Reddit (RDDT) · Internet & Advertising
Reddit Q2 2026 earnings: summary, key numbers & outlook
Results filed 30 Jul 2026 · Quarter ended 30 Jun 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Reddit reported Q2 2026 revenue of $805 million, up 61% year-over-year, net income of $253 million and diluted EPS of $1.25, with Adjusted EBITDA of $343 million.
Reddit's second quarter was another strong one. Revenue of $805 million grew 61% from a year ago, the eighth straight quarter above 60%. Advertising revenue rose 64% to $762 million. Net income more than doubled to $253 million. Daily active uniques rose 18% to 130.3 million, with international users growing much faster than U.S. users. Reddit also bought back $235 million of its stock.
For the third quarter, Reddit expects revenue of $860 million to $870 million and Adjusted EBITDA of $385 million to $395 million. The main risk is user growth. The CEO said search referrals were choppy and more volatile later in the quarter, and that Reddit's visibility in referral traffic remains low. U.S. daily users grew only 6% and logged-in users grew just 7%.
Key numbers
- Revenue · GAAP
- $805 million
- Net income · GAAP
- $253 million
- Diluted EPS · GAAP
- $1.25
- Gross margin · GAAP
- 91.3%
- Income from operations · GAAP
- $231.7M
- Operating cash flow · GAAP
- $262 million
- Free cash flow · non-GAAP
- $261 million
- Adjusted EBITDA · non-GAAP
- $343 million
up 61% year-over-year
up $164 million from the prior year, more than doubling year-over-year
more than doubling year-over-year
up 50 bps year-over-year
up 135% year-over-year
up $150 million from the prior year
up 106% year-over-year
| Segment or metric | Value | Change |
|---|---|---|
| Ad revenue | $762 million | up 64% year-over-year |
| Other revenue | $43 million | up 24% year-over-year |
| U.S. revenue | $638 million | up 56% year-over-year |
| International revenue | $167 million | up 84% year-over-year |
| Daily Active Uniques (DAUq) | 130.3 million | up 18% year-over-year |
| Weekly Active Uniques (WAUq) | 514.6 million | up 24% year-over-year |
| Global ARPU | $6.18 | up 36% year-over-year |
Where each number comes from
- Revenue: “Total revenue increased 61% year-over-year to $805 million, Ad revenue increased 64% year-over-year to $762 million, and Other revenue increased 24% year-over-year to $43 million”
- Net income: “Net income was $253 million, an improvement of $164 million from the prior year and more than doubling year-over-year”
- Diluted EPS: “Basic and diluted earnings per share (“EPS”) were $1.31 and $1.25, more than doubling year-over-year”
- Gross margin: “Gross margin was 91.3%, as compared to 90.8% in the prior year, up 50 bps year-over-year”
- Income from operations: “Income from operations | 231,716 | 67,711 | 414,628 | 71,614 Other income (expense), net | 25,119 | 21,147 | 47,935 | 41,681”
- Operating cash flow: “Operating cash flow was $262 million, an improvement of $151 million from the prior year and more than doubling year-over-year”
- Free cash flow: “Free Cash Flow1 was $261 million, an improvement of $150 million from the prior year and more than doubling year-over-year”
- Adjusted EBITDA: “Adjusted EBITDA1 was $343 million, an improvement of $176 million from the prior year and more than doubling year-over-year”
- Ad revenue: “Total revenue increased 61% year-over-year to $805 million, Ad revenue increased 64% year-over-year to $762 million, and Other revenue increased 24% year-over-year to $43 million”
- Other revenue: “Total revenue increased 61% year-over-year to $805 million, Ad revenue increased 64% year-over-year to $762 million, and Other revenue increased 24% year-over-year to $43 million”
- U.S. revenue: “Revenue | $805 | $500 | 61% U.S. | $638 | $409 | 56% International | $167 | $91 | 84% GAAP gross margin | 91.3% | 90.8%”
- International revenue: “Revenue | $805 | $500 | 61% U.S. | $638 | $409 | 56% International | $167 | $91 | 84% GAAP gross margin | 91.3% | 90.8%”
- Daily Active Uniques (DAUq): “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”
- Weekly Active Uniques (WAUq): “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”
- Global ARPU: “ARPU was $6.18, up 36% year-over-year (IN MILLIONS) ADJUSTED EBITDA¹ MARGIN REVENUE Y/Y GROWTH Q3 '25 Q4 '25 Q1 '26 Q2 '26Q2 '25 Q2 ‘26 "RULE OF 40"”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $804.9M | +61.1% | +21.3% |
| Operating income | $231.7M | +242.2% | +26.7% |
| Net income | $252.8M | +183.2% | +24.0% |
| Diluted EPS | $1.25 | +177.8% | +23.8% |
| Free cash flow | $260.7M | +135.3% | −16.2% |
| Operating margin | 28.8% | +15.2 pts | +1.2 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Revenue | third quarter of 2026 | $860 million to $870 million |
| Adjusted EBITDA | third quarter of 2026 | $385 million to $395 million |
Key takeaways
Revenue growth topped 60% for eighth straight quarter
Revenue of $805 million grew 61% year-over-year, with Ad revenue up 64% to $762 million. Management called it the 8th consecutive quarter over 60%.
Profits more than doubled year-over-year
Net income was $253 million and diluted EPS was $1.25, both up over 2x. Adjusted EBITDA of $343 million was 43% of revenue, up 106% year-over-year.
User growth is international and logged-out
International DAUq grew 28% while U.S. DAUq grew 6%. Logged-out users grew 27% and logged-in users grew 7%.
Search referral traffic was choppy and volatile
The CEO said search referrals were choppy in the quarter, and traffic was more volatile later in the quarter. He said the commercial business is strong.
Q3 guidance implies continued growth and margins
Reddit guided Q3 2026 revenue to $860 million to $870 million and Adjusted EBITDA to $385 million to $395 million. It also repurchased 1.5 million shares for $235 million in Q2.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $427.7M * |
| Q1 2025 | $392.4M |
| Q2 2025 | $499.6M |
| Q3 2025 | $584.9M |
| Q4 2025 | $725.6M * |
| Q1 2026 | $663.4M |
| Q2 2026 | $804.9M |
| Q3 2026 | $895.0M |
Data
| Q1 2025 | $0.13 |
| Q2 2025 | $0.45 |
| Q3 2025 | $0.80 |
| Q1 2026 | $1.01 |
| Q2 2026 | $1.25 |
| Q3 2026 | $1.40 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | 12.4% |
| Q1 2025 | 1.0% |
| Q2 2025 | 13.6% |
| Q3 2025 | 23.7% |
| Q4 2025 | 31.9% |
| Q1 2026 | 27.6% |
| Q2 2026 | 28.8% |
| Q3 2026 | 29.2% |
Data
| Q4 2024 | $89.2M |
| Q1 2025 | $126.6M |
| Q2 2025 | $110.8M |
| Q3 2025 | $183.1M |
| Q4 2025 | $263.6M |
| Q1 2026 | $311.2M |
| Q2 2026 | $260.7M |
| Q3 2026 | $362.6M |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Reddit's Q2 2026 headline results?
Revenue was $805 million, up 61% year-over-year. Net income was $253 million and diluted EPS was $1.25, both more than double the prior year.
How fast are Reddit's users growing?
DAUq rose 18% to 130.3 million and WAUq rose 24% to 514.6 million. International DAUq grew 28% versus 6% in the U.S.
What is Reddit's guidance for the third quarter of 2026?
Reddit expects revenue of $860 million to $870 million and Adjusted EBITDA of $385 million to $395 million.
How profitable was Reddit in Q2 2026?
Adjusted EBITDA was $343 million, a 43% margin, up 106% year-over-year. Gross margin was 91.3% and free cash flow was $261 million.
What is the main risk Reddit flagged?
The CEO said search referrals were choppy and more volatile later in the quarter, and that Reddit's visibility in referral traffic remains low. He said the product work aims to build a daily destination rather than depend on search traffic.
Documents
SEC filing