Reddit tumbles on user growth fears
Reddit (RDDT) reported third-quarter 2026 results at approximately 4:07 p.m. ET on October 29, with revenue climbing 53% year over year to $895 million, beating the roughly $875 million consensus.
GAAP net income increased 74% to $283 million, while GAAP diluted EPS rose to $1.40 from $0.80. No separate adjusted EPS was disclosed. Adjusted EBITDA grew 70% to $402 million, representing a 44.9% margin.
Daily active unique users increased 12% to 130.3 million, below the approximately 134 million expected, while U.S. users declined 2%. Advertising revenue grew 54%. Reddit forecast fourth-quarter revenue of $1–1.03 billion, below the roughly $1.04 billion consensus. Weakening search referrals from Google heightened concerns about future traffic. Shares plunged 18.21% after hours. The release preceded this report by approximately eight hours.
| Metric | Actual | Consensus |
|---|---|---|
| Revenue | $895M | ~$875M |
| Revenue growth YoY | +53% | — |
| GAAP net income | $283M | Prior year: $163M |
| GAAP diluted EPS | $1.40 | $1.33* |
| Adjusted EPS | Not disclosed | — |
| Adjusted EBITDA | $402M | +70% YoY |
| Daily active unique users | 130.3M | ~134M |
| Advertising revenue | $847M | +54% YoY |
| Q4 revenue guidance | $1–1.03B | ~$1.04B |
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