Key Takeaways
- RDDT shares have declined 36% year-to-date in 2026, putting pressure on Thursday’s Q1 earnings release.
- Wall Street consensus calls for Q1 revenue of $608 million with adjusted earnings per share of $0.57.
- Ad revenue projections show a robust 58% year-over-year increase to $567 million.
- Daily active user expansion is anticipated to decelerate to 16% from the prior year’s 30.7% pace.
- Analyst consensus price target of $223.34 suggests significant upside from current trading levels near $148.40.
Reddit approaches its Thursday earnings release under considerable pressure from investors. The social media platform’s shares have tumbled 36% during 2026, despite maintaining impressive gains of approximately 326% since its March 2024 initial public offering at $34 per share.
The first quarter results are scheduled for release after market close on Thursday. Analyst consensus estimates point to adjusted earnings of $0.57 per share on total revenue of $608 million, based on FactSet data.
The platform exceeded expectations in its previous quarterly report, delivering revenue of $725.6 million — representing 69.7% year-over-year growth — alongside better-than-anticipated EBITDA performance. This strong showing raises expectations for the upcoming release.
For the current quarter, market watchers anticipate revenue expansion of approximately 55% compared to the year-ago period. This represents a moderation from the 61.5% growth rate Reddit achieved during Q1 of the previous year.
Daily active user metrics are drawing particular scrutiny from analysts. The company disclosed 52.5 million DAUs in its most recent quarter, reflecting 9.4% year-over-year growth. First quarter projections call for global DAU growth of 16% — marking a notable deceleration from the 30.7% expansion recorded in the comparable quarter last year.
This slowdown has sparked concern among market participants, especially as artificial intelligence-driven platforms including ChatGPT, Google AI Overviews, and similar services provide alternative pathways for users to access information without engaging directly with the platform.
Ad Revenue Projections Remain Strong
The advertising segment presents a brighter outlook. Analysts project Q1 advertising revenue of $567 million, representing a 58% surge compared to the year-ago quarter.
Jefferies analyst John Colantuoni, who maintains a Buy rating with a $250 price target on RDDT, observed in mid-April that discussions with advertisers indicated “resilient digital budgets” and “particularly strong trends” specific to Reddit’s platform.
The company is marketing itself as an irreplaceable resource that artificial intelligence cannot easily duplicate — a platform grounded in authentic human perspectives and community dialogue. This forms the foundation of the bullish investment thesis.
D.A. Davidson analyst Wyatt Swanson reinforced this perspective on April 21, stating that Reddit “remains incredibly under-monetized relative to peers” and has successfully established itself as a “human-first social platform.” He assigns a Buy rating with a $200 price target.
Industry Comparisons
Recent earnings results from comparable consumer internet companies provide useful context. Booking delivered 16.2% revenue growth in Q1, meeting analyst projections. Coursera reported 9.1% growth and experienced an 11.6% stock decline following its release.
Reddit has consistently surpassed Wall Street forecasts, and analysts have maintained relatively stable estimates over the past 30 days — suggesting confidence that no major deviations are anticipated.
During the past month, consumer internet equities have advanced an average of 16.2%. Reddit shares have climbed 19.5% over the same timeframe, indicating the market may have already incorporated some positive expectations ahead of the earnings announcement.
The consensus analyst price target of $223.34 implies approximately 50% potential upside from current trading levels around $148.40.
