01—Abstract
Summary
Summary of the 8-K filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Reddit, Inc. (NYSE: RDDT) reported first quarter 2026 results for the quarter ended March 31, 2026, in a press release (Exhibit 99.1) and shareholder letter (Exhibit 99.2) furnished with this Form 8-K.
Total revenue rose 69% year-over-year to $663 milliona, with advertising revenue up 74% to $625 million and Other revenue up 15% to $39 million. U.S. revenue grew 67% and International revenue grew 76%. Gross margin was 91.5%, compared with 90.5% a year earlier.
Profitability and cash generation improved sharply. Net income was $204 millionb, up $178 million from the prior year, and diluted EPS was $1.01 versus $0.13. Adjusted EBITDA was $266 million, a 40.1% margin, and operating cash flow was $312 million.
Free cash flow was $311 millionc, and capital expenditures were only $1 million. Cash, cash equivalents, and marketable securities totaled $2.77 billion at March 31, 2026. Daily active uniques (DAUq) rose 17% to 126.8 million, with logged-out users growing 26% and logged-in users 7%.
For the second quarter of 2026, Reddit estimates revenue of $715 million to $725 milliond and Adjusted EBITDA of $285 million to $295 million. The company also noted that it will host an earnings call on April 30, 2026, at 1:30 p.m. PT, and will use its investor relations subreddit and related channels for Regulation FD disclosure.
02—Key points
Key Highlights
- Revenue of $663 million, up 69% year-over-year; advertising revenue of $625 million, up 74%
- Net income of $204 million versus $26 million a year earlier; diluted EPS of $1.01 versus $0.13
- Adjusted EBITDA of $266 million, a 40.1% margin, up from 29.4% in the prior-year quarter
- Operating cash flow of $312 million and free cash flow of $311 million; capital expenditures of $1 million
- DAUq of 126.8 million, up 17% year-over-year; WAUq of 493.1 million, up 23%; U.S. DAUq up 7%, International DAUq up 26%
- Q2 2026 guidance: revenue of $715 million to $725 million and Adjusted EBITDA of $285 million to $295 million
- Cash, cash equivalents, and marketable securities of $2.77 billion as of March 31, 2026
03—Questions
Frequently Asked Questions
How fast did Reddit's revenue grow in the first quarter of 2026?
Total revenue increased 69% year-over-year to $663 million. Advertising revenue grew 74% to $625 million, and Other revenue grew 15% to $39 million. U.S. revenue rose 67% and International revenue rose 76%.
What drove the improvement in profitability?
Net income was $204 million, compared with $26 million in the prior-year quarter. Income from operations was $182.9 million, and Adjusted EBITDA reached $266 million with a 40.1% margin. Gross margin improved to 91.5% from 90.5%.
What is Reddit's outlook for the second quarter of 2026?
Reddit estimates second-quarter 2026 revenue of $715 million to $725 million and Adjusted EBITDA of $285 million to $295 million. The filing states that Reddit did not provide a reconciliation of these non-GAAP guidance measures to GAAP equivalents.
How is user growth trending?
Global DAUq rose 17% to 126.8 million. International DAUq grew 26% to 73.3 million, while U.S. DAUq grew 7% to 53.5 million. Logged-out DAUq increased 26%, and logged-in DAUq increased 7%.
How much cash does Reddit have, and how capital-intensive is it?
Cash, cash equivalents, and marketable securities totaled $2.77 billion at March 31, 2026. Purchases of property and equipment were $1 million in the quarter, and free cash flow was $311 million.
04—Continue