Reddit reported revenue of $805 million in Q2 2025, up 61% year-over-year, and net profit of $253 million, up 183%. Despite the strong results, the stock dropped 10% in after-hours trading. The reason: CEO Steve Huffman warned that search referrals were unstable during the quarter, with traffic becoming more volatile toward the end.
What actually happened
In 2024, Reddit signed a deal with Google to supply content for AI training. At the time, it looked like a good business opportunity. But now, as Google rolls out AI summaries in search results, the pattern is reversing: the models trained on Reddit’s content are replacing users’ need to visit the site directly. Daily unique users in the US dropped slightly from 53.5 million to 53.2 million.
Huffman spoke about “volatility” in search traffic, not a one-time drop. That means the pattern isn’t clear yet, but the direction is worrying enough that he mentioned it in an investor call despite the strong quarter.
Why it matters beyond the headline
This isn’t a story about Reddit. It’s a story about what happens when Google decides to show answers instead of links. Sites that built their entire content strategy around SEO are discovering that their traffic depends on Google’s product decisions, not on their content quality.
In Israel, small and medium businesses are still heavily dependent on organic search. A large portion of the businesses we meet invest in content and SEO without a backup channel. When Google changes how it displays results, traffic can drop even though the business did nothing wrong.
Reddit’s case shows this happens even to large platforms with unique, quality content. If it’s happening to them, it can happen to any site that relies on search traffic.
What to do this week
Open your analytics tool and check what percentage of your traffic comes from Google organic search. If it’s above 40%, you’re at risk. Build one direct channel that doesn’t depend on Google: an email list that gets weekly content, a WhatsApp Business group with updates, or automation that reminds existing customers to return.
If you’re already investing in SEO, continue, but treat it as one channel among several, not as the foundation. The businesses that will survive this shift are those with a direct relationship with their customers. If you don’t know how to build such a channel, automation can help.
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Frequently asked questions
Should I stop investing in SEO because of Google's AI summaries?
Don't stop, but don't rely only on it. SEO still brings traffic, but that traffic is less stable than before. Smart businesses invest in SEO while building direct channels like email lists or WhatsApp Business.
How do I know if my business is too dependent on Google traffic?
Open Google Analytics and check the percentage of traffic from Organic Search. If it's above 40% of total traffic, you're at risk. If it's above 60%, building additional channels is urgent.