There has never been a profitable social media company.
Facebook might have started out as a social media company, but it's only profitable now because it's part of an advertising duopoly that has almost all online ads completely locked up. Their actual business is renting eyeballs to advertisers. The social media part of it is just data collection for their advertising.
Reddit can't compete with the big 2 as an ad platform. They don't have the reach of the other two, and never will. So, it's not going to be a good money making platform, but it might be able to have a niche and cover its costs. There are ways it could do that and not be awful for users.
They could partner with Hollywood studios to promote shows and movies, provide forums to discuss them that are safe for those brands. They could work with local governments to be a place to release important information. Governments used to do that on Twitter, but Twitter has gone to shit. This isn't stuff that will send Reddit shares to the moon like their VC backers want. But, it could survive.
Instead, they're going to follow the Elon Musk playbook and it will die.