithms** \- seems unlikely given how much people want Reddit results, but it's a risk
* **Execution risk** \- new CPO needs to deliver, they're phasing out logged-in/logged-out metrics which could hide problems
* **Advertising market** \- if we hit a recession, ad budgets get cut first
* **Competition** \- if Meta or someone else figures out how to replicate the authentic discussion moat
I am in with my life savings
POSITIONS:
i have around 80k in reddit across 3 different accounts. If you guys want to screenshots fine, but I do not want to open up my accounts right now LMAO.
I think more importantly than numbers is the narrative around subreddits or "forum" sites. It's not something that is weird anymore. I see people open up reddit everywhere. class, church, shit my mom uses it too.