Reddit crushes Q2 estimates, revenue surges 61% to $500M

Reddit’s second-quarter results, reported July 30, 2026, easily beat Wall Street forecasts, and the company issued third-quarter guidance well above analyst expectations.

Revenue rose 61% from $500 million in the same period a year earlier, the company said. Net income more than doubled to $253 million, or $1.25 per share, from $89 million, or 45 cents per share.

For the third quarter, Reddit expects revenue of $860 million to $870 million, surpassing the $828 million consensus. Adjusted earnings are projected at $385 million to $395 million, above analysts’ average estimate of $368 million.

The platform’s global daily active unique users jumped 18% to 130.3 million, edging past the 129.9 million forecast. U.S. daily active unique users rose 6% to 53.2 million.

Average revenue per user reached $6.18 globally and $11.85 in the U.S.

Other revenue, which includes data licensing deals with OpenAI and Google, grew 24% to $43 million.

Free cash flow more than doubled to $261 million from $111 million a year earlier.

This was the eighth straight quarter of revenue growth exceeding 60%, fueled by overseas expansion, user gains and improvements to the ad engine.

Chief Executive Steve Huffman said search referrals were choppy and traffic volatile later in the quarter, but stressed the commercial business remains strong.

In July 2026, shares dropped after The Wall Street Journal reported that Reddit was considering cutting off Google’s data access, amid concerns that Google’s AI-powered search overviews were crimping referral traffic. Huffman said the company is still seeking a win-win solution with Google on AI overviews.