Reddit, Inc. (RDDT) Earnings
Reddit, Inc. is expected to report next earnings on July 30, 2026 (in NaN days), with a consensus EPS estimate of $0.99. RDDT has beaten EPS estimates in 5 of its last 6 reported quarters (average surprise +51.4% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 30, 2026 | $0.62 | $1.01 | +62.9% | $663M | +9.1% |
| Feb 5, 2026 | $0.96 | $1.24 | +29.2% | $726M | +25.7% |
| Oct 30, 2025 | $1.04 | $0.80 | -23.1% | $585M | +7.0% |
| Jul 31, 2025 | $0.19 | $0.45 | +136.6% | $500M | +17.4% |
| May 1, 2025 | $0.02 | $0.13 | +647.6% | $392M | +6.2% |
| Feb 12, 2025 | $0.25 | $0.36 | +43.0% | $428M | +5.4% |
| Mar 21, 2024 | — | $0.11 | — | $250M | — |
| Sep 30, 2023 | — | $-0.05 | — | $208M | — |
| Mar 31, 2023 | — | $-0.37 | — | $164M | — |
| Dec 31, 2022 | — | $-0.14 | — | $200M | — |
| Sep 30, 2022 | — | $-0.28 | — | $172M | — |
| Jun 30, 2022 | — | $-0.34 | — | $149M | — |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · April 30, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Reddit has had seventh consecutive quarter with revenue growth over 60%, industry-leading gross margins over 90%, adjusted EBITDA margin of 40%, and record cash flow of over $300 million. Capital expenditures were low at $1 million. - Community product is differentiated with deeply engaged users and ads business built on context, interest, and commercial intent. 40% of conversations are commercial, 84% of shoppers feel more confident after researching on Reddit. - Positioned in AI landscape with 25 billion posts and comments, monthly content equivalent to Wikipedia's library. Focus on growing daily user base in US to 100 million. - Made foundational changes to talent and infrastructure, strengthened teams, added machine learning talent, improved processes. - Ad stack progress: Reddit Max launched to beta with strong adoption, advertisers seeing 17% reduction in cost per action and 25% more conversion outcomes. Brand auto-bidding available, lower funnel investments delivering performance. Shopping products saw 40% year-over-year growth in high-intent shopping conversations, DPA delivered more than 90% higher ROAS year-over-year. - Partnerships like integration with Shopify, growing adoption of Reddit Pro by publishers.
Guidance
- Estimates Q2 2026 revenue in range of $715 to $725 million, representing 43% to 45% year-over-year growth with midpoint of about 44%. - Expect Q2 adjusted EBITDA to be in range of $285 million to $295 million, representing approximately 71% to 77% year-over-year growth and adjusted EBITDA margin of 40% at midpoint. - Q2 guide assumes total adjusted cost basis of $430 million, growth rate lower than prior quarters as lapping investments in sales and marketing started in Q2 2025. - Anticipate Q2 stock-based compensation-related tax expense to be sequentially higher than Q1. - Q2 2026 will be last period disclosing logged in and logged out DAUQ metrics, starting Q3 2026 disclosing U.S. and international DAUQ and WAUQ.
Segment performance
In Q1, total revenue grew 69% year-over-year to $663 million. Advertising revenue grew 74% year-over-year to $625 million. Other revenue, including content licensing, was $39 million, up 15% year-over-year. U.S. revenues were up 67%, international revenues up 76%. ARPU grew 44% year-over-year to $5.23. Gross margins were 91.5%, up 97 basis points year-over-year, seventh consecutive quarter over 90%. Adjusted EBITDA margin was 40% in Q1.
Analyst Q&A
Q: Steve, talk about user side work to increase frequency and acceleration of growth and what's most impactful over next several quarters; Jen, on DPAs, current adoption and progress.
A: Steve: User side progress in quarter, biggest drivers likely performance, focus on team, processes, tech upgrades, search WAUQs up 30% year over year. Jen: DPA launched a year ago, still early, Shopify and WooCommerce partnerships offer opportunity, many advertisers yet to adopt, long roadmap.
Q: Josh, double-click on ML talent, projects, and top of funnel strategies.
A: Steve: ML talent involved in entire stack, feed, collecting signals, updating models faster, top of funnel includes converting search traffic, marketing efforts in different territories.
Q: Ron, verification processes, bot labeling, and Reddit Max learnings.
A: Steve: Bot verification, PassKeys for login, all tied to transparency, bot defenses, login increase. Jen: Reddit Max adoption positive, customers pleased with CPA benefits, faster adoption of new performance features, investment in insights.
Q: Jason, DEA-related, DAU focus, AI and third-party agents.
A: Steve: DAU top focus, aim for 100 million US daily users, ML talent, search, machine translation, performance. AI and third-party agents, important partnerships, no new specific relationships to share.
Q: Rich, 100 million DAU timeframe, weeklies vs dailies, and AI licensing.
A: Steve: 100 million DAU goal, relentless work, no specific timeframe, weeklies growing but focus on daily users, AI data valuable, no comment on exclusive deals.
Q: Mark, talent and infrastructure changes, ad load risk.
A: Steve: Upgrading company top to bottom, in middle of changes, expect improvements in results, ad load still low compared to peers, comfortable with ad experiences. Jen: Ad load tolerance, ad load still low, strategy not to increase ad load, focus on user growth and impression value.
Q: Tom, monetization trends between US logged in and logged out users, ad market comments.
A: Steve: Value of impressions consistent across users, no differential in monetization. Jen: Ad market volatility, shorter cycles, but partners committed, staying close to customers.
Q: Mark, talent changes impact on KPIs, ad load risk.
A: Steve: Upgrading company, in middle of changes, expect improvements, ad load low, strategy on impressions. Jen: Ad load, no risk of pushing revenue too far, focus on user value.
Q: John, international engagement trends, logged in vs logged out monetization.
A: Steve: International markets different, focus on community success, logged in users spend more time due to personalization. Jen: International engagement, community success important, logged in users monetized through personalization.
Q: Justin, AI engine data usage, Google algorithm change.
A: Steve: Reddit content most cited in AI, Google algorithm changes business as usual, no long-term impact.
Q: Benjamin, content ecosystem contribution rates, data licensing criteria.
A: Steve: Content ecosystem important, focus on post success rate, post guidance, post creation improvements, data licensing based on multiple criteria beyond dollars.
Q: Navid, answers plus search rollout benefits, international monetization.
A: Steve: Answers plus search helped, search driver of retention and DAU, integrating product search catalog. Jen: International market, direct sales footprint, channel partners, based on user growth.