Reddit, Inc. (RDDT): Results of Operations and Financial Condition
Reddit, Inc. (RDDT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Reddit Reports Second Quarter 2026 Results Daily Active Uniques (“DAUq”) increased 18% year-over-year to 130.3 million Weekly Active Uniques (“WAUq”) increased 24% year-over-year to 514.6 million, crossing half a billion Revenue of $805 million grew 61% year-over-yea
How this was made
The 30-second read
Why it matters
The key tradable inputs are the Q2 operating metrics (revenue, margins, net income, cash flow) and the explicit Q3 revenue and adjusted EBITDA ranges, which can re-anchor expectations and valuation models.
Market read
A primary earnings and guidance disclosure with quantified growth, profitability, and cash generation, plus next-quarter ranges.
What to watch
The release highlights buybacks and cash flow, but traders may also scrutinize user metrics quality (DAUq/WAUq) and any implied monetization efficiency changes not fully detailed here.
Revenue of $805 million grew 61% year-over-year; net income was $253 million and Adjusted EBITDA was $343 million.
Revenue grew 61% year-over-year, profitability more than doubled year-over-year, operating cash flow grew 135%, and third-quarter guidance calls for $860 million to $870 million of revenue and $385 million to $395 million of Adjusted EBITDA.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $805 million | – | 61% |
| Ad revenueGAAP | $762 million | – | 64% |
| Other revenueGAAP | $43 million | – | 24% |
| GAAP gross marginGAAP | 91.3% | – | up 50 bps year-over-year |
| Net incomeGAAP | $253 million | – | 183% |
| Net marginGAAP | 31.4% | – | – |
| Basic earnings per shareGAAP | $1.31 | – | 173% |
| Diluted earnings per shareGAAP | $1.25 | – | 178% |
| Adjusted EBITDAnon-GAAP | $343 million | – | 106% |
| Adjusted EBITDA marginnon-GAAP | 42.6% | – | – |
| Net cash provided by operating activitiesGAAP | $262 million | – | 135% |
| Free Cash Flownon-GAAP | $261 million | – | 135% |
| Cash, cash equivalents, and marketable securitiesother | $2,786 million | – | – |
| Daily Active Uniques (DAUq)other | 130.3 million | – | 18% |
| Weekly Active Uniques (WAUq)other | 514.6 million | – | 24% |
| Total fully diluted shares outstandingother | 207.0 million | – | up 0.2% from the prior year |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| U.S.Revenue increased year-over-year. | $638 million | – | 56% |
| InternationalRevenue increased year-over-year. | $167 million | – | 84% |
third quarter of 2026 outlook
- Revenue$860 million to $870 million
- NoteAdjusted EBITDA in the range of $385 million to $395 million
Capital returns
- Repurchased 1.5 million shares of Class A common stock during the quarter for a total of $235 million at an average price per share of $157.57.
What drove it
- Ad revenue increased 64% year-over-year to $762 million.
- Other revenue increased 24% year-over-year to $43 million.
- DAUq increased 18% year-over-year to 130.3 million.
- WAUq increased 24% year-over-year to 514.6 million, crossing half a billion.
- International revenue increased 84% year-over-year to $167 million.
Concerns
- Other revenue grew 24% year-over-year, below the 64% year-over-year growth in ad revenue.
- The filing did not provide operating income, operating expenses, tax rate, debt, ARPU, or prior-quarter financial comparisons.
- The company did not provide a reconciliation of forward-looking non-GAAP Adjusted EBITDA guidance to its corresponding U.S. GAAP measure.
What to watch
- Third-quarter revenue in the range of $860 million to $870 million.
- Third-quarter Adjusted EBITDA in the range of $385 million to $395 million.
- Whether DAUq and WAUq growth continues following reported growth of 18% and 24%, respectively.
- Advertising revenue growth following the reported 64% year-over-year increase.
- International revenue growth following the reported 84% year-over-year increase.
Balance sheet and cash flow
- Cash, cash equivalents, and marketable securities were $2,786 million.
- Net cash provided by operating activities was $262 million, compared with $111 million in the prior year, an increase of 135%.
- Free Cash Flow was $261 million, compared with $111 million in the prior year, an increase of 135%.
- Total fully diluted shares outstanding were 207.0 million as of June 30, 2026, up 0.2% from the prior year.
Analysis
Reddit reported a strong second quarter of 2026, with revenue increasing 61% year-over-year to $805 million. The company described this as its eighth consecutive quarter of over 60% revenue growth. Advertising remained the principal reported revenue driver, rising 64% year-over-year to $762 million, while other revenue increased 24% to $43 million. U.S. revenue rose 56% to $638 million and international revenue rose 84% to $167 million.
User activity expanded alongside revenue. DAUq increased 18% year-over-year to 130.3 million, while WAUq increased 24% to 514.6 million and crossed half a billion. The release links commercial momentum to the value of real human perspective and advertiser demand, while providing no reported ARPU figures or detailed advertising-product metrics.
Profitability improved materially. GAAP gross margin was 91.3%, compared with 90.8% in the prior year, an increase of 50 bps. Net income was $253 million, compared with $89 million, and net margin was 31.4%, compared with 17.9%. Adjusted EBITDA was $343 million, compared with $167 million, while Adjusted EBITDA margin was 42.6%, compared with 33.4%.
Cash generation also advanced sharply. Net cash provided by operating activities was $262 million, compared with $111 million in the prior year, and Free Cash Flow was $261 million, compared with $111 million. Cash, cash equivalents, and marketable securities were $2,786 million. The company repurchased 1.5 million Class A shares for $235 million at an average price per share of $157.57, while total fully diluted shares outstanding were 207.0 million as of June 30, 2026, up 0.2% from the prior year.
For the third quarter of 2026, Reddit guided to revenue of $860 million to $870 million and Adjusted EBITDA of $385 million to $395 million. The release did not provide guidance for gross margin, operating expenses, tax rate, cash flow, or GAAP profitability, and it did not provide a forward-looking reconciliation for Adjusted EBITDA guidance.
Management, verbatim
In an increasingly automated web, the value of real human perspective has never been higher. Reddit’s commercial momentum reflects that. Crossing $1 million in revenue per employee and maintaining eight consecutive quarters of over 60% revenue growth shows the strength of our community model and the value we deliver to advertisers.
Steve Huffman, Founder and CEO of Reddit
Not in the filing
stated, not guessed- Operating income and operating margin
- Operating expenses
- Tax rate
- Debt and other balance-sheet liabilities
- Dividend information
- ARPU metrics
- Prior-year values for ad revenue and other revenue
- Prior-year values for DAUq, WAUq, and total fully diluted shares outstanding
- Prior-quarter values and quarter-over-quarter changes for reported financial and operating metrics
- Prior-year and quarter-over-quarter changes for net margin and Adjusted EBITDA margin
- Third-quarter gross margin guidance
- Third-quarter operating expenses guidance
- Third-quarter tax-rate guidance
- Third-quarter GAAP operating income, net income, EPS, and cash-flow guidance
- Forward-looking GAAP reconciliation for Adjusted EBITDA guidance
- Previous-release outlook for comparison with actual results
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is Reddit’s SEC Form 8-K (Item 2.02) attaching its Q2 2026 results press release and providing Q3 2026 guidance.
Ticker impact
Reddit reported Q2 2026 results with $805M revenue (+61% YoY), $343M adjusted EBITDA (+106% YoY), and Q3 guidance of $860M-$870M revenue.
Likely positive bias for near-term trading as the guidance ranges extend the growth narrative and improve visibility into Q3.
The article is a primary SEC 8-K earnings release with quantified operating metrics, cash flow, and forward guidance ranges for the next quarter.
Market effects
Reinforces the ad-tech and social media advertising demand read-through via disclosed ad revenue growth and high gross margin.
Limited direct regional spillover beyond US-listed internet advertising sentiment.
International revenue growth (+84% YoY) supports broader global ad demand expectations for social platforms.
Counterpoint
Despite strong growth, investors may focus on sustainability of ad growth and whether guidance implies decelerating growth versus prior quarters.
Key entities
- companyReddit, Inc.
Subject of the SEC 8-K, reporting Q2 2026 results and issuing Q3 2026 guidance.
- personSteve Huffman
Founder and CEO quoted on commercial momentum and community model value.
