Reddit, Inc.

Strategic execution · Geographic expansion and market entry

In addition, we plan to continue expanding our business operations outside the United States and offering content and advertising to Redditors and advertisers in other languages and countries. We plan to continue to enter new international markets where we have limited or no experience in deploying our services or selling advertisements.

Customer and revenue · Customer retention and subscription renewal

We are in the early stages of monetizing our business and expanding our platform internationally, and there is no assurance that we will be able to scale our business for future growth. We are in the early stages of our monetization efforts, and as such, we are still scaling our advertising revenue model.

Customer and revenue · Customer concentration and key customer dependence

In addition, a substantial portion of our revenue is derived from a small number of advertisers, with our top ten largest advertisers accounting for approximately 21% and 25% of our revenue for the years ended December 31, 2025 and 2024, respectively.

Market position and competition · Disruptive competitors and new market entrants

In addition, we face competition from large language models ('LLMs') and other AI models that retrieve and synthesize information, such as those built by Google, Meta, OpenAI, and Anthropic; Redditors may choose to find information using AI tools, which in some cases may have been trained using Reddit content, instead of visiting Reddit directly.

Stakeholder relations · Customer satisfaction and loyalty

If Redditors do not continue to contribute content or their contributions are not valuable or appealing to other Redditors, we may experience a decline in the number of Redditors accessing our products and services and in user engagement, which could result in the loss of advertisers and may harm our reputation, business, results of operations, financial condition, and prospects.

Organizational and management · Leadership and management changes

We depend on our senior management team and other key employees, and the loss of one or more of these employees could adversely affect our business. Our ability to efficiently execute our business strategy is dependent upon the continued service and performance of our senior management team and other key employees, particularly Steven Huffman, our co-founder, Chief Executive Officer, and President.

Capital structure and performance · Debt management and refinancing

Our revolving credit facility contains restrictive and financial covenants that may limit our operational flexibility. In July 2025, we renewed and amended this revolving credit facility for $500.0 million accessible through July 1, 2030 (the 'Revolving Credit Facility'). The Revolving Credit Facility contains customary conditions to borrowing, events of default, and covenants.

Capital structure and performance · Dividend policy and capital allocation

We do not intend to pay dividends in the foreseeable future. As a result, your ability to achieve a return on your investment will depend on appreciation in the market price of our Class A common stock. We have never declared or paid any cash dividends on shares of our capital stock and we do not anticipate paying any dividends in the foreseeable future.

Credit and liquidity · Debt service and covenant compliance

Failure to comply with any of the covenants could result in a default under the Revolving Credit Facility. Such a default could permit lenders to accelerate the maturity of outstanding amounts under our Revolving Credit Facility, if any, which in turn could result in material adverse consequences that negatively impact our business, the market price for our Class A common stock, and our ability to obtain other financing in the future.

Social and demographic · Public perception and reputation

Our brand and reputation may also be negatively affected by the content or actions of Redditors that are deemed to be offensive, inappropriate, hostile, or otherwise objectionable to other Redditors, by the actions of Redditors acting under false or inauthentic pretenses, by the use of our products or services to disseminate information that is deemed to be misleading, or by the use of our service for illicit, illegal, or objectionable ends.

Economic and market conditions · Consumer spending and confidence

The volatility of advertiser spending, particularly in response to economic uncertainty or political instability, could exacerbate these risks, making it difficult for us to predict future performance or ensure consistent growth.

Geopolitical and trade · International conflicts and tensions

Furthermore, escalation of geopolitical tensions, including as a result of escalations in the ongoing conflict between Russia and Ukraine, the escalation of conflict in the Middle East, or tariffs or other trade restrictions by the United States and other countries, could have a broader impact that expands into other markets where we do business.

Legal and litigation · Litigation and legal proceedings

Pending and future litigation could lead us to incur significant costs and adversely affect our business, results of operations, financial condition, and prospects. We are, and may become in the future, party to various lawsuits and claims arising in the normal course of business, which may include putative class action suits or other lawsuits or claims relating to privacy, securities and other regulatory matters.

Data and privacy · Consumer privacy and consent

In the United States, laws, rules, and regulations governing data privacy and security include those enacted on a federal level, such as the Federal Trade Commission Act, and those enacted by certain states, such as the California Consumer Privacy Act of 2018, as amended by the California Privacy Rights Act (the 'CCPA').

Data and privacy · Regulatory investigations and penalties

From time to time, governments, regulators, and other third parties have and may in the future, reach out to ask questions or express concerns about whether our products, services, or practices compromise the privacy or data protection rights of Redditors and others. While we strive to comply with applicable laws, rules, and regulations relating to privacy, data protection, and data security, the failure or perceived failure to comply with such obligations may result in investigations, inquiries, and other proceedings or actions against us by governments, regulators, or other third parties.

Digital transformation and innovation · Technology obsolescence and evolution

We fail to effectively adopt new technologies, such as machine learning and artificial intelligence ('AI'), that our competitors may have more experience utilizing and leveraging in their products and services.

Cybersecurity and data protection · Data breaches and cyber attacks

If our security measures are breached, or if our products and services are subject to attacks involving our systems or data, some of which contain personal information, or that degrade or deny the ability of users to access our products and services, our products and services may be perceived as not being secure, Redditors and advertisers may curtail or stop using our products and services, and our reputation, business, results of operations, financial condition, and prospects could be harmed.

Digital transformation and innovation · Integration and interoperability

Reddit growth and engagement depends upon effective interoperation with external ecosystems, like operating systems, application stores, networks, devices, web browsers, regulations, and standards that we do not control. If we are unable to adapt to product and policy changes in such ecosystems, or if we do not effectively operate with or receive favorable placements within such ecosystems, our usage could decline and our business, results of operations, financial condition, and prospects could be adversely affected.

Cybersecurity and data protection · Third party data security and vendors

We rely on third-party providers to host or otherwise process some of our data and that of our users and advertisers, and any failure by such third party, or any other entity in our collective supply chain, to prevent or mitigate data security breaches or improper access to, or use, acquisition, disclosure, alteration, or destruction of, such information could have similar adverse consequences for us.

Project and contract management · Large contract concentration

To sustain or increase our advertising revenue, we must attract new advertisers, encourage existing advertisers to maintain or increase their advertising spend on our platform, expand the number of markets where we offer advertising, and increase the breadth and functionality of our advertising services.