Item 1. Financial Statements

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Item 1. Financial Statements

Reddit, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share amounts)


	March 31, 2025		December 31, 2024
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	635,727	$	562,092
Marketable securities	1,315,415		1,278,717
Accounts receivable, net	326,131		349,534
Prepaid expenses and other current assets	51,397		33,058
Total current assets	2,328,670		2,223,401
Property and equipment, net	11,607		12,652
Operating lease right-of-use assets, net	23,408		23,249
Intangible assets, net	22,943		25,424
Goodwill	42,174		42,174
Other noncurrent assets	8,222		9,695
Total assets	$	2,437,024	$	2,336,595
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	43,870	$	45,423
Operating lease liabilities	6,376		6,137
Accrued expenses and other current liabilities	136,575		124,464
Total current liabilities	186,821		176,024
Operating lease liabilities, noncurrent	20,174		20,565
Other noncurrent liabilities	12,908		9,257
Total liabilities	219,903		205,846
Commitments and contingencies (Note 10)
Stockholders’ equity (deficit):
Preferred stock, par value $0.0001 per share; 100,000,000 shares authorized as of March 31, 2025 and December 31, 2024; no shares issued and outstanding as of March 31, 2025 and December 31, 2024	—		—
Class A common stock, par value $0.0001 per share; 2,000,000,000 shares authorized as of March 31, 2025 and December 31, 2024; 129,145,465 and 125,001,880 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively	13		12
Class B common stock, par value $0.0001 per share; 140,000,000 shares authorized as of March 31, 2025 and December 31, 2024; 55,121,821 and 55,314,099 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively	5		5
Class C common stock, par value $0.0001 per share; 100,000,000 shares authorized as of March 31, 2025 and December 31, 2024; no shares issued and outstanding as of March 31, 2025 and December 31, 2024	—		—
Additional paid-in capital	3,390,469		3,331,546
Accumulated other comprehensive income (loss)	1,314		24
Accumulated deficit	(1,174,680)		(1,200,838)
Total stockholders’ equity (deficit)	2,217,121		2,130,749
Total liabilities and stockholders’ equity (deficit)	$	2,437,024	$	2,336,595

The accompanying notes are an integral part of these financial statements.

Reddit, Inc.

Consolidated Statements of Operations

(in thousands, except share and per share amounts)

(unaudited)


	Three months ended March 31,
		2025		2024
Revenue		$	392,361	$	242,963
Costs and expenses:
Cost of revenue		37,089		27,616
Research and development		191,271		437,030
Sales and marketing		90,685		124,095
General and administrative		69,413		243,477
Total costs and expenses		388,458		832,218
Income (loss) from operations		3,903		(589,255)
Other income (expense), net		20,534		14,554
Income (loss) before income taxes		24,437		(574,701)
Income tax expense (benefit)		(1,721)		365
Net income (loss)		$	26,158	$	(575,066)
Net income (loss) per share attributable to Class A and Class B common stock (Note 4)
Basic		$	0.14	$	(8.19)
Diluted		$	0.13	$	(8.19)
Weighted-average shares of Class A and Class B common stock used to compute net income (loss) per share attributable to common stockholders
Basic		182,024,207		70,240,492
Diluted		201,275,223		70,240,492

The accompanying notes are an integral part of these financial statements.

Reddit, Inc.

Consolidated Statements of Comprehensive Income (Loss)

(in thousands)

(unaudited)


	Three months ended March 31,
		2025		2024
Net income (loss)		$	26,158	$	(575,066)
Other comprehensive income (loss), net of tax:
Change in unrealized gains (losses) on marketable securities		343		(1,272)
Change in foreign currency translation adjustment		947		(14)
Net comprehensive income (loss)		$	27,448	$	(576,352)

The accompanying notes are an integral part of these financial statements.

Reddit, Inc.

Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(in thousands, except share amounts)

(unaudited)


	Three months ended March 31, 2024
	Total Convertible Preferred Stock			Common Stock							Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity (Deficit)
		Class A			Class B
	Shares	Amount		Shares		Amount		Shares	Amount
Balance as of December 31, 2023	73,021,449	$	1,853,492	7,099,700		$	—	53,904,204	$	6	$	302,820	$	814	$	(716,562)	$	(412,922)
Issuance of common stock upon exercise of stock options, net	—	—		3,141,176		—		805,948	—		23,089		—		—		23,089
Issuance of common stock upon settlement of restricted stock units, net	—	—		6,173,372		1		624,115	—		(202,853)		—		—		(202,852)
Conversion of Class B common stock to Class A common stock	—	—		4,191,943		—		(4,191,943)	—		—		—		—		—
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering	(73,021,449)	(1,853,492)		5,104,017		1		67,917,432	6		1,853,485		—		—		1,853,492
Issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions and other offering costs	—	—		18,576,527		2		—	—		576,266		—		—		576,268
Stock-based compensation expense	—	—		—		—		—	—		577,508		—		—		577,508
Vesting of early exercised stock options	—	—		—		—		—	—		69		—		—		69
Net income (loss)	—	—		—		—		—	—		—		—		(575,066)		(575,066)
Change in other comprehensive income (loss)	—	—		—		—		—	—		—		(1,286)		—		(1,286)
Balance as of March 31, 2024	—	$	—	44,286,735		$	4	119,059,756	$	12	$	3,130,384	$	(472)	$	(1,291,628)	$	1,838,300

	Three months ended March 31, 2025
	Total Convertible Preferred Stock			Common Stock							Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity (Deficit)
		Class A			Class B
	Shares	Amount		Shares		Amount		Shares	Amount
Balance as of December 31, 2024	—	$	—	125,001,880		$	12	55,314,099	$	5	$	3,331,546	$	24	$	(1,200,838)	$	2,130,749
Issuance of common stock upon exercise of stock options, net	—	—		1,005,081		—		826,681	—		10,184		—		—		10,184
Issuance of common stock upon settlement of restricted stock units, net	—	—		2,102,294		1		17,251	—		(36,675)		—		—		(36,674)
Conversion of Class B common stock to Class A common stock	—	—		1,036,210		—		(1,036,210)	—		—		—		—		—



Stock-based compensation expense	—	—		—		—		—	—		85,414		—		—		85,414

Net income (loss)	—	—		—		—		—	—		—		—		26,158		26,158
Change in other comprehensive income (loss)	—	—		—		—		—	—		—		1,290		—		1,290
Balance as of March 31, 2025	—	$	—	129,145,465		$	13	55,121,821	$	5	$	3,390,469	$	1,314	$	(1,174,680)	$	2,217,121

Reddit, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


	Three months ended March 31,
		2025		2024
Cash flows from operating activities
Net income (loss)		$	26,158	$	(575,066)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		3,963		3,743



Non-cash operating lease cost		1,468		1,253
Amortization of premium (accretion of discount) on marketable securities, net		(8,884)		(8,129)
Stock-based compensation expense		85,414		577,508


Other adjustments		(138)		485
Changes in operating assets and liabilities:
Accounts receivable		23,359		29,987
Prepaid expenses and other assets		(17,006)		(13,912)
Operating lease right-of-use assets and liabilities		(1,780)		(530)
Accounts payable		(1,046)		(2,178)
Accrued expenses and other liabilities		16,070		18,903
Net cash provided by (used in) operating activities		$	127,578	$	32,064
Cash flows from investing activities
Purchases of property and equipment		(979)		(2,851)


Purchases of marketable securities		(504,846)		(135,685)
Maturities of marketable securities		465,062		252,655
Proceeds from sale of marketable securities		12,372		—

Other investing activities		889		(15)
Net cash provided by (used in) investing activities		$	(27,502)	$	114,104
Cash flows from financing activities

Proceeds from issuance of Class A common stock in initial public offering, net of underwriting discounts and commissions		—		600,022
Proceeds from exercise of employee stock options		10,184		23,089

Taxes paid related to net share settlement of restricted stock units		(36,675)		(194,737)
Payments of initial public offering costs		—		(2,753)
Payments of deferred consideration and holdbacks for acquisitions		—		(4,450)

Net cash provided by (used in) financing activities		$	(26,491)	$	421,171
Net increase (decrease) in cash, cash equivalents, and restricted cash		73,585		567,339
Cash, cash equivalents, and restricted cash at the beginning of the period		562,142		401,226
Cash, cash equivalents, and restricted cash at the end of the period		$	635,727	$	968,565
Cash and cash equivalents		635,727		968,515
Restricted cash		—		50
Total cash, cash equivalents, and restricted cash		$	635,727	$	968,565


Supplemental disclosure of noncash financing and investing activities
Conversion of convertible preferred stock to common stock upon initial public offering		$	—	$	1,853,492

Reclassification of deferred offering costs to additional paid-in capital upon initial public offering		$	—	$	23,754

The accompanying notes are an integral part of these financial statements.

Reddit, Inc.

Notes to the Consolidated Financial Statements

(unaudited)

1. Description of Business

Description of Business

Reddit, Inc. (“Reddit,” “we,” “our,” or “us”) was incorporated in the state of Delaware. Our mission is to empower communities and make their knowledge accessible to everyone. We built Reddit with the belief that communities unlock the power of human creativity and create a sense of belonging and empowerment for their members. We believe the world needs community more than ever, and that this represents our greatest opportunity to further enrich the lives of everyone in the world. We are headquartered in San Francisco, California, and have several offices around the world.

2. Basis of Presentation and Significant Accounting Policies

Basis of Presentation of Unaudited Interim Financial Information

Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial information. Our consolidated financial statements include the accounts of Reddit, Inc. and our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Certain information and disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been omitted. Accordingly, the unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 13, 2025 (our “Annual Report”). The unaudited interim consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and reflect, in our opinion, all the adjustments of a normal, recurring nature that are necessary for the fair statement of our financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results expected for the full year or any other period.

Other than described below, there have been no changes to our significant accounting policies described in the “Notes to the Consolidated Financial Statements” included in our audited consolidated financial statements as of and for the year ended December 31, 2024 included in the Annual Report that have had a material impact on our consolidated financial statements and accompanying notes.

Use of Estimates

The preparation of the unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Management’s estimates are based on historical information available as of the date of the consolidated financial statements and various other assumptions that we believe are reasonable under the circumstances. Actual results could differ materially from those estimates.

Significant estimates relate primarily to determining the fair value of stock-based awards, the fair value of assets and liabilities assumed in business combinations, and the incremental borrowing rate used to determine operating lease right-of-use assets and lease liabilities. On an ongoing basis, management evaluates our estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities.

Functional Currency

Generally, the U.S. dollar is the functional currency for our subsidiaries, and therefore, foreign currency denominated monetary assets and liabilities are remeasured into U.S. dollars at exchange rates at the balance sheet date and foreign currency denominated non-monetary assets and liabilities are remeasured into U.S. dollars at historical exchange rates. Gains or losses from foreign currency remeasurement and settlements are included in other income (expense), net in the consolidated statements of operations. For those foreign subsidiaries where the local currency is the functional currency, we translate the financial statements to U.S. dollars at exchange rates at the balance sheet date for assets and liabilities and at monthly average exchange rates for revenues and expenses. Translation gains and losses are recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity (deficit). Net foreign exchange gains and losses were not material for the three months ended March 31, 2025 and 2024.

Reddit, Inc.

Notes to the Consolidated Financial Statements

(unaudited)

Concentration of Credit Risk

Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents, restricted cash, marketable securities, and accounts receivable. We maintain cash and cash equivalents with several financial institutions. We believe that the financial institutions that hold our cash and cash equivalents are financially sound and, accordingly, minimal credit risks exist with respect to these balances. We maintain investments in U.S. and non-U.S. government securities, investment-grade corporate and government agency securities, certificates of deposit, commercial paper, and money market accounts that carry high credit ratings and accordingly, minimal credit risk exists with respect to these balances.

Recently Adopted Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires an entity to disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold. This standard also requires certain disaggregated disclosures related to income from continuing operations, income tax expense, and income taxes paid. We adopted this standard effective January 1, 2025. Adoption of this standard will result in additional disclosures in our annual consolidated financial statements, but did not impact these unaudited interim consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires an entity to disclose disaggregated information about certain income statement expense line items. The standard is effective for us beginning January 1, 2027, with early adoption permitted. We are currently evaluating the impact the adoption will have on our disclosures.

3. Revenue

The following table represents our revenue disaggregated by source:


	Three months ended March 31,
		2025		2024
		(in thousands)
Advertising revenue		$	358,630	$	222,682
Other revenue		33,731		20,281
Total revenue		$	392,361	$	242,963

The following table represents our revenue disaggregated by geography based on the billing address of the customer:


	Three months ended March 31,
		2025		2024
		(in thousands)
United States		$	313,852	$	199,803
Rest of world(1)		78,509		43,160
Total revenue		$	392,361	$	242,963

(1)Other than the United States, no individual country represented 10% or more of total revenue during the three months ended March 31, 2025 and 2024.

Deferred revenue was $20.8 million and $14.9 million as of March 31, 2025 and December 31, 2024, respectively. For the three months ended March 31, 2025, revenue recognized from the deferred revenue balance at the beginning of the period was $9.1 million. For the three months ended March 31, 2024, revenue recognized from the deferred revenue balance at the beginning of the period was not material.

Reddit, Inc.

Notes to the Consolidated Financial Statements

(unaudited)

As of March 31, 2025, the aggregate amount of remaining performance obligations in contracts with an original expected duration exceeding one year is $224.5 million. This amount consists primarily of long-term content licensing contracts and excludes deferred revenue related to short-term advertising contracts and Reddit Premium subscriptions. We expect to recognize $85.9 million in the remainder of 2025, $113.3 million in 2026, and $25.3 million in 2027.

4. Net Income (Loss) per Share

We compute net income (loss) per share of Class A and Class B common stock using the two-class method required for multiple classes of common stock and participating securities. Prior to our initial public offering (“IPO”) in March 2024, our participating securities included Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, Series F, and Series F-1 convertible preferred stock, as the holders of these series of preferred stock were entitled to receive noncumulative dividends subject to certain requirements at an annual rate of 8% of the respective original issue price then in effect in the event that a dividend was paid on common stock.

In connection with our IPO, our Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, and Series F preferred stock converted on a one-to-one basis into 67,917,432 shares of Class B common stock, and our Series F-1 preferred stock converted on a one-to-one basis into 5,104,017 shares of Class A common stock. These shares are weighted in the denominator of net income (loss) per share for Class A and Class B common stock for the portion of the time outstanding subsequent to our IPO.

The following table presents the calculation of basic and diluted net income (loss) per share attributable to common stock:


	Three months ended March 31,
	2025				2024
	Class A		Class B		Class A		Class B
	(in thousands, except share and per share data)
Basic net income (loss) per share attributable to common stockholders:
Numerator:
Net income (loss) attributable to common stockholders	$	18,214	$	7,944	$	(92,094)	$	(482,972)
Denominator:
Basic weighted-average common shares outstanding	126,746,933		55,277,274		11,248,688		58,991,804
Basic income (loss) per share attributable to common stockholders	$	0.14	$	0.14	$	(8.19)	$	(8.19)
Diluted net income (loss) per share attributable to common stockholders:
Numerator:
Net income (loss) attributable to common stockholders	$	18,974	$	7,184	$	(92,094)	$	(482,972)
Denominator:
Basic weighted-average common shares outstanding	126,746,933		55,277,274		11,248,688		58,991,804
Weighted-average effect of dilutive potential common stock	19,251,016		—		—		—
Shares used in computation of diluted net income (loss) per share attributable to common stockholders	145,997,949		55,277,274		11,248,688		58,991,804
Diluted net income (loss) per share attributable to common stockholders	$	0.13	$	0.13	$	(8.19)	$	(8.19)

The following outstanding potentially dilutive shares, including stock options that have been exercised prior to vesting, were excluded from the computation of diluted net income (loss) per share attributable to common stock for the periods presented because the impact of including them would have been anti-dilutive.

Reddit, Inc.

Notes to the Consolidated Financial Statements

(unaudited)


	Three months ended March 31,
	2025		2024
	Class A	Class B		Class A	Class B
Stock options	—	—		19,365,137	6,418,074
Unvested RSUs and RSAs	143,904	—		14,758,638	1,372,694
	143,904	—		34,123,775	7,790,768

5. Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:

Level 1: Quoted market prices in active markets for identical assets or liabilities
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data
Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions or external inputs from inactive markets

We classify our cash equivalents and marketable securities within Level 1 or Level 2 because we use quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. There were no transfers between levels during the periods presented.

The following table sets forth our financial assets that are measured at fair value on a recurring basis:


		March 31, 2025
	Fair value hierarchy level	Cost or amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
		(in thousands)
Cash equivalents:
Money market funds	Level 1	$	546,127	$	—	$	—	$	546,127
U.S. treasury securities	Level 1	12,508		—		—		12,508

Certificates of deposit	Level 2	25,118		—		—		25,118

Marketable securities:
U.S. treasury securities	Level 1	767,005		1,084		(85)		768,004
U.S. agency bonds	Level 2	208,446		59		(52)		208,453

Corporate bonds	Level 2	198,458		433		(49)		198,842

Commercial paper	Level 2	140,091		31		(6)		140,116
Total		$	1,897,753	$	1,607	$	(192)	$	1,899,168

Reddit, Inc.

Notes to the Consolidated Financial Statements

(unaudited)


		December 31, 2024
	Fair value hierarchy level	Cost or amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
		(in thousands)
Cash equivalents:
Money market funds	Level 1	$	497,461	$	—	$	—	$	497,461
U.S. treasury securities	Level 1	5,979		2		—		5,981
Corporate bonds	Level 2	1,066		2		—		1,068
Marketable securities:
U.S. treasury securities	Level 1	817,996		1,120		(396)		818,720
U.S. agency bonds	Level 2	117,965		15		(62)		117,918

Corporate bonds	Level 2	159,424		400		(86)		159,738

Commercial paper	Level 2	182,264		99		(22)		182,341
Total		$	1,782,155	$	1,638	$	(566)	$	1,783,227

Gross unrealized losses within accumulated other comprehensive income (loss) were immaterial as of March 31, 2025 and December 31, 2024. There were no impairment charges due to credit losses during the three months ended March 31, 2025 and 2024.

As of March 31, 2025, the amortized cost of marketable securities with maturities less than one year was $909.2 million. The amortized cost of marketable securities with maturities between one and five years was $404.8 million.

6. Balance Sheet Components

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following:


	March 31, 2025		December 31, 2024
	(in thousands)
Prepaid expenses	$	24,638	$	14,583
Other receivables	18,405		11,500
Interest receivable	6,361		4,695
Other	1,993		2,280
Total prepaid expenses and other current assets	$	51,397	$	33,058

Property and Equipment, Net

Property and equipment, net consisted of the following:


	March 31, 2025		December 31, 2024
	(in thousands)
Computer equipment, furniture, and fixtures	$	15,885	$	15,832
Leasehold improvements	8,028		8,017

Total property and equipment	23,913		23,849
Less: accumulated depreciation	(12,306)		(11,197)
Total property and equipment, net	$	11,607	$	12,652

Depreciation expense was immaterial for the three months ended March 31, 2025 and 2024.

Reddit, Inc.

Notes to the Consolidated Financial Statements

(unaudited)

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:


	March 31, 2025		December 31, 2024
	(in thousands)
Accrued compensation and benefits	$	61,844	$	63,441
Deferred revenue	20,718		14,805
Accrued expenses	35,285		31,817
Accrued revenue share payable and other	7,394		6,939

Other	11,334		7,462
Total accrued expenses and other current liabilities	$	136,575	$	124,464

Other Noncurrent Liabilities

Other noncurrent liabilities consisted of the following:


	March 31, 2025		December 31, 2024
	(in thousands)

Accrued customer incentives	$	12,754	$	9,100
Other	154		157
Total other noncurrent liabilities	$	12,908	$	9,257

7. Acquisitions

2024 Acquisition

On July 15, 2024, we completed an acquisition to enhance our technology and workforce. The aggregate purchase consideration was $19.9 million, which consisted of $17.1 million of cash consideration and $2.8 million related to the fair value of equity consideration. Additional consideration with a fair value of $10.7 million was determined to relate to post-combination expenses, primarily stock-based compensation for future employment services.

Of the aggregate purchase consideration, $4.3 million was allocated to developed technology with a useful life of three years, $15.9 million was allocated to goodwill, and the remainder was allocated to other assets acquired and liabilities assumed. The goodwill amount represents synergies from utilizing the acquired technology across our business and from the assembled workforce. Goodwill recorded in connection with the acquisition is not deductible for income tax purposes.

Reddit, Inc.

Notes to the Consolidated Financial Statements

(unaudited)

8. Goodwill and Intangible Assets

Goodwill

The carrying amount of goodwill was $42.2 million as of December 31, 2024. There was no change in the carrying amount of goodwill during the three months ended March 31, 2025.

Acquired Intangible Assets

Acquired intangible assets consisted of the following:


	March 31, 2025
	Gross carrying value		Accumulated amortization		Net carrying value		Weighted-average remaining useful life (years)
	(in thousands, except year data)
Developed technology	$	47,460	$	24,529	$	22,931	2.3
Other intangible assets	600		600		—		—
Total acquired intangible assets	$	48,060	$	25,129	$	22,931


	December 31, 2024
	Gross carrying value		Accumulated amortization		Net carrying value		Weighted-average remaining useful life (years)
	(in thousands, except year data)
Developed technology	$	47,460	$	22,051	$	25,409	2.6
Other intangible assets	600		600		—		—
Total acquired intangible assets	$	48,060	$	22,651	$	25,409

Amortization expense was immaterial for the three months ended March 31, 2025 and 2024.

9. Debt

Revolving Line of Credit

On October 8, 2021, we entered into a five-year, $750.0 million, revolving loan and standby letter of credit facility agreement (“Revolving Credit Facility”) of which $100.0 million can be issued as letters of credit. As of March 31, 2025, we have issued two letters of credit, one of which is denominated in a foreign currency, for an aggregate of $4.9 million, which reduced the letter of credit borrowings available under the Revolving Credit Facility to $95.1 million. The aggregate available balance under the Revolving Credit Facility was $745.1 million as of March 31, 2025.

On May 23, 2023, we amended the terms of the Revolving Credit Facility to replace LIBOR with Term SOFR as the interest rate benchmark. Under the amended terms of the Revolving Credit Facility, borrowings can be either ABR Loans, Term Benchmark Loans, or SONIA Loans. Outstanding ABR Loans bear interest at a rate equal to the greatest of (A) the Prime Rate, (B) the NYFRB Rate plus 0.5%, (C) the Adjusted Term SOFR Rate plus 1.0%, or (D) 1.0% (each as defined in the amended Revolving Credit Facility), in each case plus 0.25%. Outstanding Term Benchmark Loans bear interest at the Adjusted Term SOFR Rate, the Adjusted EURIBOR Rate, or the Adjusted AUD Rate (each as defined in the amended Revolving Credit Facility), as applicable, in each case, plus 1.25%. Outstanding SONIA Loans bear interest at a rate equal to the Adjusted Daily Simple SONIA (as such term is defined in the amended Revolving Credit Facility) plus 1.25%. We are required to pay a quarterly commitment fee that accrues at 0.15% per annum on the unused portion of the aggregate commitments under the credit facility.

The Revolving Credit Facility contains customary conditions on our borrowing, including events of default and covenants. Covenants include restrictions on our and certain of our subsidiaries’ ability to incur indebtedness, grant liens, make distributions to holders of our preferred and common stock, make investments, or engage in transactions with our affiliates, and require us to maintain a minimum liquidity. The obligations under the Revolving Credit Facility are secured by liens on

Reddit, Inc.

Notes to the Consolidated Financial Statements

(unaudited)

substantially all of our assets, including intellectual property assets. We were in compliance with all covenants as of March 31, 2025.

10. Commitments and Contingencies

Purchase Obligations

We enter into contracts with non-cancellable purchase obligations, primarily related to third-party cloud infrastructure agreements under which we are granted access to certain cloud services. During the three months ended March 31, 2025, there were no material changes outside the normal course of business to the purchase obligations as disclosed in the audited consolidated financial statements as of and for the year ended December 31, 2024 included in the Annual Report.

Legal Matters and Indemnifications

Please refer to the “Notes to the Consolidated Financial Statements” included in the audited consolidated financial statements as of and for the year ended December 31, 2024 included in the Annual Report for details on legal proceedings and indemnifications. There were no material changes to legal matters or indemnifications during the three months ended March 31, 2025.

11. Stockholders' Equity (Deficit)

Common Stock Reserved for Issuance

In February 2024, our board of directors adopted the 2024 Incentive Award Plan (the “2024 Plan”), which became effective in connection with the IPO. Under the 2024 Plan, shares of our Class A common stock are reserved for issuance pursuant to a variety of stock-based compensation awards, including stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance bonus awards, performance stock unit awards, dividend equivalents, or other stock or cash based awards.

We have reserved the following shares of common stock, on an as-converted basis, for future issuance:


	March 31, 2025	December 31, 2024
Outstanding stock options	12,855,512	14,687,538
Outstanding RSUs	8,857,332	11,175,380


Remaining shares reserved for future issuances under the 2024 Plan	45,926,353	36,711,788
Shares reserved for community impact initiatives and charitable activities	1,337,205	1,337,205
Total shares of common stock reserved	68,976,402	63,911,911

The remaining shares reserved for future issuance under the 2024 Plan relate to Class A common stock.

12. Stock-Based Compensation

RSUs and RSAs

Our restricted stock units (“RSUs”) and restricted stock awards (“RSAs”) vest based on the terms in the grant agreements and generally vest ratably over one to four years from the vesting commencement date. The following table summarizes the RSU and RSA activity for the three months ended March 31, 2025:


	Total RSUs and RSAs	Weighted- average grant date fair value
Unvested as of December 31, 2024	11,344,247	$	37.67
Granted	233,972	$	180.92
Vested	(2,338,968)	$	42.30
Canceled/Forfeited	(239,105)	$	37.74
Unvested as of March 31, 2025	9,000,146	$	40.19

Reddit, Inc.

Notes to the Consolidated Financial Statements

(unaudited)

As of March 31, 2025, we had RSUs and RSAs outstanding for 9,000,146 common shares, of which 8,439,425 relate to Class A common stock and 560,721 relate to Class B common stock. Total unrecognized stock-based compensation expense related to RSUs and RSAs was $247.4 million as of March 31, 2025 and is expected to be recognized over a weighted-average period of 1.1 years.

Stock Options

Stock options vest based on terms in the stock option agreement and generally vest over five years quarterly or four years with 25% of the award vesting one year from the vesting commencement date then ratably over the following three years. The following table summarizes the stock option activity during the three months ended March 31, 2025:


	Outstanding stock options	Weighted- average exercise price		Weighted- average remaining contractual life (years)	Aggregate intrinsic value
	(in thousands, except share, per share, and year data)
Balance as of December 31, 2024	14,687,538	$	30.07	6.87	$	1,958,924

Exercised	(1,831,762)	5.56
Canceled/Forfeited	(264)	7.92
Balance as of March 31, 2025	12,855,512	$	33.56	7.16	$	917,121
Vested as of March 31, 2025	6,143,484	$	21.08	5.45	$	514,928
Vested and expected to vest as of March 31, 2025	12,855,512	$	33.56	7.16	$	917,121

As of March 31, 2025, we had outstanding stock options for 12,855,512 common shares, of which 10,496,426 relate to Class A common stock and 2,359,086 relate to Class B common stock. Total unrecognized stock-based compensation expense related to stock options was $104.7 million as of March 31, 2025 and is expected to be recognized over a weighted-average period of 3.72 years.

Stock-Based Compensation Expense

The following table summarizes the components of stock-based compensation expense recognized in the consolidated statements of operations for all periods presented:


	Three months ended March 31,
	2025		2024

Cost of revenue	$	217	$	258
Research and development	52,610		316,514
Sales and marketing	10,138		60,790
General and administrative	22,449		199,946
Stock-based compensation expense	$	85,414	$	577,508

13. Income Taxes

Our provision for income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, we update the estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, we make a cumulative adjustment in such period. For the three months ended March 31, 2025 and 2024, income tax expense (benefit) was immaterial. We continue to maintain a full valuation allowance on our remaining federal and state deferred tax assets.

14. Related Parties and Related-Party Transactions

Advance Magazine Publishers Inc.

As of March 31, 2025, Advance Magazine Publishers Inc. (“Advance”) held approximately 23% of our outstanding shares of Class A and Class B common stock and is a related party to Reddit as Advance holds more than 10% of the voting power of

Reddit, Inc.

Notes to the Consolidated Financial Statements

(unaudited)

our outstanding Class A and Class B common stock. There have been no changes to the terms of the agreements that govern Advance’s rights as disclosed in the audited consolidated financial statements as of and for the year ended December 31, 2024 included in our Annual Report.

We currently sublease office space in New York and Chicago from Advance. Total lease costs and other related expenses for our subleases were immaterial for the three months ended March 31, 2025 and 2024.

15. Segment and Geographic Information

Segment Information

We have one reportable segment as our chief operating decision maker reviews consolidated profitability measures in managing the business. Specifically, our chief operating decision maker uses consolidated net income (loss) as the measure of segment profit or loss for evaluating performance and allocating resources through comparison of actual amounts against budgeted and prior period amounts.

The following table presents the calculation of segment net income (loss):


	Three months ended March 31,
	2025		2024
	(in thousands)
Revenue	$	392,361	$	242,963
Adjusted cost of revenue(1)	36,872		27,358
Adjusted gross profit	355,489		215,605

Adjusted operating expenses(2)	240,218		205,580
Stock-based compensation and related taxes	107,405		595,537
Depreciation and amortization	3,963		3,743
Interest (income) expense, net	(20,414)		(15,447)
Income tax expense (benefit)	(1,721)		365
Other segment expenses(3)	(120)		893
Segment net income (loss)	$	26,158	$	(575,066)
Consolidated net income (loss)	$	26,158	$	(575,066)

(1)Adjusted cost of revenue is cost of revenue adjusted for stock-based compensation and related taxes as follows:


	Three months ended March 31,
	2025		2024
	(in thousands)
Cost of revenue	$	37,089	$	27,616
Less:
Stock-based compensation and related taxes	217		258

Adjusted cost of revenue	$	36,872	$	27,358

(2)Adjusted operating expenses is operating expenses (comprised of research and development, sales and marketing, and general and administrative expenses) adjusted for stock-based compensation and related taxes and depreciation and amortization as follows:


	Three months ended March 31,
	2025		2024
	(in thousands)
Operating expenses	$	351,369	$	804,602
Less:
Stock-based compensation and related taxes	107,188		595,279
Depreciation and amortization	3,963		3,743

Adjusted operating expenses	$	240,218	$	205,580

Reddit, Inc.

Notes to the Consolidated Financial Statements

(unaudited)

(3)Other segment expenses primarily includes realized gains and losses on sales of marketable securities and foreign currency transaction gains and losses.

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