Reddit delivered a powerful second quarter, with revenue climbing to $805 million and net income reaching $253 million, both well above expectations. The company also projected third-quarter revenue between $860 million and $870 million, signaling continued momentum in its core business.
Even so, investors focused on a different signal: search-driven traffic became more uneven during the quarter. Reddit said referrals from search engines were less stable, reflecting a broader shift as AI-powered search tools change how people discover content online.
CEO Steve Huffman said Reddit's strength still comes from its communities and conversation-driven format, which he described as a lasting advantage. He added that the platform continues to expand its reach in the U.S. by making its content easier to discover.
The company also highlighted its data relationship with major AI players, including Google, while leaving room for future flexibility. At the same time, Reddit's global audience continued to grow, even as U.S. daily active uniques edged slightly lower from the previous quarter.
The quarter shows how digital platforms are adapting to an internet where AI is increasingly shaping discovery, audience behavior, and content value. The next phase may reward platforms that can turn community depth into long-term relevance.
