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Reddit: What’s Powering the Next Wave of User Growth, Ad Dollars, and Global Expansion?

Reddit, Inc. reported a strong start to 2026 with its first quarter revenue reaching $663 million, a 69% increase year-over-year, marking the seventh consecutive quarter of over 60% revenue growth. Advertising revenue, which represents the majority of total revenue, grew 74% to $625 million, supported by broad-based strength across retail, consumer packaged goods, technology, and media sectors. The company’s average revenue per user rose 44% to $5.23, driven by both increased impressions and improved pricing dynamics, reflecting investments in machine learning for signal optimization and new ad formats. Over 75% annual growth in active advertisers was noted, indicating growing market adoption of Reddit’s ad platform. Reddit maintains industry-leading gross margins above 90% and reported an adjusted EBITDA margin of 40%, up nearly 11 percentage points from the prior year. Net income per diluted share increased more than sevenfold to $1.