Q1 25 EPS
$0.13
BEAT +870.15%
Est. $0.01
Q1 25 Revenue
$392.4M
BEAT +6.14%
Est. $369.7M
vs S&P Since Q1 25
+4.5%
BEATING MARKET
RDDT +31.6% vs S&P +27.2%
Market Reaction
Did RDDT Beat Earnings? Q1 2025 Results
Reddit delivered a standout first quarter, posting earnings per share of $0.13 against a consensus estimate of $0.01, a beat of more than 870%, while revenue climbed 61.5% year-over-year to $392.36 million, ahead of the $369.68 million analysts had e… Read more Reddit delivered a standout first quarter, posting earnings per share of $0.13 against a consensus estimate of $0.01, a beat of more than 870%, while revenue climbed 61.5% year-over-year to $392.36 million, ahead of the $369.68 million analysts had expected. The headline story behind the blowout was the platform's accelerating advertising engine, with performance advertising now accounting for roughly 60% of total ad revenue and driving more than half of the quarter's growth, helping lift Adjusted EBITDA to $115.27 million at a 29.4% margin compared to just $10.03 million a year ago. User engagement reinforced the momentum, with daily active users reaching 108.1 million, up 31% year-over-year, and international markets leading the charge at 41% growth. The company also swung to GAAP profitability, recording net income of $26.16 million versus a net loss of $575.07 million in the prior-year period. Looking ahead, Reddit guided Q2 2025 revenue of $410 million to $430 million, signaling confidence that its combination of authentic community content and expanding global reach can sustain the trajectory.
Key Takeaways
- • 61% YoY revenue growth marking third consecutive quarter of 60%+ growth
- • DAUq grew 31% YoY to 108.1 million; WAUq grew 31% YoY to 401.3 million
- • Performance advertising accounted for about 60% of total ad revenue and drove more than half of Q1 growth
- • International revenue grew 82% YoY driven by strength in UK and EMEA region
- • ARPU increased 23% YoY to $3.63 globally
- • Gross margin expanded 190 bps YoY to 90.5%
- • Revenue grew 3.2x as fast as total adjusted costs year-over-year
- • Over 70% incremental Adjusted EBITDA margin for the fifth consecutive quarter
- • ML model improvements driving improved targeting and ad relevancy
RDDT YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
RDDT Revenue by Segment
With YoY comparisons, source: SEC Filings
RDDT Revenue by Geography
With YoY comparisons, source: SEC Filings
“Over 400 million people now come to Reddit each week—because when you want real opinions, you turn to real people. 20 years in, I have never been more excited about Reddit's future than I am now. We're growing and building a more valuable platform for community and human perspective.”
— Steve Huffman, Q1 2025 Earnings Press Release
RDDT Earnings Trends
RDDT vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
RDDT EPS Trend
Earnings per share: estimate vs actual
RDDT Revenue Trend
Quarterly revenue: estimate vs actual
RDDT Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $1.01 | — | $663.4M | +8.79% |
| Q4 25 MISS FY | $1.45 | $1.24 | -14.48% | $725.6M | +8.59% |
| FY Full Year | $2.33 | $2.62 | +12.53% | $2.20B | +2.67% |
| Q3 25 BEAT | $0.52 | $0.80 | +53.79% | $584.9M | +6.44% |
| Q2 25 BEAT | $0.19 | $0.45 | +138.35% | $499.6M | +17.29% |
| Q1 25 BEAT | $0.01 | $0.13 | +870.15% | $392.4M | +6.14% |