4:24 pm - February 10, 2026
- Reddit plans to acquire technology firms to enhance its products and ad offerings
- The company’s revenue reached $726m last quarter, driven by AI-enabled ad tools
- Growing AI search and user engagement positions Reddit for new monetisation strategies
Reddit told investors last week that it is preparing a new wave of acquisitions aimed at strengthening its advertising stack and audience-growth products, signalling a continuation of the company’s recent buy-and-build approach.
For news publishers Reddit is no longer just a source of traffic or unfiltered conversations around the news and other topics. Its growing role in search, AI-powered answers and advertising places it closer to the core functions publishers rely on for reach and revenue.
Speaking on the company’s fourth-quarter earnings call, chief financial officer Andrew Vollero said: “[We’re] looking to buy capabilities, technologies, and companies.” He added that management sees targets across a wide range of possibilities, cautioning investors: “I probably wouldn’t overthink the scaled opportunities. I would just look at it as sort of a spectrum of opportunities.”
Vollero credited prior tuck-in deals as a practical way to accelerate launches. “Saves us six months to market, saves us twelve months to market, and you have a proven product,” he said, calling such moves “one of the secrets of our success.”
The openness to deals comes amid strong financial momentum. Reddit posted $726 million in quarterly revenue, with $690 million coming from advertising, and reported global daily unique users of 121.4 million, up 19% year on year. Earnings per share of $1.24 exceeded analysts’ estimates.
The company has already bolstered its stack through a series of targeted purchases. TechCrunch reports that Reddit acquired several machine-learning and adtech startups in recent years, including Memorable AI in August 2024 as well as Spell, Spiketrap, Oterlu and MeaningCloud. The company says these deals have sharpened monetisation and moderation capabilities.
Industry reporting has linked the strategy to a lift in ad revenue. Reddit’s AI marketing tools contributed to a 78% year-on-year increase in ad revenue in the second quarter of 2025 and it reported $35 million in revenue from AI licensing arrangements, including a deal to license Reddit data to Google.
Executives have also flagged AI-driven search as a future growth area. Chief executive Steve Huffman has described generative AI search as well suited to many user queries and a sizeable untapped market.
For news publishers, this evolution cuts two ways. Reddit has become an increasingly important referral source, particularly as its pages surface prominently in search results and its communities shape online discourse around breaking news. At the same time, its growing ad business, AI search ambitions and data licensing deals position it as a closer competitor for attention, data and advertiser budgets.
Source: Noah Wire Services
- https://techcrunch.com/2026/02/06/reddit-says-its-looking-for-more-acquisitions-in-adtech-and-elsewhere/ – Please view link – unable to able to access data
- https://techcrunch.com/2026/02/06/reddit-says-its-looking-for-more-acquisitions-in-adtech-and-elsewhere/ – Reddit is actively seeking acquisitions in adtech and other sectors to enhance its capabilities and user base. CFO Andrew Vollero stated the company aims to acquire businesses that can leverage Reddit’s scale or contribute to user growth. He highlighted the success of previous ‘tuck-in’ acquisitions, which have expedited product development and improved monetisation. In Q4 2025, Reddit reported $726 million in revenue, with $690 million from ads, and a 19% year-over-year increase in global daily active users to 121.4 million. The company also sees potential in monetising its AI search product in the future.
- https://techcrunch.com/2026/02/05/reddit-looks-to-ai-search-as-its-next-big-opportunity/ – Reddit is positioning its AI-powered search engine as a significant future revenue driver. CEO Steve Huffman noted that generative AI search is better suited for many queries and represents a substantial untapped market. Weekly active users for search grew 30% to 80 million, while Reddit Answers, the AI search feature, expanded from 1 million to 15 million users throughout 2025. The company plans to integrate traditional search with AI-driven answers to enhance user experience and monetisation prospects.
- https://observer.com/2025/08/reddits-ai-tools-drive-ad-revenue-growth/ – Reddit’s AI marketing tools have significantly boosted advertising revenue, with a 78% year-over-year increase to $500 million in Q2 2025. The new products, Reddit Insights and Conversation Summary Add-ons, have been well-received by advertisers. Additionally, Reddit earned $35 million from AI licensing deals, including a partnership with Google, allowing Google to train its AI models using Reddit’s data. Reddit Answers, launched in December 2024, attracted 6 million weekly users by June 2025, five times more than a year earlier.
- https://techcrunch.com/2025/07/31/reddit-revenue-soars-as-it-bets-on-ai-and-advertising/ – Reddit’s focus on AI has led to substantial revenue growth, with Q2 2025 revenue reaching $465 million, 93% of which came from advertising. The company introduced AI-powered marketing tools, Reddit Insights and Conversation Summary Add-ons, to enhance advertiser engagement. Reddit’s ‘other revenue’ category, including data licensing, grew 24% year-over-year to $35 million. The Reddit Answers tool, launched in December 2024, attracted 6 million weekly users by June 2025, a significant increase from 1 million in the previous quarter.
- https://theoutpost.ai/news-story/reddit-positions-ai-search-as-next-major-revenue-opportunity-with-80-million-weekly-users-23590/ – Reddit is positioning its AI-powered search engine as a central business opportunity and future revenue driver. CEO Steve Huffman stated that generative AI search is better suited for many queries and represents a substantial untapped market. Weekly active users for search grew 30% to 80 million, while Reddit Answers, the AI search feature, expanded from 1 million to 15 million users throughout 2025. The company plans to integrate traditional search with AI-driven answers to enhance user experience and monetisation prospects.
- https://www.moneycontrol.com/technology/reddit-eyes-ai-powered-search-as-a-major-growth-and-revenue-engine-article-13814480.html – Reddit is betting on AI-powered search as a significant business opportunity and future revenue driver. During its Q4 earnings call, executives outlined plans to merge traditional search with AI-driven answers. Weekly active users for search grew 30% to 80 million, while Reddit Answers expanded from 1 million to 15 million users throughout 2025. Despite not yet monetising search, Reddit views it as an enormous market and opportunity for the platform’s bottom line.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on February 6, 2026, and reports on Reddit’s recent fourth-quarter earnings call. The information appears current and relevant, with no evidence of recycled content. However, the article relies on a single source, TechCrunch, which may limit the breadth of perspectives.
Quotes check
Score:
7
Notes:
The article includes direct quotes from Reddit CFO Andrew Vollero. While these quotes are attributed to the earnings call, they are not independently verified in the article. The absence of corroborating sources raises questions about the accuracy and context of the statements.
Source reliability
Score:
6
Notes:
The article is sourced from TechCrunch, a reputable technology news outlet. However, the reliance on a single source without cross-referencing with other independent outlets or official Reddit communications may affect the overall reliability of the information presented.
Plausibility check
Score:
8
Notes:
The claims about Reddit seeking acquisitions in adtech and other areas align with the company’s previous strategies and recent financial performance. The reported revenue figures and user growth are consistent with industry expectations. However, the lack of independent verification of the quotes and the singular sourcing of the information introduce some uncertainty.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents information on Reddit’s recent earnings call and strategic plans, sourced solely from TechCrunch. The reliance on a single source without independent verification of quotes and the absence of corroborating information from other reputable outlets or official Reddit communications introduce significant concerns about the accuracy and reliability of the content. Given these issues, the content cannot be fully verified, and publishing it carries inherent risks.
Register for Editor’s picks
Stay ahead of the curve with our Editor's picks newsletter – your weekly insight into the trends, challenges, and innovations driving the future of digital media.
