Reddit jumps as Q1 revenue hits $663M and Q2 outlook stays strong
Reddit shares are surging after the company reported Q1 2026 results that topped expectations, with revenue rising 69% year over year to $663 million and diluted EPS of $1.01. Management also guided Q2 revenue to $715–$725 million and adjusted EBITDA to $285–$295 million, reinforcing momentum into the next quarter.
1. What’s driving the move
Reddit (RDDT) is rallying after releasing first-quarter 2026 earnings that showed a sharp step-up in growth and profitability. The company posted revenue of $663 million, up 69% year over year, alongside net income of $204 million and adjusted EBITDA of $266 million (about a 40% margin), pointing to accelerating operating leverage.
2. The key numbers investors are reacting to
Reddit reported diluted EPS of $1.01 for Q1 2026 and operating cash flow of $312 million, underscoring stronger monetization and cash generation than the market had been pricing in. The earnings print also highlighted a major year-over-year profitability improvement, with adjusted EBITDA up 131% versus the prior year period.
3. Outlook and what to watch next
For Q2 2026, Reddit guided revenue to $715 million to $725 million and adjusted EBITDA to $285 million to $295 million, keeping expectations elevated heading into the next quarter. The next catalyst is whether Reddit can sustain ad-demand strength and margin discipline while maintaining user growth and monetization progress.