RDDT · Reddit, Inc.

Reddit delivered exceptional Q1 2026 results, with revenue surging 69% year-over-year to $663.4 million, primarily propelled by 74% growth in advertising revenue to $625 million and 15% in other revenue to $39 million. U.S. revenue increased 67% to $525.6 million, while international revenue jumped 76% to $137.8 million, highlighting robust global demand. Gross margin expanded 100 basis points to 91.5%, reflecting operational efficiency in a capital-light model with just $1 million in capex. Net income skyrocketed 680% to $204 million (30.7% margin), and Adjusted EBITDA rose 131% to $266 million (40.1% margin), underscoring profitability momentum. Operating cash flow hit $312 million, enabling strong free cash flow of $311 million. CEO Steve Huffman emphasized Reddit's unique position as a 'one-of-one' platform, powered by 126.8 million DAUq (up 17% YoY) and 493.1 million WAUq (up 23%), with logged-out users growing faster at 26% amid AI-driven demand for authentic conversations. Ad momentum stemmed from impressions growth, pricing, full-funnel strength, and integrations like Shopify for DPA ads, yielding 91% YoY ROAS improvement. For Q2, Reddit guides revenue to $715-725 million and Adjusted EBITDA to $285-295 million, signaling continued acceleration. Management prioritizes U.S. DAUq expansion to 100 million, product improvements in search, retention, and speed, positioning Reddit for scaled global growth amid AI tailwinds.