Reddit, Inc. Q2 2026 Earnings Recap

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.