10-Q · October 31, 2025
Reddit, Inc. reported commendable Q3 2025 results, with revenue of $584.9 million surpassing expectations by 6.4% and a net income of $162.7 million, leading to earnings per share (EPS) of $0.80. This indicates a…
Earnings analysis · 10-Q
RDDT earnings analysis
Filed April 30, 2026 · Our reading of the company's report
The latest report
Reddit's Q1 2026 performance surpassed expectations, posting revenue of $663.4 million and EPS of $1.01, marking increases of 69% and 283% year-over-year, respectively. Management reported significant user engagement…
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Reddit's Q1 2026 performance surpassed expectations, posting revenue of $663.4 million and EPS of $1.01, marking increases of 69% and 283% year-over-year, respectively. Management reported significant user engagement growth, particularly strong in international markets, and provided a bullish outlook for continued revenue growth into Q2 2026.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.01
What stood out
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Strong Revenue Growth
Revenue increased 69% from $392.4M in Q1 2025 to $663.4M in Q1 2026.
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Dramatic EPS Growth
EPS soared 283%, from $0.26 in Q1 2025 to $1.01 in Q1 2026.
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Robust Operating Cash Flow
Operating cash flow climbed to $312.3 million, up from $127.6 million year-over-year.
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Free Cash Flow Growth
Free cash flow rose to $311.2 million for Q1 2026 compared to $126.6 million in Q1 2025.
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Healthy Gross Margin
Gross margin improved to 91.5% in Q1 2026, slightly up from 90.5% year-over-year.
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Increased User Engagement
Daily Active Uniques (DAUq) reached 126.8 million, a 17% year-over-year increase.
What to watch
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Regulatory Scrutiny on Advertising
Increased regulatory environment could impact advertising revenue, which is a significant portion of total revenue.
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Dependence on Advertising Revenue
94% of revenue is from advertising, with potential risk from loss of key advertisers.
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Shareholder Governance Issues
Concentrated voting power among certain stockholders may limit responses to strategic decisions detrimental to minority shareholders.
Management's outlook
Management foresees Q2 2026 revenue between $715M and $725M, driven by user engagement initiatives.
Earlier filings 4
10-Q · August 1, 2025
Reddit reported a strong Q2 2025 with revenue of $499,627,000 and GAAP net income of $89,297,000 (diluted EPS $0.45), reversing last year's loss. Operating profitability returned — operating income was $67,711,000…
10-Q · May 2, 2025
Reddit reported Q1 revenue of $392,361,000, up 61.5% YoY from $242,963,000 but down 8.3% sequentially from $428,000,000. The company returned to GAAP profitability with net income of $26,158,000 (diluted EPS $0.13) and…
10-Q · October 30, 2024
Reddit reported strong Q3 results with revenue of $348,351,000 and GAAP diluted EPS of $0.16, reversing a year-ago loss and producing operating income of $6,854,000 for the quarter. Gross margin expanded (cost of…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.