Reddit's stock gained 35.9% over the past year, outperforming the broader tech sector. This growth stems from strong user engagement, rising Average Revenue Per User (ARPU), and expanded advertiser tools.
The company reported significant financial gains in the third quarter of 2025. ARPU increased 41% year-over-year. Simultaneously, advertising revenues surged 74%, reaching $549 million.
Reddit drives this momentum through strategic investment in AI-powered features. The company recently announced the beta launch of 'Max campaigns.' This automated ad solution leverages AI to optimize targeting and performance.
Early results from testers show positive reception. The new tool increased conversions by up to 27% at lower costs, indicating strong potential for future revenue growth.