Reddit, Inc. (NYSE: RDDT) today announced financial results for the quarter ended June 30, 2026. Reddit’s complete financial results and management commentary can be found in its shareholder letter on Reddit’s Investor Relations website at https://investor.redditinc.com.

“In an increasingly automated web, the value of real human perspective has never been higher. Reddit’s commercial momentum reflects that,” said Steve Huffman, Founder and CEO of Reddit. “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.”

  • 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

  • Gross margin was 91.3%, as compared to 90.8% in the prior year, up 50 bps year-over-year

  • Net income was $253 million, an improvement of $164 million from the prior year and more than doubling year-over-year

  • Adjusted EBITDA1 was $343 million, an improvement of $176 million from the prior year and more than doubling year-over-year

  • Operating cash flow was $262 million, an improvement of $151 million from the prior year and more than doubling year-over-year

  • Free Cash Flow1 was $261 million, an improvement of $150 million from the prior year and more than doubling year-over-year

  • Basic and diluted earnings per share (“EPS”) were $1.31 and $1.25, more than doubling year-over-year

  • Total fully diluted shares outstanding were 207.0 million as of June 30, 2026, up 0.2% from the prior year

  • We repurchased 1.5 million shares of our Class A common stock during the quarter for a total of $235 million at an average price per share of $157.57

Second Quarter 2026 Financial Highlights

 

Three months ended

June 30,

 

 

(in millions, except percentages and per share amounts; unaudited)

 

2026

 

 

 

2025

 

 

% Change

Revenue

$

805

 

 

$

500

 

 

61

%

U.S.

$

638

 

 

$

409

 

 

56

%

International

$

167

 

 

$

91

 

 

84

%

 

 

 

 

 

 

GAAP gross margin

 

91.3

%

 

 

90.8

%

 

 

 

 

 

 

 

 

Net income

$

253

 

 

$

89

 

 

183

%

Net margin

 

31.4

%

 

 

17.9

%

 

 

Net income per share

 

 

 

 

 

Basic

$

1.31

 

 

$

0.48

 

 

173

%

Diluted

$

1.25

 

 

$

0.45

 

 

178

%

Adjusted EBITDA*

$

343

 

 

$

167

 

 

106

%

Adjusted EBITDA margin*

 

42.6

%

 

 

33.4

%

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

$

262

 

 

$

111

 

 

135

%

Free Cash Flow*

$

261

 

 

$

111

 

 

135

%

 

 

 

 

 

 

Cash, cash equivalents, and marketable securities

$

2,786

 

 

 

 

 

*The definitions of Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow can be found in the Use of Non-GAAP Financial Measures section of this release. A reconciliation of non-GAAP financial measures to the most directly comparable U.S. GAAP measure can be found on pages 10-11.

Financial Outlook

The guidance provided below is based on Reddit’s current estimates and is not a guarantee of future performance. This guidance is subject to significant risks and uncertainties that could cause actual results to differ materially, including the risk factors discussed in Reddit’s reports on file with the Securities and Exchange Commission (the “SEC”). Reddit undertakes no duty to update any forward-looking statements or estimates, except as required by applicable law.

As we look ahead, we will share our internal thoughts on revenue and Adjusted EBITDA for the third quarter.

In the third quarter of 2026, we estimate:

  • Revenue in the range of $860 million to $870 million

  • Adjusted EBITDA2 in the range of $385 million to $395 million

Earnings Conference Call Information and Community Update

Reddit will host a conference call to discuss the results for the second quarter of 2026 on Thursday, July 30, 2026, at 1:30 p.m. PT / 4:30 p.m. ET. A live webcast of the call can be accessed on Reddit’s Investor Relations website at https://investor.redditinc.com and investor relations subreddit, r/RDDT, at https://www.reddit.com/r/RDDT/. A replay of the webcast and transcript will be available on the same websites following the conclusion of the conference call.

Reddit will solicit questions from the community in the investor relations subreddit, r/RDDT, at https://www.reddit.com/r/RDDT/ on Thursday, July 30, 2026, after the market closes, and post responses following the earnings call at Reddit’s Investor Relations website at https://investor.redditinc.com and r/RDDT at https://www.reddit.com/r/RDDT/.

Reddit uses the investor relations page on its website https://investor.redditinc.com, user accounts of Reddit’s Chief Executive Officer, Steve Huffman (u/spez); Reddit’s Chief Operating Officer, Jen Wong (u/adsjunkie); and Reddit’s Chief Financial Officer, Drew Vollero (u/TimingandLuck), as well as the subreddits r/RDDT and r/reddit, available at https://www.reddit.com/r/RDDT/ and https://www.reddit.com/r/reddit/, respectively, as means of disclosing material non-public information and for complying with its disclosure obligation under Regulation FD.

Notes

1 The definitions of Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow can be found in the Use of Non-GAAP Financial Measures section of this release. A reconciliation of non-GAAP financial measures to the most directly comparable U.S. GAAP measure can be found on pages 10-11.

2 We have not provided a reconciliation to the forward-looking U.S. GAAP equivalent measures for our non-GAAP guidance due to uncertainty regarding, and the potential variability of, reconciling items. Therefore, a reconciliation of these non-GAAP guidance measures to their corresponding U.S. GAAP guidance measures is not available without unreasonable effort.

About Reddit

Reddit is a community of communities. Built on shared interests and passions, it is home to the most open and authentic conversations online. Every day, millions of people post, vote, comment, and search for answers across nearly every topic imaginable, and brands build trusted relationships with their audiences. With 26+ billion posts and comments and more than 130 million daily active uniques, Reddit is one of the internet’s largest sources of information. Learn more at www.redditinc.com. The Reddit app is available on the App Store and Google Play.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Reddit’s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “going to,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern Reddit’s expectations, strategy, priorities, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding Reddit’s future financial and operating performance, and GAAP and non-GAAP guidance. Reddit’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including those more fully described under the caption “Risk Factors” and elsewhere in documents that Reddit files with the SEC from time to time, including Reddit’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, which is being filed with the SEC at or around the date hereof. The forward-looking statements in this release are based on information available to Reddit as of the date hereof, and Reddit undertakes no obligation to update any forward-looking statements, except as required by law.

A Note About Metrics

We define a daily active unique (“DAUq”) as a user whom we can identify with a unique identifier who has visited a page on the Reddit website, www.reddit.com, or opened a Reddit application at least once during a 24-hour period. Average DAUq for a particular period is calculated by adding the number of DAUq on each day of that period and dividing that sum by the number of days in that period.

We define a weekly active unique (“WAUq”) as a user whom we can identify with a unique identifier who has visited a page on the Reddit website, www.reddit.com, or opened a Reddit application at least once during a trailing seven-day period. Average quarterly WAUq for a particular period is calculated by adding the number of WAUq on each day of that period and dividing that sum by the number of days in that period.

We define average revenue per unique (“ARPU”) as quarterly revenue in a given geography divided by the average DAUq in that geography. For the purposes of calculating ARPU, advertising revenue in a given geography is based on the geographic location in which advertising impressions are delivered, as this approximates revenue based on user activity, while other revenue in a given geography is based on the billing address of the customer.

Use of Non-GAAP Financial Measures

We use certain non-GAAP financial measures to supplement our consolidated financial statements, which are presented in accordance with U.S. GAAP, to evaluate our core operating performance. These non-GAAP financial measures include Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, and Free Cash Flow margin. We use these non-GAAP financial measures to facilitate reviews of our operational performance and as a basis for strategic planning. By excluding certain items that are non-recurring or not reflective of the performance of our normal course of business, we believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance. Accordingly, we believe these non-GAAP financial measures are useful to investors and others because they allow investors to supplement their understanding of our financial trends and evaluate our ongoing and future performance in the same manner as management. However, there are a number of limitations related to the use of non-GAAP financial measures as they reflect the exercise of judgment by our management about which expenses are included or excluded in determining these non-GAAP measures. These non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with U.S. GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.

A reconciliation is provided below for each historical non-GAAP financial measure to the most directly comparable financial measure stated in accordance with U.S. GAAP. Reddit encourages investors to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures, and not to rely on any single financial measure to evaluate Reddit’s business. We have not provided a reconciliation to the forward-looking GAAP equivalent measures for our non-GAAP guidance due to uncertainty regarding, and the potential variability of, reconciling items. Therefore, a reconciliation of these non-GAAP guidance measures to their corresponding GAAP guidance measures is not available without unreasonable effort.

Adjusted EBITDA is defined as net income excluding interest (income) expense, net, income tax expense (benefit), depreciation and amortization, stock-based compensation expense and related taxes, other (income) expense, net, and certain other non-recurring or non-cash items impacting net income that we do not consider indicative of our ongoing business performance. Other (income) expense, net consists primarily of realized gains and losses on sales of marketable securities, foreign currency transaction gains and losses, and other income and expense that are not indicative of our core operating performance. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue. We consider the exclusion of certain non-recurring or non-cash items in calculating Adjusted EBITDA and Adjusted EBITDA margin to provide a useful measure for investors and others to evaluate our operating results in the same manner as management.

Free Cash Flow represents net cash provided by (used in) operating activities less purchases of property and equipment. Free Cash Flow margin is defined as Free Cash Flow divided by revenue. We believe that Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth. Additionally, we believe that Free Cash Flow is an important measure since we use third-party infrastructure partners to host our services and therefore we do not incur significant capital expenditures to support revenue generating activities.

 

Reddit, Inc.

Key Operating Metrics by Geography

(in millions, except percentages and ARPU)

(unaudited)
 

 

Three months ended

June 30,

 

 

 

Six months ended

June 30,

 

 

 

 

2026

 

 

2025

 

% Change

 

 

2026

 

 

2025

 

% Change

Revenue: Global

$

804.9

 

$

499.6

 

61

%

 

$

1,468.3

 

$

892.0

 

65

%

Revenue: U.S.

$

638.1

 

$

408.8

 

56

%

 

$

1,163.7

 

$

722.7

 

61

%

Revenue: International

$

166.8

 

$

90.8

 

84

%

 

$

304.6

 

$

169.3

 

80

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

June 30,

 

 

 

 

 

 

 

 

 

 

2026

 

 

2025

 

% Change

 

 

 

 

 

 

DAUq: Global

 

130.3

 

 

110.4

 

18

%

 

 

 

 

 

 

DAUq: U.S.

 

53.2

 

 

50.3

 

6

%

 

 

 

 

 

 

DAUq: International

 

77.1

 

 

60.1

 

28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Logged-in DAUq: Global

 

52.6

 

 

49.3

 

7

%

 

 

 

 

 

 

Logged-in DAUq: U.S.

 

23.1

 

 

22.9

 

1

%

 

 

 

 

 

 

Logged-in DAUq: International

 

29.5

 

 

26.4

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Logged-out DAUq: Global

 

77.7

 

 

61.1

 

27

%

 

 

 

 

 

 

Logged-out DAUq: U.S.

 

30.1

 

 

27.4

 

10

%

 

 

 

 

 

 

Logged-out DAUq: International

 

47.6

 

 

33.7

 

41

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WAUq: Global

 

514.6

 

 

416.4

 

24

%

 

 

 

 

 

 

WAUq: U.S.

 

197.2

 

 

181.0

 

9

%

 

 

 

 

 

 

WAUq: International

 

317.4

 

 

235.4

 

35

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ARPU: Global

$

6.18

 

$

4.53

 

36

%

 

 

 

 

 

 

ARPU: U.S.

$

11.85

 

$

7.87

 

51

%

 

 

 

 

 

 

ARPU: International

$

2.26

 

$

1.73

 

31

%

 

 

 

 

 

 
 
Reddit, Inc.

Consolidated Statements of Operations

(in thousands, except share and per share amounts)

(unaudited)
 

 

Three months ended

June 30,

 

Six months ended

June 30,

 

 

2026

 

 

2025

 

 

 

2026

 

 

2025

 

Revenue

$

804,905

 

$

499,627

 

 

$

1,468,316

 

$

891,988

 

Costs and expenses:

 

 

 

 

 

 

 

Cost of revenue

 

70,308

 

 

45,900

 

 

 

126,575

 

 

82,989

 

Research and development

 

231,276

 

 

196,610

 

 

 

438,522

 

 

387,881

 

Sales and marketing

 

195,897

 

 

120,619

 

 

 

347,369

 

 

211,304

 

General and administrative

 

75,708

 

 

68,787

 

 

 

141,222

 

 

138,200

 

Total costs and expenses

 

573,189

 

 

431,916

 

 

 

1,053,688

 

 

820,374

 

Income from operations

 

231,716

 

 

67,711

 

 

 

414,628

 

 

71,614

 

Other income (expense), net

 

25,119

 

 

21,147

 

 

 

47,935

 

 

41,681

 

Income before income taxes

 

256,835

 

 

88,858

 

 

 

462,563

 

 

113,295

 

Income tax expense (benefit)

 

3,987

 

 

(439

)

 

 

5,734

 

 

(2,160

)

Net income

$

252,848

 

$

89,297

 

 

$

456,829

 

$

115,455

 

Net income per share attributable to Class A and Class B common stock

 

 

 

 

 

 

 

Basic

$

1.31

 

$

0.48

 

 

$

2.38

 

$

0.63

 

Diluted

$

1.25

 

$

0.45

 

 

$

2.26

 

$

0.58

 

Weighted-average shares used to compute net income per share attributable to common stockholders

 

 

 

 

 

 

 

Basic

 

192,345,684

 

 

185,437,777

 

 

 

191,932,329

 

 

183,730,992

 

Diluted

 

202,029,721

 

 

199,522,433

 

 

 

202,326,864

 

 

200,681,458

 
 
Reddit, Inc.

Consolidated Balance Sheets

(in thousands)

(unaudited)
 

 

June 30,

2026

 

December 31,

2025

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

1,486,838

 

 

$

953,569

 

Marketable securities

 

1,299,519

 

 

 

1,523,242

 

Accounts receivable, net

 

650,098

 

 

 

590,162

 

Prepaid expenses and other current assets

 

105,210

 

 

 

69,012

 

Total current assets

 

3,541,665

 

 

 

3,135,985

 

Property and equipment, net

 

11,981

 

 

 

12,710

 

Operating lease right-of-use assets, net

 

18,411

 

 

 

20,788

 

Intangible assets, net

 

10,565

 

 

 

15,521

 

Goodwill

 

42,174

 

 

 

42,174

 

Other noncurrent assets

 

11,809

 

 

 

11,995

 

Total assets

$

3,636,605

 

 

$

3,239,173

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

89,144

 

 

$

62,929

 

Operating lease liabilities

 

7,783

 

 

 

7,023

 

Accrued expenses and other current liabilities

 

240,822

 

 

 

201,331

 

Total current liabilities

 

337,749

 

 

 

271,283

 

Operating lease liabilities, noncurrent

 

13,084

 

 

 

16,191

 

Other noncurrent liabilities

 

72

 

 

 

22,661

 

Total liabilities

 

350,905

 

 

 

310,135

 

Commitments and contingencies

 

 

 

Stockholders’ equity:

 

 

 

Preferred stock

 

—

 

 

 

—

 

Class A common stock

 

14

 

 

 

14

 

Class B common stock

 

5

 

 

 

5

 

Class C common stock

 

—

 

 

 

—

 

Additional paid-in capital

 

3,504,664

 

 

 

3,595,772

 

Accumulated other comprehensive income (loss)

 

(4,695

)

 

 

4,364

 

Accumulated deficit

 

(214,288

)

 

 

(671,117

)

Total stockholders’ equity

 

3,285,700

 

 

 

2,929,038

 

Total liabilities and stockholders’ equity

$

3,636,605

 

 

$

3,239,173

 
 
Reddit, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)
 

 

Three months ended

June 30,

 

Six months ended

June 30,

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

Cash flows from operating activities

 

 

 

 

 

Net income

$

252,848

 

 

$

89,297

 

 

$

456,829

 

 

$

115,455

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

4,258

 

 

 

3,934

 

 

 

8,468

 

 

 

7,897

 

Non-cash operating lease cost

 

1,743

 

 

 

1,514

 

 

 

3,419

 

 

 

2,982

 

Amortization of premium (accretion of discount) on marketable securities, net

 

(2,799

)

 

 

(6,691

)

 

 

(7,096

)

 

 

(15,575

)

Stock-based compensation expense

 

100,952

 

 

 

89,070

 

 

 

169,288

 

 

 

174,484

 

Other adjustments

 

85

 

 

 

97

 

 

 

(606

)

 

 

(41

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

(127,228

)

 

 

(81,116

)

 

 

(59,271

)

 

 

(57,757

)

Prepaid expenses and other assets

 

(12,454

)

 

 

(9,352

)

 

 

(36,206

)

 

 

(26,358

)

Operating lease right-of-use assets and liabilities

 

(1,575

)

 

 

(1,589

)

 

 

(3,390

)

 

 

(3,369

)

Accounts payable

 

37,020

 

 

 

19,991

 

 

 

26,037

 

 

 

18,945

 

Accrued expenses and other liabilities

 

9,026

 

 

 

6,176

 

 

 

16,657

 

 

 

22,246

 

Net cash provided by (used in) operating activities

$

261,876

 

 

$

111,331

 

 

$

574,129

 

 

$

238,909

 

Cash flows from investing activities

 

 

 

 

 

 

 

Purchases of property and equipment

 

(1,134

)

 

 

(505

)

 

 

(2,224

)

 

 

(1,484

)

Purchases of marketable securities

 

(311,978

)

 

 

(556,457

)

 

 

(676,907

)

 

 

(1,061,303

)

Maturities of marketable securities

 

409,247

 

 

 

552,532

 

 

 

883,715

 

 

 

1,017,594

 

Proceeds from sale of marketable securities

 

—

 

 

 

—

 

 

 

17,989

 

 

 

12,372

 

Other investing activities

 

(1,421

)

 

 

2,354

 

 

 

(3,037

)

 

 

3,243

 

Net cash provided by (used in) investing activities

$

94,714

 

 

$

(2,076

)

 

$

219,536

 

 

$

(29,578

)

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from exercise of employee stock options

 

5,037

 

 

 

4,303

 

 

 

9,936

 

 

 

14,487

 

Taxes paid related to net share settlement of restricted stock units

 

(14,546

)

 

 

(15,225

)

 

 

(30,742

)

 

 

(51,900

)

Repurchases of Class A common stock

 

(234,591

)

 

 

—

 

 

 

(239,590

)

 

 

—

 

Net cash provided by (used in) financing activities

$

(244,100

)

 

$

(10,922

)

 

$

(260,396

)

 

$

(37,413

)

Net increase (decrease) in cash and cash equivalents

 

112,490

 

 

 

98,333

 

 

 

533,269

 

 

 

171,918

 

Cash and cash equivalents at the beginning of the period

 

1,374,348

 

 

 

635,727

 

 

 

953,569

 

 

 

562,142

 

Cash and cash equivalents at the end of the period

$

1,486,838

 

 

$

734,060

 

 

$

1,486,838

 

 

$

734,060

 
 
Reddit, Inc.

Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin

(in thousands, except percentages)

(unaudited)
 

 

Three months ended

June 30,

 

Six months ended

June 30,

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

Net income

$

252,848

 

 

$

89,297

 

 

$

456,829

 

 

$

115,455

 

Add (deduct):

 

 

 

 

 

 

 

Interest (income) expense, net

 

(25,027

)

 

 

(21,056

)

 

 

(48,912

)

 

 

(41,470

)

Income tax expense (benefit)

 

3,987

 

 

 

(439

)

 

 

5,734

 

 

 

(2,160

)

Depreciation and amortization

 

4,258

 

 

 

3,934

 

 

 

8,468

 

 

 

7,897

 

Stock-based compensation expense and related taxes

 

106,836

 

 

 

95,104

 

 

 

185,684

 

 

 

202,509

 

Other (income) expense, net

 

(92

)

 

 

(91

)

 

 

977

 

 

 

(211

)

Adjusted EBITDA

$

342,810

 

 

$

166,749

 

 

$

608,780

 

 

$

282,020

 

Net margin

 

31.4

%

 

 

17.9

%

 

 

31.1

%

 

 

12.9

%

Adjusted EBITDA margin

 

42.6

%

 

 

33.4

%

 

 

41.5

%

 

 

31.6

%
 

Reddit, Inc.

Reconciliation of Free Cash Flow and Free Cash Flow Margin

(in thousands, except percentages)

(unaudited)
 

 

Three months ended

June 30,

 

Six months ended

June 30,

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

Net cash provided by (used in) operating activities

$

261,876

 

 

$

111,331

 

 

$

574,129

 

 

$

238,909

 

Less:

 

 

 

 

 

 

 

Purchases of property and equipment

 

(1,134

)

 

 

(505

)

 

 

(2,224

)

 

 

(1,484

)

Free Cash Flow

$

260,742

 

 

$

110,826

 

 

$

571,905

 

 

$

237,425

 

Operating cash flow margin

 

32.5

%

 

 

22.3

%

 

 

39.1

%

 

 

26.8

%

Free Cash Flow margin

 

32.4

%

 

 

22.2

%

 

 

38.9

%

 

 

26.6

%

 

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