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)


	June 30, 2025		December 31, 2024
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	734,060	$	562,092
Marketable securities	1,325,881		1,278,717
Accounts receivable, net	407,228		349,534
Prepaid expenses and other current assets	62,761		33,058
Total current assets	2,529,930		2,223,401
Property and equipment, net	11,394		12,652
Operating lease right-of-use assets, net	22,118		23,249
Intangible assets, net	20,469		25,424
Goodwill	42,174		42,174
Other noncurrent assets	6,117		9,695
Total assets	$	2,632,202	$	2,336,595
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	63,942	$	45,423
Operating lease liabilities	6,572		6,137
Accrued expenses and other current liabilities	140,317		124,464
Total current liabilities	210,831		176,024
Operating lease liabilities, noncurrent	18,611		20,565
Other noncurrent liabilities	15,780		9,257
Total liabilities	245,222		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 June 30, 2025 and December 31, 2024; no shares issued and outstanding as of June 30, 2025 and December 31, 2024	—		—
Class A common stock, par value $0.0001 per share; 2,000,000,000 shares authorized as of June 30, 2025 and December 31, 2024; 131,962,529 and 125,001,880 shares issued and outstanding as of June 30, 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 June 30, 2025 and December 31, 2024; 55,112,126 and 55,314,099 shares issued and outstanding as of June 30, 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 June 30, 2025 and December 31, 2024; no shares issued and outstanding as of June 30, 2025 and December 31, 2024	—		—
Additional paid-in capital	3,468,618		3,331,546
Accumulated other comprehensive income (loss)	3,727		24
Accumulated deficit	(1,085,383)		(1,200,838)
Total stockholders’ equity (deficit)	2,386,980		2,130,749
Total liabilities and stockholders’ equity (deficit)	$	2,632,202	$	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 June 30,				Six months ended June 30,
	2025		2024		2025		2024
Revenue	$	499,627	$	281,184	$	891,988	$	524,147
Costs and expenses:
Cost of revenue	45,900		29,501		82,989		57,117
Research and development	196,610		142,777		387,881		579,807
Sales and marketing	120,619		71,458		211,304		195,553
General and administrative	68,787		68,487		138,200		311,964
Total costs and expenses	431,916		312,223		820,374		1,144,441
Income (loss) from operations	67,711		(31,039)		71,614		(620,294)
Other income (expense), net	21,147		20,724		41,681		35,278
Income (loss) before income taxes	88,858		(10,315)		113,295		(585,016)
Income tax expense (benefit)	(439)		(216)		(2,160)		149
Net income (loss)	$	89,297	$	(10,099)	$	115,455	$	(585,165)
Net income (loss) per share attributable to Class A and Class B common stock (Note 4)
Basic	$	0.48	$	(0.06)	$	0.63	$	(4.99)
Diluted	$	0.45	$	(0.06)	$	0.58	$	(4.99)
Weighted-average shares of Class A and Class B common stock used to compute net income (loss) per share attributable to common stockholders
Basic	185,437,777		164,382,736		183,730,992		117,311,614
Diluted	199,522,433		164,382,736		200,681,458		117,311,614

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 June 30,				Six months ended June 30,
	2025		2024		2025		2024
Net income (loss)	$	89,297	$	(10,099)	$	115,455	$	(585,165)
Other comprehensive income (loss), net of tax:
Change in unrealized gains (losses) on marketable securities	(158)		(528)		185		(1,800)
Change in foreign currency translation adjustment	2,571		(4)		3,518		(18)
Net comprehensive income (loss)	$	91,710	$	(10,631)	$	119,158	$	(586,983)

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 June 30, 2024
		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
Balance as of March 31, 2024			44,286,735		$	4	119,059,756	$	12	$	3,130,384	$	(472)	$	(1,291,628)	$	1,838,300
Issuance of common stock upon exercise of stock options, net			252,962		—		7,700	—		1,843		—		—		1,843
Issuance of common stock upon settlement of restricted stock units, net			1,989,556		—		37,382	—		—		—		—		—
Conversion of Class B common stock to Class A common stock			15,950,209		2		(15,950,209)	(2)		—		—		—		—
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering			—		—		—	1		1		—		—		2

Stock-based compensation expense			—		—		—	—		64,266		—		—		64,266
Vesting of early exercised stock options			—		—		—	—		55		—		—		55
Net income (loss)			—		—		—	—		—		—		(10,099)		(10,099)
Change in other comprehensive income (loss)			—		—		—	—		—		(532)		—		(532)
Balance as of June 30, 2024			62,479,462		$	6	103,154,629	$	11	$	3,196,549	$	(1,004)	$	(1,301,727)	$	1,893,835

			Three months ended June 30, 2025
		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
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
Issuance of common stock upon exercise of stock options, net			358,393		—		629,769	—		4,303		—		—		4,303
Issuance of common stock upon settlement of restricted stock units, net			1,801,956		—		17,251	—		(15,224)		—		—		(15,224)
Conversion of Class B common stock to Class A common stock			656,715		—		(656,715)	—		—		—		—		—



Stock-based compensation expense			—		—		—	—		89,070		—		—		89,070

Net income (loss)			—		—		—	—		—		—		89,297		89,297
Change in other comprehensive income (loss)			—		—		—	—		—		2,413		—		2,413
Balance as of June 30, 2025			131,962,529		$	13	55,112,126	$	5	$	3,468,618	$	3,727	$	(1,085,383)	$	2,386,980

Reddit, Inc.

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

(in thousands, except share amounts)

(unaudited)


	Six months ended June 30, 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	—	—		3,394,138		—		813,648	—		24,932		—		—		24,932
Issuance of common stock upon settlement of restricted stock units, net	—	—		8,162,928		1		661,497	—		(202,853)		—		—		(202,852)
Conversion of Class B common stock to Class A common stock	—	—		20,142,152		2		(20,142,152)	(2)		—		—		—		—
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	7		1,853,486		—		—		1,853,494
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	—	—		—		—		—	—		641,774		—		—		641,774
Vesting of early exercised stock options	—	—		—		—		—	—		124		—		—		124
Net income (loss)	—	—		—		—		—	—		—		—		(585,165)		(585,165)
Change in other comprehensive income (loss)	—	—		—		—		—	—		—		(1,818)		—		(1,818)
Balance as of June 30, 2024	—	$	—	62,479,462		$	6	103,154,629	$	11	$	3,196,549	$	(1,004)	$	(1,301,727)	$	1,893,835

	Six months ended June 30, 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	—	—		1,363,474		—		1,456,450	—		14,487		—		—		14,487
Issuance of common stock upon settlement of restricted stock units, net	—	—		3,904,250		1		34,502	—		(51,899)		—		—		(51,898)
Conversion of Class B common stock to Class A common stock	—	—		1,692,925		—		(1,692,925)	—		—		—		—		—
Stock-based compensation expense	—	—		—		—		—	—		174,484		—		—		174,484
Net income (loss)	—	—		—		—		—	—		—		—		115,455		115,455
Change in other comprehensive income (loss)	—	—		—		—		—	—		—		3,703		—		3,703
Balance as of June 30, 2025	—	$	—	131,962,529		$	13	55,112,126	$	5	$	3,468,618	$	3,727	$	(1,085,383)	$	2,386,980

Reddit, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Cash flows from operating activities
Net income (loss)	$	89,297	$	(10,099)	$	115,455	$	(585,165)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	3,934		3,770		7,897		7,513



Non-cash operating lease cost	1,514		1,335		2,982		2,588
Amortization of premium (accretion of discount) on marketable securities, net	(6,691)		(11,362)		(15,575)		(19,491)
Stock-based compensation expense	89,070		64,266		174,484		641,774


Other adjustments	97		141		(41)		626
Changes in operating assets and liabilities:
Accounts receivable	(81,116)		(24,793)		(57,757)		5,194
Prepaid expenses and other assets	(9,352)		(6,270)		(26,358)		(20,182)
Operating lease right-of-use assets and liabilities	(1,589)		(780)		(3,369)		(1,310)
Accounts payable	19,991		18,220		18,945		16,042
Accrued expenses and other liabilities	6,176		(6,043)		22,246		12,860
Net cash provided by (used in) operating activities	$	111,331	$	28,385	$	238,909	$	60,449
Cash flows from investing activities
Purchases of property and equipment	(505)		(1,202)		(1,484)		(4,053)


Purchases of marketable securities	(556,457)		(861,827)		(1,061,303)		(997,512)
Maturities of marketable securities	552,532		343,404		1,017,594		596,059
Proceeds from sale of marketable securities	—		—		12,372		—

Other investing activities	2,354		(12)		3,243		(27)
Net cash provided by (used in) investing activities	$	(2,076)	$	(519,637)	$	(29,578)	$	(405,533)
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	4,303		1,843		14,487		24,932

Taxes paid related to net share settlement of restricted stock units	(15,225)		(7,569)		(51,900)		(202,306)
Payments of initial public offering costs	—		(3,585)		—		(6,338)

Other financing activities	—		—		—		(4,450)
Net cash provided by (used in) financing activities	$	(10,922)	$	(9,311)	$	(37,413)	$	411,860
Net increase (decrease) in cash, cash equivalents, and restricted cash	98,333		(500,563)		171,918		66,776
Cash, cash equivalents, and restricted cash at the beginning of the period	635,727		968,565		562,142		401,226
Cash, cash equivalents, and restricted cash at the end of the period	$	734,060	$	468,002	$	734,060	$	468,002
Cash and cash equivalents	$	734,060	$	467,952	$	734,060	$	467,952
Restricted cash	—		50		—		50
Total cash, cash equivalents, and restricted cash	$	734,060	$	468,002	$	734,060	$	468,002


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 as 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 and related notes as of and for the year ended December 31, 2024 included in our 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 and six months ended June 30, 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 June 30,				Six months ended June 30,
	2025		2024		2025		2024
	(in thousands)
Advertising revenue	$	464,785	$	253,125	$	823,415	$	475,807
Other revenue	34,842		28,059		68,573		48,340
Total revenue	$	499,627	$	281,184	$	891,988	$	524,147

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


	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
	(in thousands)
United States	$	408,842	$	228,069	$	722,694	$	427,872
Rest of world(1)	90,785		53,115		169,294		96,275
Total revenue	$	499,627	$	281,184	$	891,988	$	524,147

(1)Other than the United States, no individual country represented 10% or more of total revenue during the three and six months ended June 30, 2025 and 2024.

Deferred revenue was $18.9 million and $14.9 million as of June 30, 2025 and December 31, 2024, respectively. For the six months ended June 30, 2025, revenue recognized from the deferred revenue balance at the beginning of the period was $14.0 million. For the six months ended June 30, 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 June 30, 2025, the aggregate amount of remaining performance obligations in contracts with an original expected duration exceeding one year was $194.9 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 $57.0 million in the remainder of 2025, $113.8 million in 2026, and $24.1 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. For the three and six months ended June 30, 2024, 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 June 30,						Six months ended June 30,
	2025				2024				2025				2024
	Class A		Class B		Class A		Class B		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	$	62,806	$	26,491	$	(3,034)	$	(7,065)	$	80,803	$	34,652	$	(151,229)	$	(433,936)
Denominator:
Basic weighted-average common shares outstanding	130,426,589		55,011,188		49,386,912		114,995,824		128,586,761		55,144,231		30,317,800		86,993,814
Basic income (loss) per share attributable to common stockholders	$	0.48	$	0.48	$	(0.06)	$	(0.06)	$	0.63	$	0.63	$	(4.99)	$	(4.99)
Diluted net income (loss) per share attributable to common stockholders:
Numerator:
Net income (loss) attributable to common stockholders	$	64,676	$	24,621	$	(3,034)	$	(7,065)	$	83,730	$	31,725	$	(151,229)	$	(433,936)
Denominator:
Basic weighted-average common shares outstanding	130,426,589		55,011,188		49,386,912		114,995,824		128,586,761		55,144,231		30,317,800		86,993,814
Weighted-average effect of dilutive potential common stock	14,084,656		—		—		—		16,950,466		—		—		—
Shares used in computation of diluted net income (loss) per share attributable to common stockholders	144,511,245		55,011,188		49,386,912		114,995,824		145,537,227		55,144,231		30,317,800		86,993,814
Diluted net income (loss) per share attributable to common stockholders	$	0.45	$	0.45	$	(0.06)	$	(0.06)	$	0.58	$	0.58	$	(4.99)	$	(4.99)

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 June 30,				Six months ended June 30,
	2025		2024		2025		2024
	Class A	Class B	Class A	Class B	Class A	Class B	Class A	Class B
Stock options	—	—	19,090,416	6,410,374	—	—	19,090,416	6,410,374
Unvested RSUs and RSAs	433,058	—	12,620,086	1,335,312	126,137	—	12,620,086	1,335,312
	433,058	—	31,710,502	7,745,686	126,137	—	31,710,502	7,745,686

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:


		June 30, 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	$	621,940	$	—	$	—	$	621,940
U.S. treasury securities	Level 1	19,967		—		—		19,967

Certificates of deposit	Level 2	25,397		—		—		25,397

Marketable securities:
U.S. treasury securities	Level 1	665,971		899		(70)		666,800
U.S. agency bonds	Level 2	301,916		77		(207)		301,786

Corporate bonds	Level 2	239,906		586		(16)		240,476

Commercial paper	Level 2	116,831		6		(18)		116,819
Total		$	1,991,928	$	1,568	$	(311)	$	1,993,185

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 June 30, 2025 and December 31, 2024. There were no impairment charges due to credit losses during the three and six months ended June 30, 2025 and 2024.

As of June 30, 2025, the amortized cost of marketable securities with maturities less than one year was $820.4 million. The amortized cost of marketable securities with maturities between one and five years was $504.3 million.

6. Balance Sheet Components

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following:


	June 30, 2025		December 31, 2024
	(in thousands)
Prepaid expenses	$	23,290	$	14,583
Other receivables	26,876		11,500
Interest receivable	9,089		4,695
Other	3,506		2,280
Total prepaid expenses and other current assets	$	62,761	$	33,058

Property and Equipment, Net

Property and equipment, net consisted of the following:


	June 30, 2025		December 31, 2024
	(in thousands)
Computer equipment, furniture, and fixtures	$	16,880	$	15,832
Leasehold improvements	8,051		8,017
Construction-in-progress	63		—
Total property and equipment	24,994		23,849
Less: accumulated depreciation	(13,600)		(11,197)
Total property and equipment, net	$	11,394	$	12,652

Depreciation expense was immaterial for the three and six months ended June 30, 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:


	June 30, 2025		December 31, 2024
	(in thousands)
Accrued compensation and benefits	$	56,042	$	63,441
Deferred revenue	18,826		14,805
Accrued expenses	49,108		31,817
Accrued revenue share payable and other	7,493		6,939

Other	8,848		7,462
Total accrued expenses and other current liabilities	$	140,317	$	124,464

Other Noncurrent Liabilities

Other noncurrent liabilities consisted of the following:


	June 30, 2025		December 31, 2024
	(in thousands)

Accrued customer incentives	$	15,632	$	9,100
Other	148		157
Total other noncurrent liabilities	$	15,780	$	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 six months ended June 30, 2025.

Acquired Intangible Assets

Acquired intangible assets consisted of the following:


	June 30, 2025
	Gross carrying value		Accumulated amortization		Net carrying value		Weighted-average remaining useful life (years)
	(in thousands, except year data)
Developed technology	$	47,460	$	27,007	$	20,453	2.1
Other intangible assets	600		600		—		—
Total acquired intangible assets	$	48,060	$	27,607	$	20,453


	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 and six months ended June 30, 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 June 30, 2025, we have issued two letters of credit, one of which is denominated in a foreign currency, for an aggregate of $5.2 million, which reduced the letter of credit borrowings available under the Revolving Credit Facility to $94.8 million. The aggregate available balance under the Revolving Credit Facility was $744.8 million as of June 30, 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 borrowings, 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 June 30, 2025.

On July 1, 2025, we signed a renewal of the Revolving Credit Facility, which amended and restated certain terms of the agreement. Under the amended terms of the Revolving Credit Facility (“Amended Revolving Credit Facility”), we will have access to a five-year, $500.0 million, revolving loan and standby letter of credit facility, of which $100.0 million can be issued as letters of credit and another $100.0 million of which can be borrowed in certain non-U.S. dollar currencies. The Amended Revolving Credit Facility also includes some changes to other terms, primarily relating to interest rates and covenants, from the Revolving Credit Facility.

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 six months ended June 30, 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

From time to time, we may become involved in various legal and regulatory proceedings, claims or purported class actions related to, among other things, alleged infringement of third party patents and other intellectual property rights, commercial, corporate and securities, labor and employment, wage and hour and other claims arising in the normal course of business. We record a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We also disclose material contingencies when we believe a loss is not probable but reasonably possible.

In June 2025, we and certain of our officers and directors were named as defendants in a securities class action lawsuit in the U.S. District Court for the Northern District of California. The lawsuit is brought on behalf of a purported class of purchasers or acquirers of our securities, alleging that we and certain of our officers made false or misleading statements and omissions concerning the impact of Google Search and its AI Overviews feature on our business. The complaint seeks unspecified damages and attorneys’ fees. Subsequently, shareholder derivative complaints with similar allegations were filed in the U.S. District Court for the Northern District of California against the Company, its directors, and members of our senior management. No responses to these complaints have been filed. Based on the preliminary nature of the proceedings in these cases, the outcome of these matters remains uncertain.

Accounting for contingencies requires us to use judgment related to both the likelihood of a loss and the estimate of the amount or range of loss. We are not aware of any other pending matters, individually or in the aggregate, that are expected to have a material adverse impact on our results of operations, financial position, or cash flows as of June 30, 2025. Legal fees and other expenses associated with such matters are expensed as incurred.

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.

Reddit, Inc.

Notes to the Consolidated Financial Statements

(unaudited)

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


	June 30, 2025	December 31, 2024
Outstanding stock options	11,865,483	14,687,538
Outstanding RSUs	7,615,351	11,175,380


Remaining shares reserved for future issuances under the 2024 Plan	45,350,994	36,711,788
Shares reserved for community impact initiatives and charitable activities	1,337,205	1,337,205
Total shares of common stock reserved	66,169,033	63,911,911

The remaining shares reserved for future issuance under the 2024 Plan relate to our 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 six months ended June 30, 2025:


	Total RSUs and RSAs	Weighted- average grant date fair value
Unvested as of December 31, 2024	11,344,247	$	37.67
Granted	1,149,225	$	115.73
Vested	(4,325,212)	$	44.54
Canceled/Forfeited	(436,148)	$	41.48
Unvested as of June 30, 2025	7,732,112	$	45.22

As of June 30, 2025, we had RSUs and RSAs outstanding for 7,732,112 common shares, of which 7,208,772 relate to Class A common stock and 523,340 relate to Class B common stock. Total unrecognized stock-based compensation expense related to RSUs and RSAs was $248.3 million as of June 30, 2025 and is expected to be recognized over a weighted-average period of 1.04 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 six months ended June 30, 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	(2,819,924)	5.14
Canceled/Forfeited	(2,131)	34.34
Balance as of June 30, 2025	11,865,483	$	35.99	7.36	$	1,359,543
Vested as of June 30, 2025	5,617,433	$	25.90	6.12	$	700,300
Vested and expected to vest as of June 30, 2025	11,865,483	$	35.99	7.36	$	1,359,543

As of June 30, 2025, we had outstanding stock options for 11,865,483 common shares, of which 10,136,166 relate to Class A common stock and 1,729,317 relate to Class B common stock. Total unrecognized stock-based compensation expense related

Reddit, Inc.

Notes to the Consolidated Financial Statements

(unaudited)

to stock options was $97.4 million as of June 30, 2025 and is expected to be recognized over a weighted-average period of 3.48 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 June 30,				Six months ended June 30,
	2025		2024		2025		2024

Cost of revenue	$	204	$	61	$	421	$	319
Research and development	56,663		29,944		109,273		346,458
Sales and marketing	10,198		6,875		20,336		67,665
General and administrative	22,005		27,386		44,454		227,332
Stock-based compensation expense	$	89,070	$	64,266	$	174,484	$	641,774

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 and six months ended June 30, 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.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law. The OBBBA includes changes to U.S. federal income tax law that will be applicable to us beginning in the period of enactment, including provisions allowing accelerated tax deductions for domestic research and development expenditures. We are currently analyzing the impact that the OBBBA will have on our consolidated financial statements.

14. Related Parties and Related-Party Transactions

Advance Magazine Publishers Inc.

As of June 30, 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 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 and six months ended June 30, 2025 and 2024.

15. Segment and Geographic Information

Segment Information

We have one reportable segment as our chief operating decision maker, our Chief Executive Officer, reviews consolidated profitability measures in managing the business. Specifically, our chief operating decision maker uses consolidated net income

Reddit, Inc.

Notes to the Consolidated Financial Statements

(unaudited)

(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 in order to make strategic decisions.

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


	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
	(in thousands)
Revenue	$	499,627	$	281,184	$	891,988	$	524,147
Adjusted cost of revenue(1)	45,696		29,440		82,568		56,798
Adjusted gross profit	453,931		251,744		809,420		467,349

Adjusted operating expenses(2)	287,182		212,241		527,400		417,821
Stock-based compensation and related taxes	95,104		66,772		202,509		662,309
Depreciation and amortization	3,934		3,770		7,897		7,513
Interest (income) expense, net	(21,056)		(20,941)		(41,470)		(36,388)
Income tax expense (benefit)	(439)		(216)		(2,160)		149
Other segment expenses(3)	(91)		217		(211)		1,110
Segment net income (loss)	$	89,297	$	(10,099)	$	115,455	$	(585,165)
Consolidated net income (loss)	$	89,297	$	(10,099)	$	115,455	$	(585,165)

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


	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
	(in thousands)
Cost of revenue	$	45,900	$	29,501	$	82,989	$	57,117
Less:
Stock-based compensation and related taxes	204		61		421		319

Adjusted cost of revenue	$	45,696	$	29,440	$	82,568	$	56,798

(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 June 30,				Six months ended June 30,
	2025		2024		2025		2024
	(in thousands)
Operating expenses	$	386,016	$	282,722	$	737,385	$	1,087,324
Less:
Stock-based compensation and related taxes	94,900		66,711		202,088		661,990
Depreciation and amortization	3,934		3,770		7,897		7,513

Adjusted operating expenses	$	287,182	$	212,241	$	527,400	$	417,821

(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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