Reddit Inc. reported its strongest quarter since going public, with second-quarter revenue surging 78% year-over-year to $500 million, comfortably ahead of the $426 million Wall Street expected. Diluted earnings per share reached $0.45—more than double consensus—while net income swung to a $89 million profit from a $10 million loss a year earlier. Adjusted EBITDA rose to $167 million, beating forecasts by roughly $38 million and lifting gross margin to 90.8%. Management signalled the momentum will continue, guiding third-quarter revenue to $535-$545 million and adjusted EBITDA to $185-$195 million, both well above analyst models. The upbeat numbers sent the stock up more than 10% in after-hours trading and as much as 18% in the following session, prompting banks including Morgan Stanley, Piper Sandler and JPMorgan to raise price targets to as high as $230. The performance was driven by an 84% jump in advertising sales to $465 million, supported by new AI-powered ad tools and improved international penetration. Daily active users climbed 21% to 110.4 million and global average revenue per user increased 47% to $4.53, underscoring progress in monetising the platform. Reddit said it continues to invest in advertising technology and data-licensing partnerships while focusing on sustainable growth and profitability.