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Reddit 8-K Report, Financial Results (May 1, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 1, 2025
Period End
May 1, 2025
Security
RDDT
In the record · 2024–202610-K210-Q98-K17

RDDT filed 2 annual reports (10-K), 9 quarterly reports (10-Q) and 17 current reports (8-K) between 2024 and 2026.

  1. Leadership change8-K · May ’24May ’24
  2. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed May 1, 2025. Cited figures are marked; the original filing is the authoritative source.

Reddit, Inc. (NYSE: RDDT) reported first quarter 2025 results on May 1, 2025, furnished under Item 2.02 in Exhibits 99.1 (press release) and 99.2 (shareholder letter).

Revenue was $392.4 milliona, up 61% year-over-year, with advertising revenue of $358.6 million (up 61%) and other revenue of $33.7 million (up 66%). U.S. revenue was $313.9 million (up 57%) and international revenue was $78.5 million (up 82%). Gross margin was 90.5%, up 190 basis points from the prior year.

The company reported net income of $26.2 millionb, a 6.7% net margin, compared with a net loss of $(575.1) million in the prior-year quarter, and diluted EPS of $0.13. On profitability and cash flow, Adjusted EBITDA was $115.3 million, a 29.4% margin, versus $10.0 million a year earlier. Operating cash flow was $127.6 million and Free Cash Flow was $126.6 million, with capital expenditures of $1.0 million.

Cash, cash equivalents, and marketable securities totaled $1.95 billionc at March 31, 2025. Fully diluted shares were 206.0 million, down 0.1% from the prior quarter. For the second quarter of 2025, the company estimated revenue of $410 million to $430 million and Adjusted EBITDA of $110 million to $130 million.

Daily active uniques (DAUq) averaged 108.1 million, up 31%d year-over-year, and weekly active uniques (WAUq) averaged 401.3 million, also up 31%. The shareholder letter attributes international growth to machine translation and the international playbook, and notes that some external search traffic is variable.

02—Key points

Key Highlights

  1. Revenue of $392.4 million, up 61% year-over-year; advertising revenue $358.6 million (up 61%) and other revenue $33.7 million (up 66%).
  2. Net income of $26.2 million (6.7% net margin) versus a net loss of $(575.1) million a year earlier; diluted EPS $0.13.
  3. Adjusted EBITDA of $115.3 million, a 29.4% margin, compared with $10.0 million in Q1 2024.
  4. Operating cash flow of $127.6 million and Free Cash Flow of $126.6 million; capital expenditures of $1.0 million.
  5. Gross margin of 90.5%, an improvement of 190 basis points year-over-year.
  6. Q2 2025 guidance: revenue of $410 million to $430 million and Adjusted EBITDA of $110 million to $130 million.
  7. DAUq of 108.1 million (up 31%), WAUq of 401.3 million (up 31%); international revenue up 82% and U.S. revenue up 57%.

03—Questions

Frequently Asked Questions

  1. How did Reddit's revenue grow in the first quarter of 2025?

    Total revenue was $392.4 million, up 61% year-over-year. Advertising revenue was $358.6 million, up 61%, and other revenue was $33.7 million, up 66%. U.S. revenue was $313.9 million (up 57%) and international revenue was $78.5 million (up 82%).

  2. Did Reddit turn profitable in the quarter?

    Yes. Net income was $26.2 million, a 6.7% net margin, compared with a net loss of $(575.1) million in the first quarter of 2024. Basic EPS was $0.14 and diluted EPS was $0.13. The prior-year loss reflected large stock-based compensation charges, which were $577.5 million in cash flow statement terms for Q1 2024.

  3. What is Reddit's outlook for the second quarter of 2025?

    The company estimated second-quarter 2025 revenue in the range of $410 million to $430 million and Adjusted EBITDA in the range of $110 million to $130 million. The filing notes these are estimates subject to significant risks and uncertainties, and the company has not reconciled these non-GAAP guidance measures to GAAP equivalents.

  4. How much cash does Reddit have and how strong is its cash generation?

    Cash, cash equivalents, and marketable securities totaled $1.95 billion at March 31, 2025. Operating cash flow was $127.6 million and Free Cash Flow was $126.6 million, with capital expenditures of $1.0 million. The letter notes this was the fifth consecutive quarter of positive operating cash flow.

  5. What user trends did Reddit report?

    Daily active uniques averaged 108.1 million, up 31% year-over-year, with U.S. DAUq at 50.1 million (up 21%) and international DAUq at 58.0 million (up 41%). Weekly active uniques averaged 401.3 million, up 31%. The shareholder letter states that some external-source traffic is variable, and that Reddit Answers reached 1 million WAUq.

04—Continue

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