Reddit Inc. 8-K

PositiveEarningsNew guidance

Higher Reddit ad pricing and impressions drove growth, while search-referral traffic was volatile late in the quarter.

Filed 2026-07-30 16:09 ET

Summary

Q2 2026 results with Q3 guidance. Revenue grew 61% for an eighth consecutive quarter above 60%, supported by advertising growth and higher pricing and impressions. Daily and weekly active uniques also grew, while management said search referral traffic was volatile later in the quarter.

Key Figures

Metric Q2 2026 Q2 2025 Y/Y
Revenue $805M $500M 61%
Operating income $232M $67.7M 242%
Net income $253M $89.3M 183%
Adjusted EBITDA, non-GAAP $343M $167M 106%
Diluted EPS $1.25 $0.45 178%
Operating cash flow $262M $111M 135%
Free cash flow, non-GAAP $261M $111M 135%
DAUq 130M 110M 18%
WAUq 515M 416M 24%
  • Advertising revenue rose 64% to $762M; other revenue grew 24% to $43M. Management attributed advertising growth to higher pricing and impressions. Gross margin was 91.3%, up 50 bp Y/Y; net margin was 31.4% vs 17.9%, and Adjusted EBITDA margin was 42.6% vs 33.4%.
  • Cash, cash equivalents and marketable securities totaled $2.79B at quarter-end. Reddit repurchased 1.5M Class A shares for $235M at an average $157.57 per share; fully diluted shares outstanding were 207.0M, up 0.2% Y/Y.

Guidance

Metric Period Guidance Prior Direction
Revenue Q3 2026 $860M-$870M — —
Adjusted EBITDA, non-GAAP Q3 2026 $385M-$395M — —

Investor Takeaways

  • Q3 revenue and non-GAAP Adjusted EBITDA versus their guided ranges will show whether commercial momentum is continuing.
  • Watch DAUq and new-user retention alongside search-referral traffic: management cited volatile search traffic, while reporting a 50% Y/Y relative increase in new app-user retention from a small base.

The summary is written by an AI model reading the filing.

Model 005 · prompt 01d34d48e3

Feedback