Reddit, Inc. Earnings Recaps
Q2 2026
Aug 2, 2026
Reddit’s stock fell 21% after Q2 results as investors were disappointed by signs of deceleration in key metrics and cautious commentary on user growth and referral traffic volatility despite solid revenue growth.
Key takeaways
- Revenue grew 61% year-over-year to $805 million, driven by 64% growth in advertising revenue through increased pricing and impressions.
- Adjusted EBITDA margin came in at 43%, reflecting ongoing operational leverage.
- Daily active users reached over 130 million, with weekly reach surpassing 500 million, but growth is being challenged by volatile search referrals and user mix issues.
- New app user retention improved 50% year-over-year on a small base but remains an early sign, indicating continued work needed to drive daily engagement.
- Management emphasized product initiatives focused on long-term engagement and quality user growth, highlighting cautious outlook amid noisy traffic trends.
Q1 2026
May 2, 2026
Shares jumped 12.7% following Reddit’s Q1 2026 earnings, reflecting revenue and margin outperformance. Both total and ad revenue grew at impressive clips, with investors reacting positively to accelerating top-line growth and improving profitability.
Key takeaways
- Total revenue rose 69% year-over-year to $663 million; advertising revenue grew 74% year-over-year to $625 million.
- Company achieved its seventh consecutive quarter of 60%+ revenue growth, with industry-leading gross margins above 90% and an adjusted EBITDA margin of 40%.
- Record quarterly cash flow exceeded $300 million, while capital expenditures remained low at $1 million, highlighting the capital-light model.
- Management highlighted nearly 500 million weekly global users, with a focus on expanding daily active users in the core U.S. market, though acknowledged user frequency has further upside.
- Investors responded favorably to broad-based advertising strength and the company’s growing positioning as a key player in both commercial intent and the evolving AI landscape.
Q3 2025
Oct 31, 2025
Reddit reported a robust Q3 2025 with a 68% year-over-year revenue increase, reaching $585 million, and continued user growth, positioning the company for strong future performance.
Key takeaways
- Daily Active Users (DAU) increased by 20% year-over-year, reaching 116 million, reflecting strong user engagement and product improvements.
- GAAP profitability achieved with a net income of $163 million and a net margin of 28%, demonstrating effective cost management and scaling.
- Advertising revenue soared by 74% year-over-year to $549 million, driven by new advertiser acquisition and enhanced ad platform capabilities.
- Significant advancements in user experience, including AI-driven community tools and modernization of the app interface, are expected to drive higher retention and engagement.
- International growth accelerating, with machine translation in 30 languages, enhancing top-of-funnel user acquisition efforts globally.