01—Abstract
Summary
Summary of the 8-K filed October 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Reddit, Inc. reported third-quarter 2026 results for the quarter ended September 30, 2026.
Revenue was $895 milliona, up 53% year-over-year, with advertising revenue of $847 million (up 54%) and other revenue of $48 million (up 35%). U.S. revenue was $719 million (up 50%) and international revenue was $176 million (up 67%). Net income was $283 million, up 74%, with a 31.7% net margin.
Diluted EPS was $1.40b, up 75%. Adjusted EBITDA was $402 million, up 70%, at a 44.9% margin. Operating cash flow was $364 million, up 96%, and free cash flow was $363 million.
The company repurchased about 670 thousand Class A shares for $100 millionc at an average price of $149.81. Reddit was also added to the S&P 500 index during the quarter. User metrics were mixed.
Global daily active uniques (DAUq) rose 12%d to 130.3 million and weekly active uniques (WAUq) rose 16% to 515.2 million, but U.S. DAUq fell 2% to 50.7 million while international DAUq grew 24%. The letter to shareholders says search referral traffic declined meaningfully in Q3, with the decline accelerating late in the quarter. In October, search traffic fell by more than 1 million referrals per week on average.
If that rate of decline continues, the letter says total DAUq could fall by a low-double-digit percentage in Q4 from the current base of 130 million. Management is shifting Reddit toward a primarily logged-in experience and plans to begin testing it in select markets outside the U.S. in Q4. For Q4 2026, Reddit estimates revenue of $1,000 million to $1,030 million and Adjusted EBITDA of $480 million to $510 million.
Management also said logged-in and app DAUq make up the vast majority of engagement and over 80% of monetization. Investors will likely focus on whether the search-referral decline affects user growth and on the durability of the margin expansion.
02—Key points
Key Highlights
- Q3 2026 revenue of $895 million grew 53% year-over-year, with advertising revenue of $847 million up 54% and other revenue of $48 million up 35%.
- Net income was $283 million, up 74%, and diluted EPS was $1.40, up 75%. Adjusted EBITDA was $402 million, up 70%, at a 44.9% margin.
- Operating cash flow was $364 million, up 96%, and free cash flow was $363 million, up 98%. Capital expenditures were $1 million.
- Global DAUq rose 12% to 130.3 million and WAUq rose 16% to 515.2 million. U.S. DAUq fell 2%, while international DAUq grew 24%.
- Search referral traffic declined meaningfully in Q3, and October search referrals fell by more than 1 million per week on average. Management said total DAUq could fall by a low-double-digit percentage in Q4 if the trend continues.
- Q4 2026 guidance calls for revenue of $1,000 million to $1,030 million and Adjusted EBITDA of $480 million to $510 million.
- Reddit repurchased about 670 thousand Class A shares for $100 million during Q3 at an average price of $149.81. Cash, cash equivalents and marketable securities totaled $3.03 billion at September 30, 2026.
03—Questions
Frequently Asked Questions
How much did Reddit grow in Q3 2026 and what drove it?
Revenue grew 53% year-over-year to $895 million. Advertising revenue rose 54% to $847 million, driven by year-over-year growth in pricing and impressions. International revenue grew 67% and U.S. revenue grew 50%. Video objectives were also strong, with video ad revenue growing more than 2x year-over-year.
Why might user growth slow in Q4 2026?
The letter says search referral traffic was down meaningfully in Q3 and declined further in October, with search referrals dropping by more than 1 million per week on average. If this rate of decline continues, total DAUq could fall by a low-double-digit percentage in Q4 from the current base of 130 million. Logged-out and web traffic were most affected.
What is the logged-in-only experience and when will it start?
Management plans to shift Reddit to a primarily logged-in experience, which it says will provide more ad-targeting signals, higher engagement, better protection of its data corpus and easier adaptation to emerging regulations. Reddit will begin fully testing it in select markets outside the U.S. in Q4 2026, and the results will inform a global version.
How much did Reddit return to shareholders and how much cash does it have?
Reddit repurchased about 670 thousand Class A shares for $100 million in Q3 2026, at an average price of $149.81. Nine-month repurchases totaled $339.96 million in cash flow terms. Cash, cash equivalents and marketable securities were $3.03 billion as of September 30, 2026, and fully diluted shares outstanding were 206.3 million, down 0.3% from the prior quarter.
04—Continue