Reddit reported exceptionally strong first-quarter results, driven by robust revenue growth and significant improvements in profitability and cash flow. The company demonstrated impressive operational efficiency and user engagement, positioning it favorably in the current market.
Revenue increased 69% year-over-year to $663 million, with strong growth in both U.S. (+67%) and International (+76%) markets.
positiveNet income surged to $204 million, a 680% increase from the prior year, resulting in a net margin of 30.7%.
positiveAdjusted EBITDA grew 131% year-over-year to $266 million, with an improved margin of 40.1%.
positiveOperating cash flow increased 145% to $312 million, and Free Cash Flow rose 146% to $311 million, demonstrating strong cash generation.
positiveDaily Active Uniques (DAUq) increased 17% year-over-year to 126.8 million, indicating continued user engagement.
positiveWhile revenue growth is strong, the historical context shows significant volatility, with the latest QoQ growth of +24.0% following a period of very high growth rates (e.g., +70.0% YoY in Q4 FY2025).
attentionOperating expenses, particularly Research and Development ($207M) and Sales and Marketing ($151M), remain substantial, though managed effectively relative to revenue growth.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Global | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
| Metric | Value | Period | Specificity | vs Prior |
|---|---|---|---|---|
| revenue | 715 to 725 million | Q2 2026 | tight_range | New |
| adjusted_ebitda | 285 million to 295 million | Q2 2026 | tight_range | New |
$1 billion
Reddit is a one-of-one business powered by deeply engaged communities and authentic human conversation.
The foundation is driving a rare combination of growth, profitability, and efficiency.
Reddit has a unique advantage in the age of AI.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.