Reddit issues strong Q2 revenue forecast after ad sales surge

Reddit

30/04/2026 21:16

Overview

Social platform Reddit Q1 revenue rose 69% yr/yr, beating analyst expectations

Adjusted EPS and net income for Q1 beat analyst expectations

Company saw DAUq rise 17% yr/yr and ad revenue up 74%

Outlook

Reddit expects Q2 2026 revenue between $715 mln and $725 mln

Company sees Q2 2026 adjusted EBITDA in the range of $285 mln to $295 mln

Result Drivers

AD REVENUE GROWTH - Co said Q1 revenue growth was driven by a 74% increase in ad revenue yr/yr

INTERNATIONAL EXPANSION - International revenue and user growth outpaced U.S., with international revenue up 76% and DAUq up 26% yr/yr

COMMUNITY ENGAGEMENT - CEO said deeply engaged communities and authentic conversation are driving growth and profitability

Company press release: ID:nBw1BnJKqa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$663 mln
$610.88 mln (25 Analysts)
Q1 EPS
Beat
$1.01
$0.58 (21 Analysts)
Q1 Net Income
Beat
$204 mln
$120.90 mln (19 Analysts)
Q1 Adjusted EBITDA
Beat
$266 mln
$220.52 mln (24 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "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 69.2% above its April 29 closing price of $147.75

The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 62 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)