Insider transaction details
Reddit NASDAQ:RDDT Chief Technology Officer Christopher Brian Slowe reported sales totaling $2.74 million in Class A Common Stock on February 23. The disposition was executed across multiple trades, with prices in the range of $141.12 to $149.99 per share, according to a Form 4 filed with the Securities and Exchange Commission.
The Form 4 lists the individual blocks sold as 3,356 shares, 4,730 shares, 2,409 shares, 1,667 shares, 1,303 shares, 1,971 shares, 1,300 shares, 200 shares, and 2,100 shares.
Related exercises and share movements
Prior to the February 23 sales, Slowe acquired 38,413 shares of Class A Common Stock on February 20. That same day, the company withheld 10,050 shares to satisfy tax obligations; those withheld shares were valued at $1,468,606, based on a price of $146.13 per share.
On February 23 Slowe also exercised options to purchase 10,036 shares of Class A Common Stock at an exercise price of $7.92, for a total exercise cost of $79,485. Following these transactions Slowe holds 185,057 shares of Reddit Class A Common Stock directly and has an indirect ownership stake of 20,184 shares through The Slowe Family Trust.
Company financials and analyst responses
Those insider transactions took place in the context of a strong set of public results from Reddit for the fourth quarter of 2025. The company reported revenue of $725.6 million for the quarter, representing a 70% year-over-year increase. Adjusted EBITDA for the period rose to $327 million, up 112% from the prior year.
Needham analyst Laura Martin reiterated a Buy rating on Reddit and maintained a $300 price target, noting the quarterly results outpaced expectations. Truist Securities also reacted favorably, increasing its price target to $275 and describing the results as a "Classic Beat & Raise." In addition to the financial beat, Reddit announced a $1 billion share buyback program.
Challenges and market headwinds
Despite the strong financials, Reddit faces regulatory and engagement challenges. The United Kingdom's Information Commissioner's Office imposed a £14.47 million fine on Reddit for child safety shortcomings, citing that the company’s age verification measures were inadequate until July 2025.
On advertising performance, Citizens maintained a Market Outperform rating and highlighted a 75% year-over-year increase in ad revenue for Q4 2025. At the same time the firm noted weakening user engagement in the United States, reporting a 10.5% year-over-year decline in time spent on the platform in January.
Takeaway
The SEC filing documents a sequence of option exercises, share acquisitions, tax-withholdings, and subsequent sales by Reddit’s CTO that resulted in $2.74 million of Class A share sales on February 23. Those moves occurred alongside notable quarterly financial gains for Reddit, even as regulatory penalties and a drop in U.S. user time spent present clear challenges for the company.