Reddit Inc. 8-K
PositiveEarningsNew guidance
Advertising gains and expanding user activity drive growth; the board authorizes up to $1B in Class A share repurchases.
Filed 2026-02-05 16:10 ET
- 2.02 Results of Operations
- 8.01 Other Events
- 9.01 Financial Statements and Exhibits
Summary
Q4 and FY2025 results with Q1 2026 guidance and a new share repurchase authorization. Revenue growth was driven by advertising and expanding user activity; the board authorized up to $1 billion in Class A share repurchases.
Key Figures
| Metric | Q4 2025 | Q4 2024 | Y/Y |
|---|---|---|---|
| Revenue | $726M | $428M | 70% |
| Operating income | $232M | $52.9M | 339% |
| Net income | $252M | $71.0M | 254% |
| Adjusted EBITDA, non-GAAP | $327M | $154M | 112% |
| Diluted EPS | $1.24 | $0.36 | 244% |
| Operating cash flow | $267M | $90.0M | 196% |
| Free cash flow, non-GAAP | $264M | $89.2M | 196% |
| Metric | FY2025 | FY2024 | Y/Y |
|---|---|---|---|
| Revenue | $2.20B | $1.30B | 69% |
| Operating income | $442M | $(561)M | n/m |
| Net income | $530M | $(484)M | n/m |
| Adjusted EBITDA, non-GAAP | $845M | $298M | 184% |
| Diluted EPS | $2.62 | $(3.33) | n/m |
| Operating cash flow | $691M | $222M | 211% |
| Free cash flow, non-GAAP | $684M | $216M | 217% |
- Q4 advertising revenue rose 75% to $690M, while other revenue increased 8% to $36M. Daily active uniques grew 19% to 121.4M and weekly active uniques rose 24% to 471.6M; global average revenue per unique increased 42% to $5.98.
- Gross margin was 91.9% in Q4, down 70 bp Y/Y, and 91.2% for FY2025, up 70 bp. Adjusted EBITDA margin was 45.1% in Q4 vs 36.1% and 38.4% for FY2025 vs 22.9%.
- Cash, cash equivalents and marketable securities totaled $2.48B at year-end. Fully diluted shares were 206.1M, flat Q/Q and down from 206.2M a year earlier. The board authorized repurchases of up to $1B of Class A common stock; the program has no expiration date and may be suspended or discontinued at Reddit’s discretion.
Guidance
Q1 outlook follows 70% Q4 revenue growth; Reddit did not provide a GAAP reconciliation for its non-GAAP Adjusted EBITDA guidance.
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue | Q1 2026 | $595M-$605M | — | — |
| Adjusted EBITDA, non-GAAP | Q1 2026 | $210M-$220M | — | — |
Investor Takeaways
- Q1 2026 revenue and Adjusted EBITDA results vs their guided ranges will show whether recent growth and profitability carry forward.
- Reddit plans to phase out logged-in and logged-out user reporting later in 2026; follow its remaining user metrics for continuity on engagement trends.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3