Reddit posts Q3 earnings beat but warns of slower user growth and cuts Q4 revenue outlook
+33 new sources since this summary was written
Reddit reported third‑quarter 2026 revenue of $895 million, up 53% year‑over‑year, and earnings of $1.40 per share, beating estimates. Daily active uniques rose 12% to 130.3 million, while U.S. daily uniques fell 2% to 50.7 million. The company forecast fourth‑quarter revenue of $1.00‑$1.03 billion, below Wall Street expectations, and announced plans to test a mandatory login for users. The guidance and user‑growth slowdown sent the stock sharply lower.
Why it matters
Shares plunged more than 23% in pre‑market trading after the guidance miss (). Analysts at Citizens and KeyBanc downgraded the stock and cut price targets, reflecting concerns over declining search traffic and user growth ().
Key facts
- 1Q3 2026 revenue was $895 million, a 53% YoY increase (). cnbc.com
- 2Adjusted earnings per share were $1.40, beating the $1.35 consensus (). cnbc.com
- 3Daily active uniques grew 12% YoY to 130.3 million (). cnbc.com
- 4U.S. daily active uniques fell 2% YoY to 50.7 million (). cnbc.com
- 5Fourth‑quarter revenue guidance is $1.00‑$1.03 billion, below the $1.05 billion consensus (). cnbc.com
- 6Reddit will test a mandatory login requirement for users, starting in Q4 outside the U.S. (). cnbc.com
Summary written by AlphAI AI Desk from 20 of 38 sources. Not investment advice. Figures are as stated by the linked sources.