Reddit Reports Third Quarter 2026 Results
Logged-in DAUq and App DAUq, our most engaged and monetizable users, grew quarter-over-quarter in the US and RoW
Net income of $283 million, 32% of revenue, and Diluted EPS of $1.40, both up over 70% year-over-year
SAN FRANCISCO, Calif. – October 29, 2026 – Reddit, Inc. (NYSE: RDDT) today announced financial results for the quarter ended September 30, 2026. Reddit’s complete financial results and management commentary can be found in its shareholder letter on Reddit’s Investor Relations website at https://investor.redditinc.com.
“Our business is growing because the Reddit experience captures the human experience in a way that no other platform can replicate,” said Steve Huffman, Founder and CEO of Reddit. “Surpassing $3B of revenue over the last 12 months shows Reddit’s strength as a destination and the differentiated value of our platform.”
Total revenue increased 53% year-over-year to $895 million, Ad revenue increased 54% year-over-year to $847 million, and Other revenue increased 35% year-over- year to $48 million
• Net income was $283 million, an improvement of $121 million from the prior year
• Adjusted EBITDA 1 was $402 million, an improvement of $166 million from the prior year
Basic and diluted earnings per share (“EPS”) were $1.47 and $1.40, an increase of 69% and 75% year-over-year, respectively
• Operating cash flow was $364 million, an improvement of $179 million from the prior year
• Free Cash Flow 1 was $363 million, an improvement of $179 million from the prior year
• Total fully diluted shares outstanding were 206.3 million as of September 30, 2026, down 0.3% from last quarter
• Cash, Cash Equivalents, and Marketable Securities were $3.03 billion as of September 30, 2026
• We repurchased approximately 670 thousand shares of our Class A common stock during the quarter for a total of $100 million at an average price per share of $149.81
• Reddit was added to the S&P 500 index, underscoring the Company’s value, sustained performance, and its 1-of-1 financial model 1
*The definitions of Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow can be found in the Use of Non-GAAP Financial Measures section of this release. A reconciliation of non-GAAP financial measures to the most directly comparable U.S. GAAP measure can be found on pages 10 - 11 .
The guidance provided below is based on Reddit’s current estimates and is not a guarantee of future performance. This guidance is subject to significant risks and uncertainties that could cause actual results to differ materially, including the risk factors discussed in Reddit’s reports on file with the Securities and Exchange Commission (the “SEC”). Reddit undertakes no duty to update any forward-looking statements or estimates, except as required by applicable law.
As we look ahead, we will share our internal thoughts on revenue and Adjusted EBITDA for the fourth quarter.
Reddit will host a conference call to discuss the results for the third quarter of 2026 on Thursday, October 29, 2026, at 1:30 p.m. PT / 4:30 p.m. ET. A live webcast of the call can be accessed on Reddit’s Investor Relations website at https://investor.redditinc.com and investor relations subreddit, r/RDDT, at https://www.reddit.com/r/RDDT/. A replay of the webcast and transcript will be available on the same websites following the conclusion of the conference call.
Reddit will solicit questions from the community in the investor relations subreddit, r/RDDT, at https://www.reddit.com/r/RDDT/ on Thursday, October 29, 2026, after the market closes, and post responses following the earnings call at Reddit’s Investor Relations website at https://investor.redditinc.com and r/RDDT at https://www.reddit.com/r/RDDT/. 2 Reddit uses the investor relations page on its website https://investor.redditinc.com, user accounts of Reddit's Chief Executive Officer, Steve Huffman (u/spez); Reddit's Chief Operating Officer, Jen Wong (u/adsjunkie); and Reddit's Chief Financial Officer, Drew Vollero (u/TimingandLuck), as well as the subreddits r/RDDT and r/reddit, available at https://www.reddit.com/r/RDDT/ and https://www.reddit.com/r/reddit/, respectively, as means of disclosing material non-public information and for complying with its disclosure obligation under Regulation FD.
1 The definitions of Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow can be found in the Use of Non-GAAP Financial Measures section of this release. A reconciliation of non-GAAP financial measures to the most directly comparable U.S. GAAP measure can be found on pages 10 - 11 .
2 We have not provided a reconciliation to the forward-looking U.S. GAAP equivalent measures for our non-GAAP guidance due to uncertainty regarding, and the potential variability of, reconciling items. Therefore, a reconciliation of these non-GAAP guidance measures to their corresponding U.S. GAAP guidance measures is not available without unreasonable effort.
Reddit is a community of communities. Built on shared interests and passions, it is home to the most open and authentic conversations online. Every day, millions of people post, vote, comment, and search for answers across nearly every topic imaginable, and brands build trusted relationships with their audiences. With 27+ billion posts and comments and more than 130 million daily active uniques, Reddit is one of the internet’s largest sources of information. Learn more at www.redditinc.com. The Reddit app is available on the App Store and Google Play.
This press release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward- looking statements generally relate to future events or Reddit's future financial or operating performance. In some cases, you can identify forward- looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern Reddit's expectations, strategy, priorities, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding Reddit’s future financial and operating performance, and GAAP and non-GAAP guidance; Reddit’s expectations regarding continued business growth, user engagement and monetization; and Reddit’s ability to maintain a strong balance sheet and invest in future growth. Reddit's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including those more fully described under the caption “Risk Factors” and elsewhere in documents that Reddit files with the SEC from time to time, including Reddit’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, which is being filed with the SEC at or around the date hereof. The forward-looking statements in this release are based on information available to Reddit as of the date hereof, and Reddit undertakes no obligation to update any forward-looking statements, except as required by law.
We define a daily active unique (“DAUq”) as a user whom we can identify with a unique identifier who has visited a page on the Reddit website, www.reddit.com, or opened a Reddit application at least once during a 24-hour period. Average DAUq for a particular period is calculated by adding the number of DAUq on each day of that period and dividing that sum by the number of days in that period.
We define a weekly active unique (“WAUq”) as a user whom we can identify with a unique identifier who has visited a page on the Reddit website, www.reddit.com, or opened a Reddit application at least once during a trailing seven-day period. Average quarterly WAUq for a particular period is calculated by adding the number of WAUq on each day of that period and dividing that sum by the number of days in that period.
We define average revenue per unique (“ARPU”) as quarterly revenue in a given geography divided by the average DAUq in that geography. For the purposes of calculating ARPU, advertising revenue in a given geography is based on the geographic location in which advertising impressions are delivered, as this approximates revenue based on user activity, while other revenue in a given geography is based on the billing address of the customer.
We use certain non-GAAP financial measures to supplement our consolidated financial statements, which are presented in accordance with U.S. GAAP, to evaluate our core operating performance. These non-GAAP financial measures include Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, and Free Cash Flow margin. We use these non-GAAP financial measures to facilitate reviews of our operational performance and as a basis for strategic planning. By excluding certain items that are non-recurring or not reflective of the performance of our normal course of business, we believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance. Accordingly, we believe these non-GAAP financial measures are useful to investors and others because they allow investors to supplement their understanding of our financial trends and evaluate our ongoing and future performance in the same manner as management. However, there are a number of limitations related to the use of non-GAAP financial measures as they reflect the exercise of judgment by our management about which expenses are included or excluded in determining these non-GAAP measures. These non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with U.S. GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.
A reconciliation is provided below for each historical non-GAAP financial measure to the most directly comparable financial measure stated in accordance with U.S. GAAP. Reddit encourages investors to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures, and not to rely on any single financial measure to evaluate Reddit’s business. We have not provided a reconciliation to the forward-looking GAAP equivalent measures for our non-GAAP guidance due to uncertainty regarding, and the potential variability of, reconciling items. Therefore, a reconciliation of these non-GAAP guidance measures to their corresponding GAAP guidance measures is not available without unreasonable effort. 4 Adjusted EBITDA is defined as net income excluding interest (income) expense, net, income tax expense (benefit), depreciation and amortization, stock-based compensation expense and related taxes, other (income) expense, net, and certain other non-recurring or non-cash items impacting net income that we do not consider indicative of our ongoing business performance. Other (income) expense, net consists primarily of realized gains and losses on sales of marketable securities, foreign currency transaction gains and losses, and other income and expense that are not indicative of our core operating performance. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue. We consider the exclusion of certain non-recurring or non-cash items in calculating Adjusted EBITDA and Adjusted EBITDA margin to provide a useful measure for investors and others to evaluate our operating results in the same manner as management.
Free Cash Flow represents net cash provided by (used in) operating activities less purchases of property and equipment. Free Cash Flow margin is defined as Free Cash Flow divided by revenue. We believe that Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth. Additionally, we believe that Free Cash Flow is an important measure since we use third-party infrastructure partners to host our services and therefore we do not incur significant capital expenditures to support revenue generating activities. 5
September 30, December 31, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Assets Current assets Cash and cash equivalents $ 1,357,583 $ 953,569 Marketable securities 1,675,849 1,523,242 Accounts receivable, net 730,083 590,162 Prepaid expenses and other current 93,009 69,012 assets Total current assets 3,856,524 3,135,985 Property and equipment, net 11,489 12,710 Operating lease right-of-use assets, 28,030 20,788 net Intangible assets, net 10,086 15,521 Goodwill 42,174 42,174 Other noncurrent assets 13,726 11,995 Total assets $ 3,962,029 $ 3,239,173 Liabilities and stockholders’ equity Current liabilities Accounts payable $ 110,246 $ 62,929 Operating lease liabilities 8,364 7,023 Accrued expenses and other current 238,598 201,331 liabilities Total current liabilities 357,208 271,283 Operating lease liabilities, 23,045 16,191 noncurrent Other noncurrent liabilities 68 22,661 Total liabilities 380,321 310,135 Commitments and contingencies Stockholders’ equity: Preferred stock — — Class A common stock 14 14 Class B common stock 5 5 Class C common stock — — Additional paid-in capital 3,526,748 3,595,772 Accumulated other comprehensive income -14,035 4,364 (loss) Retained earnings (accumulated 68,976 -671,117 deficit) Total stockholders’ equity 3,581,708 2,929,038 Total liabilities and stockholders’ $ 3,962,029 $ 3,239,173 equity
Full text with the tables
Exhibit 99.1
Reddit Reports Third Quarter 2026 Results
Daily Active Uniques (“DAUq”) increased 12% year-over-year to 130.3 million
Weekly Active Uniques (“WAUq”) increased 16% year-over-year to 515.2 million
Logged-in DAUq and App DAUq, our most engaged and monetizable users,
grew quarter-over-quarter in the US and RoW
Revenue of $895 million grew 53% year-over-year
Net income of $283 million, 32% of revenue, and Diluted EPS of $1.40, both up
over 70% year-over-year
Adj. EBITDA
1
of $402 million, 45% of revenue, up 70% year-over-year
Operating cash flow of $364 million, 41% of revenue, up 96% year-over-year
SAN FRANCISCO, Calif. – October 29, 2026 – Reddit, Inc. (NYSE: RDDT) today
announced financial results for the quarter ended September 30, 2026. Reddit’s
complete financial results and management commentary can be found in its
shareholder letter on Reddit’s Investor Relations website at
https://investor.redditinc.com.
“Our business is growing because the Reddit experience captures the human
experience in a way that no other platform can replicate,” said Steve Huffman,
Founder and CEO of Reddit. “Surpassing $3B of revenue over the last 12 months
shows Reddit’s strength as a destination and the differentiated value of our
platform.”
Strong Growth and Fundamentals
•
Total revenue increased 53% year-over-year to $895 million, Ad revenue increased
54% year-over-year to $847 million, and Other revenue increased 35% year-over-
year to $48 million
• Gross margin was 91.5%, up 50 bps year-over-year
• Net income was $283 million, an improvement of $121 million from the prior
year
• Adjusted EBITDA 1 was $402 million, an improvement of $166 million from the
prior year
•
Basic and diluted earnings per share (“EPS”) were $1.47 and $1.40, an increase
of 69% and 75% year-over-year, respectively
• Operating cash flow was $364 million, an improvement of $179 million from the
prior year
• Free Cash Flow 1 was $363 million, an improvement of $179 million from the
prior year
• Capital expenditures were $1 million, 0.1% of revenue
Managed Share Count and Dilution
• Total fully diluted shares outstanding were 206.3 million as of September 30,
2026, down 0.3% from last quarter
Solid Balance Sheet
• Cash, Cash Equivalents, and Marketable Securities were $3.03 billion as of
September 30, 2026
Share Repurchases
• We repurchased approximately 670 thousand shares of our Class A common stock
during the quarter for a total of $100 million at an average price per share of
$149.81
Company Recognition
• Reddit was added to the S&P 500 index, underscoring the Company’s value,
sustained performance, and its 1-of-1 financial model
1
Third Quarter 2026 Financial Highlights
(in millions,
except
percentages
and per share Three months
amounts; ended
unaudited) September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Revenue $ 895 $ 585 53%
U.S. $ 719 $ 480 50%
International $ 176 $ 105 67%
GAAP gross 91.5 % 91.0 %
margin
Net income $ 283 $ 163 74%
Net margin 31.7 % 27.8 %
Net income
per share
Basic $ 1.47 $ 0.87 69%
Diluted $ 1.40 $ 0.80 75%
Adjusted $ 402 $ 236 70%
EBITDA*
Adjusted
EBITDA 44.9 % 40.3 %
margin*
Net cash
provided by
(used in) $ 364 $ 185 96%
operating
activities
Free Cash $ 363 $ 183 98%
Flow*
Cash, cash
equivalents,
and $ 3,033
marketable
securities
*The definitions of Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow
can be found in the Use of Non-GAAP Financial Measures section of this release.
A reconciliation of non-GAAP financial measures to the most directly comparable
U.S. GAAP measure can be found on pages 10 - 11 .
Financial Outlook
The guidance provided below is based on Reddit’s current estimates and is not a
guarantee of future performance. This guidance is subject to significant risks
and uncertainties that could cause actual results to differ materially,
including the risk factors discussed in Reddit’s reports on file with the
Securities and Exchange Commission (the “SEC”). Reddit undertakes no duty to
update any forward-looking statements or estimates, except as required by
applicable law.
As we look ahead, we will share our internal thoughts on revenue and Adjusted
EBITDA for the fourth quarter.
In the fourth quarter of 2026, we estimate:
• Revenue in the range of $1,000 million to $1,030 million
• Adjusted EBITDA 2 in the range of $480 million to $510 million
Earnings Conference Call Information and Community Update
Reddit will host a conference call to discuss the results for the third quarter
of 2026 on Thursday, October 29, 2026, at 1:30 p.m. PT / 4:30 p.m. ET. A live
webcast of the call can be accessed on Reddit’s Investor Relations website at
https://investor.redditinc.com and investor relations subreddit, r/RDDT, at
https://www.reddit.com/r/RDDT/. A replay of the webcast and transcript will be
available on the same websites following the conclusion of the conference call.
Reddit will solicit questions from the community in the investor relations
subreddit, r/RDDT, at https://www.reddit.com/r/RDDT/ on Thursday, October 29,
2026, after the market closes, and post responses following the earnings call at
Reddit’s Investor Relations website at https://investor.redditinc.com and r/RDDT
at https://www.reddit.com/r/RDDT/.
2
Reddit uses the investor relations page on its website
https://investor.redditinc.com, user accounts of Reddit's Chief Executive
Officer, Steve Huffman (u/spez); Reddit's Chief Operating Officer, Jen Wong
(u/adsjunkie); and Reddit's Chief Financial Officer, Drew Vollero
(u/TimingandLuck), as well as the subreddits r/RDDT and r/reddit, available at
https://www.reddit.com/r/RDDT/ and https://www.reddit.com/r/reddit/,
respectively, as means of disclosing material non-public information and for
complying with its disclosure obligation under Regulation FD.
Notes
1 The definitions of Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow
can be found in the Use of Non-GAAP Financial Measures section of this release.
A reconciliation of non-GAAP financial measures to the most directly comparable
U.S. GAAP measure can be found on pages 10 - 11 .
2 We have not provided a reconciliation to the forward-looking U.S. GAAP
equivalent measures for our non-GAAP guidance due to uncertainty regarding, and
the potential variability of, reconciling items. Therefore, a reconciliation of
these non-GAAP guidance measures to their corresponding U.S. GAAP guidance
measures is not available without unreasonable effort.
About Reddit
Reddit is a community of communities. Built on shared interests and passions, it
is home to the most open and authentic conversations online. Every day, millions
of people post, vote, comment, and search for answers across nearly every topic
imaginable, and brands build trusted relationships with their audiences. With
27+ billion posts and comments and more than 130 million daily active uniques,
Reddit is one of the internet’s largest sources of information. Learn more at
www.redditinc.com. The Reddit app is available on the App Store and Google Play.
Investor Relations Media Relations
ir@reddit.com press@reddit.com
3
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995. Forward-
looking statements generally relate to future events or Reddit's future
financial or operating performance. In some cases, you can identify forward-
looking statements because they contain words such as "may," "will," "should,"
"expects," "plans," "anticipates," "going to," "could," "intends," "target,"
"projects," "contemplates," "believes," "estimates," "predicts," "potential" or
"continue" or the negative of these words or other similar terms or expressions
that concern Reddit's expectations, strategy, priorities, plans or intentions.
Forward-looking statements in this release include, but are not limited to,
statements regarding Reddit’s future financial and operating performance, and
GAAP and non-GAAP guidance; Reddit’s expectations regarding continued business
growth, user engagement and monetization; and Reddit’s ability to maintain a
strong balance sheet and invest in future growth. Reddit's expectations and
beliefs regarding these matters may not materialize, and actual results in
future periods are subject to risks and uncertainties that could cause actual
results to differ materially from those projected, including those more fully
described under the caption “Risk Factors” and elsewhere in documents that
Reddit files with the SEC from time to time, including Reddit’s Quarterly Report
on Form 10-Q for the quarter ended September 30, 2026, which is being filed with
the SEC at or around the date hereof. The forward-looking statements in this
release are based on information available to Reddit as of the date hereof, and
Reddit undertakes no obligation to update any forward-looking statements, except
as required by law.
A Note About Metrics
We define a daily active unique (“DAUq”) as a user whom we can identify with a
unique identifier who has visited a page on the Reddit website, www.reddit.com,
or opened a Reddit application at least once during a 24-hour period. Average
DAUq for a particular period is calculated by adding the number of DAUq on each
day of that period and dividing that sum by the number of days in that period.
We define a weekly active unique (“WAUq”) as a user whom we can identify with a
unique identifier who has visited a page on the Reddit website, www.reddit.com,
or opened a Reddit application at least once during a trailing seven-day period.
Average quarterly WAUq for a particular period is calculated by adding the
number of WAUq on each day of that period and dividing that sum by the number of
days in that period.
We define average revenue per unique (“ARPU”) as quarterly revenue in a given
geography divided by the average DAUq in that geography. For the purposes of
calculating ARPU, advertising revenue in a given geography is based on the
geographic location in which advertising impressions are delivered, as this
approximates revenue based on user activity, while other revenue in a given
geography is based on the billing address of the customer.
Use of Non-GAAP Financial Measures
We use certain non-GAAP financial measures to supplement our consolidated
financial statements, which are presented in accordance with U.S. GAAP, to
evaluate our core operating performance. These non-GAAP financial measures
include Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, and Free Cash
Flow margin. We use these non-GAAP financial measures to facilitate reviews of
our operational performance and as a basis for strategic planning. By excluding
certain items that are non-recurring or not reflective of the performance of our
normal course of business, we believe that these non-GAAP financial measures
provide meaningful supplemental information regarding our performance.
Accordingly, we believe these non-GAAP financial measures are useful to
investors and others because they allow investors to supplement their
understanding of our financial trends and evaluate our ongoing and future
performance in the same manner as management. However, there are a number of
limitations related to the use of non-GAAP financial measures as they reflect
the exercise of judgment by our management about which expenses are included or
excluded in determining these non-GAAP measures. These non-GAAP measures should
be considered in addition to, not as a substitute for or in isolation from, our
financial results prepared in accordance with U.S. GAAP. Other companies,
including companies in our industry, may calculate these non-GAAP financial
measures differently or not at all, which reduces their usefulness as
comparative measures.
A reconciliation is provided below for each historical non-GAAP financial
measure to the most directly comparable financial measure stated in accordance
with U.S. GAAP. Reddit encourages investors to review the related U.S. GAAP
financial measures and the reconciliation of these non-GAAP financial measures
to their most directly comparable U.S. GAAP financial measures, and not to rely
on any single financial measure to evaluate Reddit’s business. We have not
provided a reconciliation to the forward-looking GAAP equivalent measures for
our non-GAAP guidance due to uncertainty regarding, and the potential
variability of, reconciling items. Therefore, a reconciliation of these non-GAAP
guidance measures to their corresponding GAAP guidance measures is not available
without unreasonable effort.
4
Adjusted EBITDA is defined as net income excluding interest (income) expense,
net, income tax expense (benefit), depreciation and amortization, stock-based
compensation expense and related taxes, other (income) expense, net, and certain
other non-recurring or non-cash items impacting net income that we do not
consider indicative of our ongoing business performance. Other (income) expense,
net consists primarily of realized gains and losses on sales of marketable
securities, foreign currency transaction gains and losses, and other income and
expense that are not indicative of our core operating performance. Adjusted
EBITDA margin is defined as Adjusted EBITDA divided by revenue. We consider the
exclusion of certain non-recurring or non-cash items in calculating Adjusted
EBITDA and Adjusted EBITDA margin to provide a useful measure for investors and
others to evaluate our operating results in the same manner as management.
Free Cash Flow represents net cash provided by (used in) operating activities
less purchases of property and equipment. Free Cash Flow margin is defined as
Free Cash Flow divided by revenue. We believe that Free Cash Flow is useful to
investors as a liquidity measure because it measures our ability to generate or
use cash. Once our business needs and obligations are met, cash can be used to
maintain a strong balance sheet and invest in future growth. Additionally, we
believe that Free Cash Flow is an important measure since we use third-party
infrastructure partners to host our services and therefore we do not incur
significant capital expenditures to support revenue generating activities.
5
Reddit, Inc.
Key Operating Metrics by Geography
(in millions, except percentages and ARPU)
(unaudited)
T… N…
m… m…
e… e…
S… % S… %
2… 3… 2… C… 2… 3… 2… Ch…
──────────────────────────────────────────────────────────────────────────────
… $ 8… $ 5… 53 % $ 2… $ 1… 60 %
…
… $ 7… $ 4… 50 % $ 1… $ 1… 57 %
…
… $ 1… $ 1… 67 % $ 4… $ 2… 75 %
…
T…
m…
e…
S…
3…
2… 2… %
C…
… 1… 1… 12 %
…
… 5… 5… -2 %
…
… 7… 6… 24 %
…
…
… 5… 5… 7 %
…
…
… 2… 2… 1 %
…
…
… 3… 2… 11 %
…
…
… 7… 6… 17 %
…
…
… 2… 2… -4 %
…
…
… 4… 3… 33 %
…
… 5… 4… 16 %
…
… 1… 1… — %
…
… 3… 2… 28 %
…
… $ 6… $ 5… 36 %
…
… $ 1… $ 9… 53 %
…
… $ 2… $ 1… 32 %
…
6
Reddit, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
(unaudited)
Three Nine
months months
ended ended
Septem… Septem…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Reven… $ 894,957 $ 584,911 $ 2,363,… $ 1,476,8…
Costs
and
expen…
Cost
of 75,787 52,509 202,362 135,498
reven…
Resea…
and 263,531 196,379 702,053 584,260
devel…
Sales
and 209,391 128,707 556,760 340,011
marke…
Gener…
and 84,662 68,774 225,884 206,974
admin…
Total
costs 633,371 446,369 1,687,… 1,266,7…
and
expen…
Income
from 261,586 138,542 676,214 210,156
opera…
Other
income 27,463 22,035 75,398 63,716
(expe…
net
Income
before 289,049 160,577 751,612 273,872
income
taxes
Income
tax 5,785 -2,086 11,519 -4,246
expen…
(bene…
Net $ 283,264 $ 162,663 $ 740,093 $ 278,118
income
Net
income
per
share
attri…
to
Class
A and
Class
B
common
stock
Basic $ 1.47 $ 0.87 $ 3.85 $ 1.50
Dilut… $ 1.40 $ 0.80 $ 3.66 $ 1.38
Weigh…
shares
used
to
compu…
net
income
per
share
attri…
to
common
stock…
Basic 192,59… 188,041… 192,15… 185,178…
Dilut… 201,86… 202,727… 202,18… 201,659…
7
Reddit, Inc.
Consolidated Balance Sheets
(in thousands)
(unaudited)
September 30, December 31,
2026 2025
──────────────────────────────────────────────────────────────────────────────
Assets
Current assets
Cash and cash equivalents $ 1,357,583 $ 953,569
Marketable securities 1,675,849 1,523,242
Accounts receivable, net 730,083 590,162
Prepaid expenses and other current 93,009 69,012
assets
Total current assets 3,856,524 3,135,985
Property and equipment, net 11,489 12,710
Operating lease right-of-use assets, 28,030 20,788
net
Intangible assets, net 10,086 15,521
Goodwill 42,174 42,174
Other noncurrent assets 13,726 11,995
Total assets $ 3,962,029 $ 3,239,173
Liabilities and stockholders’ equity
Current liabilities
Accounts payable $ 110,246 $ 62,929
Operating lease liabilities 8,364 7,023
Accrued expenses and other current 238,598 201,331
liabilities
Total current liabilities 357,208 271,283
Operating lease liabilities, 23,045 16,191
noncurrent
Other noncurrent liabilities 68 22,661
Total liabilities 380,321 310,135
Commitments and contingencies
Stockholders’ equity:
Preferred stock — —
Class A common stock 14 14
Class B common stock 5 5
Class C common stock — —
Additional paid-in capital 3,526,748 3,595,772
Accumulated other comprehensive
income -14,035 4,364
(loss)
Retained earnings (accumulated 68,976 -671,117
deficit)
Total stockholders’ equity 3,581,708 2,929,038
Total liabilities and stockholders’ $ 3,962,029 $ 3,239,173
equity
8
Reddit, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Nine
Cash months months
flows ended ended
from Septe… Septem…
oper… 30, 30,
acti… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 283,264 $ 162,6… $ 740,0… $ 278,118
inco…
Adju…
to
reco…
net
inco…
to
net
cash
prov…
by
(used
in)
oper…
acti…
Depr…
and 4,260 3,900 12,728 11,797
amor…
Amor…
of
prem…
(acc…
of -3,069 -6,779 -10,1… -22,354
disc…
on
mark…
secu…
net
Stoc…
comp… 131,306 83,518 300,5… 258,002
expe…
Other 1,974 2,246 4,787 5,187
adju…
Chan…
in
oper…
asse…
and
liab…
Acco… -80,007 -80,9… -139,… -138,7…
rece…
Prep…
expe…
and 10,186 2,934 -26,0… -23,424
other
asse…
Oper…
lease
righ… -998 -2,038 -4,388 -5,407
asse…
and
liab…
Acco… 18,927 7,995 44,964 26,940
paya…
Accr…
expe…
and -2,046 11,717 14,611 33,963
other
liab…
Net
cash
prov…
by $ 363,797 $ 185,1… $ 937,9… $ 424,068
(used
in)
oper…
acti…
Cash
flows
from
inve…
acti…
Purc…
of
prop… -1,229 -2,058 -3,453 -3,542
and
equi…
Purc…
of -596,1… -544,… -1,27… -1,605…
mark…
secu…
Matu…
of 209,449 563,4… 1,093… 1,581,…
mark…
secu…
Proc…
from
sale 4,945 — 22,934 12,372
of
mark…
secu…
Other
inve… -893 -788 -3,930 2,455
acti…
Net
cash
prov…
by $ -383,8… $ 16,513 $ -164,… $ -13,065
(used
in)
inve…
acti…
Cash
flows
from
fina…
acti…
Proc…
from
exer…
of 5,396 6,013 15,332 20,500
empl…
stock
opti…
Taxes
paid
rela…
to
net
share -14,249 -28,5… -44,9… -80,495
sett…
of
rest…
stock
units
Repu…
of
Class -100,3… — -339,… —
A
comm…
stock
Other
fina… — -1,497 — -1,497
acti…
Net
cash
prov…
by $ -109,2… $ -24,0… $ -369,… $ -61,492
(used
in)
fina…
acti…
Net
incr…
(dec…
in -129,2… 177,5… 404,0… 349,511
cash
and
cash
equi…
Cash
and
cash
equi…
at 1,486,… 734,0… 953,5… 562,142
the
begi…
of
the
peri…
Cash
and
cash
equi…
at $ 1,357,… $ 911,6… $ 1,357… $ 911,653
the
end
of
the
peri…
9
Reddit, Inc.
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin
(in thousands, except percentages)
(unaudited)
Three Nine
mont… mont…
ended ended
Sept… Sept…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 283,… $ 162,… $ 740,… $ 278,…
inc…
Add
(de…
Int…
(in… -26,… -22,… -75,… -63,…
exp…
net
Inc…
tax 5,785 -2,0… 11,5… -4,2…
exp…
(be…
Dep…
and 4,260 3,900 12,7… 11,7…
amo…
Sto…
com…
exp… 136,… 93,5… 322,… 296,…
and
rel…
tax…
Oth…
(in… -649 270 328 59
exp…
net
Adj… $ 402,… $ 236,… $ 1,01… $ 518,…
EBI…
Net 31.7 % 27.8 % 31.3 % 18.8 %
mar…
Adj…
EBI… 44.9 % 40.3 % 42.8 % 35.1 %
mar…
10
Reddit, Inc.
Reconciliation of Free Cash Flow and Free Cash Flow Margin
(in thousands, except percentages)
(unaudited)
Three Nine
mont… mont…
ended ended
Sept… Sept…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net
cash
pro…
by $ 363,… $ 185,… $ 937,… $ 424,…
(us…
in)
ope…
act…
Les…
Pur…
of
pro… -1,2… -2,0… -3,4… -3,5…
and
equ…
Free
Cash $ 362,… $ 183,… $ 934,… $ 420,…
Flow
Ope…
cash 40.6 % 31.7 % 39.7 % 28.7 %
flow
mar…
Free
Cash 40.5 % 31.3 % 39.5 % 28.5 %
Flow
mar…
11