Reddit is preparing for further mergers and acquisitions, as revealed during its fourth-quarter earnings call on Thursday. CFO Andrew Vollero stated that the platform is on the lookout for companies that can enhance Reddit’s existing scale—essentially, products that become more effective when integrated within Reddit’s vast user network—or those that can help expand its audience.
“[We’re] aiming to acquire capabilities, technologies, and companies,” he noted during his opening statements.
Naturally, investors were eager for more insights, specifically regarding the types of scaled opportunities the company is considering.
During the Q&A segment of the call, Vollero advised, “I probably wouldn’t overthink the scaled opportunities. I would just consider it a spectrum of possibilities.” He reiterated the intention to seek capabilities and technologies that would enrich the business, mentioning past successes in this strategy.
“It’s really been one of our key successes,” he emphasized.
Vollero elaborated that Reddit’s adtech team has been particularly skilled at seamlessly integrating acquired technologies, rather than developing everything in-house.
“This approach can expedite our time to market by six to twelve months, while also providing us with a proven product,” the CFO stated, attributing these acquisitions to enhancements in Reddit’s monetization strategies as an ad-supported platform.
Event
|
June 23, 2026
However, Vollero cautioned that while previous adtech acquisitions have proven effective, the company remains open to diverse possibilities. This is why he emphasized the potential for acquisitions that could thrive within a company of Reddit’s magnitude.
In the recently reported quarter, Reddit demonstrated robust financial performance, generating $726 million in revenue, with $690 million of that figure coming from advertising. The platform also enjoyed a 19% year-over-year increase in global daily active unique users, reaching 121.4 million, and exceeding earnings per share estimates with $1.24.
Additionally, Reddit anticipates an expanding opportunity to generate revenue from its AI search product moving forward, raising speculation about possible acquisitions in this arena as well.
In recent months, Reddit has increased its investments in AI, including the development of an AI search engine, and has a history of acquiring startups. Notably, it engaged in the acquisition of adtech firms and AI optimization tools, like Memorable AI in August 2024.
This acquisition was designed to enhance Reddit’s advertising capabilities and follows a series of other strategic purchases from 2022, such as AI platform Spell—aimed at bolstering machine learning capabilities—and several others focused on improving ad targeting and moderation technologies.
### Hustle Verdict
Our take is that Reddit’s pursuit of mergers and acquisitions showcases a proactive approach to solidifying its market position. By strategically acquiring technologies that enhance user engagement and revenue generation, Reddit is not only optimizing its operations but also setting the stage for significant growth in an evolving digital landscape. The bottom line is that these moves could steer the industry towards more dynamic and integrated advertising solutions in the near future.
