Here is a tweet on the social media industry’s quarterly average revenue per user. Meta is completely dominant, but the figure for Reddit is also quite high. 
https://x.com/fiscal_ai/status/2030297448481251737
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Positive signals around Reddit’s advertising product: https://www.inc.com/annabel-burba/for-smbs-and-startups-snap-and-reddit-are-becoming-new-advertising-power-tools/91316331
Although this is a study commissioned by the company itself, the percentages regarding the effectiveness of the ad product are quite encouraging: for 76% of respondents, purchase intent increased based on a Reddit recommendation. Growth is also particularly strong in ad revenue from US SMBs. This is an encouraging sign of sorts, as LinkedIn advertising, for example, is really expensive for smaller companies (of course, it’s worth noting that in the US context, an SMB likely has an annual turnover of $1-200 million or something like that, so we’re not talking about Finnish SMBs).
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I had to check in on the status of the lawsuits Reddit filed in the US. Last summer and fall, Reddit sued Anthropic and Perplexity for unauthorized data use. There’s not much new on the latter, but things have already developed with Anthropic.
Anthropic exercised its right to move the dispute to a federal court, as they considered the issue, contrary to Reddit’s view, to be a matter of “fair use,” falling under copyright law. Federal courts have jurisdiction in these matters. Reddit, on the other hand, believes that it concerns data collection that violates their terms of service and Anthropic’s unjust enrichment from it. On March 24, 2026, the federal judge decided to transfer the case back to a state court because it is not a copyright matter.
This is a win for Reddit, as they initially pursued the case as a breach of contract. Last summer, a federal court issued a preliminary ruling in a fair use case where the same Anthropic had used millions of books to train its language model. In that case, the court saw no problem because the technology transforms original sources so much and does not directly quote texts from these works. However, Anthropic had infringed copyrights by acquiring books it taught its language model from “shadow libraries,” which had illegally shared copyrighted materials on their sites, which was considered piracy. Anthropic agreed to pay the plaintiffs $1.5 billion in damages by settling the matter, avoiding extensive further litigation and potentially even greater damages. There are similarities between Reddit’s and Anthropic’s case regarding the legality of data use, as in this case too, the data was likely obtained unlawfully.
Anthropic most likely wanted to settle the aforementioned case also because it plans to go public later this year. Without a doubt, they want to clear up such matters, as it would not be good for a company going public if their technology had been trained on unlawfully obtained data. The question of massive damages would also remain open. Anthropic is now expected to also try to settle the matter with Reddit, as their claim did not succeed in federal court, and the probabilities of Reddit’s lawsuit succeeding significantly increased. The amount of compensation is difficult to estimate, but it will certainly be very large.
The US legal system is quite unfamiliar to me, so there may be minor factual errors, as the cases have so many details. However, the situation is broadly as described.
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Reddit’s growth was strong, and the company’s revenue exceeded expectations.
In particular, advertising revenue and international operations bolstered the results, as the company successfully turned its operations clearly profitable. Additionally, the number of daily users continued to grow.
According to the CEO, community activity and authentic active discussion create a unique competitive advantage for the company in the AI era, which is reflected in simultaneous growth and improved efficiency.
https://x.com/StockSavvyShay/status/2049945788508467410
Company’s own materials
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This free cash flow bar chart looks impressive, at least on its own 
https://x.com/fiscal_ai/status/2050228854372040772
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Now those are some serious numbers. Revenue beat, EBITDA beat, DAU beat. It’s only a matter of time before we see new highs. Reddit will definitely end up in my portfolio after this. I want to accumulate more platform companies focused on user-generated content. And RDDT is number one in conversational content. The experiential knowledge stored deep within Reddit is valuable in the AI era.
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This was indeed another quite good result!
If one has to look for weaknesses, the US daily active users in particular grew a bit sluggishly again. On the other hand, overall user numbers grew quite well compared to the last quarter (even though the pace slowed down slightly again), e.g., global weekly unique visitors were up about 4.6%.
There was a lot of good here:
- Revenue and ARPU growth was good (even though advertising is still in its early stages). For example, revenue was already over 50% higher than in Q4/24 (the best quarter for advertising).
- Revenue did drop compared to the previous quarter (since Q4 is usually always the biggest for advertising), but in almost the same proportion as Q4/24 vs Q1/25, even though we are now at much higher revenue figures.
As I see it, the big picture remains unchanged: the train keeps moving forward and the success of the ad platform remains in a key role as long as user growth continues (or preferably even accelerates slightly).
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I also noticed that the growth in US user numbers was sluggish, but international numbers grew significantly. However, they aren’t as valuable compared to US users.
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I spotted the following article shared by Reddit for Business on LinkedIn: Mark Ritson: Marketers can no longer afford to laugh at Reddit | The Drum
The Drum publishes quite a bit of paid PR, but this article refers to some very interesting research results. Overall, there are starting to be strong indications that Reddit plays a much more significant role in the customer journey (ostopolku) than some other social media platforms.
If advertisers widely accept this as truth at some point, I believe the gates will open for significant growth in ad revenue, as long as users stay on the service and continue to grow.
Personally, I’m terrified of drawing too strong conclusions in investment matters, but it’s starting to feel like this is moving into the “Screaming buy” category, provided one has the patience to hold the shares (lappuja) long enough.
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