Reddit reports second-quarter earnings on July 30. Heading into the print, the stock is down about 27% year to date, and most of that damage came from one story. The Wall Street Journal recently reported that Reddit had internally discussed restricting Google's access to its platform content for AI training, as renewal talks over their data-licensing deal hit friction. The stock dropped roughly 9% that day.
Reddit and Google signed a $60 million-a-year licensing agreement in 2024, letting Google train its AI models on Reddit's content. That's under 2% of Reddit's trailing revenue.
But investors reacted as if the number mattered less than the signal. If Reddit is willing to walk away from a live AI licensing partner, that raises questions about how durable the rest of Reddit's data business really is, and whether Google's AI-powered search results are already cutting into the referral traffic Reddit depends on. Let's break down the case.
The Growth Story Hasn't Slowed
Reddit hasn't missed an **** yst estimate since going public in 2024. Revenue growth has actually sped up: 61% year-over-year in the first quarter of 2025, then 69% in the most recent quarter. Diluted EPS rose 7x during this period. Free cash flow rose 145% year-over-year in the first quarter.

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