Reddit Q1 Revenue Up 69%, ARPU Jumps 44%, Guides 45% Growth
RDDT•Reddit posted 69% year-over-year revenue growth in Q1 with a 30.8% GAAP net margin and 44% ARPU increase, leveraging AI ad tools to boost monetization. Management guides for 45% revenue growth next quarter and plans to double U.S. daily active users through content feed investments and Shopify partnerships.
1. Q1 Financial Performance
In Q1 2026, Reddit delivered 69% year-over-year revenue growth, achieved a 30.8% GAAP net margin, and saw ARPU increase by 44%, reflecting strong monetization advances.
2. Monetization Drivers
Growth was supported by AI-driven advertising tools and international expansion efforts that enhanced ad yield and broadened the advertiser base.
3. Content Feed Investment
Management plans to invest in the content feed to improve user retention and frequency, targeting a doubling of U.S. daily active users through enhanced engagement features and Shopify partnerships.
4. Future Growth Guidance
Reddit guided for 45% revenue growth in the next quarter, underscoring confidence in its business model and growth initiatives.
