01—Abstract
Summary
Summary of the 10-Q filed July 31, 2026. Cited figures are marked; the original filing is the authoritative source.
Reddit, Inc. reported second-quarter 2026 revenue of $804.9 milliona, up 61% year-over-year from $499.6 million, with advertising revenue of $761.6 million and other revenue of $43.3 million.
Income from operations was $231.7 millionb versus $67.7 million a year earlier, and net income was $252.8 million compared with $89.3 million. Diluted net income per share was $1.25 versus $0.45. Adjusted EBITDA was $342.8 million compared with $166.7 million, and Free Cash Flow was $260.7 million compared with $110.8 million.
Growth was driven primarily by higher pricing and increased ad impressions; the price of ads rose approximately 40% and ad impressions rose approximately 17% year-over-year. User metrics showed Daily Active Uniques (DAUq) of 130.3 million, up 18% year-over-year, with U.S. DAUq up 6% and rest-of-world DAUq up 28%. ARPU was $6.18c, up 36%, with U.S. ARPU at $11.85 and rest-of-world ARPU at $2.26.
Beginning with the quarter ending September 30, 2026, the company will stop reporting logged-in and logged-out DAUq, and management will primarily use total DAUq and DAUq by geography. Balance sheet and capital return activity strengthened during the period.
Cash, cash equivalents, and marketable securities totaled $2.8 billiond at June 30, 2026, and the company repurchased 1,523,502 Class A shares for $239.6 million in the six months ended June 30, 2026 under a $1.0 billion program authorized in February 2026, with $760.4 million remaining. The filing also discloses a securities class action and derivative complaints relating to Google Search and AI Overviews, and a £14.5 million fine from the UK Information Commissioner's Office that the company is appealing.
02—Key points
Key Highlights
- Revenue rose 61% year-over-year to $804.9 million in Q2 2026, with advertising revenue of $761.6 million, driven by a roughly 40% increase in ad prices and roughly 17% growth in ad impressions.
- Net income was $252.8 million versus $89.3 million a year earlier; diluted EPS was $1.25 compared with $0.45.
- Adjusted EBITDA reached $342.8 million (versus $166.7 million) and Free Cash Flow was $260.7 million (versus $110.8 million) for the quarter.
- DAUq was 130.3 million, up 18% year-over-year (U.S. up 6%, rest of world up 28%); ARPU was $6.18, up 36%, with U.S. ARPU at $11.85 and rest-of-world ARPU at $2.26.
- The company held $2.8 billion in cash, cash equivalents, and marketable securities at June 30, 2026, and repurchased $239.6 million of Class A stock in the first half of 2026 under a $1.0 billion authorization, with $760.4 million remaining.
- Starting with the quarter ending September 30, 2026, Reddit will no longer report logged-in and logged-out DAUq, shifting to total DAUq and DAUq by geography.
- Legal exposure includes a securities class action over Google Search and AI Overviews impacts, related shareholder derivative complaints, and a GBP 14.5 million UK ICO fine under appeal.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Reddit kept $0.31.
- Revenue$804.9M100.0%
- Cost of revenue−$70.3M8.7%
- Gross profit$734.6M91.3%
- Operating costs−$502.9M62.5%
- Operating income$231.7M28.8%
- Interest, other & tax$21.1M2.6%
- Net income$252.8M31.4%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 31, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $804.90M$499.63M | +61.1% |
| Cost of Revenue | $70.31M$45.90M | +53.2% |
| Gross Profit | $734.60M$453.73M | +61.9% |
| R&D Expenses | $231.28M$196.61M | +17.6% |
| Operating Expenses | $573.19M$431.92M | +32.7% |
| Operating Income | $231.72M$67.71M | +242.2% |
| Net Income | $252.85M$89.30M | +183.2% |
| EPS (Basic) | $1.31$0.48 | +172.9% |
| EPS (Diluted) | $1.25$0.45 | +177.8% |
| Shares Outstanding (Basic) | 192.35M185.44M | +3.7% |
| Shares Outstanding (Diluted) | 202.03M199.52M | +1.3% |
05—Questions
Frequently Asked Questions
How strong was Reddit's revenue growth in the second quarter of 2026?
Revenue was $804.9 million for the three months ended June 30, 2026, an increase of $305.3 million, or 61%, from $499.6 million a year earlier. For the six months, revenue was $1.47 billion, up 65%. Growth came mainly from advertising, with higher ad pricing and more impressions delivered.
Is Reddit now profitable on a GAAP basis, and how did margins change?
Yes. Net income was $252.8 million for the quarter versus $89.3 million a year earlier, and income from operations was $231.7 million compared with $67.7 million. Operating income was 29% of revenue in the quarter versus 14% a year earlier. The filing notes the company has had net income in every quarter since the three months ended September 30, 2024, but also discloses a history of net losses and an accumulated deficit of $214.3 million as of June 30, 2026.
What is driving user and monetization trends?
Global DAUq grew 18% year-over-year to 130.3 million, with rest-of-world DAUq up 28% and U.S. DAUq up 6%. ARPU rose 36% to $6.18. The company attributes the ARPU increase primarily to higher ad pricing and more impressions. Management noted that third-party search engine algorithm changes partly offset user growth from marketing and product initiatives.
What capital return and liquidity actions did Reddit take?
The company repurchased 1,523,502 Class A shares for $239.6 million in the six months ended June 30, 2026, under a $1.0 billion program authorized February 4, 2026, leaving $760.4 million available. It ended the quarter with $2.8 billion in cash, cash equivalents, and marketable securities and said these, plus operating cash flow and its $500.0 million revolving credit facility, should cover needs for at least the next 12 months.
What legal and regulatory risks are disclosed?
A securities class action filed in June 2025 alleges misleading statements about the impact of Google Search and its AI Overviews on the business, and shareholder derivative complaints with similar allegations have followed. In February 2026, the UK Information Commissioner's Office issued a penalty notice including a GBP 14.5 million fine, which the company is appealing. The filing states the outcome of the securities matters remains uncertain.
06—Continue