Reddit Q1 Results Beat Estimates
Reddit Q1 results delivered a top-line beat led by surging ad revenue and stronger Q2 revenue guidance that should shape near-term trader positioning.
KEY TAKEAWAYS
- Revenue $663 million beat estimates as ad sales accelerated to $625 million.
- Adjusted EPS $1.01 and net income $204 million showed improving profitability and margin.
- Q2 revenue guidance $715-725 million above consensus, signaling continued advertiser demand.
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Reddit (RDDT) reported first-quarter results on April 30, 2026, beating analysts’ estimates as ad sales accelerated. The company issued Q2 revenue guidance above Street consensus, signaling improving advertiser demand and lifting its outlook.
Advertising Revenue Drove Growth
Reddit’s revenue reached $663 million for the quarter ended March 31, 2026, a 69.0% increase from $392 million a year earlier, surpassing analyst estimates of about $610 million. Advertising revenue rose 74.0% year-over-year to $625 million. Average daily unique users grew 17.0% to 126.8 million, reflecting a larger audience for advertisers and supporting the revenue gain.
Profitability and Cash Flow Strengthen Outlook
Adjusted earnings per share were $1.01, while net income totaled $204 million, equal to 31% of revenue. Adjusted EBITDA, a proxy for operating profit, climbed 131.0% year-over-year to $266 million, marking a significant improvement in operating performance alongside the surge in ad sales.
Operating cash flow was $312 million, and free cash flow was $311 million for the quarter. The company held about $2.8 billion in cash, cash equivalents, and marketable securities at quarter-end, providing flexibility for reinvestment or other uses.
Reddit set Q2 revenue guidance between $715 million and $725 million, above Street consensus, and forecast adjusted EBITDA of $285 million to $295 million. This guidance signals management’s expectation of continued momentum into the second quarter.
The combination of a top-line beat, accelerating ad revenue, rising user engagement, and above-consensus guidance indicates strengthening advertiser demand and supports a positive near-term outlook.
