Filing Flows › Reddit (RDDT) › Q1 2025
Reddit (RDDT) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 2, 2025
Reddit (RDDT) reported revenue of $392M for the first quarter 2025 (Q1 2025), +61% from a year earlier and -8% from the quarter before. Operating margin was 1.0%, net earnings $26.2M (6.7% of revenue).
Reddit, Q1 2025: revenue $392M (+62% year over year), operating margin 1.0%, net earnings $26.2M, operating cash flow $128M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $392M | -8% | +61% |
| Operating profit | $3.9M | -93% | — |
| Net earnings | $26.2M | -63% | — |
| Operating cash flow | $128M | +42% | +298% |
| Free cash flow | $127M | — | +333% |
What changed
Revenue was $392.4M in Q1 2025, up 61% year over year and down 8% from the previous quarter. Advertising revenue was the largest line at 91% of revenue. Advertising revenue added $135.9M year over year (up 61%), 91% of the total change.
Operating profit was $3.9M, a 1.0% margin (up 243.5 points year over year). Total costs fell 53% while revenue rose 61%. The fastest-growing cost line was Cost of revenue (+34%). Net earnings were $26.2M. The effective tax rate was -7.0%. Non-operating items added $20.5M, 84% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $127.6M (up 298% year over year), 488% of net earnings. Non-cash charges added back $4.0M of depreciation and amortization and $85.4M of share-based compensation. Working capital and other items added $12.0M. After purchases of property and equipment ($1.0M), free cash flow as the company reports it was $126.6M.
Questions
What was Reddit's revenue in the first quarter 2025?
Reddit (RDDT) reported revenue of $392M for the first quarter 2025 (Q1 2025), +61% from a year earlier and -8% from the quarter before.
Was Reddit profitable in the first quarter 2025?
Operating profit was $3.9M (1.0% of revenue) and net earnings $26.2M.
Source: Reddit 10-Q on SEC EDGAR.