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Reddit Inc Class A (RDDT)
NYSE:RDDT
Earnings Data
Report Date
May 12, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.57Last Year’s EPS
0.13Same Quarter Last Year
Moderate Buy
Based on 22 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong, broad-based revenue growth, expanding advertiser adoption, significant profitability and cash generation, and measurable product/ML-led improvements that are driving ad performance. Key achievements include 69% full-year revenue growth to $2.2B, record profitability and free cash flow, rapid advertiser growth, and promising early returns from new ad products (Reddit Max, DPA). Challenges include elevated operating expense growth driven by hiring and marketing, mixed early results from onboarding experiments, nascent monetization of search and shopping, and ongoing risks from AI-generated content/bots. Despite these challenges, the balance of large-scale growth, high margins, cash generation, and product momentum outweighs the lowlights.Company Guidance
Record Revenue and Rapid Top-Line Growth
Full-year 2025 revenue crossed $2.2 billion, up 69% year over year. Q4 revenue was $726 million, up 70% year over year, with ad revenue of $690 million (up 75% YoY). ARPU grew 42% YoY to $5.98.
Strong User Growth and Engagement
Q4 daily active users (DAU) reached 121 million, up 19% year over year, and weekly active users (WAU) reached 471 million, up 24% YoY. Search engagement expanded to over 80 million people searching weekly in Q4 (from 60 million a year ago).
Advertising Momentum Across the Funnel
Advertising showed broad-based strength: active advertisers grew over 75% YoY in Q4; mid-funnel click volume rose >60% YoY; lower-funnel conversion volume doubled YoY. 11 of the top 15 verticals grew revenue by 50%+ YoY; U.S. revenue grew 68% and international revenue grew 78% YoY.
Profitability and Cash Generation
Profitability improved meaningfully: Q4 net income was $252 million (35% of revenue) and diluted EPS for Q4 was $1.24 (over 3x 2024). Full-year net income was $530 million (24% of revenue). Full-year free cash flow was $684 million (more than triple 2024). Q4 free cash flow was 36% of revenue and cash & equivalents ended near $2.5 billion.
High Margins and Strong Operational Leverage
Reddit delivered consistent margin strength: six consecutive quarters of >60% revenue growth and six consecutive quarters of ~90% gross margins. Adjusted EBITDA hit $327 million in Q4 (45% of revenue) and full-year adjusted EBITDA was $545 million (38% margin). Incremental adjusted EBITDA margin for the year was ~60%.
Product and ML Progress Driving Monetization
Investments in ML and signals yielded measurable advertiser benefits: shopping ad ML enhancements improved advertiser ROAS by >75%; campaign budget optimization reduced manual work; CAPI-covered conversion revenue tripled YoY. Reddit Answers growth: LLM Answers queries rose from 1M to 15M over the year.
Ad Product Innovation and Performance Gains
New ad capabilities showed early performance: Reddit Max beta delivered a ~17% average CPA reduction and ~27% increase in conversion volume in tests. Shopping solution (DPA) drove strong performance around peak shopping periods and SMB revenue doubled YoY.
Prudent Capital Allocation
Board authorized a $1 billion share repurchase program, reflecting strong cash generation and a capital framework that prioritizes investing in the business, M&A where sensible, and opportunistic buybacks while maintaining >$1B cash buffer.
RDDT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
RDDT Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 05, 2026 | $151.05 | $139.83 | -7.43% |
Oct 30, 2025 | $194.42 | $208.95 | +7.47% |
Jul 31, 2025 | $160.59 | $188.64 | +17.47% |
May 01, 2025 | $118.79 | $113.83 | -4.18% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Reddit Inc Class A (RDDT) report earnings?
Reddit Inc Class A (RDDT) is schdueled to report earning on May 12, 2026, After Close (Confirmed).
What is Reddit Inc Class A (RDDT) earnings time?
Reddit Inc Class A (RDDT) earnings time is at May 12, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is RDDT EPS forecast?
RDDT EPS forecast for the fiscal quarter 2026 (Q1) is 0.57.
