- Company name
- Reddit
- Sector
- Social media and online communities
- About
- Reddit, Inc. (Reddit) is based in San Francisco, California. It runs Reddit, a website and app with more than 27 billion posts and comments in communities about almost every topic. Most of its revenue comes from advertising. Other revenue includes content licensing. Daily active uniques (DAUq) averaged 130.3 million in Q3 2026. Revenue was $895 million in Q3 2026 and $2,363 million for nine months. The Class A common stock trades on the NYSE in US dollars. The Class B common stock has ten votes per share and is not listed. Reddit files 10-K and 10-Q reports.
- Thesis
- The price of Reddit depends on whether it can keep its users and grow revenue while AI search sends less traffic to it. Search referral traffic fell meaningfully in Q3 2026, and U.S. DAUq fell 2% to 50.7 million, while revenue grew 53% to $895 million and net income was $283 million. Reddit guides Q4 2026 revenue of $1,000 million to $1,030 million and adjusted EBITDA of $480 million to $510 million. For the price to rise, three things must be true. Logged-in and app users, who give more than 80% of the monetization, must keep growing as Reddit moves to a logged-in-only experience. Advertisers must keep paying more for its ads. The content licensing agreements, where almost all of the contract value comes from two partners, must continue on good terms. The Q4 2026 report, expected in early February 2027, is the next test. If U.S. users keep falling, the market can value Reddit as a slower growth company.
- Risks
- Traffic from search engines falls. Search referral traffic fell meaningfully in Q3 2026, mostly for logged-out web users, and U.S. DAUq fell 2% from a year before.
Content licensing revenue is concentrated. Almost all of the contract value of licensing revenue comes from two partners, and the Dutch data protection authority asked how the licensing of data complies with GDPR.
Laws on online safety and minors, such as the Online Safety Acts in the UK and Australia and the Social Media Minimum Age law in Australia, increase costs and can reduce users.
Stock-based compensation is large. It was $300.6 million for nine months of 2026, and the fully diluted share count was 206.3 million, against 193.1 million shares outstanding.
The holders of Class B shares, with ten votes per share, control a large part of the votes, so other shareholders have less influence.
- Balance sheet
- Cash: $3.0B
Debt: $0.0M
Net cash: $3.0B
At September 30, 2026, Reddit had cash and cash equivalents of $1,357.6 million and marketable securities of $1,675.8 million, which is $3,033 million in all. It has no debt. Operating cash flow was $937.9 million and free cash flow was $934.5 million for nine months. In Q3, it bought back about 670 thousand Class A shares for $100 million under its $1.0 billion program.
As of Sep 30, 2026.
- Checkpoints
- Feb 4, 2027 (estimate): Q4 2026 results. Pending. Watch: Revenue is in the guided range of $1,000 million to $1,030 million and U.S. DAUq stops falling, and this passes; revenue below $1,000 million or a larger fall in U.S. DAUq fails.
May 2027 (estimate): Q1 2027 results. Pending. Watch: Logged-in DAUq grows from a year before after the move to a logged-in-only experience, and this passes; a fall in logged-in DAUq fails.
- Recent events
- Oct 29, 2026: Reddit reported Q3 2026 results. Revenue was $895 million, up 53%, net income was $283 million and adjusted EBITDA was $402 million. DAUq grew 12% to 130.3 million, but U.S. DAUq fell 2%. It guided Q4 2026 revenue of $1,000 million to $1,030 million. It bought back about 670 thousand Class A shares for $100 million in Q3.
Oct 29, 2026: In its letter to shareholders, Reddit said that search referral traffic fell meaningfully in Q3 2026 and that the decline accelerated late in the quarter. It plans to shift Reddit to a logged-in-only experience after tests.
Aug 12, 2026: Chief Legal Officer Benjamin Lee told Reddit that he will step down on September 14, 2026. Reddit expects to appoint Paul Cappuccio as Chief Legal Officer.
Feb 4, 2026: The Board authorized a program to buy back up to $1.0 billion of Class A common stock, with no expiration date.