Reddit, Inc.

Q2 revenue was $805 million, up 61% year over year, with advertising revenue of $762 million up 64% and other revenue of $43 million up 24%. Gross margin was 91.3%, up 50 basis points year over year. Net income was $253 million, or $1.25 per diluted share, versus $0.45 a year ago; basic EPS was $1.31 versus $0.48. Operating cash flow was $262 million, more than double the $111 million last year, and adjusted EBITDA margin was 43%. For Q3 2026, Reddit guided to revenue of $860 million-$870 million and adjusted EBITDA of $385 million-$395 million, implying 47%-49% revenue growth and 63%-67% adjusted EBITDA growth at the high end of the range, with a 45% margin midpoint. Full-year SBC expense guidance was lowered from the high teens to the low-to-mid teens as a percentage of revenue, and Q3 SBC and related taxes are expected to be $140 million-$155 million.

Steve Huffman framed the quarter around Reddit’s value as a place for authentic human conversation in an AI-heavy internet, saying the company is building a “daily destination” rather than relying on drive-by search traffic. He said product work is improving engagement and conversion from web to app, highlighted a 50% relative increase in new app user retention, and reiterated the long-term goals of 1 billion daily users globally and 100 million in the U.S. His tone was confident and patient, while acknowledging that search referrals were volatile and that the product work still has a lot of headroom.

Drew Vollero emphasized that Reddit is scaling profitability and cash flow alongside revenue, noting that operating cash flow, adjusted EBITDA, net income, and GAAP EPS all more than doubled year over year. He cited Q2 revenue of $805 million, adjusted costs and expenses of $462 million, gross margin of 91.3%, net income of $253 million, and operating cash flow of $262 million; he also said Reddit ended the quarter with $2.8 billion in cash and marketable securities. On capital allocation, he said Reddit repurchased about $235 million of stock, has about $760 million left on its authorization, and is prioritizing investment in the business, opportunistic M&A, and share repurchases while keeping profitability high.

Analysts focused heavily on the gap between strong commercial results and concerns about user growth, especially in the U.S., plus the impact of search and AI Overviews on referral traffic. Management said the business is not dependent on logged-out search traffic, that direct app users are worth multiples more than referral users, and that the company is focused on improving retention, feed quality, onboarding, and web-to-app conversion. Questions also centered on data licensing; Steve Huffman said there is no fixed binary outcome, the addressable market is expanding, and Reddit is looking to maximize value across multiple use cases and partners.