Reddit Revenue Surges 53% as U.S. Daily Users Slip

Reddit grew third-quarter revenue 53% to $895 million and lifted net income 74% to $283 million, and it forecast fourth-quarter revenue of at least $1 billion, according to the earnings release it filed with an 8-K on Thursday.

Diluted earnings rose 75% to $1.40 a share from $0.80 a year earlier. Adjusted EBITDA climbed 70% to $402 million, and the adjusted EBITDA margin widened to 44.9% from 40.3%. Net margin reached 31.7%, and gross margin was 91.5%, up 50 basis points from a year earlier.

"Surpassing $3B of revenue over the last 12 months shows Reddit's strength as a destination and the differentiated value of our platform," founder and CEO Steve Huffman said in the release.

Ads drive the growth

Advertising revenue rose 54% to $847 million, and other revenue increased 35% to $48 million. U.S. revenue grew 50% to $719 million, while international revenue rose 67% to $176 million. Over the first nine months of the year, revenue totaled $2,363.3 million, up 60% from $1,476.9 million in the same period of 2025.

Reddit is earning more from each user. Global average revenue per unique rose 36% to $6.87, and U.S. ARPU jumped 53% to $13.82.

Users: growth abroad, a dip at home

Daily active uniques rose 12% to 130.3 million, and weekly active uniques increased 16% to 515.2 million. The gains came from outside the U.S., where daily users rose 24% to 79.6 million.

U.S. daily active uniques slipped 2% to 50.7 million from 51.6 million, a decline driven by logged-out users, which fell 4% in the U.S. Logged-in U.S. daily users edged up 1% to 23.4 million. The company said logged-in and app users, which it calls its most engaged and monetizable audience, grew from the second quarter in both the U.S. and the rest of the world.

Cash and buybacks

Operating cash flow rose 96% to $364 million, and free cash flow nearly doubled to $363 million, with capital expenditures of just $1 million. Reddit ended the quarter with $3.03 billion in cash, cash equivalents and marketable securities.

The company repurchased about 670 thousand Class A shares during the quarter for $100 million, at an average price of $149.81 a share. Fully diluted shares outstanding totaled 206.3 million as of Sept. 30, down 0.3% from the prior quarter. Reddit also noted it was added to the S&P 500 index.

Fourth-quarter outlook

For the fourth quarter, Reddit expects revenue of $1,000 million to $1,030 million and adjusted EBITDA of $480 million to $510 million.

By the numbers

• $895 million: third-quarter revenue, up 53%
• $1.40: diluted EPS, up 75%
• 130.3 million: daily active uniques, up 12%
• 50.7 million: U.S. daily active uniques, down 2%
• $1,000 million to $1,030 million: fourth-quarter revenue forecast

Sources

1. Reddit Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001713445-26-000114)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.