TLDR
- Reddit Q1 revenue hit $663M, up 69% year-over-year, beating the $611M estimate
- EPS came in at $1.01 vs. 58 cents expected
- Q2 revenue guidance of $715M–$725M topped the $712M analyst estimate
- Daily active users rose 17% YoY to 126.8M; ARPU jumped 44% globally
- RDDT stock surged 16% in premarket Friday trading following the results
Reddit posted a strong first quarter, blowing past Wall Street expectations on both the top and bottom lines. Revenue came in at $663 million, up 69% from $392 million a year ago. EPS landed at $1.01, nearly double the 58 cents analysts had penciled in.
$RDDT Q1’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $663M (Est. $609M) 🟢; +69% YoY
🔹 EPS: $1.01 (Est. $1.09) 🔴; +677% YoY
🔹 DAUq: 126.8M (Est. 126.7M) 🟢; +17% YoY
🔹 ARPU: $5.23; +44% YoYQ2 2026 Guide:
🔹 Revenue: $715M – $725M (Est. $714M) 🟢; +43% to +45% YoY
🔹 Adjusted…— Wall St Engine (@wallstengine) April 30, 2026
The stock jumped over 9% in after-hours trading on Thursday, then surged another 16% in premarket Friday — a notable reaction from a market that had been watching the ad sector closely after Meta and Alphabet reported earlier in the week.
Net income soared to $204 million from just $26 million a year ago.
CEO Steve Huffman highlighted that Reddit has now strung together seven straight quarters of 60%-plus revenue growth. He called out the company’s “record cash flow of more than $300 million” while keeping capital expenditures at just $1 million.
“When you look across the more than 300 publicly traded tech companies, there’s only one that combines this type of growth, profitability and efficiency, and that’s Reddit,” Huffman told analysts.
User Growth and Monetization
Daily active unique users grew 17% year-over-year to 126.8 million, edging past the 125.9 million estimate. U.S.-specific daily actives came in at 53.5 million, up 7% year-over-year.
Average revenue per user hit $5.23, ahead of the $4.81 estimate. In the U.S., ARPU was $9.63, beating the $8.53 Wall Street projection.
Huffman said Reddit’s goal is to reach 100 million daily U.S. users, though no timeline was given.
AI and Advertising
Reddit’s AI-powered ad platform is doing real work. It uses tools like an AI copywriter built for Reddit-specific ads and an automatic image cropper that fits creatives across different placements.
That approach is helping Reddit compete more directly against bigger rivals like Meta’s Instagram and Facebook on advertiser dollars.
The “Other revenue” category, which includes data licensing, rose 15% year-over-year to $39 million. Google and OpenAI remain Reddit’s biggest data licensing partners.
Huffman framed those partnerships as more than just revenue — “citations” and “mind share” were the terms he used. He added that Reddit lacks internal data centers and foundational models, but its partners fill that gap.
Chief Operating Officer Jen Wong told Reuters that Reddit is “still hiring and adding to our talent base” — a contrast to cost-cutting moves at Meta, Snap, and Pinterest over the past year.
Morgan Stanley analysts said U.S. user growth “remains key to driving multiple expansion for Reddit,” adding it would demonstrate the platform’s relevance “even in a future GenAI enabled and agentic landscape.”
Reddit’s 12-month forward P/E sits at 30.40, compared with Snap at 9.93, Pinterest at 10.27, and Meta at 19.05.
Despite the strong quarter, RDDT stock is still down roughly 36% year-to-date heading into Friday’s session. Snap and Pinterest have each dropped about 24% over the same period.
Q2 revenue guidance of $715M–$725M came in ahead of the $712M consensus. Adjusted earnings guidance of $285M–$295M also topped the $276M average estimate.
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