0001713445-26-000069
SEC filingRevenue grew 69% YoY to $663M, net income rose to $204M, and Adjusted EBITDA more than doubled to $266M.
In Q1 2026, Reddit delivered exceptional growth. Revenue reached $663.4 million, a 69% increase year-over-year, driven by a 74% surge in advertising revenue. Ad impressions rose 32% and pricing also increased 32%, reflecting strong advertiser demand and ad load optimization. Gross margin expanded to 91.5% from 90.5%, benefiting from scale and lower hosting costs. Operating income swung from $3.9 million to $182.9 million, with the operating margin improving from 1% to 28%. Net income grew to $204.0 million from $26.2 million, while Adjusted EBITDA more than doubled to $266.0 million. Free Cash Flow nearly tripled to $311.2 million, supported by robust operating cash flow.
Geographically, the United States contributed $525.6 million in revenue (up 67% YoY), representing 79% of total revenue. The rest of world delivered $137.9 million (up 76% YoY), outpacing the U.S. as internationalization efforts, including machine translation and local content, drove higher engagement and monetization. User growth followed a similar pattern: global DAUq grew 17% YoY to 126.8 million, with the U.S. up 7% and rest-of-world up 26%, underscoring the success of growth initiatives beyond the core market.
Management emphasized continued investments in product improvements, machine translation, and marketing to sustain user growth. The shift to focusing on total DAUq (including logged-out users) starting Q3 2026 signals a strategy to capture value from all visitors. No specific numerical guidance was provided, but the strong cash generation and absence of material contractual obligations suggest ample liquidity for strategic priorities, including the $1.0 billion share repurchase program authorized in February 2026.