Reddit Q2 revenue growth slows even as profit more than doubles; shares down

Reddit

30/07/2026 21:18

Overview
U.S. social media platform's Q2 revenue rose 61%, beating analyst expectations
Net income and adjusted EBITDA for Q2 more than doubled, both beating analyst estimates
Reddit Q2 revenue growth slows to 61% y/y from 69% in Q1, second straight quarterly deceleration
Company repurchased 1.5 mln shares for $235 mln during the quarter
Shares of the company were down about 6.7% in extended trading

Outlook
Reddit sees Q3 2026 revenue between $860 mln and $870 mln
Company expects Q3 2026 adjusted EBITDA of $385 mln to $395 mln

Result Drivers
ADVERTISING REVENUE - Co said 61% revenue growth was driven by a 64% increase in advertising revenue
USER GROWTH - Daily active uniques rose 18% and weekly active uniques rose 24% year-over-year, with international user growth outpacing U.S.
OPERATIONAL EFFICIENCY - Revenue per employee exceeded $1 mln, which CEO said reflects the strength of the community model and advertiser value

Company press release: ID:nBw3CkRlDa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$805 mln
$730.41 mln (26 Analysts)
Q2 Net Income
Beat
$253 mln
$196.54 mln (19 Analysts)
Q2 Adjusted EBITDA
Beat
$343 mln
$297.25 mln (25 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for Reddit Inc is $240.00, about 34.8% above its July 29 closing price of $177.99
The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 30 three months ago

Reuters Recommended Reads
July 29 - Meta Q2 profit squeezed as legal charges, heavy AI spending offset revenue growth
July 28 - Omnicom tops quarterly revenue estimates on strong ad demand
July 30 - Sweden's MOBA Network Q2 adjusted revenue falls as smaller user base weighs on ad sales

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)