Third Quarter 2026
Filed Oct 29, 2026Revenue grew 53% year-over-year to $895 million, while net income reached $283 million and Adjusted EBITDA reached $402 million.
Reddit reported 53% revenue growth, 74% net-income growth, 70% Adjusted EBITDA growth, and 96% operating-cash-flow growth, while guiding fourth-quarter revenue to $1,000 million to $1,030 million and Adjusted EBITDA to $480 million to $510 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three months ended September 30, 2026 total revenueGAAP | $895M | – | 53% |
| Nine months ended September 30, 2026 total revenueGAAP | $2.36B | – | 60% |
| Three months ended September 30, 2026 ad revenueGAAP | $847M | – | 54% |
| Three months ended September 30, 2026 other revenueGAAP | $48M | – | 35% |
| Three months ended September 30, 2026 GAAP gross marginGAAP | 91.5% | – | up 50 bps year-over-year |
| Three months ended September 30, 2026 cost of revenue (in thousands)GAAP | 75.79M | – | – |
| Nine months ended September 30, 2026 cost of revenue (in thousands)GAAP | 202.4M | – | – |
| Three months ended September 30, 2026 research and development expense (in thousands)GAAP | 263.5M | – | – |
| Nine months ended September 30, 2026 research and development expense (in thousands)GAAP | 702.1M | – | – |
| Three months ended September 30, 2026 sales and marketing expense (in thousands)GAAP | 209.4M | – | – |
| Nine months ended September 30, 2026 sales and marketing expense (in thousands)GAAP | 556.8M | – | – |
| Three months ended September 30, 2026 general and administrative expense (in thousands)GAAP | 84.66M | – | – |
| Nine months ended September 30, 2026 general and administrative expense (in thousands)GAAP | 225.9M | – | – |
| Three months ended September 30, 2026 total costs and expenses (in thousands)GAAP | 633.4M | – | – |
| Nine months ended September 30, 2026 total costs and expenses (in thousands)GAAP | 1.69B | – | – |
| Three months ended September 30, 2026 income from operations (in thousands)GAAP | 261.6M | – | – |
| Nine months ended September 30, 2026 income from operations (in thousands)GAAP | 676.2M | – | – |
| Three months ended September 30, 2026 other income, net (in thousands)GAAP | 27.46M | – | – |
| Nine months ended September 30, 2026 other income, net (in thousands)GAAP | 75.40M | – | – |
| Three months ended September 30, 2026 income before income taxes (in thousands)GAAP | 289.0M | – | – |
| Nine months ended September 30, 2026 income before income taxes (in thousands)GAAP | 751.6M | – | – |
| Three months ended September 30, 2026 income tax expense (benefit) (in thousands)GAAP | 5.79M | – | – |
| Nine months ended September 30, 2026 income tax expense (benefit) (in thousands)GAAP | 11.52M | – | – |
| Three months ended September 30, 2026 net incomeGAAP | $283M | – | 74% |
| Nine months ended September 30, 2026 net income (in thousands)GAAP | $740.1M | – | – |
| Three months ended September 30, 2026 net marginGAAP | 31.7% | – | – |
| Nine months ended September 30, 2026 net marginGAAP | 31.3% | – | – |
| Three months ended September 30, 2026 basic EPSGAAP | $1.47 | – | 69% |
| Three months ended September 30, 2026 diluted EPSGAAP | $1.40 | – | 75% |
| Nine months ended September 30, 2026 basic EPSGAAP | $3.85 | – | – |
| Nine months ended September 30, 2026 diluted EPSGAAP | $3.66 | – | – |
| Three months ended September 30, 2026 Adjusted EBITDAnon-GAAP | $402M | – | 70% |
| Nine months ended September 30, 2026 Adjusted EBITDA (in thousands)non-GAAP | $1.01B | – | – |
| Three months ended September 30, 2026 Adjusted EBITDA marginnon-GAAP | 44.9% | – | – |
| Nine months ended September 30, 2026 Adjusted EBITDA marginnon-GAAP | 42.8% | – | – |
| Three months ended September 30, 2026 net cash provided by operating activitiesGAAP | $364M | – | 96% |
| Nine months ended September 30, 2026 net cash provided by operating activities (in thousands)GAAP | $937.9M | – | – |
| Three months ended September 30, 2026 operating cash flow marginGAAP | 40.6% | – | – |
| Nine months ended September 30, 2026 operating cash flow marginGAAP | 39.7% | – | – |
| Three months ended September 30, 2026 Free Cash Flownon-GAAP | $363M | – | 98% |
| Nine months ended September 30, 2026 Free Cash Flow (in thousands)non-GAAP | $934.5M | – | – |
| Three months ended September 30, 2026 Free Cash Flow marginnon-GAAP | 40.5% | – | – |
| Nine months ended September 30, 2026 Free Cash Flow marginnon-GAAP | 39.5% | – | – |
| Three months ended September 30, 2026 purchases of property and equipment (in thousands)GAAP | −$1.23M | – | – |
| Nine months ended September 30, 2026 purchases of property and equipment (in thousands)GAAP | −$3.45M | – | – |
| Three months ended September 30, 2026 capital expendituresGAAP | $1 million, 0.1% of revenue | – | – |
| Three months ended September 30, 2026 global DAUqother | 130.3M | – | 12% |
| Three months ended September 30, 2026 global WAUqother | 515.2M | – | 16% |
| Three months ended September 30, 2026 global logged-in DAUqother | 53.5M | – | 7% |
| Three months ended September 30, 2026 global logged-out DAUqother | 76.8M | – | 17% |
| Three months ended September 30, 2026 global ARPUother | $6.87 | – | 36% |
| September 30, 2026 total fully diluted shares outstandingother | 206.3M | down 0.3% from last quarter | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| U.S. revenue, three months ended September 30, 2026U.S. ARPU was $13.82, up 53% year-over-year. | $718.9M | – | 50% |
| International revenue, three months ended September 30, 2026International ARPU was $2.43, up 32% year-over-year. | $176.1M | – | 67% |
| U.S. revenue, nine months ended September 30, 2026Geographic revenue reported in key operating metrics. | $1.88B | – | 57% |
| International revenue, nine months ended September 30, 2026Geographic revenue reported in key operating metrics. | $480.7M | – | 75% |
Fourth quarter of 2026 outlook
- Revenue$1,000 million to $1,030 million
- NoteAdjusted EBITDA in the range of $480 million to $510 million
Capital returns
- Reddit repurchased approximately 670 thousand shares of Class A common stock during the quarter for a total of $100 million at an average price per share of $149.81.
- Repurchases of Class A common stock were $(100,369) (in thousands) for the three months ended September 30, 2026 and $(339,959) (in thousands) for the nine months ended September 30, 2026.
- Total fully diluted shares outstanding were 206.3 million as of September 30, 2026, down 0.3% from last quarter.
What drove it
- Global DAUq increased 12% year-over-year to 130.3 million and global WAUq increased 16% year-over-year to 515.2 million.
- International DAUq increased 24% year-over-year to 79.6 million, while U.S. DAUq declined 2% year-over-year to 50.7 million.
- International revenue grew 67% year-over-year to $176.1 million, faster than U.S. revenue growth of 50% to $718.9 million.
- Global ARPU increased 36% year-over-year to $6.87. U.S. ARPU increased 53% to $13.82 and international ARPU increased 32% to $2.43.
- Logged-in DAUq and App DAUq grew quarter-over-quarter in the U.S. and Rest of World, according to the release.
Concerns
- U.S. DAUq declined 2% year-over-year to 50.7 million, and U.S. logged-out DAUq declined 4% year-over-year to 27.3 million.
- The filing did not provide numerical quarter-over-quarter DAUq or App DAUq figures.
- Stock-based compensation expense was $131,306 (in thousands) for the three months ended September 30, 2026, compared with $83,518 (in thousands) in the prior-year period.
- The company did not provide a reconciliation of forward-looking Adjusted EBITDA guidance to its forward-looking U.S. GAAP equivalent measures.
What to watch
- Fourth-quarter revenue guidance of $1,000 million to $1,030 million.
- Fourth-quarter Adjusted EBITDA guidance of $480 million to $510 million.
- Whether U.S. DAUq and U.S. logged-out DAUq return to year-over-year growth.
- International revenue growth, international DAUq growth, and ARPU trends.
- The pace of share repurchases following $100 million repurchased during the quarter.
Balance sheet and cash flow
- Cash, cash equivalents, and marketable securities were $3.03 billion as of September 30, 2026.
- Cash and cash equivalents were $1,357,583 (in thousands) as of September 30, 2026, compared with $953,569 (in thousands) as of December 31, 2025.
- Marketable securities were $1,675,849 (in thousands) as of September 30, 2026, compared with $1,523,242 (in thousands) as of December 31, 2025.
- Total assets were $3,962,029 (in thousands) as of September 30, 2026, compared with $3,239,173 (in thousands) as of December 31, 2025.
- Total liabilities were $380,321 (in thousands) as of September 30, 2026, compared with $310,135 (in thousands) as of December 31, 2025.
- Total stockholders' equity was $3,581,708 (in thousands) as of September 30, 2026, compared with $2,929,038 (in thousands) as of December 31, 2025.
- Net cash used in investing activities was $(383,830) (in thousands) for the three months ended September 30, 2026, compared with net cash provided by investing activities of $16,513 (in thousands) in the prior-year period.
- Net cash used in financing activities was $(109,222) (in thousands) for the three months ended September 30, 2026, compared with $(24,079) (in thousands) in the prior-year period.
Analysis
Reddit delivered a strong third quarter, with revenue increasing 53% year-over-year to $895 million. Ad revenue increased 54% to $847 million and other revenue increased 35% to $48 million. Geographic growth was led by international revenue, which increased 67% to $176.1 million, compared with 50% growth in U.S. revenue to $718.9 million. Global ARPU increased 36% to $6.87, with U.S. ARPU up 53% to $13.82 and international ARPU up 32% to $2.43.
Engagement expanded globally, with DAUq increasing 12% to 130.3 million and WAUq increasing 16% to 515.2 million. International DAUq increased 24% to 79.6 million and international WAUq increased 28% to 326.7 million. The U.S. engagement picture was less uniform: U.S. DAUq declined 2% to 50.7 million, logged-out U.S. DAUq declined 4% to 27.3 million, and U.S. WAUq was unchanged at 188.5 million. The release stated that logged-in DAUq and App DAUq grew quarter-over-quarter in the U.S. and Rest of World, but did not give numerical sequential figures.
Profitability and cash generation rose faster than revenue. GAAP gross margin increased to 91.5% from 91.0%. Net income increased 74% to $283 million, producing a 31.7% net margin, while diluted EPS increased 75% to $1.40. Adjusted EBITDA increased 70% to $402 million, and Adjusted EBITDA margin increased to 44.9% from 40.3%. Operating cash flow increased 96% to $364 million and Free Cash Flow increased 98% to $363 million, reflecting capital expenditures of $1 million, or 0.1% of revenue.
The balance sheet included $3.03 billion of cash, cash equivalents, and marketable securities at September 30, 2026. Reddit repurchased approximately 670 thousand Class A shares for $100 million at an average price of $149.81, while total fully diluted shares outstanding were 206.3 million, down 0.3% from the prior quarter. Fourth-quarter guidance calls for revenue of $1,000 million to $1,030 million and Adjusted EBITDA of $480 million to $510 million. The release did not provide forward guidance for gross margin, operating expenses, tax rate, GAAP earnings, or cash flow.
Management, verbatim
Our business is growing because the Reddit experience captures the human experience in a way that no other platform can replicate. Surpassing $3B of revenue over the last 12 months shows Reddit’s strength as a destination and the differentiated value of our platform.
Steve Huffman, Founder and CEO of Reddit
Not in the filing
stated, not guessed- Previous-release outlook was not provided; therefore, no comparison of reported results with prior guidance is available.
- Numerical prior-quarter revenue, profitability, cash-flow, DAUq, WAUq, ARPU, logged-in DAUq, logged-out DAUq, and App DAUq values were not provided for the reported metrics.
- Debt balance was not reported.
- Dividend information was not reported.
- Fourth-quarter guidance for gross margin, operating expenses, tax rate, GAAP operating income, GAAP net income, GAAP EPS, operating cash flow, Free Cash Flow, and capital expenditures was not provided.
- Numerical quarter-over-quarter growth rates for logged-in DAUq and App DAUq were not provided.
- Prior-year values for ad revenue and other revenue were not provided.
Written by an AI language model 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 checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.