RDDT earnings analysis
What we found in RDDT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Revenue increased 69% from $392.4M in Q1 2025 to $663.4M in Q1 2026.
- Dramatic EPS Growth
- EPS soared 283%, from $0.26 in Q1 2025 to $1.01 in Q1 2026.
- Robust Operating Cash Flow
- Operating cash flow climbed to $312.3 million, up from $127.6 million year-over-year.
- Free Cash Flow Growth
- Free cash flow rose to $311.2 million for Q1 2026 compared to $126.6 million in Q1 2025.
- Healthy Gross Margin
- Gross margin improved to 91.5% in Q1 2026, slightly up from 90.5% year-over-year.
- Increased User Engagement
- Daily Active Uniques (DAUq) reached 126.8 million, a 17% year-over-year increase.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Regulatory Scrutiny on Advertising
- Increased regulatory environment could impact advertising revenue, which is a significant portion of total revenue.
- Dependence on Advertising Revenue
- 94% of revenue is from advertising, with potential risk from loss of key advertisers.
- Shareholder Governance Issues
- Concentrated voting power among certain stockholders may limit responses to strategic decisions detrimental to minority shareholders.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.01
- Gross margin
- 91.5%
- Operating margin
- 28.0%
- Segment
- U.S. Revenue: $525.6M
- Segment
- ROW Revenue: $137.9M
What they said about what is next.
Management foresees Q2 2026 revenue between $715M and $725M, driven by user engagement initiatives.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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