Reddit Targets Revenue of $860 Million to $870 Million in Third Quarter of 2026
Key Facts
Reddit set a third-quarter 2026 revenue range of $860 million to $870 million and estimated adjusted earnings before interest, taxes, depreciation and amortization at $385 million to $395 million, according to its filing with the U.S. Securities and Exchange Commission. The financial guidance sets a benchmark for testing whether the company can sustain its momentum after a strong second quarter, when revenue reached $805 million, up 61% year over year. Comparing the periods points to continued growth in business volume, while the guidance implies a slower annual growth pace than in the second quarter. Attention is on the company’s ability to keep turning user-base expansion into revenue, particularly through advertising. Reddit shares closed at $144.25 on October 23, after a run of declining daily closes in the preceding sessions.
Closing-price data show that the stock ended the October 19 session at $155.14, then rose to $155.65 on October 20, before closing at $153.28 on October 21 and $150.26 on October 22. On October 23, the closing price fell to $144.25. These prices show the stock’s course over those sessions, but do not identify the reason for the move or establish a specific intraday decline. The available data also do not include a later price or a company response to the trading move. Meanwhile, the revenue guidance announced for the third quarter remains a key reference point for assessing financial performance expectations.
In the second quarter, Reddit recorded advertising revenue of $762 million, up 64% year over year, while other revenue totaled $43 million, up 24% year over year. Advertising thus accounted for the largest share of quarterly revenue, which totaled $805 million. The company said in its shareholder letter that advertising revenue growth was driven by higher pricing and ad impressions. The breakdown shows that growth in the advertising business outpaced growth in other revenue, with overall performance relying heavily on continued expansion in advertising activity. That puts pricing trends and impression volume among the indicators markets will track when comparing upcoming results with guidance.
Advertising revenue growth coincided with an expanding user base, but the user base grew at a slower pace than the business. Global daily active users reached 130.3 million in the second quarter, up 18% year over year, while weekly active users rose to 514.6 million, up 24%. By comparison, advertising revenue grew 64% over the same period. These figures put monetization growth in the context of audience expansion, with advertising growing faster than daily and weekly users. The gap remains one feature of the second-quarter results that frames the new guidance.
On profitability, Reddit’s second-quarter net income was $253 million, while adjusted earnings before interest, taxes, depreciation and amortization reached $343 million. Diluted earnings per share were $1.25, compared with basic earnings per share of $1.31, according to the shareholder letter. That compares with the company’s third-quarter estimate for adjusted earnings before interest, taxes, depreciation and amortization of $385 million to $395 million. The comparison puts expected adjusted profitability in the next quarter above the second-quarter figure, within the range of guidance the company announced. The next quarterly results will provide the next test of actual performance against those estimates.