Reddit

What Reddit does

Reddit operates one of the largest user-generated content platforms in the world, organizing conversation across 100,000+ interest-based subreddits and serving 126.8 million daily active uniques and approximately 1.1 billion monthly active users as of Q1 2026. The platform's core technology stack combines subreddit-based community architecture with AI/ML capabilities built through acquisitions of Spell, MeaningCloud, Spiketrap, Oterlu, and Memorable AI, supporting content moderation, search ranking, ad targeting, and an LLM-powered search product (Reddit Answers) layered on a corpus of more than 25 billion posts and comments.

Reddit monetizes primarily through advertising (~94% of revenue), with a layered stack that includes self-serve Reddit Ads Manager, AI-automated Max Campaigns, Dynamic Product Ads integrated with Shopify, Shopping Listing Ads, Redditor Highlights, and an industry-first Dual Attribution measurement solution. The company reported Q1 2026 revenue of $663.4 million (+69% YoY), advertising revenue of $625 million (+74% YoY), net income of $204 million, and free cash flow of $311 million (47% margin), with 91.5% gross margin. A second high-margin revenue stream comes from data licensing deals with AI developers (Google ~$60M/year, OpenAI ~$70M/year, both up for renewal in 2027), complemented by Reddit Premium subscriptions and Collectible Avatar marketplace activity. Distribution is hybrid: enterprise field sales covering Pharma, Financial Services, CPG, Tech and other verticals across NYC, SF, LA, London, Berlin and other hubs, plus self-serve ads for SMBs and a commercial Reddit Data API for third-party developers.

Name

Reddit

Legal name

Reddit, Inc.

Website

https://redditinc.com

Company type

Public

Founded year

2005

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Reddit operates a public, interest-based community platform serving ~127M daily active users across 100,000+ subreddits, monetizing through advertising (94% of revenue) and AI data licensing to Google and OpenAI.

Ownership category

akta.pro rank

Product category

Social Media Platform

NAICS

Media Streaming Distribution Services, Social Networks, and Other Media Networks and Content Providers (5162), Media Streaming Distribution Services, Social Networks, and Other Media Networks and Content Providers (516210)

SIC

Services-Advertising Agencies (7311), Services-Computer Programming, Data Processing, Etc. (7370)

akta.pro primary industry

Long-Form User-Generated Video Platforms (MPACABAA)

akta.pro secondary industries

Social Media Management, Scheduling & Community Tools (BPAMALAJ), RSS/Feed Readers & Subscription Aggregators (MPACAKAD)

Keywords

• Community platform
• Social advertising
• Data licensing
• AI content moderation
• User-generated content

Headquarters

HQ city

San Francisco

HQ country

United States

HQ region

North America

Offices10 records

Markets served

GTM type

B2B and B2C

Offering type

Digital Commerce or Content

Cost components

Technology or R&D, Personnel, Infrastructure, Marketing or Sales, Operations

Revenue model

1. Advertising: Primary revenue stream accounting for ~94% of total revenue. Q1 2026 ad revenue reached $625 million, up 74% year-over-year, marking the seventh consecutive quarter of growth above 60%. Includes free-form ads, Max campaigns, Dynamic Product Ads, Shopping Listing Ads, brand ad formats, and app install advertising with Dual Attribution.
2. Data Licensing (AI/ML Training): High-margin revenue from licensing Reddit's user-generated content corpus to AI companies. Reddit's S-1 filing revealed total data licensing arrangements of $203 million, with Google (~$60M/year) and OpenAI (~$70M/year) deals coming up for renewal in 2027; expects to command higher renewal fees citing 'human authentication as a mission-critical layer for LLMs.'
3. Reddit Data API (Commercial Tier): Commercial-tier API access restructured in 2023 with a $12,000 annual minimum plus approximately $0.24 per thousand calls, replacing the previous free tier.
4. Reddit Premium Subscriptions: Subscription offering as one of Reddit's three revenue streams alongside advertising and AI data licensing.
5. Collectible Avatars: Limited-edition user-owned profile images with revenue from primary sales and secondary marketplace activity; ownership managed through a Polygon-based blockchain wallet. Reddit does not disclose Collectible Avatars as a standalone revenue line item in public filings.

Pricing tiers

Go-to-market motion1 record

Distribution channels6 records

Marketing channels9 records

Core offering

Reddit operates a community-interest platform organized into 100,000+ subreddits where users post, vote, and comment on topics of interest, amassing over 25 billion posts and comments. The company monetizes primarily through advertising (Reddit Ads Manager, Max Campaigns, Dynamic Product Ads) and high-margin data licensing of its user-generated content corpus to AI companies such as Google and OpenAI for large language model training.

Product overview

Reddit operates a unified community platform accessible via web (reddit.com) and mobile apps (iOS/Android), built around thousands of interest-based subreddits with core features including posts, comments, voting, video replies (Video in Comments), and the Snoo mascot. The platform monetizes primarily through a layered advertising stack including Reddit Ads Manager, Max Campaigns (AI-powered optimization with Reddit Community Intelligence), Dynamic Product Ads (DPA), Shopping Listing Ads, Redditor Highlights, and the Community Intelligence data platform that leverages over 25 billion posts and comments. Reddit Answers provides an LLM-powered search experience, while Reddit Premium offers a subscription tier, Reddit Collectible Avatars (Polygon-blockchain based profile images) provides digital collectibles, KarmaLab is the creative strategy team, and Reddit Pro serves publishers. Developer-facing offerings include the Reddit Data API, Reddit Ads API, and Reddit Embeds, each with their own Terms of Use. Acquired technologies integrated into the platform include Memorable AI (generative AI ad creative, acquired August 2024), Spiketrap (audience contextualization, acquired September 2022), MeaningCloud (NLP, acquired July 2022), and Spell (machine-learning platform, acquired June 2022), with the Oterlu team joining in October 2022 to strengthen content moderation safety. Additional features include Verified Profiles, Anonymous Browsing Mode, and Dual Attribution measurement.

Differentiator

Problem solved

Functional benefit

Brands

• Reddit Answers: An LLM-powered search feature that organizes user posts and comments into responses built from verbatim quotes.
• Reddit Shopping
• Reddit Collectible Avatars
• Reddit Pro
• Reddit for Business
• Reddit for Community
• Reddit for Good

Products and services

• Reddit Platform Reddit's core community platform where users participate in thousands of interest-based subreddits organized around topics, with daily active uniques, weekly active uniques, active communities, and over 25 billion posts and comments. Features include posting, commenting, voting, and the Snoo mascot.
• Reddit App

Quantifiable outcome

• 91.5% gross margin in Q1 2026
• +9 more outcomes

Named customers4 records

Segments9 records

Ideal customer profiles5 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

AI capability14 records

Feature14 records

Partnerships

Ten partnerships are on record, tiered minor, core and flagship.

• WebFXminorChannel Partner/ Reseller/ Distributor · 4 June 2026WebFX, a Harrisburg PA-based digital marketing agency, earned Reddit's Gold Certified Sales Partner badge in June 2026, recognizing its proven expertise in Reddit's advertising solutions and track record of more than $10 billion in client revenue over five years.
• ShopifycoreTechnology or Integration · 1 May 2026Reddit opened its Shopify integration to global advertisers in May/June 2026, enabling merchants to run targeted Dynamic Product Ads (DPA) campaigns with automated catalog syncing and codeless pixel setup. Early performance: Ethnotek achieved 4x ROAS and 40% lower CPA.
• Nectar SocialcoreStrategic or Co-development Partner · 1 May 2026Nectar Social, an AI-powered agentic marketing operating system founded by former Meta leaders, has an official partnership with Reddit along with Meta Platforms, TikTok, LinkedIn, and X Corp. Nectar Agent manages real-time brand engagement across social platforms. Customers include e.l.f. Beauty, Liquid Death, Figma, and Kosas.
• Sachin TendulkarcoreGTM or Marketing Partner · 18 June 2025Cricket Legend Sachin Tendulkar was named Brand Ambassador for Reddit in June 2025, supporting brand awareness and international marketing initiatives.
• Google (Alphabet)flagshipTechnology or Integration · 1 January 2024Google signed a reported $60 million annual content licensing agreement with Reddit in February 2024 to provide structured access to Reddit data for AI training. The deal comes up for renewal in 2027, with Reddit expecting to command higher fees citing 'human authentication as a mission-critical layer for LLMs.' Google also surfaces Reddit content in AI Overviews and AI Mode.
• OpenAIflagshipTechnology or Integration · 1 January 2024Reddit signed a data licensing deal with OpenAI reported at approximately $70 million per year in 2024, providing OpenAI with access to Reddit's content corpus for AI training. The deal comes up for renewal in 2027 with Reddit seeking dynamic pricing at renegotiation. CEO Steve Huffman noted LLMs 'would not exist' without Reddit data.
• Ad CouncilminorGTM or Marketing PartnerReddit donates advertising space to the Ad Council and like-minded non-profit organizations to amplify their work and reinforce brand values around social impact.
• StopNCII.orgminorGTM or Marketing PartnerReddit partners with StopNCII.org in a cross-industry effort to fight non-consensual intimate imagery through hashing technology, and donates ad space to support the program.
• Digital Trust & Safety PartnershipminorOthersReddit is a founder and Board member of the Digital Trust & Safety Partnership, advocating for trust and safety best practices across the technology industry.
• RightsConOthers

Scale indicators26 records

Recent moves8 records

Expansion highlights6 records

Broad incumbents

• Meta Platforms: Meta operates Facebook and Instagram, the dominant social media platforms competing with Reddit for both user attention and advertiser dollars. While Meta's portfolio is much broader and its audience identity graph more mature, both companies compete for the social advertising wallet and increasingly for AI training data partnerships.
• TikTok (ByteDance): TikTok is a major social platform competing with Reddit for user time, engagement, and the social ad budget. While the content format differs (short-form video vs. discussion), TikTok's AI-driven ad targeting, shopping integrations, and creator economy represent a comparable threat to Reddit's community-driven ad positioning.

Direct peers

• X (formerly Twitter): X is the most direct competitor to Reddit in interest-based public conversation and community discussion, with a similar real-time, text-first engagement model. Both platforms have also pursued AI data licensing deals with major AI labs and compete for the same pool of advertisers seeking high-intent audiences.
• Snap: Snap operates Snapchat, a public social platform competing with Reddit for younger user attention and the same social advertising budgets. While Snap focuses on ephemeral visual messaging and Reddit on persistent community discussion, both target the high-growth, engagement-driven segment of social media advertising.
• Pinterest: Pinterest is a community-organized, interest-based platform with similar high-purchase-intent audience dynamics to Reddit. Both companies emphasize CPG, retail, and e-commerce advertiser ROI and leverage structured interest signals for ad targeting, with Pinterest's 1.5x-3x ROAS narrative closely paralleling Reddit's community-driven purchase influence claims.
• Discord: Discord is a community-based platform organized around interest-based servers that competes with Reddit's subreddit model for community-driven engagement. Both platforms monetize through premium subscriptions and have explored advertising and AI data partnerships, with comparable user demographics around gaming and interest communities.
• Quora: Quora is a Q&A and discussion platform with a similar interest-based, community-driven content model to Reddit. While Quora's scale is materially smaller, the platform competes in the same knowledge-sharing, AI-training-data-licensing, and Poe AI assistant categories that Reddit is also pursuing.
• Stack Overflow: Stack Overflow is a community-organized Q&A platform with a high-quality, human-authenticated knowledge corpus that has been similarly licensed to AI labs. While narrowly focused on technical Q&A, Stack Overflow's community model and data licensing trajectory closely parallels Reddit's subreddit and AI data licensing strategy.
• Nextdoor: Nextdoor is a community-organized social platform with a similar interest- and identity-based engagement model to Reddit. Both platforms leverage community signals for ad targeting and have pursued AI-driven ad product innovation, though Nextdoor's hyperlocal focus differentiates it geographically.
• Tumblr: Tumblr is a community-based blogging and discussion platform owned by Automattic with a similar interest-organized, user-generated content model to Reddit. While Tumblr's scale is much smaller, the platform competes in the same user-generated content and community subscription categories.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat6 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/reddit
• YouTubeyoutube.com/c/reddit
• Facebookfacebook.com/reddit
• LinkedInlinkedin.com/company/reddit-com
• Instagraminstagram.com/reddit

Revenue estimate

Valuation estimate

Number of profiles

Profiles11 records

Subsidiaries5 records

Funding overview

Funding rounds9 records

Investors26 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A8 records

Investments2 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Reddit