Reddit Shares Are Rallying After Hours On 244% Jump In Q4 Profit

• The company announced that its Board of Directors authorized a repurchase program of up to $1 billion of Class A common stock.
• The company expects Q1 2026 revenue in the range of $595 million to $605 million, analysts’ on average expect revenue of $577 million, as per data from fiscal.ai
• A Reddit executive in an analyst call said that the social media platform saw strength across geographies.

Reddit shares jumped after it reported a 70% jump in its revenue for the fourth quarter on Thursday, helped by higher ad spend by its customers. 

The company said its total revenue came at $726 million, above analysts’ estimates of $667 million, according to data from fiscal.ai. 

“We’re entering the next era of Reddit—defined by sharper execution, global expansion, and product innovation that puts real people and conversations at the center,” said Steve Huffman, Reddit Co-Founder and CEO. “Our focus is on turning Reddit’s authenticity into even more everyday utility.”

The company announced that its Board of Directors authorized a repurchase program of up to $1 billion of Class A common stock.

Earnings

The company said its total revenue came at $726 million, above analysts’ estimates of $667 million, according to data from fiscal.ai. 

The company said its Ad revenue also increased 75% year-over-year to $690 million, as its total active advertiser count grew by over 75% year over year in Q4. 

A Reddit executive in an analyst call said that “we saw strength across geographies. US revenue grew 68% while international revenue grew 78% year over year”.

It reported a 244% jump in its diluted earnings per share that came at $1.24 per share, compared to $0.36 per share it posted in the same quarter last year. Analysts on average expected profit of $0.93 per share. 

Outlook

The company expects Q1 2026 revenue in the range of $595 million to $605 million. Analysts on average expect revenue of $577 million, as per data from fiscal.ai.

It expects adjusted core profit in the range of $210 million to $220 million. Analysts on average expect revenue of $204.9 million.

“In 2026, we're focused on making Reddit faster, more relevant, and more accessible to everyone, everywhere. A big part of this effort is improving feed relevancy, using AI and machine learning to make Reddit feel more personalized and useful,” a Reddit executive said during the analyst call. 

How Did Stocktwits Users React?

Retail sentiment around RDDT trended in ‘extremely bullish’ territory amid ‘extremely high’ message volume. 

One user praised RDDT’s earnings by saying that the company blew it out of the water. 

Another user predicted the stock to reach the $300 mark after hailing the results.

Another bullish user predicted stock to rally in coming days and weeks.

Shares in the company have fallen 29% over the past 12 months. 

Read More: MSTR Posts More Than 1600% Jump In Operating Loss In Q4 As Bitcoin Crash Bites

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