Reddit’s first-quarter performance results for 2026 show a continuous surge in its advertising revenue, as well as steady user growth and a sizable uptick in the use of the
company’s AI-powered search engine.
The public forum-style social network has now accumulated seven consecutive quarters in which revenue growth has grown at
least 60%, reporting a total revenue intake of $663 million — an increase of 69% year-over-year — in Q1 2026.
The company’s ad revenue increased 74% year-over-year, hitting $625 million for the quarter. According to Reddit’s quarterly report, ad revenue growth was driven by a
year-over-year boost in impressions and pricing.
Additional factors lending to Reddit’s ad business
growth include the company’s recent integrations with
Shopify and WooCommerce, which have
enabled easier onboarding for new Dynamic Product Ads (DPA) small business ad partners.
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Reddit CRO Jen Wong also pointed to the January launch of
Reddit’s AI-powered Max optimization suite,
which supports budget allocations, automates targeting, and selects creative and placement options for ads.
Advertisers using Max campaigns have seen 17% lower costs and over 25% more conversions, per the company’s Q1 report.
As the company continues to prioritize evolving AI-powered ecommerce solutions, it has seen a 40% year-over-year boost in high-intent shopping conversations on the
platform, with 84% of Reddit shoppers reporting they feel more secure in their purchases after researching products on the platform, essentially showcasing advertisers’ potential for future
conversions.
Furthermore, Reddit reports a 30% year-over-year jump in the number of people using search
every week.
“Search DAUs, WAUs, and queries are up meaningfully year-over-year,” noted CEO Steve Huffman on the post-results conference call,
adding that Search has become a driver of retention and daily active users.
Overall, Reddit closed out the quarter with over 493 million weekly active users
— up 23% year-over-year — and 126 million daily active users, up 17%. Global average revenue per user increased by 44% compared to the same period last year.
