US Market News
2月前
Reddit Reports First Quarter 2026 ResultsApril 30, 2026 4:07 PM
Business Wire
Daily Active Uniques (“DAUq”) increased 17% year-over-year to 126.8 million
Revenue grew 69% year-over-year to $663 million
Net income of $204 million, 31% of revenue. Diluted EPS of $1.01, up 7x year-over-year
Adj. EBITDA1 of $266 million, 40% of revenue, up 131% year-over-year
Operating cash flow of $312 million, 47% of revenue, up 145% year-over-year
Reddit, Inc. (NYSE: RDDT) today announced financial results for the quarter ended March 31, 2026. Reddit’s complete financial results and management commentary can be found in its shareholder letter on Reddit’s Investor Relations website at https://investor.redditinc.com.
“Reddit is a one-of-one business powered by deeply engaged communities and authentic human conversation,” said Steve Huffman, Founder and CEO of Reddit. “That foundation is driving a rare combination of growth, profitability, and efficiency, and giving Reddit a unique advantage in the age of AI.”
Total revenue increased 69% year-over-year to $663 million, Ad revenue increased 74% year-over-year to $625 million, and Other revenue increased 15% year-over-year to $39 million
Gross margin was 91.5%, as compared to 90.5% in the prior year
Net income was $204 million, an improvement of $178 million from the prior year
Adjusted EBITDA1 was $266 million, an improvement of $151 million from the prior year
Operating cash flow was $312 million, an improvement of $185 million from the prior year
Free Cash Flow1 was $311 million, an improvement of $185 million from the prior year
Basic and diluted earnings per share (“EPS”) were $1.07 and $1.01, up 664% and 677% from the prior year, respectively
Total fully diluted shares outstanding were 206.4 million as of March 31, 2026, up 0.2% from the prior year
First Quarter 2026 Financial Highlights
Three months ended
March 31,
(in millions, except percentages and per share amounts; unaudited)
2026
2025
% Change
Revenue
$
663
$
392
69%
U.S.
$
526
$
314
67%
International
$
138
$
79
76%
GAAP gross margin
91.5
%
90.5
%
Net income
$
204
$
26
680%
Net margin
30.7
%
6.7
%
Net income per share
Basic
$
1.07
$
0.14
664%
Diluted
$
1.01
$
0.13
677%
Adjusted EBITDA*
$
266
$
115
131%
Adjusted EBITDA margin*
40.1
%
29.4
%
Net cash provided by (used in) operating activities
$
312
$
128
145%
Free Cash Flow*
$
311
$
127
146%
Cash, cash equivalents, and marketable securities
$
2,771
*The definitions of Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow can be found in the Use of Non-GAAP Financial Measures section of this release. A reconciliation of non-GAAP financial measures to the most directly comparable U.S. GAAP measure can be found on pages 10-11.
Financial Outlook
The guidance provided below is based on Reddit’s current estimates and is not a guarantee of future performance. This guidance is subject to significant risks and uncertainties that could cause actual results to differ materially, including the risk factors discussed in Reddit’s reports on file with the Securities and Exchange Commission (the “SEC”). Reddit undertakes no duty to update any forward-looking statements or estimates, except as required by applicable law.
As we look ahead, we will share our internal thoughts on revenue and Adjusted EBITDA for the second quarter.
In the second quarter of 2026, we estimate:
Revenue in the range of $715 million to $725 million
Adjusted EBITDA2 in the range of $285 million to $295 million
Earnings Conference Call Information and Community Update
Reddit will host a conference call to discuss the results for the first quarter of 2026 on Thursday, April 30, 2026, at 1:30 p.m. PT / 4:30 p.m. ET. A live webcast of the call can be accessed on Reddit’s Investor Relations website at https://investor.redditinc.com and investor relations subreddit, r/RDDT, at https://www.reddit.com/r/RDDT/. A replay of the webcast and transcript will be available on the same websites following the conclusion of the conference call.
Reddit will solicit questions from the community in the investor relations subreddit, r/RDDT, at https://www.reddit.com/r/RDDT/ on Thursday, April 30, 2026, after the market closes, and post responses following the earnings call at Reddit’s Investor Relations website at https://investor.redditinc.com and r/RDDT at https://www.reddit.com/r/RDDT/.
Reddit uses the investor relations page on its website https://investor.redditinc.com, user accounts of Reddit's Chief Executive Officer, Steve Huffman (u/spez); Reddit's Chief Operating Officer, Jen Wong (u/adsjunkie); and Reddit's Chief Financial Officer, Drew Vollero (u/TimingandLuck), as well as the subreddits r/RDDT and r/reddit, available at https://www.reddit.com/r/RDDT/ and https://www.reddit.com/r/reddit/, respectively, as means of disclosing material non-public information and for complying with its disclosure obligation under Regulation FD.
Notes
1 The definitions of Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow can be found in the Use of Non-GAAP Financial Measures section of this release. A reconciliation of non-GAAP financial measures to the most directly comparable U.S. GAAP measure can be found on pages 10-11.
2 We have not provided a reconciliation to the forward-looking U.S. GAAP equivalent measures for our non-GAAP guidance due to uncertainty regarding, and the potential variability of, reconciling items. Therefore, a reconciliation of these non-GAAP guidance measures to their corresponding U.S. GAAP guidance measures is not available without unreasonable effort.
About Reddit
Reddit is a community of communities. Built on shared interests and passions, it is home to the most open and authentic conversations online. Every day, millions of people post, vote, comment, and search for answers across nearly every topic imaginable, and brands build trusted relationships with their audiences. With 25+ billion posts and comments and more than 126 million daily active uniques, Reddit is one of the internet’s largest sources of information. Learn more at www.redditinc.com. The Reddit app is available on the App Store and Google Play.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Reddit's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern Reddit's expectations, strategy, priorities, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding Reddit’s future financial and operating performance, and GAAP and non-GAAP guidance. Reddit's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including those more fully described under the caption “Risk Factors” and elsewhere in documents that Reddit files with the SEC from time to time, including Reddit’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, which is being filed with the SEC at or around the date hereof. The forward-looking statements in this release are based on information available to Reddit as of the date hereof, and Reddit undertakes no obligation to update any forward-looking statements, except as required by law.
A Note About Metrics
We define a daily active unique (“DAUq”) as a user whom we can identify with a unique identifier who has visited a page on the Reddit website, www.reddit.com, or opened a Reddit application at least once during a 24-hour period. Average DAUq for a particular period is calculated by adding the number of DAUq on each day of that period and dividing that sum by the number of days in that period.
We define a weekly active unique (“WAUq”) as a user whom we can identify with a unique identifier who has visited a page on the Reddit website, www.reddit.com, or opened a Reddit application at least once during a trailing seven-day period. Average quarterly WAUq for a particular period is calculated by adding the number of WAUq on each day of that period and dividing that sum by the number of days in that period.
We define average revenue per unique (“ARPU”) as quarterly revenue in a given geography divided by the average DAUq in that geography. For the purposes of calculating ARPU, advertising revenue in a given geography is based on the geographic location in which advertising impressions are delivered, as this approximates revenue based on user activity, while other revenue in a given geography is based on the billing address of the customer.
Use of Non-GAAP Financial Measures
We use certain non-GAAP financial measures to supplement our consolidated financial statements, which are presented in accordance with U.S. GAAP, to evaluate our core operating performance. These non-GAAP financial measures include Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, and Free Cash Flow margin. We use these non-GAAP financial measures to facilitate reviews of our operational performance and as a basis for strategic planning. By excluding certain items that are non-recurring or not reflective of the performance of our normal course of business, we believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance. Accordingly, we believe these non-GAAP financial measures are useful to investors and others because they allow investors to supplement their understanding of our financial trends and evaluate our ongoing and future performance in the same manner as management. However, there are a number of limitations related to the use of non-GAAP financial measures as they reflect the exercise of judgment by our management about which expenses are included or excluded in determining these non-GAAP measures. These non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with U.S. GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.
A reconciliation is provided below for each historical non-GAAP financial measure to the most directly comparable financial measure stated in accordance with U.S. GAAP. Reddit encourages investors to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures, and not to rely on any single financial measure to evaluate Reddit’s business. We have not provided a reconciliation to the forward-looking GAAP equivalent measures for our non-GAAP guidance due to uncertainty regarding, and the potential variability of, reconciling items. Therefore, a reconciliation of these non-GAAP guidance measures to their corresponding GAAP guidance measures is not available without unreasonable effort.
Adjusted EBITDA is defined as net income excluding interest (income) expense, net, income tax expense (benefit), depreciation and amortization, stock-based compensation expense and related taxes, other (income) expense, net, and certain other non-recurring or non-cash items impacting net income that we do not consider indicative of our ongoing business performance. Other (income) expense, net consists primarily of realized gains and losses on sales of marketable securities, foreign currency transaction gains and losses, and other income and expense that are not indicative of our core operating performance. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue. We consider the exclusion of certain non-recurring or non-cash items in calculating Adjusted EBITDA and Adjusted EBITDA margin to provide a useful measure for investors and others to evaluate our operating results in the same manner as management.
Free Cash Flow represents net cash provided by (used in) operating activities less purchases of property and equipment. Free Cash Flow margin is defined as Free Cash Flow divided by revenue. We believe that Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth. Additionally, we believe that Free Cash Flow is an important measure since we use third-party infrastructure partners to host our services and therefore we do not incur significant capital expenditures to support revenue generating activities.
Reddit, Inc.
Key Operating Metrics by Geography
(in millions, except percentages and ARPU)
(unaudited)
Three months ended
March 31,
2026
2025
% Change
Revenue: Global
$
663.4
$
392.4
69%
Revenue: U.S.
$
525.6
$
313.9
67%
Revenue: International
$
137.8
$
78.5
76%
Three months ended
March 31,
2026
2025
% Change
DAUq: Global
126.8
108.1
17%
DAUq: U.S.
53.5
50.1
7%
DAUq: International
73.3
58.0
26%
Logged-in DAUq: Global
52.0
48.7
7%
Logged-in DAUq: U.S.
23.2
23.0
1%
Logged-in DAUq: International
28.8
25.8
12%
Logged-out DAUq: Global
74.8
59.4
26%
Logged-out DAUq: U.S.
30.3
27.1
12%
Logged-out DAUq: International
44.5
32.2
38%
WAUq: Global
493.1
401.3
23%
WAUq: U.S.
196.5
178.3
10%
WAUq: International
296.6
223.0
33%
ARPU: Global
$
5.23
$
3.63
44%
ARPU: U.S.
$
9.63
$
6.27
54%
ARPU: International
$
2.02
$
1.34
51%
Reddit, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
(unaudited)
Three months ended
March 31,
2026
2025
Revenue
$
663,411
$
392,361
Costs and expenses:
Cost of revenue
56,267
37,089
Research and development
207,246
191,271
Sales and marketing
151,472
90,685
General and administrative
65,514
69,413
Total costs and expenses
480,499
388,458
Income from operations
182,912
3,903
Other income (expense), net
22,816
20,534
Income before income taxes
205,728
24,437
Income tax expense (benefit)
1,747
(1,721
)
Net income
$
203,981
$
26,158
Net income per share attributable to Class A and Class B common stock
Basic
$
1.07
$
0.14
Diluted
$
1.01
$
0.13
Weighted-average shares used to compute net income per share attributable to common stockholders
Basic
191,518,973
182,024,207
Diluted
202,524,173
201,275,223
Reddit, Inc.
Consolidated Balance Sheets
(in thousands)
(unaudited)
March 31, 2026
December 31, 2025
Assets
Current assets
Cash and cash equivalents
$
1,374,348
$
953,569
Marketable securities
1,396,284
1,523,242
Accounts receivable, net
522,905
590,162
Prepaid expenses and other current assets
92,397
69,012
Total current assets
3,385,934
3,135,985
Property and equipment, net
11,866
12,710
Operating lease right-of-use assets, net
19,001
20,788
Intangible assets, net
13,043
15,521
Goodwill
42,174
42,174
Other noncurrent assets
12,265
11,995
Total assets
$
3,484,283
$
3,239,173
Liabilities and stockholders’ equity
Current liabilities
Accounts payable
$
51,743
$
62,929
Operating lease liabilities
7,170
7,023
Accrued expenses and other current liabilities
206,970
201,331
Total current liabilities
265,883
271,283
Operating lease liabilities, noncurrent
14,118
16,191
Other noncurrent liabilities
24,566
22,661
Total liabilities
304,567
310,135
Commitments and contingencies
Stockholders’ equity:
Preferred stock
—
—
Class A common stock
14
14
Class B common stock
5
5
Class C common stock
—
—
Additional paid-in capital
3,647,812
3,595,772
Accumulated other comprehensive income (loss)
(979
)
4,364
Accumulated deficit
(467,136
)
(671,117
)
Total stockholders’ equity
3,179,716
2,929,038
Total liabilities and stockholders’ equity
$
3,484,283
$
3,239,173
Reddit, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three months ended March 31,
2026
2025
Cash flows from operating activities
Net income
$
203,981
$
26,158
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization
4,210
3,963
Non-cash operating lease cost
1,676
1,468
Amortization of premium (accretion of discount) on marketable securities, net
(4,297
)
(8,884
)
Stock-based compensation expense
68,336
85,414
Other adjustments
(691
)
(138
)
Changes in operating assets and liabilities:
Accounts receivable
67,957
23,359
Prepaid expenses and other assets
(23,752
)
(17,006
)
Operating lease right-of-use assets and liabilities
(1,815
)
(1,780
)
Accounts payable
(10,983
)
(1,046
)
Accrued expenses and other liabilities
7,631
16,070
Net cash provided by (used in) operating activities
$
312,253
$
127,578
Cash flows from investing activities
Purchases of property and equipment
(1,090
)
(979
)
Purchases of marketable securities
(364,929
)
(504,846
)
Maturities of marketable securities
474,468
465,062
Proceeds from sale of marketable securities
17,989
12,372
Other investing activities
(1,616
)
889
Net cash provided by (used in) investing activities
$
124,822
$
(27,502
)
Cash flows from financing activities
Proceeds from exercise of employee stock options
4,899
10,184
Taxes paid related to net share settlement of restricted stock units
(16,196
)
(36,675
)
Repurchases of Class A common stock
(4,999
)
—
Net cash provided by (used in) financing activities
$
(16,296
)
$
(26,491
)
Net increase (decrease) in cash and cash equivalents
420,779
73,585
Cash and cash equivalents at the beginning of the period
953,569
562,142
Cash and cash equivalents at the end of the period
$
1,374,348
$
635,727
Reddit, Inc.
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin
(in thousands, except percentages)
(unaudited)
Three months ended
March 31,
2026
2025
Net income
$
203,981
$
26,158
Add (deduct):
Interest (income) expense, net
(23,885
)
(20,414
)
Income tax expense (benefit)
1,747
(1,721
)
Depreciation and amortization
4,210
3,963
Stock-based compensation expense and related taxes
78,848
107,405
Other (income) expense, net
1,069
(120
)
Adjusted EBITDA
$
265,970
$
115,271
Net margin
30.7
%
6.7
%
Adjusted EBITDA margin
40.1
%
29.4
%
Reddit, Inc.
Reconciliation of Free Cash Flow and Free Cash Flow Margin
(in thousands, except percentages)
(unaudited)
Three months ended
March 31,
2026
2025
Net cash provided by (used in) operating activities
$
312,253
$
127,578
Less:
Purchases of property and equipment
(1,090
)
(979
)
Free Cash Flow
$
311,163
$
126,599
Operating cash flow margin
47.1
%
32.5
%
Free Cash Flow margin
46.9
%
32.3
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20260430242740/en/
Investor Relations
ir@reddit.com
Media Relations
press@reddit.com
Original: Reddit Reports First Quarter 2026 Results
US Market News
4月前
Reddit Reports Fourth Quarter and Full Year 2025 Results; Announces $1 Billion Share Repurchase ProgramFebruary 5, 2026 4:06 PM
Business Wire
Daily Active Uniques (“DAUq”) increased 19% year-over-year to 121.4 million
Q4 Revenue grew 70% year-over-year to $726 million. 2025 Revenue grew 69% to $2.2 billion
Q4 Net Income $252 million, 35% of revenue. 2025 Net Income $530 million, 24% of revenue
Q4 Adj. EBITDA1 $327 million, 45% of revenue. 2025 Adj. EBITDA1 $845 million, 38% of revenue
Reddit’s Board of Directors authorized repurchase program of up to $1 billion of Class A common stock
Reddit, Inc. (NYSE: RDDT) today announced financial results for the quarter and full year ended December 31, 2025. Reddit’s complete financial results and management commentary can be found in its shareholder letter on Reddit’s Investor Relations website at https://investor.redditinc.com.
“We’re entering the next era of Reddit—defined by sharper execution, global expansion, and product innovation that puts real people and conversations at the center,” said Steve Huffman, Reddit Co-Founder and CEO. “Our focus is on turning Reddit’s authenticity into even more everyday utility.”
Fourth quarter 2025
Total revenue increased 70% year-over-year to $726 million, Ad revenue increased 75% year-over-year to $690 million, and Other revenue increased 8% year-over-year to $36 million
Gross margin was 91.9%, as compared to 92.6% in the prior year
Net income was $252 million, an improvement of $181 million from the prior year
Adjusted EBITDA1 was $327 million, an improvement of $173 million from the prior year
Operating cash flow was $267 million, an improvement of $177 million from the prior year
Free Cash Flow1 was $264 million, an improvement of $174 million from the prior year
Basic and diluted earnings per share (“EPS”) were $1.32 and $1.24, respectively
Total fully diluted shares outstanding were 206.1 million as of December 31, 2025, consistent with the prior quarter and down from 206.2 million as of December 31, 2024
Full year 2025
Total revenue increased 69% year-over-year to $2.2 billion, Ad revenue increased 74% year-over-year to $2.1 billion, and Other revenue increased 22% year-over-year to $140 million
Gross margin was 91.2%, an improvement of 70 basis points from the prior year
Net income was $530 million, an improvement of $1,014 million from the prior year
Adjusted EBITDA1 was $845 million, an improvement of $547 million from the prior year
Operating cash flow was $691 million, an improvement of $469 million from the prior year
Free Cash Flow1 was $684 million, an improvement of $468 million from the prior year
Basic and diluted EPS were $2.84 and $2.62, respectively
Fourth Quarter and Full Year 2025 Financial Highlights
Three months ended
December 31,
Year ended
December 31,
(in millions, except percentages and per share amounts; unaudited)
2025
2024
% Change
2025
2024
% Change
Revenue
$
726
$
428
70
%
$
2,203
$
1,300
69
%
U.S.
$
583
$
348
68
%
$
1,786
$
1,064
68
%
International
$
142
$
80
78
%
$
417
$
237
76
%
GAAP gross margin
91.9
%
92.6
%
91.2
%
90.5
%
Net income (loss)
$
252
$
71
$
530
$
(484
)
Net margin
34.7
%
16.6
%
24.1
%
(37.2
)%
Net income (loss) per share
Basic
$
1.32
$
0.40
$
2.84
$
(3.33
)
Diluted
$
1.24
$
0.36
$
2.62
$
(3.33
)
Adjusted EBITDA*
$
327
$
154
$
845
$
298
Adjusted EBITDA margin*
45.1
%
36.1
%
38.4
%
22.9
%
Net cash provided by (used in) operating activities
$
267
$
90
$
691
$
222
Free Cash Flow*
$
264
$
89
$
684
$
216
Cash, cash equivalents, and marketable securities
$
2,477
*The definitions of Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow can be found in the Use of Non-GAAP Financial Measures section of this release. A reconciliation of non-GAAP financial measures to the most directly comparable U.S. GAAP measure can be found on pages 11-12.
Financial Outlook
The guidance provided below is based on Reddit’s current estimates and is not a guarantee of future performance. This guidance is subject to significant risks and uncertainties that could cause actual results to differ materially, including the risk factors discussed in Reddit’s reports on file with the Securities and Exchange Commission (the “SEC”). Reddit undertakes no duty to update any forward-looking statements or estimates, except as required by applicable law.
As we look ahead, we will share our internal thoughts on revenue and Adjusted EBITDA for the first quarter.
In the first quarter of 2026, we estimate:
Revenue in the range of $595 million to $605 million
Adjusted EBITDA2 in the range of $210 million to $220 million
Earnings Conference Call Information and Community Update
Reddit will host a conference call to discuss the results for the fourth quarter and full year of 2025 on Thursday, February 5, 2026, at 1:30 p.m. PT / 4:30 p.m. ET. A live webcast of the call can be accessed on Reddit’s Investor Relations website at https://investor.redditinc.com and investor relations subreddit, r/RDDT, at https://www.reddit.com/r/RDDT/. A replay of the webcast and transcript will be available on the same websites following the conclusion of the conference call.
Reddit will solicit questions from the community in the investor relations subreddit, r/RDDT, at https://www.reddit.com/r/RDDT/ on Thursday, February 5, 2026, after the market closes, and post responses following the earnings call at Reddit’s Investor Relations website at https://investor.redditinc.com and r/RDDT at https://www.reddit.com/r/RDDT/.
Reddit uses the investor relations page on its website https://investor.redditinc.com, as well as the subreddits r/RDDT and r/reddit, available at https://www.reddit.com/r/RDDT/ and https://www.reddit.com/r/reddit/, respectively, as means of disclosing material non-public information and for complying with its disclosure obligation under Regulation FD.
Share Repurchase Program
Reddit also announced today that its Board of Directors authorized a share repurchase program to purchase up to $1 billion of our Class A common stock (the “Share Repurchase Program”). Under the Share Repurchase Program, we may repurchase shares of our Class A common stock from time to time on the open market (including via pre-set trading plans), in privately negotiated transactions, or through other transactions in accordance with applicable securities laws. The Share Repurchase Program does not obligate us to acquire any particular amount of Class A common stock, has no expiration date, and may be suspended or discontinued at any time at our discretion.
Notes
1 The definitions of Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow can be found in the Use of Non-GAAP Financial Measures section of this release. A reconciliation of non-GAAP financial measures to the most directly comparable U.S. GAAP measure can be found on pages 11-12.
2 We have not provided a reconciliation to the forward-looking U.S. GAAP equivalent measures for our non-GAAP guidance due to uncertainty regarding, and the potential variability of, reconciling items. Therefore, a reconciliation of these non-GAAP guidance measures to their corresponding U.S. GAAP guidance measures is not available without unreasonable effort.
About Reddit
Reddit is a community of communities. It’s built on shared interests, passion, and trust, and is home to the most open and authentic conversations on the internet. Every day, Reddit users submit, vote, and comment on the topics they care most about. With 100,000+ active communities and 121+ million daily active unique visitors, Reddit is one of the internet’s largest sources of information. For more information, visit www.redditinc.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Reddit's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern Reddit's expectations, strategy, priorities, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding Reddit’s future financial and operating performance, plans with respect to the Share Repurchase Program, and GAAP and non-GAAP guidance. Reddit's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including those more fully described under the caption “Risk Factors” and elsewhere in documents that Reddit files with the SEC from time to time, including Reddit’s Annual Report on Form 10-K for the year ended December 31, 2025, which is being filed with the SEC at or around the date hereof. The forward-looking statements in this release are based on information available to Reddit as of the date hereof, and Reddit undertakes no obligation to update any forward-looking statements, except as required by law.
A Note About Metrics
We define a daily active unique (“DAUq”) as a user whom we can identify with a unique identifier who has visited a page on the Reddit website, www.reddit.com, or opened a Reddit application at least once during a 24-hour period. Average DAUq for a particular period is calculated by adding the number of DAUq on each day of that period and dividing that sum by the number of days in that period.
We define a weekly active unique (“WAUq”) as a user whom we can identify with a unique identifier who has visited a page on the Reddit website, www.reddit.com, or opened a Reddit application at least once during a trailing seven-day period. Average quarterly WAUq for a particular period is calculated by adding the number of WAUq on each day of that period and dividing that sum by the number of days in that period.
We define average revenue per unique (“ARPU”) as quarterly revenue in a given geography divided by the average DAUq in that geography. For the purposes of calculating ARPU, advertising revenue in a given geography is based on the geographic location in which advertising impressions are delivered, as this approximates revenue based on user activity, while other revenue in a given geography is based on the billing address of the customer.
Use of Non-GAAP Financial Measures
We use certain non-GAAP financial measures to supplement our consolidated financial statements, which are presented in accordance with U.S. GAAP, to evaluate our core operating performance. These non-GAAP financial measures include Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, and Free Cash Flow margin. We use these non-GAAP financial measures to facilitate reviews of our operational performance and as a basis for strategic planning. By excluding certain items that are non-recurring or not reflective of the performance of our normal course of business, we believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance. Accordingly, we believe these non-GAAP financial measures are useful to investors and others because they allow investors to supplement their understanding of our financial trends and evaluate our ongoing and future performance in the same manner as management. However, there are a number of limitations related to the use of non-GAAP financial measures as they reflect the exercise of judgment by our management about which expenses are included or excluded in determining these non-GAAP measures. These non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with U.S. GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.
A reconciliation is provided below for each historical non-GAAP financial measure to the most directly comparable financial measure stated in accordance with U.S. GAAP. Reddit encourages investors to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures, and not to rely on any single financial measure to evaluate Reddit’s business. We have not provided a reconciliation to the forward-looking GAAP equivalent measures for our non-GAAP guidance due to uncertainty regarding, and the potential variability of, reconciling items. Therefore, a reconciliation of these non-GAAP guidance measures to their corresponding GAAP guidance measures is not available without unreasonable effort.
Adjusted EBITDA is defined as net income (loss) excluding interest (income) expense, net, income tax expense (benefit), depreciation and amortization, stock-based compensation expense and related taxes, other (income) expense, net, and certain other non-recurring or non-cash items impacting net income (loss) that we do not consider indicative of our ongoing business performance. Other (income) expense, net consists primarily of realized gains and losses on sales of marketable securities, foreign currency transaction gains and losses, and other income and expense that are not indicative of our core operating performance. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue. We consider the exclusion of certain non-recurring or non-cash items in calculating Adjusted EBITDA and Adjusted EBITDA margin to provide a useful measure for investors and others to evaluate our operating results in the same manner as management.
Free Cash Flow represents net cash provided by (used in) operating activities less purchases of property and equipment. Free Cash Flow margin is defined as Free Cash Flow divided by revenue. We believe that Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth. Additionally, we believe that Free Cash Flow is an important measure since we use third-party infrastructure partners to host our services and therefore we do not incur significant capital expenditures to support revenue generating activities.
Reddit, Inc.
Key Operating Metrics by Geography
(in millions, except percentages and ARPU)
(unaudited)
Three months ended
December 31,
Year ended
December 31,
2025
2024
% Change
2025
2024
% Change
Revenue: Global
$
725.6
$
427.7
70
%
$
2,202.5
$
1,300.2
69
%
Revenue: U.S.
$
583.3
$
347.7
68
%
$
1,785.6
$
1,063.6
68
%
Revenue: International
$
142.3
$
80.0
78
%
$
416.9
$
236.6
76
%
Three months ended
December 31,
2025
2024
% Change
DAUq: Global
121.4
101.7
19
%
DAUq: U.S.
52.5
48.0
9
%
DAUq: International
68.9
53.7
28
%
Logged-in DAUq: Global
50.7
46.1
10
%
Logged-in DAUq: U.S.
23.0
21.9
5
%
Logged-in DAUq: International
27.7
24.2
14
%
Logged-out DAUq: Global
70.7
55.6
27
%
Logged-out DAUq: U.S.
29.5
26.1
13
%
Logged-out DAUq: International
41.2
29.5
40
%
WAUq: Global
471.6
379.4
24
%
WAUq: U.S.
193.4
172.2
12
%
WAUq: International
278.2
207.2
34
%
ARPU: Global
$
5.98
$
4.21
42
%
ARPU: U.S.
$
10.79
$
7.04
53
%
ARPU: International
$
2.31
$
1.67
38
%
Reddit, Inc.
Consolidated Balance Sheets
(in thousands)
(unaudited)
December 31,
2025
2024
Assets
Current assets
Cash and cash equivalents
$
953,569
$
562,092
Marketable securities
1,523,242
1,278,717
Accounts receivable, net
590,162
349,534
Prepaid expenses and other current assets
69,012
33,058
Total current assets
3,135,985
2,223,401
Property and equipment, net
12,710
12,652
Operating lease right-of-use assets, net
20,788
23,249
Intangible assets, net
15,521
25,424
Goodwill
42,174
42,174
Other noncurrent assets
11,995
9,695
Total assets
$
3,239,173
$
2,336,595
Liabilities and stockholders’ equity (deficit)
Current liabilities
Accounts payable
$
62,929
$
45,423
Operating lease liabilities
7,023
6,137
Accrued expenses and other current liabilities
201,331
124,464
Total current liabilities
271,283
176,024
Operating lease liabilities, noncurrent
16,191
20,565
Other noncurrent liabilities
22,661
9,257
Total liabilities
310,135
205,846
Commitments and contingencies
Stockholders’ equity (deficit):
Preferred stock
—
—
Class A common stock
14
12
Class B common stock
5
5
Class C common stock
—
—
Additional paid-in capital
3,595,772
3,331,546
Accumulated other comprehensive income (loss)
4,364
24
Accumulated deficit
(671,117
)
(1,200,838
)
Total stockholders’ equity (deficit)
2,929,038
2,130,749
Total liabilities and stockholders’ equity (deficit)
$
3,239,173
$
2,336,595
Reddit, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
(unaudited)
Three months ended
December 31,
Year ended
December 31,
2025
2024
2025
2024
Revenue
$
725,607
$
427,707
$
2,202,506
$
1,300,205
Costs and expenses:
Cost of revenue
58,718
31,845
194,216
123,595
Research and development
198,885
188,644
783,145
935,152
Sales and marketing
163,852
80,516
503,863
350,579
General and administrative
72,324
73,830
279,298
451,447
Total costs and expenses
493,779
374,835
1,760,522
1,860,773
Income (loss) from operations
231,828
52,872
441,984
(560,568
)
Other income (expense), net
22,990
17,115
86,706
75,361
Income (loss) before income taxes
254,818
69,987
528,690
(485,207
)
Income tax expense (benefit)
3,215
(1,049
)
(1,031
)
(931
)
Net income (loss)
$
251,603
$
71,036
$
529,721
$
(484,276
)
Net income (loss) per share attributable to Class A and Class B common stock
Basic
$
1.32
$
0.40
$
2.84
$
(3.33
)
Diluted
$
1.24
$
0.36
$
2.62
$
(3.33
)
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders
Basic
189,971,813
177,484,215
186,383,271
145,472,389
Diluted
202,932,334
199,057,762
202,107,978
145,472,389
Reddit, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three months ended
December 31,
Year ended
December 31,
2025
2024
2025
2024
Cash flows from operating activities
Net income (loss)
$
251,603
$
71,036
$
529,721
$
(484,276
)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization
4,151
4,161
15,948
15,643
Non-cash operating lease cost
1,678
69
6,197
4,110
Amortization of premium (accretion of discount) on marketable securities, net
(5,860
)
(11,516
)
(28,214
)
(43,400
)
Stock-based compensation expense
85,178
85,114
343,180
801,646
Other adjustments
180
(148
)
848
(4,187
)
Changes in operating assets and liabilities:
Accounts receivable
(102,602
)
(65,366
)
(241,356
)
(104,280
)
Prepaid expenses and other assets
(13,658
)
(7,719
)
(37,082
)
(19,485
)
Operating lease right-of-use assets and liabilities
(1,817
)
291
(7,224
)
(2,397
)
Accounts payable
(8,774
)
(17,054
)
18,166
(570
)
Accrued expenses and other liabilities
56,728
31,129
90,691
59,264
Net cash provided by (used in) operating activities
$
266,807
$
89,997
$
690,875
$
222,068
Cash flows from investing activities
Purchases of property and equipment
(3,164
)
(842
)
(6,706
)
(6,248
)
Purchases of marketable securities
(692,993
)
(570,988
)
(2,298,397
)
(1,996,725
)
Maturities of marketable securities
484,917
530,241
2,065,971
1,573,602
Proceeds from sale of marketable securities
4,862
—
17,234
—
Cash paid for acquisitions, net of cash acquired
—
—
—
(17,137
)
Other investing activities
554
(1,508
)
3,009
5,821
Net cash provided by (used in) investing activities
$
(205,824
)
$
(43,097
)
$
(218,889
)
$
(440,687
)
Cash flows from financing activities
Proceeds from issuance of Class A common stock in initial public offering, net of underwriting discounts and commissions
—
—
—
600,022
Proceeds from exercise of employee stock options
4,575
26,039
25,075
88,972
Taxes paid related to net share settlement of restricted stock units
(23,533
)
(26,467
)
(104,028
)
(294,573
)
Payments of initial public offering costs
—
(275
)
—
(8,775
)
Other financing activities
(109
)
—
(1,606
)
(6,111
)
Net cash provided by (used in) financing activities
$
(19,067
)
$
(703
)
$
(80,559
)
$
379,535
Net increase (decrease) in cash, cash equivalents, and restricted cash
41,916
46,197
391,427
160,916
Cash, cash equivalents, and restricted cash at the beginning of the period
911,653
515,945
562,142
401,226
Cash, cash equivalents, and restricted cash at the end of the period
$
953,569
$
562,142
$
953,569
$
562,142
Cash and cash equivalents
953,569
562,092
953,569
562,092
Restricted cash
—
50
—
50
Total cash, cash equivalents, and restricted cash
$
953,569
$
562,142
$
953,569
$
562,142
Reddit, Inc.
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin
(in thousands, except percentages)
(unaudited)
Three months ended
December 31,
Year ended
December 31,
2025
2024
2025
2024
Net income (loss)
$
251,603
$
71,036
$
529,721
$
(484,276
)
Add (deduct):
Interest (income) expense, net
(22,947
)
(20,578
)
(86,722
)
(78,121
)
Income tax expense (benefit)
3,215
(1,049
)
(1,031
)
(931
)
Depreciation and amortization
4,151
4,161
15,948
15,643
Stock-based compensation expense and related taxes
91,067
97,297
387,141
842,932
Other (income) expense, net
(43
)
3,463
16
2,760
Adjusted EBITDA
$
327,046
$
154,330
$
845,073
$
298,007
Net margin
34.7
%
16.6
%
24.1
%
(37.2
)%
Adjusted EBITDA margin
45.1
%
36.1
%
38.4
%
22.9
%
Reddit, Inc.
Reconciliation of Free Cash Flow and Free Cash Flow Margin
(in thousands, except percentages)
(unaudited)
Three months ended
December 31,
Year ended
December 31,
2025
2024
2025
2024
Net cash provided by (used in) operating activities
$
266,807
$
89,997
$
690,875
$
222,068
Less:
Purchases of property and equipment
(3,164
)
(842
)
(6,706
)
(6,248
)
Free Cash Flow
$
263,643
$
89,155
$
684,169
$
215,820
Operating cash flow margin
36.8
%
21.0
%
31.4
%
17.1
%
Free Cash Flow margin
36.3
%
20.8
%
31.1
%
16.6
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20260205441801/en/
Investor Relations
ir@reddit.com
Media Relations
press@reddit.com
Original: Reddit Reports Fourth Quarter and Full Year 2025 Results; Announces $1 Billion Share Repurchase Program
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