Reddit (NYSE: RDDT) reported its first full first-quarter results since going public in March 2024, posting quarterly revenue of $392.4 million in Q1 2025, up 61% from $243.0 million a year earlier.
Ad revenue accounted for $358.6 million (+61% YoY), while other revenue grew 66% to $33.7 million. US market contribution rose 57% to $313.9 million; international revenue jumped 82% to $78.5 million.
Reddit posted net income of $26.2 million (or $0.14 per share), reversing a net loss of $575.1 million (or $8.19 loss per share) in Q1 2024. But this swing was powered in part by a major reduction in stock-based compensation: down to $107.4 million from $595.5 million last year. Even at reduced levels, stock comp made up over 27% of revenue.
Shares of Reddit surged 6.49% in after-hours trading following the earnings release. At one point, the stock gained nearly 19% post-earnings, driven by its first recorded quarterly profit and strong user monetization.
Adjusted EBITDA reached $115.3 million, compared to just $10.0 million a year earlier. Margin also expanded to 29.4% from 4.1%.
Operating cash flow jumped nearly 4x YoY to $127.6 million from $32.1 million. Free cash flow landed at $126.6 million, with capital expenditures of just $1.0 million—less than 0.3% of revenue, and up from last year’s $29.2 million. Cash, equivalents, and securities totaled $1.95 billion, up from $1.84 billion sequentially.
Global daily active users with content quality signal rose 31% YoY to 108.1 million. Logged-in DAUs increased 23%, while logged-out DAUs rose 38%. International growth outpaced domestic across all metrics.
Global average revenue per user rose 23% YoY to $3.63. US ARPU surged to $6.27 (+31%), while international ARPU improved to $1.34 (+22%).
For Q2 2025, Reddit projects revenue between $410 million and $430 million, implying 4.5–9.6% sequential growth. Adjusted EBITDA is expected to land between $110 million and $130 million, slightly down on a midpoint basis.
Reddit last traded at $118.79 on the NYSE.
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