Reddit, Inc. · NYSE:RDDT
Reddit — Q3 2026 Earnings Presentation
21 slides from Reddit's earnings presentation, Oct 29, 2026
Slide 1: Q3 2026 Letter to shareholders
Q3 2026 Letter to shareholders
Slide 2: Financial highlights Q3 2026
Financial highlights Q3 2026 Revenue was $895 million, an increase of 53% year-over-year $895M 91.5% Gross margin was 91.5%, up 50 bps year-over-year Net income was $283 million and net margin was 32%, an improvement of $121 Revenue Gross margin million from the prior year 53% year-over-year growth
Slide 3: Business highlights Q3 2026
Business highlights Q3 2026 Daily Active Uniques (“DAUq”) averaged 130.3 million, an increase of 12% year- over-year Q3 ‘26 DAILY ACTIVE UNIQUES Weekly Active Uniques (“WAUq”) averaged 515.2 million, an increase of 16% year- 130.3M 126.8 130.3 130.3 over-year 116.0 121.4 12% 53.5 53.2 50.7 U.S. DAUq
Slide 4: Dear fellow shareholders
Dear fellow We come into that work with clear advantages and revenue momentum shareholders, in the business, and you can see that in the exceptional commercial results we delivered in the third quarter. We generated 53% revenue growth - something few companies are doing - and it’s even more signific
Slide 5: Search referral trends don't define our future
Yet search referral trends don’t determine our relevancy and they don’t define our future. Logged-in and Our current opportunity is to better retain the large cohort of users who try Reddit for the first time app DAUq are our most valuable users, and they are our primary focus. every day by executin
Slide 6: Consumer product & experience
Consumer product & experience Make Reddit Awesome Growing community and belonging Improving our core feeds experience Expanding video content Content & communities are thriving Foundational work to the feed experience is improving Following our launch of video in comments, we’re Our community ecosys
Slide 7: Advertising & monetization
Advertising & monetization Reddit’s impact 2x+ y/y video ad Case study: Video objectives are driving revenue growth Expanding our lower-funnel objectives strong outcomes in Q3 with lead generation JCPenney conducted a split test comparing optimization toward 15-second versus six-second video views.
Slide 8: Financial highlights - P&L
Financial highlights - P&L Q3 2026 Q3 ‘26 REVENUE Q3 ‘26 GROSS MARGIN 91.0% 91.9% 91.5% 91.3% 91.5% 53% 50 bps $895.0 $804.9 $725.6 $176.1 year-over-year $663.4 $166.8 year-over-year $584.9 $142.3 $137.8 $105.3 (IN MILLIONS) $479.6 $583.3 $525.6 $638.1 $718.9 Q3 '25 Q4 '25 Q1 '26 Q2 '26 Q3 '26 US RE
Slide 9: Financial highlights - supplemental metrics
Financial highlights - supplemental metrics Q3 2026 Q3 ‘26 AVERAGE REVENUE PER UNIQUE (ARPU) Q3 ‘26 "RULE OF 40"1 36% 5,800 bps 115% 108% 109% 104% $6.87 98% year-over-year $6.18 $2.43 above “Rule of 40"1 45% 40% $5.98 40% $5.23 $2.26 43% $5.04 $2.31 45% $2.02 $1.84 40% 68% 70% 69% 61% 53% $9.04 $10
Slide 10: Financial highlights - cash & equity
Financial highlights - cash & equity Q3 2026 Q3 ‘26 CASH ON BALANCE SHEETA $2.8 $2.8 $3.0 Q3 ‘26 FULLY DILUTED 0.3% 0.0% 0.1% $2.5 SHARES OUTSTANDING (0.2)% (0.3)% 36% year-over-year $2.2 0.1% 206.1 206.1 206.4 207.0 206.3 16.7 15.2 14.0 14.7 13.2 year-over-year (IN MILLIONS) 189.4 190.9 192.4 192.3
Slide 11: Financial outlook
Financial outlook The guidance provided below is based on Reddit’s current estimates and is not a guarantee of future performance. This guidance is subject to significant risks and uncertainties that could cause actual results to differ materially, including the risk factors discussed in Reddit’s re
Slide 12: The People's Beauty Index; Earnings conference call & community update
The People’s Beauty Index Earnings conference call Reddit is where people come for trusted discussions and & community update human perspectives. In Q3, we launched Reddit’s first-ever beauty report, Reddit will host a conference call to discuss the results for the third quarter of 2026 on October 2
Slide 13: Appendix - Notes
Appendix Notes 1. The definition of Adjusted EBITDA, Adjusted EBITDA margin, incremental Adjusted EBITDA margin, and and their impact on user metrics; future financial and operating performance, including consumer product Rule of 40 and a reconciliation of net income to Adjusted EBITDA and Adjusted
Slide 14: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures We use certain non-GAAP financial measures to supplement our consolidated financial statements, which Incremental Adjusted EBITDA margin is defined as the change in Adjusted EBITDA divided by the change are presented in accordance with U.S. GAAP, to evaluate our co
Slide 15: Key Operating Metrics by Geography
Reddit, Inc. Key Operating Metrics by Geography (in millions, except percentages and ARPU) (unaudited) Three months ended Nine months ended September 30, September 30, 2026 2025 % Change 2026 2025 % Change Revenue: Global $ 895.0 $ 584.9 53 % $ 2,363.3 $ 1,476.9 60 % Revenue: U.S. $ 718.9 $ 479.6 50
Slide 16: Consolidated Statements of Operations
Reddit, Inc. Consolidated Statements of Operations (in thousands, except share and per share amounts) (unaudited) Three months ended Nine months ended September 30, September 30, 2026 2025 2026 2025 Revenue $ 894,957 $ 584,911 $ 2,363,273 $ 1,476,899 Costs and expenses: Cost of revenue 75,787 52,509
Slide 17: Consolidated Balance Sheets
Reddit, Inc. Consolidated Balance Sheets (in thousands) (unaudited) September 30, December 31, 2026 2025 Assets Current assets Cash and cash equivalents $ 1,357,583 $ 953,569 Marketable securities 1,675,849 1,523,242 Accounts receivable, net 730,083 590,162 Prepaid expenses and other current assets
Slide 18: Consolidated Statements of Cash Flows
Reddit, Inc. Consolidated Statements of Cash Flows (in thousands) (unaudited) Three months ended Nine months ended September 30, September 30, 2026 2025 2026 2025 Cash flows from operating activities Net income $ 283,264 $ 162,663 $ 740,093 $ 278,118 Adjustments to reconcile net income to net cash p
Slide 19: Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin
Reddit, Inc. Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin (in thousands, except percentages) (unaudited) Three months ended Nine months ended September 30, September 30, 2026 2025 2026 2025 Net income $ 283,264 $ 162,663 $ 740,093 $ 278,118 Add (deduct): Interest (income) expense, ne
Slide 20: Reconciliation of Free Cash Flow and Free Cash Flow Margin
Reddit, Inc. Reconciliation of Free Cash Flow and Free Cash Flow Margin (in thousands, except percentages) (unaudited) Three months ended Nine months ended September 30, September 30, 2026 2025 2026 2025 Net cash provided by (used in) operating activities $ 363,797 $ 185,159 $ 937,926 $ 424,068 Less
Slide 21: Reconciliation of Non-GAAP Costs and Expenses
Reddit, Inc. Reconciliation of Non-GAAP Costs and Expenses (in thousands) (unaudited) Three months ended Nine months ended September 30, September 30, 2026 2025 2026 2025 Total costs and expenses $ 633,371 $ 446,369 $ 1,687,059 $ 1,266,743 Less: Depreciation and amortization 4,260 3,900 12,728 11,79