Reddit Inc. 8-K
PositiveEarningsNew guidance
Search referrals fell >1M/week on average in October, putting Q4 user totals at risk despite stronger ad pricing and international monetization.
Filed 2026-10-29 16:08 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with Q4 guidance. Revenue grew 53% to $895M, with net income up 74% and adjusted EBITDA up 70%; advertising revenue growth and stronger international monetization supported results. Reddit also reported accelerating declines in search referrals, a potential headwind to Q4 user numbers if the trend continues.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue | $895M, +53% Y/Y | $2.36B, +60% Y/Y |
| Gross margin | 91.5%, vs 91.0% | — |
| Operating income | $262M, +89% Y/Y | $676M, +222% Y/Y |
| Net income | $283M, +74% Y/Y | $740M, +166% Y/Y |
| Adjusted EBITDA, non-GAAP | $402M, +70% Y/Y | $1.01B, +95% Y/Y |
| Diluted EPS | $1.40, +75% Y/Y | $3.66, +165% Y/Y |
| Operating cash flow | $364M, +96% Y/Y | $938M, +121% Y/Y |
| Free cash flow, non-GAAP | $363M, +98% Y/Y | $934M, +122% Y/Y |
- Advertising revenue was $847M, up 54% Y/Y; other revenue was $48M, up 35%. Advertising growth reflected higher pricing and impressions, with strength across the ad funnel, particularly lower-funnel campaigns.
- Global daily active uniques (DAUq) rose 12% to 130.3M and weekly active uniques (WAUq) rose 16% to 515.2M. U.S. DAUq fell 2%, while international DAUq grew 24%; average revenue per unique was $6.87, up 36%.
- Search referrals fell by more than 1M per week on average during October, with declines continuing into early Q4. If the trend persists, Reddit said total Q4 DAUq could fall by a low-double-digit percentage from its current 130M base. Logged-in and app DAUq grew sequentially and together account for over 80% of monetization.
- Reddit repurchased approximately 670,000 Class A shares for $100M at an average $149.81 per share. Fully diluted shares were 206.3M, down 0.3% Q/Q; cash, cash equivalents and marketable securities totaled $3.03B.
Against earlier guidance (derived from earlier filings)
| Metric | Period | Earlier guidance | Actual | Result |
|---|---|---|---|---|
| Revenue | Q3 2026 | $860M-$870M | $895M | beat |
| Adjusted EBITDA, non-GAAP | Q3 2026 | $385M-$395M | $402M | beat |
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue | Q4 2026 | $1B-$1.03B | — | — |
| Adjusted EBITDA, non-GAAP | Q4 2026 | $480M-$510M | — | — |
Investor Takeaways
- Track Q4 revenue and adjusted EBITDA against their guided ranges, alongside DAUq: continued search-referral declines could pressure user totals.
- Reddit will begin testing a primarily logged-in experience in select markets outside the U.S. in Q4. Results in user engagement and monetization will test the strategy, given logged-in and app users’ contribution of over 80% of monetization.
- Watch whether ad growth continues: Q3 advertising revenue rose 54% Y/Y, while video ad revenue more than doubled Y/Y.
The summary is written by an AI model reading the filing.
Model 005 · prompt v111 · 2026-10-29 22:48:14Z