Reddit beats Q4 revenue estimates on strength in ad sales

Reddit

05/02/2026 21:15

Overview

Online community platform's Q4 revenue rose 70% yr/yr, beating analyst expectations

Net income for Q4 was $252 mln, exceeding analyst estimates

Company announced $1 bln share repurchase program

Outlook

Reddit expects Q1 2026 revenue between $595 mln and $605 mln

Company forecasts Q1 2026 adjusted EBITDA between $210 mln and $220 mln

Reddit focuses on global expansion and product innovation for future growth

Result Drivers

AD REVENUE GROWTH - Q4 ad revenue increased 75% yr/yr to $690 mln, contributing significantly to total revenue growth

DAILY ACTIVE UNIQUES - DAUq increased 19% yr/yr to 121.4 mln, indicating strong user engagement

GLOBAL EXPANSION - CEO Steve Huffman emphasized global expansion and product innovation as central to Reddit's growth strategy

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$726 mln
$665.44 mln (23 Analysts)
Q4 Net Income
Beat
$252 mln
$193.23 mln (18 Analysts)
Q4 Adjusted EBITDA
Beat
$327 mln
$286.09 mln (23 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the online services peer group is "buy"

Wall Street's median 12-month price target for Reddit Inc is $250.00, about 63.7% above its February 4 closing price of $152.69

The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 60 three months ago

Press Release: ID:nBw4b24LQa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)