Live: Will Reddit (RDDT) Rally After Earnings Today?

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How Reddit Stock Performed After Recent Earnings

12:30 pm

Reddit shares have traded lower after two of the last four earnings calls, despite strong revenue growth and positive surprises. The most favorable stock response came after Q4 results, suggesting investors are still calibrating expectations.

Quarter	1-Day Move	7-Day Move	14-Day Move
Q2 2025	–5.3%	–9.6%	–15.0%
Q1 2025	–1.6%	–4.3%	–7.1%
Q4 2024	+5.3%	+8.5%	+10.8%
Q3 2024	+2.1%	+3.4%	+5.0%

Here’s What Wall Street Expects from Reddit Tonight

10:26 am

Now that we’ve looked back at Reddit’s first quarter, let’s take a look at Wall Street’s expectations for tonight.

Wall Street Q2 Consensus Estimates for Reddit

Here are the key figures to watch tonight when Reddit reports:

• Revenue: $426 million
• EPS (GAAP): $.19
• Adjusted EPS: $.69
• Free Cash Flow: $123.3 million

And Wall Street will also be closely watching Reddit’s guidance. Here’s what the Street currently expects in Q3

• Revenue: $473 million
• EPS (GAAP): $.33

The company will release revenue and adjusted EBITDA guidance, but Wall Street will use EBITDA to back into other figures like net income.

Reddit (Nasdaq: RDDT) shares are ripping after AI stocks issued blowout earnings last night. Both Meta and Microsoft issued earnings that were significantly ahead of expectations and pointed toward demand for AI being significantly higher than expectations in 2026. 

Is it Reddit’s turn to issue stellar earnings next? The market seems to think so with shares gaining 6% in early trading today. 

We’ll be hosting a live blog with news and analysis the moment Reddit’s earnings go live. All you have to do is leave this article open and new updates will automatically post. After Reddit reports we expect to have a flurry of updates with news and analysis on their second quarter. 

With that said, let’s look back at Reddit’s Q1 performance. 

What Reddit Reported in the First Quarter 

Reddit last reported earnings on May 1st. Shares didn’t have a huge reaction the next day but are up 37% since. 

RDDT | Reddit Q1’25 Earnings Highlights:

• Diluted EPS: $0.13 []; UP +100% YoY
• Revenue: $392.4B []; UP +61% YoY
• Adj. Gross Margin: 90.5% []; UP +190 bps YoY
• Net Income: $26.2M []; UP +104.6% YoY

Outlook:

• Revenue: $410M to $430M []
  • Reddit anticipates continued growth driven by increased advertising demand and user engagement.
  • Management expects to maintain strong revenue momentum as the platform evolves and expands its offerings.
• Adjusted EBITDA: $110M to $130M []

Q1 Segment Performance:

• U.S. Revenue: $313.9M []; UP +57% YoY
• International Revenue: $78.5M []; UP +82% YoY

Other Key Q1 Metrics:

• Adj. Operating Income: $3.9M []; UP +100% YoY
• Adj. Operating Expenses: $388.5M []; DOWN -53.4% YoY
• R&D Expenses: $191.3M []; DOWN -56.3% YoY
• Free Cash Flow: $126.6M; UP +332.5% YoY
• Cash, Cash Equivalents, and Marketable Securities: $1,951.1M

CEO Commentary:

• Steve Huffman: “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.”

Strategic Updates:

• Reddit continues to enhance its platform to foster community engagement and increase user retention, focusing on innovative advertising solutions to drive revenue growth.

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