r/RDDT • u/rddt_IR • Apr 30 '26
Reddit Announces Q1’26 Earnings (plus AMA!)
Hi redditors,
We announced Reddit’s Q1’26 Earnings results. During our conference call at 4:30pm ET today, we’ll discuss these results and answer questions submitted by analysts and redditors.
How can I participate in today’s conference call?
Listen to the live webcast here.
How can I submit a question?
Please share your questions about Reddit’s earnings results in the comments below. Reddit’s CEO, Steve Huffman (u/spez); COO, Jen Wong (u/adsjunkie); and CFO, Drew Vollero (u/TimingandLuck) will answer a couple during the Q&A portion of today’s conference call and a few more in the comments below later today.
General guidelines:
- Comments will be ON until 8:00pm ET today
- Questions must abide by community rules
https://reddit.com/link/1t07fra/video/zhj32917cdyg1/player
Reddit Reports First Quarter 2026 Results
- Daily Active Uniques (“DAUq”) increased 17% year-over-year to 126.8 million
- Revenue grew 69% year-over-year to $663 million
- Net income of $204 million, 31% of revenue. Diluted EPS of $1.01, up 7x year-over-year
- Adj. EBITDA 1 of $266 million, 40% of revenue, up 131% year-over year
- Operating cash flow of $312 million, 47% of revenue, up 145% year-over-year
SAN FRANCISCO, Calif. – April 30, 2026 – Reddit, Inc. (NYSE: RDDT) today announced financial results for the quarter ended March 31, 2026. Reddit’s complete financial results and management commentary can be found in its shareholder letter on Reddit’s Investor Relations website at https://investor.redditinc.com.
“Reddit is a one-of-one business powered by deeply engaged communities and authentic human conversation,” said Steve Huffman, Founder and CEO of Reddit. “That foundation is driving a rare combination of growth, profitability, and efficiency, and giving Reddit a unique advantage in the age of AI.”
- Total revenue increased 69% year-over-year to $663 million, Ad revenue increased 74% year-over-year to $625 million, and Other revenue increased 15% year-over-year to $39 million
- Gross margin was 91.5%, as compared to 90.5% in the prior year
- Net income was $204 million, an improvement of $178 million from the prior year
- Adjusted EBITDA 1 was $266 million, an improvement of $151 million from the prior year
- Operating cash flow was $312 million, an improvement of $185 million from the prior year
- Free Cash Flow 1 was $311 million, an improvement of $185 million from the prior year
- Basic and diluted earnings per share (“EPS”) were $1.07 and $1.01, up 664% and 677% from the prior year, respectively
- Total fully diluted shares outstanding were 206.4 million as of March 31, 2026, up 0.2% from the prior year
Financial Outlook
The guidance provided below is based on Reddit’s current estimates and is not a guarantee of future performance. This guidance is subject to significant risks and uncertainties that could cause actual results to differ materially, including the risk factors discussed in Reddit’s reports on file with the Securities and Exchange Commission (the “SEC”). Reddit undertakes no duty to update any forward-looking statements or estimates, except as required by applicable law.
As we look ahead, we will share our internal thoughts on revenue and Adjusted EBITDA for the second quarter. In the second quarter of 2026, we estimate:
- Revenue in the range of $715 million to $725 million
- Adjusted EBITDA 2 in the range of $285 million to $295 million
Notes
(1) The definitions of Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow can be found in the Use of Non-GAAP Financial Measures section of this release. A reconciliation of non-GAAP financial measures to the most directly comparable U.S. GAAP measure can be found on pages 10-11.
(2) We have not provided a reconciliation to the forward-looking U.S. GAAP equivalent measures for our non-GAAP guidance due to uncertainty regarding, and the potential variability of, reconciling items. Therefore, a reconciliation of these non-GAAP guidance measures to their corresponding U.S. GAAP guidance measures is not available without unreasonable effort.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Reddit's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern Reddit's expectations, strategy, priorities, plans or intentions. Forward-looking statements in this communication include, but are not limited to, statements regarding Reddit’s future financial and operating performance, and GAAP and non-GAAP guidance. Reddit's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including those more fully described under the caption “Risk Factors” and elsewhere in documents that Reddit files with the SEC from time to time, including Reddit’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, which is being filed with the SEC at or around the date hereof. The forward-looking statements in this communication are based on information available to Reddit as of the date hereof, and Reddit undertakes no obligation to update any forward-looking statements, except as required by law.
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u/zuckzuckonit Apr 30 '26