Reddit — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue increased 53% year-over-year to $895 million, with Ad revenue up 54% to $847 million and Other revenue up 35% to $48 million.
• Net income was $283 million (31.7% net margin), an improvement of $121 million from the prior year.
• Diluted EPS was $1.40, up 75% year-over-year; Basic EPS was $1.47, up 69% year-over-year.
• Adjusted EBITDA was $402 million (44.9% margin), up 70% year-over-year.
• Operating cash flow was $364 million (40.6% margin), up 96% year-over-year.
• Free Cash Flow was $363 million (40.5% margin), up 98% year-over-year.
• Gross margin was 91.5%, up 50 basis points year-over-year.
• Capital expenditures were $1 million, representing 0.1% of revenue.
• Cash, cash equivalents, and marketable securities totaled $3.03 billion as of September 30, 2026.

Guidance and Future Outlook:

• For the fourth quarter of 2026, revenue is estimated to be between $1,000 million and $1,030 million.
• Adjusted EBITDA for the fourth quarter of 2026 is estimated to be between $480 million and $510 million.

Business Segments and Product Lines:

• Logged-in DAUq and App DAUq grew quarter-over-quarter in both the US and Rest of World (RoW).
• Revenue by geography: U.S. revenue was $719 million (up 50% YoY); International revenue was $176 million (up 67% YoY).
• Nine-month revenue through September 30, 2026, was $2,363 million, up 60% year-over-year.

Market and Competitive Landscape:

• Daily Active Uniques (DAUq) increased 12% year-over-year to 130.3 million.
• Weekly Active Uniques (WAUq) increased 16% year-over-year to 515.2 million.
• Global Average Revenue Per Unique (ARPU) was $6.87, up 36% year-over-year; U.S. ARPU was $13.82, up 53% year-over-year.
• Reddit was added to the S&P 500 index.

Risks and Challenges:

• Forward-looking statements are subject to significant risks and uncertainties, including those described in Reddit's SEC reports, which could cause actual results to differ materially from projections.
• Reddit undertakes no duty to update forward-looking statements except as required by law.

Management Commentary and Tone:

• CEO Steve Huffman stated the business is growing because the Reddit experience captures the human experience in a way no other platform can replicate.
• Management noted that surpassing $3 billion of revenue over the last 12 months demonstrates the strength of the platform and its differentiated value.
• Management highlighted a "1-of-1 financial model" as a key differentiator.

Other Key Points:

• Total fully diluted shares outstanding were 206.3 million as of September 30, 2026, down 0.3% from the prior quarter.
• The company repurchased approximately 670,000 shares of Class A common stock during the quarter for a total of $100 million at an average price of $149.81 per share.
• Reddit will host an earnings conference call on October 29, 2026, at 1:30 p.m. PT / 4:30 p.m. ET.
• The company solicits questions from the community via the investor relations subreddit, r/RDDT.