Reddit: Sustaining an Upward Revenue Trajectory
Reddit (RDDT +4.96%) primarily generates revenue through the advertising on its website, which organizes digital communities based on specific interests, enabling users to engage in conversations.
While navigating the launch of a competing application from Meta in May of 2026, it reported 31% net income margin for the quarter ended March 31, 2026.
Snap: Steady Revenue Amid Ongoing Scrutiny
Snap (SNAP 3.38%) primarily earns revenue through advertising as well. It operates a camera application and connected eyewear that enable users to communicate visually through short videos and images.
It appointed a new board member in May 2026 and posted -6% net income margin for the quarter ended March 31, 2026.
Why Revenue Matters for Retail Investors
Revenue serves as a fundamental indicator of how much money a business generates from its core operations before expenses are deducted. It enables investors to evaluate raw business growth and the demand for a company’s core offerings.
Image source: The Motley Fool.
Quarterly Revenue for Reddit and Snap
| Quarter (Period End) | Reddit Revenue | Snap Revenue |
|---|---|---|
| Q2 2024 (June 2024) | $281.2 million | $1.2 billion |
| Q3 2024 (Sept. 2024) | $348.4 million | $1.4 billion |
| Q4 2024 (Dec. 2024) | $427.7 million | $1.6 billion |
| Q1 2025 (March 2025) | $392.4 million | $1.4 billion |
| Q2 2025 (June 2025) | $499.6 million | $1.3 billion |
| Q3 2025 (Sept. 2025) | $584.9 million | $1.5 billion |
| Q4 2025 (Dec. 2025) | $725.6 million | $1.7 billion |
| Q1 2026 (March 2026) | $663.4 million | $1.5 billion |
Data source: Company filings. Data as of May 28, 2026.
Foolish Take
Reddit and Snap are two titans in the social media space, albeit addressing very different consumer needs. The former focuses on forums for people to discuss topics while the latter is known for its Snapchat texting and camera app. Looking at their revenue trends reveals key insights.
Although Snap possesses the higher sales totals, Reddit is growing faster. For instance, in the first quarter, Reddit’s revenue rose a whopping 69% year over year to $663.4 million. Snap’s Q1 sales grew 12% to $1.5 billion. This suggests Reddit’s offerings are proving popular.
Reddit’s superior sales growth helped it achieve net income of $204 million, an impressive 680% year-over-year jump. This kind of growth is what investors want to see. Meanwhile, Snap is not profitable, although it reduced its net loss by 36% year over year to $89 million in Q1.
Even so, Reddit shares have fallen far from the 52-week high of $282.95 reached in 2025. Part of that is due to Meta’s release of a competing product, which could cause Reddit’s sales to slow. Investors will want to keep an eye on whether its year-over-year revenue growth declines in the coming quarters.
Robert Izquierdo has positions in Meta Platforms and Reddit. The Motley Fool has positions in and recommends Meta Platforms and Reddit. The Motley Fool has a disclosure policy.
