Reddit has reported strong progress in its second-quarter 2025 earnings, with a growing focus on AI. The company is putting a lot of energy into expanding its advertising business, which is still its main source of income. In fact, ads brought in $465 million, making up 93% of Reddit's total revenue.

One significant area of investment is growing its advertising business, supported by its AI-powered marketing tools. The results revealed that the majority of Reddit’s revenue continues to come from ads, which brought in $465 million, representing 93% of the company’s total revenue.

Reddit’s recently launched A.I. marketing tools are already fueling strong advertising growth. In the latest quarter ended June, the social media company reported a 78 percent year-over-year revenue increase to $500 million,