Investment Strategies for Reddit Stock Ahead of Q3 Earnings Report

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Reddit Inc. (RDDT) will release its third-quarter 2025 results on October 30. The company projects revenues between $535 million and $545 million, indicating 54% to 56% year-over-year growth, with a midpoint of $540 million. The Zacks Consensus Estimate for revenues stands at $549.69 million, reflecting a 57.80% year-over-year increase.

For earnings, the consensus estimate is 52 cents per share, indicating a remarkable 225% year-over-year growth. Historically, Reddit has surpassed the Zacks Consensus Estimate in the past four quarters, averaging an earnings surprise of 261.89%.

Factors expected to contribute to Reddit’s Q3 performance include increased ad sales driven by innovations in advertising products, with the company experiencing a rise from 1 million to 6 million weekly users on its Reddit Answers platform. Additionally, Reddit’s international expansion and machine translation in 23 languages are anticipated to enhance user engagement and revenue.

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