Reddit, Inc. Q3 2026 Earnings Recap

Reddit fell 29.3% after earnings as investors focused on accelerating search-referral declines and the risk that total DAUqs could fall by a low double-digit percentage in Q4. The decline continued into October, while management said it expects the trend to persist if current conditions continue.

Key Takeaways

• Q3 revenue grew 53%, and the company said margins expanded across the board; trailing 12-month revenue exceeded $3 billion.
• Search-referral traffic declined meaningfully in Q3, with the drop accelerating later in the quarter. In October, referrals fell by more than 1 million per week on average.
• Management said current trends could mean total DAUqs decline by a low double-digit percentage in Q4 from the current base of 130 million. Search-referral declines have continued into early Q4.
• Logged-in and app DAU grew sequentially; those users account for over 80% of monetization, according to management.
• New-user first-week app retention improved double digits quarter-over-quarter and over 50% year-over-year.