Reddit (RDDT) shares traded significantly higher on February 18, 2026, following a Bank of America report on the company’s fourth-quarter 2025 performance. The analysis highlighted that Reddit achieved 53% growth in U.S. Average Revenue Per User (ARPU), outpacing competitors Meta and Snap.
International ARPU increased 39% as the company expanded user engagement. Active advertisers grew 75% year-over-year.
Analysts attribute the financial results to higher ad loads and improved conversion rates. These trends suggest Reddit is successfully accelerating its monetization strategy and increasing its revenue per hour.