Online community and discussion platform Reddit (NYSE: RDDT) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 61.1% year on year to $804.9 million. On top of that, next quarter’s revenue guidance ($865 million at the midpoint) was surprisingly good and 4.2% above what analysts were expecting. Its GAAP profit of $1.25 per share was 29.6% above analysts’ consensus estimates.
Is now the time to buy Reddit? Find out by accessing our full research report, it’s free.
Reddit (RDDT) Q2 CY2026 Highlights:
- Revenue: $804.9 million vs analyst estimates of $732.4 million (61.1% year-on-year growth, 9.9% beat)
- CEO Steven Huffman said the company is seeing “choppy” search referral traffic
- EPS (GAAP): $1.25 vs analyst estimates of $0.96 (29.6% beat)
- Adjusted EBITDA: $342.8 million vs analyst estimates of $298.2 million (42.6% margin, 15% beat)
- Revenue Guidance for Q3 CY2026 is $865 million at the midpoint, above analyst estimates of $830.3 million
- EBITDA guidance for Q3 CY2026 is $390 million at the midpoint, above analyst estimates of $368.8 million
- Operating Margin: 28.8%, up from 13.6% in the same quarter last year
- Free Cash Flow Margin: 32.4%, down from 46.9% in the previous quarter
- Domestic Daily Active Visitors: 53.2 million, up 2.9 million year on year
- Market Capitalization: $34.26 billion
“In an increasingly automated web, the value of real human perspective has never been higher. Reddit’s commercial momentum reflects that,” said Steve Huffman, Founder and CEO of Reddit.
Company Overview
Founded in 2005 by two University of Virginia roommates, Reddit (NYSE: RDDT) facilitates user-generated content across niche communities (called subreddits) that discuss anything from stocks to dating and memes.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last three years, Reddit grew its sales at an incredible 57% compounded annual growth rate. Its growth surpassed the average consumer internet company and shows its offerings resonate with customers, a great starting point for our analysis.
This quarter, Reddit reported magnificent year-on-year revenue growth of 61.1%, and its $804.9 million of revenue beat Wall Street’s estimates by 9.9%. Company management is currently guiding for a 47.9% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 33.2% over the next 12 months, a deceleration versus the last three years. Still, this projection is admirable and suggests the market is forecasting success for its products and services.
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Domestic Daily Active Visitors
User Growth
As a social network, Reddit generates revenue growth by increasing its user base and charging advertisers more for the ads each user is shown.
Over the last two years, Reddit’s domestic daily active visitors, a key performance metric for the company, increased by 13.2% annually to 53.2 million in the latest quarter. This growth rate is strong for a consumer internet business and indicates people love using its offerings. 
In Q2, Reddit added 2.9 million domestic daily active visitors, leading to 5.8% year-on-year growth. The quarterly print was lower than its two-year result, suggesting its new initiatives aren’t accelerating user growth just yet.
Revenue Per User
Average revenue per user (ARPU) is a critical metric to track because it measures how much the company earns from the ads shown to its users. ARPU can also be a proxy for how valuable advertisers find Reddit’s audience and its ad-targeting capabilities.
Reddit’s ARPU growth has been exceptional over the last two years, averaging 47.1%. Its ability to increase monetization while growing its domestic daily active visitors at an impressive rate reflects the strength of its platform, as its users are spending significantly more than last year. 
This quarter, Reddit’s ARPU clocked in at $11.85. It grew by 50.6% year on year, faster than its domestic daily active visitors.
Key Takeaways from Reddit’s Q2 Results
We were impressed by how significantly Reddit blew past analysts’ EBITDA expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. Looking ahead, guidance also came in ahead of expectations. Zooming out, we think this was a solid print. However, CEO Steven Huffman said the company is seeing “choppy” search referral traffic, and this could be spooking investors who are skittish about Reddit's relationship with Google. The stock traded down 10.4% to $160.97 immediately after reporting.
So should you invest in Reddit right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
