Reddit, Inc.

Reddit, Inc. Earnings Recaps

RDDT Communication Services 2 recaps
Q1 2026 May 2, 2026

Shares jumped 12.7% following Reddit’s Q1 2026 earnings, reflecting revenue and margin outperformance. Both total and ad revenue grew at impressive clips, with investors reacting positively to accelerating top-line growth and improving profitability.

Key takeaways
  • Total revenue rose 69% year-over-year to $663 million; advertising revenue grew 74% year-over-year to $625 million.
  • Company achieved its seventh consecutive quarter of 60%+ revenue growth, with industry-leading gross margins above 90% and an adjusted EBITDA margin of 40%.
  • Record quarterly cash flow exceeded $300 million, while capital expenditures remained low at $1 million, highlighting the capital-light model.
  • Management highlighted nearly 500 million weekly global users, with a focus on expanding daily active users in the core U.S. market, though acknowledged user frequency has further upside.
  • Investors responded favorably to broad-based advertising strength and the company’s growing positioning as a key player in both commercial intent and the evolving AI landscape.
Full recap
Q3 2025 Oct 31, 2025

Reddit reported a robust Q3 2025 with a 68% year-over-year revenue increase, reaching $585 million, and continued user growth, positioning the company for strong future performance.

Key takeaways
  • Daily Active Users (DAU) increased by 20% year-over-year, reaching 116 million, reflecting strong user engagement and product improvements.
  • GAAP profitability achieved with a net income of $163 million and a net margin of 28%, demonstrating effective cost management and scaling.
  • Advertising revenue soared by 74% year-over-year to $549 million, driven by new advertiser acquisition and enhanced ad platform capabilities.
  • Significant advancements in user experience, including AI-driven community tools and modernization of the app interface, are expected to drive higher retention and engagement.
  • International growth accelerating, with machine translation in 30 languages, enhancing top-of-funnel user acquisition efforts globally.
Full recap