Second Quarter 2026
Filed Jul 30, 2026Revenue 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
AlphaAI 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.