Loading...
•
Mar 31
Reddit Inc Q1 2025 Earnings Report
Reddit posted strong first-quarter results with its first GAAP profit since going public, fueled by a 61% revenue increase and substantial user growth.
Key Takeaways
Reddit delivered robust Q1 2025 results, achieving $392.4M in revenue and $26.2M in net income. The platform saw significant expansion in both advertising revenue and global engagement, with daily active users reaching 108.1M and a gross margin of 90.5%.
Revenue rose 61% year-over-year to $392.4M, driven by strength in advertising.
Net income reached $26.2M, reversing a $575M loss in the prior year.
Daily active users hit 108.1M, up 31% year-over-year.
Free cash flow was $126.6M, reflecting strong operational efficiency.
Reddit Inc
Reddit Inc
Reddit Inc Revenue by Segment
Reddit Inc Revenue by Geographic Location
Revenue by Segment
Advertising Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comRest of World Revenue
CapyFin.com Forward Guidance
For Q2 2025, Reddit expects revenue between $410M and $430M and Adjusted EBITDA between $110M and $130M.
Positive Outlook
- Strong revenue guidance of up to $430M
- Continued margin expansion expected
- Adjusted EBITDA forecast suggests sustained profitability
- Robust user engagement momentum
- Platform investment continues to scale efficiently
Challenges Ahead
- No GAAP EPS guidance provided
- Wider guidance range introduces forecasting uncertainty
- Ad market trends may introduce volatility
- International growth comps getting tougher
- Potential increase in R&D and content moderation costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income