Online community and discussion platform Reddit (NYSE: RDDT) reported revenue ahead of Wall Street’s expectations in Q3 2026, with revenue rising 53% year on year to $895 million. On the other hand, next quarter’s revenue guidance of $1.02 billion was less impressive, coming in 2.8% below analysts’ consensus estimates. Its GAAP profit of $1.40 per share was 5.6% above analysts’ consensus estimates.
For more on Reddit, read our full research report, available free.
Reddit (RDDT) Q3 2026 highlights:
- Revenue $895 million vs S&P analysts’ consensus estimates of $877.2 million (53% year-on-year growth, 2% beat)
- EPS (GAAP) $1.40 vs analysts’ consensus estimates of $1.33 (5.6% beat)
- Adjusted EBITDA $402.3 million vs analysts’ consensus estimates of $397.1 million (44.9% margin, 1.3% beat)
- Revenue guidance $1.02 billion at the midpoint for Q4 2026, below analysts’ consensus estimates of $1.04 billion
- EBITDA guidance $495 million at the midpoint for Q4 2026, below analysts’ consensus estimates of $509.4 million
- Operating margin 29.2%, up from 23.7% in the same quarter last year
- Free cash flow margin 40.5%, up from 32.4% in the previous quarter
- Domestic daily active visitors 50.7 million, down 900,000 year on year
- Market capitalization $25.92 billion
“Our business is growing because the Reddit experience captures the human experience in a way that no other platform can replicate,” said Steve Huffman, Founder and CEO of Reddit. “Surpassing $3B of revenue over the last 12 months shows Reddit’s strength as a destination and the differentiated value of our platform.”
Revenue growth
A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones sustain growth for years. Over the last three years, Reddit grew its revenue at a strong 60% compounded annual growth rate. Its growth surpassed the average consumer internet company and shows its offerings resonate with customers.
This quarter, Reddit reported year-on-year revenue growth of 53%, and its $895 million of revenue beat Wall Street’s consensus estimates by 2%. Company management is currently guiding for a 39.9% year-on-year increase in revenue next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 34.7% over the next 12 months, according to S&P, a deceleration versus the last three years. Despite the slowdown, this projection remains strong and suggests the market is forecasting success for its products and services.
Domestic daily active visitors
User growth
As a social network, Reddit generates revenue growth by increasing its user base and charging advertisers more for the ads each user is shown.
Over the last two years, Reddit’s domestic daily active visitors, a key performance metric for the company, increased by 11.3% annually to 50.7 million in the latest quarter. This growth rate is strong for a consumer internet business and indicates strong user appeal. 
Reddit’s domestic daily active visitors decreased by 900,000 in Q3, a 1.7% drop since last year. The quarterly result was lower than its two-year result, suggesting its new initiatives aren’t yet gaining traction with users.
Revenue per user
Average revenue per user (ARPU) is a critical metric to track because it measures how much the company earns from the ads shown to its users. ARPU can also be a proxy for how valuable advertisers find Reddit’s audience and its ad-targeting capabilities.
Reddit’s ARPU growth has been strong over the last two years, averaging 47.8%. Its ability to increase monetization while growing its domestic daily active visitors at a healthy pace reflects the strength of its platform, as its users are spending significantly more than last year. 
This quarter, Reddit’s ARPU was $13.82. It grew by 52.9% year on year, faster than its domestic daily active visitors.
Key takeaways from Reddit’s Q3 results
Reddit’s next-quarter outlook was the weak spot, with both revenue and EBITDA guidance falling short of Wall Street’s consensus estimates. Revenue beat analysts’ consensus estimates this quarter and EBITDA narrowly topped expectations, but those positives still left a weaker quarter overall. Shares plunged 12.6% to $113.04 immediately after the results.
Reddit may have had a tough quarter, but does that create an investment opportunity? That decision requires a broader look at valuation and business quality alongside the latest earnings. For more on Reddit, read the full research report here (it’s free).
