Reddit, Inc.

Q3 revenue was $895 million, up 53% year over year. Advertising revenue was $847 million, up 54%, and other revenue was $48 million, up 35%. Gross margin was 91.5%, up 50 basis points from last year. Net income was $283 million, or $1.40 per diluted share, versus $163 million, or $0.80 per diluted share, a year ago. Free cash flow was $363 million, up 98% year over year, and free cash flow margin was 41%. Cash and investments topped $3 billion, ending at $3.03 billion. For Q4 2026, management guided to revenue of $1.0 billion to $1.03 billion and adjusted EBITDA of $480 million to $510 million, implying about 38% to 42% revenue growth and 47% to 56% adjusted EBITDA growth.

Steve Huffman framed Reddit as a distinct destination for community and lived experience, saying the company’s job is to make Reddit “more of a daily habit.” His tone was confident about the product and strategy, but candid about the external shock from Google search changes. He emphasized a pivot toward logged-in users, better personalization, stronger moderation tools, and product work that makes the feed more organized and easier to understand.

Drew Vollero highlighted a highly profitable quarter with best-in-class margins, noting 91.5% gross margin, 45% adjusted EBITDA margin, and 41% free cash flow margin. He said adjusted costs and expenses were $493 million, up 41%, while operating leverage improved, and stock-based compensation and related taxes were $136 million, or 15% of revenue. He also said Reddit repurchased about $100 million of stock, had about $660 million remaining under its buyback authorization, and ended the quarter with $3.03 billion in cash, cash equivalents, and marketable securities. He guided Q4 revenue to $1.0 billion to $1.03 billion and adjusted EBITDA to $480 million to $510 million.

Analysts focused heavily on the logged-in-only test, asking how far it could go, what it means for top-of-funnel traffic, and how to model monetization if logged-out usage shrinks. Management said the test is intended to find the right boundary, that some logged-out access will likely remain, and that the move should improve engagement, ad targeting, and data protection. Questions also centered on Google traffic losses; management blamed AI Overviews/AI Mode and possibly lower machine-translated ranking, saying Google is no longer a meaningful traffic driver. On monetization, management said ARPU still has substantial room to run, while dismissing content licensing or GEO as the main advertiser driver, and said M&A is not currently a priority for user growth.