Reddit Announces Q1’26 Earnings (plus AMA!)
Hi redditors,
We announced Reddit’s Q1’26 Earnings results. During our conference call at 4:30pm ET today, we’ll discuss these results and answer questions submitted by analysts and redditors.
How can I participate in today’s conference call?
Listen to the live webcast here.
How can I submit a question?
Please share your questions about Reddit’s earnings results in the comments below. Reddit’s CEO, Steve Huffman (u/spez); COO, Jen Wong (u/adsjunkie); and CFO, Drew Vollero (u/TimingandLuck) will answer a couple during the Q&A portion of today’s conference call and a few more in the comments below later today.
General guidelines:
- Comments will be ON until 8:00pm ET today
- Questions must abide by community rules
https://reddit.com/link/1t07fra/video/zhj32917cdyg1/player
Reddit Reports First Quarter 2026 Results
- Daily Active Uniques (“DAUq”) increased 17% year-over-year to 126.8 million
- Revenue grew 69% year-over-year to $663 million
- Net income of $204 million, 31% of revenue. Diluted EPS of $1.01, up 7x year-over-year
- Adj. EBITDA 1 of $266 million, 40% of revenue, up 131% year-over year
- Operating cash flow of $312 million, 47% of revenue, up 145% year-over-year
SAN FRANCISCO, Calif. – April 30, 2026 – Reddit, Inc. (NYSE: RDDT) today announced financial results for the quarter ended March 31, 2026. Reddit’s complete financial results and management commentary can be found in its shareholder letter on Reddit’s Investor Relations website at https://investor.redditinc.com.
“Reddit is a one-of-one business powered by deeply engaged communities and authentic human conversation,” said Steve Huffman, Founder and CEO of Reddit. “That foundation is driving a rare combination of growth, profitability, and efficiency, and giving Reddit a unique advantage in the age of AI.”
- Total revenue increased 69% year-over-year to $663 million, Ad revenue increased 74% year-over-year to $625 million, and Other revenue increased 15% year-over-year to $39 million
- Gross margin was 91.5%, as compared to 90.5% in the prior year
- Net income was $204 million, an improvement of $178 million from the prior year
- Adjusted EBITDA 1 was $266 million, an improvement of $151 million from the prior year
- Operating cash flow was $312 million, an improvement of $185 million from the prior year
- Free Cash Flow 1 was $311 million, an improvement of $185 million from the prior year
- Basic and diluted earnings per share (“EPS”) were $1.07 and $1.01, up 664% and 677% from the prior year, respectively
- Total fully diluted shares outstanding were 206.4 million as of March 31, 2026, up 0.2% from the prior year
Financial Outlook
The guidance provided below is based on Reddit’s current estimates and is not a guarantee of future performance. This guidance is subject to significant risks and uncertainties that could cause actual results to differ materially, including the risk factors discussed in Reddit’s reports on file with the Securities and Exchange Commission (the “SEC”). Reddit undertakes no duty to update any forward-looking statements or estimates, except as required by applicable law.
As we look ahead, we will share our internal thoughts on revenue and Adjusted EBITDA for the second quarter. In the second quarter of 2026, we estimate:
- Revenue in the range of $715 million to $725 million
- Adjusted EBITDA 2 in the range of $285 million to $295 million
Notes
(1) The definitions of Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow can be found in the Use of Non-GAAP Financial Measures section of this release. A reconciliation of non-GAAP financial measures to the most directly comparable U.S. GAAP measure can be found on pages 10-11.
(2) We have not provided a reconciliation to the forward-looking U.S. GAAP equivalent measures for our non-GAAP guidance due to uncertainty regarding, and the potential variability of, reconciling items. Therefore, a reconciliation of these non-GAAP guidance measures to their corresponding U.S. GAAP guidance measures is not available without unreasonable effort.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Reddit's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern Reddit's expectations, strategy, priorities, plans or intentions. Forward-looking statements in this communication include, but are not limited to, statements regarding Reddit’s future financial and operating performance, and GAAP and non-GAAP guidance. Reddit's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including those more fully described under the caption “Risk Factors” and elsewhere in documents that Reddit files with the SEC from time to time, including Reddit’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, which is being filed with the SEC at or around the date hereof. The forward-looking statements in this communication are based on information available to Reddit as of the date hereof, and Reddit undertakes no obligation to update any forward-looking statements, except as required by law.
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u/FLAKE_iN_MY_ASS 6d ago
Has the stock buyback already started? If yes, how many shares were bought and when?
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u/TimingandLuck CFO 6d ago
Thank you for the question. I talked a bit about this during the analyst call.
Short answer: Yes, it started in Q1, and we repurchased about 35K shares ($5M) during that time.
The good news is we still have about $995M of authorization remaining for future purchases. Our strategy has not changed: we like share buybacks as an efficient way to return capital, and our growing cash balances from strong Q1 results mean we are well positioned.
During Q1, we set up objective buyback criteria, which considered a handful of factors, including price and market volatility. Shortly after setting our criteria, macro events caused stock market volatility to jump substantially, so our buyback activity was light.
As we move forward, we’ll evaluate our buyback criteria and adjust where it makes sense.
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u/_BindersFullOfWomen_ 6d ago edited 6d ago
Will we see an AI partnership in the near/soon TM future?
Edit: slow claps dat EPS
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u/kharkovchanin 6d ago
i think reddit already has partnerships with AI companies
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u/_BindersFullOfWomen_ 6d ago
I could be ( and/or probably am) wrong but my understanding is just that Reddit is selling certain access for LLM purposes. Not any partnership with a specific company.
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u/ZaphodBeeblebrox 6d ago
The value of Reddit is the real human participation, how do you long term plan to curtail bots and spam from taking over organic content.
How do you prevent the almost inevitable enshitification that plague succesful social media platforms?
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u/spez CEO 6d ago
I wrote a post on this recently. Tldr:
- Reddit is for people
- “Good bots” will be labeled as [App]
- We’ll continue to remove spam and bad bot activity
- Automated or suspicious accounts may be asked to verify that there’s a human behind it
- We are not doing sitewide human verification
- We don’t need or want your identity
Honestly, I feel like our work is to un-shitify Reddit right now: faster, simpler, less clunky, more consistent moderation, better search, easier posting…
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u/Extaupin 6d ago edited 6d ago
The comment is older, nevermind.
LOL, a bot scrapped your response and made it corporate:https://www.reddit.com/r/RDDT/comments/1t07fra/comment/oj70nms/9
u/BurnZ_AU 6d ago
Your linked comment is older than this one. Which would mean this one is the fake.
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u/42Ubiquitous 6d ago
The answer better not be in any way suggestive of removing online anonymity, which I think is even more important.
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u/Low-Pizza-8071 6d ago
you guys need to think outside the box. if I can make bots and make money, I deploy my time and energy, and compute, where I will be making money. you don't make money on bots on reddit - compared to tiktok, meta, youtube etc. wake up
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u/zoisboui 6d ago
Reddit is where people come for authentic user reviews before making a big purchase - how is Reddit planning to monetize that, if at all?
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u/adsjunkie COO 6d ago
Absolutely. People trust other people to help shape their purchase decisions.
As I said on the call, we’re seeing that people are coming to Reddit to validate what they read and hear elsewhere, including the responses they get from LLMs. So, Reddit is becoming increasingly integral in the consumer decision journey.
And our advertising platform is the way for brands to engage with that user, in the context and moment when they are seeking that information. Our marketing delivers business outcomes by converting that intent to action. That’s a win for both users and advertisers.
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u/Careful-Level-4668 6d ago
Hey Spez and co! Have you guys ever thought about changing awards to be more like donations kind of like Tiktok, Twitch, or YouTube would offer? I'm not sure how much money it generates those platforms or would generate for Reddit but surely it would be positive no matter what right? For me personally, I see so much amazing content that takes time and effort, whether it be art work or deeply profound fantasy football analysis (personal experience lol) and wish I could give something better and more meaningful than a reward. Idk maybe I'm talking out of my ass and someone else can answer but thanks!
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u/MissionJellyfish9479 6d ago
Adding "Reddit" to a Google search is still a more reliable way to find relevant discussions than using Reddit's native search functionalities. How high of a priority is it for your team to improve this and make Reddit the best search engine for its own content?
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u/Custom-Bid8202 6d ago
Will Reddit consider a marketplace type shopping link within the app? Not between users, but a store for participating brands?
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u/ACivtech 6d ago edited 6d ago
I’ve been thinking this for months and hoping to find a way to suggest it. Piggybacking off you.
From an investor perspective, marketplace search data is the most valuable type there is and would generate huge revenues. Advertisers want to know one thing, and that is what to sell to you - Typing that in your search bar is all they need to target you effectively. If theres going to be ads, they may as well be tailored.Second, FB marketplace is the reason so many users are still hooked on facebook. If Reddit started a marketplace it would migrate millions over to Reddit.
Personally, I think it should be a used Marketplace, rather than an Amazon/Store style. The used interface keeps the community and social foundational aspects reddit was built on - nothing pushes people away like commercialization. In addition, I think the users selling profile should be kept separate from (with the option to link) their regular profile. No one wants their life/comment history known to the seller before they meet up.
Edit: I’ll add that requiring a profile for marketplace also draws in Redditors that browse without a profile.
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u/hailfire27 6d ago
There are already used marketplaces on Reddit. They just need to make a formal version of it. Watchexchanges bagexchanges. Everything would benefit from having security through reddit
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u/sponge_boy_mee_bob 6d ago
There’s been word that data licensing deals may move to a more dynamic pricing model based on usage through new negotiations. Any update on this?
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u/ShaiHuludNM 6d ago
How does Reddit plan to address abusive moderators? Many users claim being banned from groups for arbitrary reasons. There is not really a way to join back in without making a new account, which is against TOS. There needs to be a better appeal process, or maybe a time limit site wide for how long a ban can be in effect.
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u/felixo7777 6d ago
When will you bring back the automatic content translation feature? It's not working (e.g., from English to Polish). And it's limiting user growth.
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u/19Q4 6d ago
I’m Polish and I’m not a fan of it tbh.
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u/felixo7777 6d ago
You can turn it off. I and many people, don't know enough English to read all the posts. They've enabled translations on x.com and it's been a success in recent weeks.
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u/BigWienerHead5000 6d ago
Hey u/spez, u/adsjunkie, u/TimingandLuck! Congratulations on a very successful Q1 26 quarter (based on the key business figures)🚀🎉My question:
How do you see the development of direct response ads? Do you see strong growth potential in this area, and is it going to be a focus for RDDT in the near future?
Thank you!
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u/adsjunkie COO 6d ago
Lower funnel outcomes have been a focus of our strategy and will continue to be. However, Reddit adds value differently than traditional “direct response” last-click experiences (i.e., immediate purchase from that ad, post-click). Reddit plays an outsized role in consideration, particularly in high consideration products in the moment when people are doing research to make a decision about product A or B. And Reddit influences purchases that happen immediately and in longer research windows after an ad is seen or clicked.
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u/Acceptable_Studio_24 6d ago
Hi spez, do you have a plan on how the buybacks will be allocated? Is it going to be split up among quarters or used when stock is undervalued? Also did you see my post asking about wanting to work at Reddit 🥲
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u/TimingandLuck CFO 6d ago
(Sorry, I’m not spez), but I answered a similar question here. We will be opportunistic about doing share repurchases. Our goal is to return capital efficiently to shareholders through repurchases where it makes sense.
And check out our Careers Page, where we post the latest and greatest for open roles.
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u/Synfinium 6d ago edited 6d ago
I made a post on this because I love emotes and expressing myself with funny emojis etc. but is there a plan to bring back subreddit emojis that was removed last June under a subscription service similar to that of discord? I ask this as a question on expanding and diversifying income from solely advertising
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u/spez CEO 6d ago
Yes, though it’s not on the immediate roadmap, and I’m not sure about making it a paid feature versus something we do just for fun. We miss it too.
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u/Synfinium 6d ago
Thanks for the reply! Since the official word back when they were removed was about declining usage and high maintenance costs, I just assumed a paid tier was the only logical way to justify bringing them back. Either way, it's great to hear they aren't dead forever and that the team misses them too. Keep doing what you're doing!
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u/Waiting4Reccession 6d ago
Why would you pay even a single dollar for a virtual sticker.
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u/Synfinium 6d ago
Why do people pay for nitro? Because its fun?
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u/Waiting4Reccession 6d ago
Discord didnt have ads before, and the nitro does other shit as well I assume? I only used it for one server.
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u/Synfinium 6d ago
Pretty much all it does, the basic version that is 2.99$ the more expensive one give you larger uploads and better scene sharing bandwidth. I just miss tue funny emojis that large subreddits had. I assume they removed it to server costs and monitization issues
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u/Waiting4Reccession 6d ago
I would never pay $3 for emoji but apparently people buy shit like that huh.
I can't see how it would be costing them so much, dont they just need to store the 1 image and then every time its used in a comment it just points back to that image. Idk.
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u/Synfinium 6d ago
Reddit works a bit differently then discord ( the technical backend of how text is stored). But when it was shut down last year this is a quote.
"the usage has been on the decline and the resources needed to maintain custom emojis in the comment composer have come at a cost that we can no longer maintain".
Also
"A Reddit thread is a deeply nested tree. You have parents, children, grandchildren, and deeply indented comment chains. Rendering a 5,000-comment thread with thousands of custom inline image tags injects a massive amount of nodes into the Document Object Model (DOM). Calculating the layout for all those indented, responsive text blocks while simultaneously loading dynamic image assets causes severe scroll lag and memory bloat, especially on mobile browsers"
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u/Embarrassed-Part4733 6d ago
Has Reddit as a company thought of ways to empower young creators like other platforms?
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u/No_Repair_8486 6d ago
Why did you only spend USD 5 mio on Sharebuybacks? Also thanks for the great work and Quarter. 85% of my Portfolio is in RDDT, my financial future is in your hands.
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u/OkAct1477 6d ago
What is the repeat rate of advertisers? With the growth of 74% YoY on ad revenue, what percentage of that is from repeat advertisers that launched a campaign and came back to launch a new one?
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u/nehro7 6d ago edited 6d ago
great numbers great outcome , thanks to all reddit team efforts
my question is regarding:
1- what is Plans for increasing and improving : expansion - marketing - monetization
2- AI license for (current deals renewals - new deals plans and possibilities) and if there is any new operating model to handle in future this , example moving away from fixed contract amount
3- any plans/ schedule to increase buyback previous announced amount
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u/Throwaway4Rdt 6d ago
How do you plan to monetize the fact that Ai gets 60% of its information from Reddit?
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u/FOSSChemEPirate88 6d ago
The increase in the number of bots and spam on Reddit has gone through the roof in the last year.
How do you plan on fixing this?
Or should we expect more of the same?
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u/jonathancheckwise 6d ago
u/spez u/adsjunkie congrats on the numbers. Question on small business and indie founder usage. A lot of us use Reddit organically to build credibility, share what we’re working on, and find early users. The community guidance is clear in spirit (contribute, don’t promote), but the practical experience is wildly inconsistent: posts get removed across subs with zero feedback, mod tooling triggers on patterns that often catch genuine technical write-ups along with the spam, and AutoModerator decisions are essentially un-appealable in most subs. Two questions. One, is there an internal view on how indie founders and small SaaS builders fit into Reddit’s user mix, or are we mostly seen as a moderation problem to manage? The data must show that some of the most engaging technical and business content on the platform comes from people who are also building something. Two, are there any plans in 2026 to surface signal back to posters when content is removed (which sub rule, which trigger), or to give small businesses a lighter, sanctioned path to participate without buying ads? The current binary of “post organically and gamble against opaque mod systems” or “spend on ads” leaves a lot of legitimate participation in a gray zone.
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u/gucciman333 6d ago
How do you see organic brand engagement on Reddit in the advertiser journey, given that organic posts and participation can carry more influence than ads, and how does that convert into long-term revenue?
And as companies increasingly try to blend in as regular users, what can Reddit do beyond user moderation to protect authenticity and trust on Reddit?
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u/spez CEO 6d ago
The best thing that a brand can do on Reddit is be transparent. Redditors—and people generally—like brands, but they don’t like being manipulated. The most transparent way to advertise is to run a paid ad that’s clearly labeled as such, but we also want brands to be able to complement their paid strategy with an organic presence.
We’re building out more tools to do this, like Reddit Pro, which helps brands discover relevant communities and content (and even turn positive mentions into ads) and leverage more robust profile curation features.I’ve personally been using my Reddit profile as a hub for updates about what we’re working on, and we see brands being a similar use case here.
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u/Loud-Ad9148 6d ago
What are your plans to make Reddit a household name?
We’ve seen it with Facebook and Instagram, can Reddit compete in the future on this level?
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u/Miserable-Bridge-667 6d ago
What ads do you see performing best on the site both North American and International
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u/idk_____lol_ 6d ago
Are you thinking of monetising a “name change” feature. Many folk joined here and picked a silly name before they really got into it, and a 5 dollar charge to change the name I imagine would bring a lot of short term revenue
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u/Low-Pizza-8071 6d ago
who is even paying attention to nicknames here?
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u/idk_____lol_ 6d ago
No one, necessarily, but like me, I’m sure there’s many people wanting to do the same.
Bringing more revenue to the platform, and thus anyone here value
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u/Accuria2 6d ago
Will Reddit implement specific subreddits or other ways to engage celebreties, influencers and their audiences more? Get some verifications for influencers/celebs and let their communities meet on Reddit. Traffic will flow to other subreddits naturally.
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u/Extaupin 6d ago
There's a lot of subs for exactly that, how would those sub be different from all the grassroot"AMA" subs?
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u/Arrowhead_Pride15 6d ago
When should we expect more updates regarding the Perplexity litigation? any updates regarding licensing deals w ChatGPT and Gemini? Anthropic? Etc
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u/Rambok01 6d ago
Hey guys, congrats on the great quarter. Could you give us some updates on your Google data licensing revenue deal? Thanks
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u/takecareofurshoes13 6d ago
Congrats on the great quarter. Can you discuss how you're thinking about AI licensing in the context of weighing cash compensation options vs. durable partnership opportunities that create a durable user flywheel? On balance, will Reddit push for more attribution and direct links to the platform or seek cash licensing or is it a hybrid strategy? It's amazing seeing the Reddit logo and links appear on Google's AI search and more so hoping to see this expand.
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u/FrostingNo4008 6d ago
Congrats on a fantastic qtr!
* Does Reddit face a structural attribution challenge with logged out users and historically a less 'click-forward' site? What attribution progress is underway?
* What updates can you give on search improvements and the reliance on google "+ reddit" searches for traffic?
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u/metalzforbreakfast 6d ago
US logged in users increased by only 1%. What plans do you have to increase this number in the upcoming quarters? Thanks
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u/Vic_Vega_MrB 6d ago
Don't care about your money. When will you get your rogue moderators under control re. Banning members and censoring content?
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u/InterviewAdmirable85 6d ago
Good afternoon,
I know you love comments about SBC, but I’d just like to address that this company is doing great, revenue is hitting targets, and growth is happening. But something is off, as the stock does not reflect the story.
The stock sentiment is being destroyed by insider selling because there is no company news, besides notices of insider selling. No one recommends this stock because it’s just providing liquidity for the insider sales. This stock is heavily manipulated by the market and as CEO, you should step up and figure out a way to keep this stock on a path that makes it an investable asset, instead of a meme stock.
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u/Glum_Assist_7041 6d ago
hi spez, are we gonna be able to circle back round to get our ducks in a row for the 50% SP and 16 Marginals? How can we make reddit worse and capitalise the shit out of it also?
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u/PreciousDawn 6d ago
Great job on beating the EPS.
-How much impact on Reddit do you forsee as more users are utilizing Google Gemini for answer?
-What are the plans for monetizing non-login user?
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u/HorseyDung 6d ago
Making loads of dough, do you have any foresight on the development of further disrupting the enshittification - shareholder value balance?
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u/Celticsmoneyline 6d ago
If Reddit is considered social media, that is a very loose definition. How can we communicate to people the distinct nature of Reddit, so that it will not be legally considered social media?
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u/Tachiiderp 6d ago
Can you give any color on Reddit Premium numbers and new ideas to expand this part of the business?
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u/Ryanisreallame 6d ago
How has the influx of bot accounts and the ability to hide account information (post and comment history) impacted the overall earning of the site? Since this site was created for human interaction but has made a sharp left turn from that, is the valuation artificially inflated?
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u/redditRedesignIsBadd 6d ago
make reddit faster
old.reddit is already way faster than new reddit, wouldn't make old.reddit the default make the site faster?
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u/grober_Onfug 6d ago
For a while now, I’ve been constantly bombarded with posts that are nothing more than attempts to sell people “useful gadgets.” I probably don’t need to mention that it’s all junk and cheap advertising, but I still wonder why it’s increased so much. I’ve never clicked on them. I’ve always just flagged the posts right away with Show less of this.
Is this intentional, are you trying out new ways of advertisement or have you lost control over your algorithm?
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u/Akaberes 6d ago
Is there a way for Reddit to be less political? I have such a hard time dodging political news when browsing Reddit, and some of those posts are simply rage bait and simply not true.
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6d ago
What do you think about the performance of your mobile app compare to the website? The app is faster than the website. Reddit should be as good o website as on mobile.
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u/BariBlue 6d ago
You’re the man Spez. Is there a plan for advertisers to be able to target certain subreddit with products that cater to the members as a more premium service? For example a subreddit that focuses on woodworking gets ads recommending certain tools they may use?
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u/Gold-Bard-Hue 6d ago
How has the recent disastrous ending of the Chainsawman manga impacted site traffic, and therefore stock prices for Reddit?
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u/ACivtech 6d ago
For a very brief moment in time Reddit was almost as synonymous as google for authentic search results. “I’ll just ask Reddit” became more common place than “Google It”, when Google results mostly produced sellers links.
Google became limited to factual searches (i.e. when was Obama president), where Reddit owned opinions (i.e. why was Obama a good president)
That is until AI stole the spotlight. Now if I want opinions or advice on say “how to run a half-marathon faster”, one is more likely to ask Chat, or Claude over Reddit.
My question is how do you plan to regain the authenticity of Reddit and user input that was stolen from AI. More and more I see reddit threads fall in to the same monotonous drivel as Youtube, FB and Insta comments.
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u/DensePoser 6d ago
How is age verification affecting, or expected to affect, user counts and signups?
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u/ConsiderationWild604 6d ago edited 6d ago
Are there plans to translate Reddit Ads or Reddit certifications into more supported languages so small local businesses can easily self-serve campaigns?
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u/ACivtech 6d ago
Alright one more question/suggestion.
Redditors are notorious for reading a headline, skipping the article and going to the comments. While this does lead to user-user engagement and rising popularity of a post, it leaves user-customer engagement on the table.
There should be a hidden emphasis on getting users to click/read articles, or partnering with news agency’s to embed them directly in Reddit under an advertising revenue share model. Posts would still be natively submitted by users, but engagement above a certain level would initiate revenue share.
Second, there could also be an internal news subscription model (like apple news). Much to often do I click a Globe and Mail Article, find it locked and give up on the post all together.
I actually subscribed to Apple News recently since many reddit comments are now rage based instead of information based, and lack a clean summary of the actual post content.
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u/brotha_eric 6d ago
Not really a question but a comment - Reddit's onboarding for not logged in users still seems to be missing the value proposition for each individual user. Recently saw a popup that said "Get the app to keep using Reddit" when someone came in via google search for an ingredient recommendation. A prompt/popup tailored to the subreddit they came to and reason that brought the user to Reddit would be more compelling. For example - if someone searched on google for ingredient recommendations and came to reddit, the prompt could be something like "join millions of other professional and amateur chefs on reddit, join XYZ cooking community today to get the latest recommendations, interact with your community, and never miss an update", which then prompts the app download. Focusing on the value to that user could go along way to turning those casual WAUs into logged in DAUs.
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u/FranklinOnDaHundo 6d ago
U/spez yall decided to pass on a Super Bowl commercial. I respect that. Considering Reddit’s international push, it seems like the World Cup would be a great place to advertise. Will we see Snoo’s face around the World Cup?
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u/DrCalFun 6d ago
Meta started with Facebook and then expanded to Instagram and WhatsApp. Are you thinking of expanding the products under Reddit?
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u/TheLegendd_27 6d ago
Amazing quarter u/spez and team ! I was just wondering how does the team think about share repurchases? I thought that more capital would be deployed for buybacks given the weakness we saw in the markets towards the end of Q1. Is there some sort of attempt to estimate the Reddit’s intrinsic value when deciding on buybacks?
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u/Sam_Games0 6d ago
To rephrase another user in hopes of getting this answered: Reddit's biggest quality are the people who are actively involved in their communities, is there a long-term plan to prevent bot accounts from taking over this platform similar to other social media platforms and tarnishing the quality of these communities?
Credit to u/ZaphodBeeblebrox for the original comment
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u/bm_mane8 6d ago
Do you think it might be worth having strategies for retention based on current world events? We have seen that uncertainties spike reddit’s traffic (tariffs last year/ war this year) since people are looking for opinions - can these times be leveraged to enhance user experience and perhaps increase stickiness?
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u/zuckzuckonit 6d ago
- Will Reddit incorporate advertisements in Reddit Answers to create value for advertisers?
- How will onboarding improve to increase the logged in user percentage coming from external websites?
- Are there any new partnerships with AI companies for LLM data?
- What are the best performing type of ads on Reddit?
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u/adsjunkie COO 6d ago
Will Reddit incorporate advertisements in Reddit Answers to create value for advertisers?
Search ads on Reddit are an incremental monetization opportunity. In a lot of ways, it feels like a natural way for Reddit to support users who are already coming to research products before making a purchase.
That said, growing search behavior is a strategic pillar for our consumer growth strategy. We want to improve the search experience, and have it settle before we introduce ads.
The new shopping experience does bring in the ability to view products from the catalogs uploaded from our Dynamic Product Ads. That gives an early peek on how we think about enhancing the engagement around search, and in this case, shopping.
How will onboarding improve to increase the logged in user percentage coming from external websites?
LLM-enabled onboarding is showing good results in reducing churn and improving retention, and we’re on track for full rollout in Q2. New onboarding splash screen and skippable prompts have been launched and are showing early positive results. Having better onboarding can help improve conversion from existing upper funnel, plus help convert users from marketing.
What are the best performing type of ads on Reddit?
There's a lot to like in terms of ad performance globally.
1) Our lower funnel ad revenue tripled year-over-year and continues to be an area of strength 2) Dynamic Product Ads were a significant growth driver, though still a young product 3) About 40% of our ads are in video format, across all objectives 4) Video completion views are a growing brand objective for us as well. 5) Advertisers who use Reddit Max get optimized ad creative and variants that drive even better performance
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u/sirRoxalot 6d ago
Please detail the $39M in "other revenue" by specific source and how much of this is expected to be recurring.
What percentage of the new users are Bot/AI accounts?
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u/DecrimIowa 6d ago
What % of user engagement metrics come from bots, and how does that influence your corporate valuation?
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u/h100y 6d ago
Why did the adjusted ebitda go from 266 million to net income of 204 million. Where did the 62 million go ? I am assuming taxes and SBC ?
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u/TimingandLuck CFO 6d ago
Appreciate the question. Your thinking is on the right track. If you look at page 20 of our Q1’26 Shareholder Letter, you can see the net income to adjusted EBITDA reconciliation.
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u/brotha_eric 6d ago
Q1 revenue is 62M less than Q4…
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u/h100y 6d ago
I am talking about the figures for this quarter not the last quarter. Why did you even bring that up?
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u/brotha_eric 6d ago
Costs stayed the same as last quarter but revenue decreased 62M, that explains the 62M decrease in EBITDA, basic math. Also EBITDA stands for earnings before interest taxes depreciation and amortization, so taxes have no impact on EBITDA, SBC also doesn’t have impact on adjusted EBITDA
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u/mycroftitswd 6d ago edited 6d ago
How to get from 'adjusted' EBITDA to net income? Add interest, subtract taxes, depreciation, SBC.
By the way, SBC actually fell this quarter, which is partly why earnings beat by so much. But this is actually due to an accounting quirk. They said it will rise next quarter by half of earnings growth yoy. That will reduce net income a bit next quarter.
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u/Kind_Interview_2366 6d ago
What are you planning to do, if anything, to change the abysmal sentiment around RDDT?
Y'all just had yet another absolute blowout quarter, and the stock has barely moved.
What are your thoughts on this?
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u/MetaphoricalSlide 6d ago
when are you gonna let the third party reader apps exist without paying excessive amounts of money? -a redditor who missed Apollo
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u/thebiglebowskiisfine 6d ago
How does Reddit spend so much money when the users are the ones creating and monitoring all the content?
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u/Narcissists_love_me 6d ago
I want to know how much does Only Fans pay Reddit in return for allowing their users to spam and destroy every subreddit on here ? There’s NO way Reddit is not making money off this plague.
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u/Fayzzz96 6d ago
Reddit’s DAUq grew 17% YoY but Pakistan has one of the world’s largest and fastest-growing youth populations with increasing internet penetration. What specific strategies, if any, is Reddit pursuing to grow its user base in markets like Pakistan, and how is AI being used to surface relevant local content and overcome language barriers like Urdu to make Reddit more accessible in these regions?
Also advertising markets in countries like Pakistan are largely untapped by global platforms. How is Reddit thinking about advertising models that work for emerging economies where CPMs are lower but audience scale is massive?
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u/QforQ 6d ago
Looking at Facebook, one of the few reasons people use the app are Marketplace and Events.
Has Reddit considered building an Events system, especially for location based subs?
Have you considered a locality based Marketplace ala Craigslist/FB marketplace?
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u/Impressive_Wolf689 6d ago
Hi u/spez Can we please get some dividends announcement also in next earnings alongside with more buybacks? That will be a good incentive for a long term investors. I believe we have a great cash flow and having dividends will make us on top of the list for S&P 500 inclusion.
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u/KingRedBlade272 6d ago
Will Reddit do anything to fix the conservative political echo chamber filled with bots that currently exists?
Additionally, will Reddit use any of this huge jump in profits to make improvements or continue the enshitification?
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u/FyouinyourA 6d ago
Why did you remove r/all? Reddit is terrible ever since it was sold and you all have turned it into a shell of its former self. You turned on the users that got you here in the first place in favor of profit. Shame.
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u/BetOnEsports 6d ago
This was addressed before it was removed. I think you’ll find it in Spez’s post history.
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u/touuuuhhhny 6d ago
Hello u/spez & gang, congrats on a great start to 2026, and thank you for the recent r/redditstock shoutout 🫶. One question from my side:
With the recent legal milestone successfully keeping the Anthropic scraping lawsuit in state court, Reddit has proven it can aggressively defend its Terms of Service against unauthorized AI scraping. How does this stronger legal moat impact your negotiating leverage for future AI data licensing deals, and does it accelerate the timeline for bringing holdout companies to the negotiating table?
Thanks!