How Reddit makes money

Period

FY2025

How does Reddit make money? This Sankey traces every dollar of revenue through the income statement — into cost of revenue, R&D, SG&A, and taxes — and shows what's left as profit. Pick any fiscal year, recent quarter, or the trailing twelve months. Straight from SEC filings.

Reddit Inc. · FY2025 · year ended 2025-12-31

Revenue$2.2BGross profit$2.0B · 91%Cost of revenue$194M · 9%Operating income$442M · 20%Operating expenses$1.6B · 71%R&D$783M · 36%SG&A$279M · 13%Selling & marketing$504M · 23%Pre-tax income$530M · 24%Other income$88M · 4%Net income$530M · 24%Advertising$2.1B · 94%Other Revenue$140M · 6%

Each fiscal year from SEC filings. Percentages are share of revenue, so the green profit nodes read directly as gross / operating / net margin. Line items a company doesn't break out are derived from their siblings so the flows balance; small residuals show as “Other.” For informational purposes only.