10-Q · April 30, 2026
Reddit's Q1 2026 performance surpassed expectations, posting revenue of $663.4 million and EPS of $1.01, marking increases of 69% and 283% year-over-year, respectively. Management reported significant user engagement…
Earnings analysis · 10-Q
RDDT earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Reddit delivered strong Q3 results, with $895 million of revenue, $1.40 diluted EPS, and $363 million of free cash flow, all improving materially versus Q2 2026 and Q3 2025. Liquidity also strengthened, with $1.4…
Read full summary
Reddit delivered strong Q3 results, with $895 million of revenue, $1.40 diluted EPS, and $363 million of free cash flow, all improving materially versus Q2 2026 and Q3 2025. Liquidity also strengthened, with $1.4 billion of cash and $1.7 billion of marketable securities at September 30, 2026. However, the filing highlights a meaningful deterioration in search referral traffic, upcoming login restrictions that could reduce reach, and increasing AI, privacy, cybersecurity, and platform-regulation risks. Q4 revenue guidance is $1.000 billion to $1.030 billion, but direction versus a prior outlook cannot be determined.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.4
What stood out
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Revenue accelerated and beat estimates
Q3 revenue was $895 million, up from $805 million in Q2 2026, an increase of approximately 11.2%, and exceeded consensus revenue of $877.2 million by approximately 2.0%.
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EPS expanded sequentially and year over year
Diluted EPS was $1.40 versus $1.25 in Q2 2026 and $0.80 in Q3 2025, representing sequential growth of $0.15 and year-over-year growth of $0.60.
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Free cash flow reached $363 million
Free cash flow was $363 million, compared with $261 million in Q2 2026 and $183 million in Q3 2025, increases of $102 million sequentially and $180 million year over year.
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Liquidity strengthened materially
Cash and cash equivalents increased to $1.4 billion as of September 30, 2026, from $1.0 billion at December 31, 2025; marketable securities increased to $1.7 billion from $1.5 billion.
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Share repurchases continued
The company repurchased 669,959 shares during Q3 2026, including 509,777 shares in August at an average $150.72 and 160,182 shares in September at an average $146.93.
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Debt capacity remains available
The $500.0 million revolving credit facility remains accessible through July 1, 2030, providing additional liquidity beyond the company’s $1.4 billion of cash and $1.7 billion of marketable securities.
What to watch
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Search traffic decline may persist
The filing states that declines in referral traffic from third-party search engines adversely affected DAUq growth in the current quarter and may continue or worsen. The company also identifies AI-generated search summaries as pushing traditional links lower, potentially reducing advertising reach and revenue.
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Login restrictions could reduce reach
Beginning in the quarter ending December 31, 2026, Reddit intends to experiment in international markets with requiring users to log in to access parts of its platforms and content, followed by an intended global implementation including the United States. The filing specifically warns this could reduce the total number of users and advertising reach.
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Regulatory obligations are increasing
Reddit surpassed the EU threshold for Very Large Online Platform designation in February 2026 and was officially designated by the European Commission in August 2026, with additional obligations required by January 2027. The filing also notes that the UK ICO issued Reddit a penalty notice for alleged UK GDPR violations, which Reddit is appealing.
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Platform security and ad abuse exposure
A bad actor compromised HBO Max’s verified Reddit account in September 2026 and ran malicious advertisements for approximately 48 hours, including ads directing users to websites prompting malware downloads. Similar incidents could damage user and advertiser trust and increase remediation or regulatory costs.
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Content licensing renewal risk
Content licensing concentration remains significant: substantially all contract value associated with licensing revenue is derived from two partners, and both agreements are approaching the end of their current terms. Non-renewal could reduce licensing revenue or limit its growth.
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Secured facility has covenant risk
The revolving credit facility is secured by liens on substantially all assets, including intellectual property, and requires compliance with a maximum leverage ratio. A default could allow lenders to accelerate outstanding amounts and constrain strategic flexibility.
Management's outlook
Management provided Q4 2026 revenue guidance of $1.000 billion to $1.030 billion and Adjusted EBITDA guidance of $480 million to $510 million; no comparable prior outlook was provided, so direction is not determinable.
Earlier filings 4
10-Q · October 31, 2025
Reddit, Inc. reported commendable Q3 2025 results, with revenue of $584.9 million surpassing expectations by 6.4% and a net income of $162.7 million, leading to earnings per share (EPS) of $0.80. This indicates a…
10-Q · August 1, 2025
Reddit reported a strong Q2 2025 with revenue of $499,627,000 and GAAP net income of $89,297,000 (diluted EPS $0.45), reversing last year's loss. Operating profitability returned — operating income was $67,711,000…
10-Q · May 2, 2025
Reddit reported Q1 revenue of $392,361,000, up 61.5% YoY from $242,963,000 but down 8.3% sequentially from $428,000,000. The company returned to GAAP profitability with net income of $26,158,000 (diluted EPS $0.13) and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.