Reddit (RDDT) investor relations material

Executive summary

• Achieved eighth consecutive quarter of over 60% revenue growth, with Q2 2026 revenue up 61% year-over-year to $805 million, driven by strong advertising growth and user engagement initiatives.

• Net income reached $253 million ($1.31 per basic share, $1.25 per diluted share), more than doubling year-over-year and representing 31% of revenue.

• Daily Active Uniques (DAUq) grew 18% year-over-year to 130.3 million, with notable international expansion and focus on improving new user retention.

• Adjusted EBITDA more than doubled to $343 million, with a margin of 43%.

• Commercial momentum was driven by a differentiated advertising platform and strong execution across verticals and geographies.

Financial highlights

• Q2 2026 revenue: $805 million, up 61% year-over-year; ad revenue: $762 million, up 64%; other revenue: $43 million, up 24%.

• U.S. revenue grew 56% to $638 million; international revenue surged 84% to $167 million.

• Gross margin improved to 91.3%, up 50 basis points year-over-year.

• Free cash flow for the quarter was $261 million, more than doubling year-over-year.

• Cash, cash equivalents, and marketable securities totaled $2.8 billion at quarter end.

Outlook and guidance

• Q3 2026 revenue guidance: $860–$870 million (47–49% year-over-year growth).

• Q3 adjusted EBITDA guidance: $385–$395 million (63–67% year-over-year growth), with a 45% margin at midpoint.

• Management expects continued investment in product improvements, international growth, and AI integration to drive future user and revenue growth.

• Lowered full-year SBC expense guidance to low/mid-teens as a percentage of revenue.

• Sufficient liquidity is expected to meet working capital and capital expenditure needs for at least the next 12 months.