CMSI issued a research report highlighting Reddit's significant user growth. Monthly active users in the UK grew 28% year-over-year in 2024/2025, and penetration rates are expected to reach 60% in 2025.
The report credits the company's advertising campaigns for driving Average Revenue Per User (ARPU) growth. Furthermore, Reddit officially launched Max Campaigns. This AI-driven advertising tool simplifies ad placement by automating targeting, bidding, and creative optimization.
Based on these developments, CMSI reiterated its "Overweight" rating and maintained its $300 price target. The firm forecasts strong revenue and adjusted EBITDA growth for the fourth quarter of 2025 and for the full year 2026.