Reddit delivered a very strong fiscal Q3 2026, with revenue, profit, cash flow, and user metrics all rising sharply year over year. The key takeaway is that growth remained broad-based across ads, international revenue, and engagement, while profitability scaled materially at the same time 1.
Revenue and earnings stepped up sharply
For the quarter ended September 30, 2026, Reddit reported revenue of $895 million, up 53% year over year from $585 million in fiscal Q3 2025 1. Net income was $283 million, up 74% from $163 million, and diluted EPS rose to $1.40 from $0.80 1. Management described the quarter as follows: "Revenue of $895 million grew 53% year-over-year"1.
fiscal Q3 2026 | fiscal Q3 2025 | Change | |
|---|---|---|---|
Revenue | 895 1 | 585 1 | 53.0% |
Net income | 283 1 | 163 1 | 73.6% |
Free cash flow | 363 1 | 183 1 | 98.4% |
Quarter ended September 30, 2026. Adjusted EBITDA and free cash flow are non-GAAP measures.
Growth was broad-based across ads, geography, and engagement
The quarter was not driven by a single line item. Ad revenue rose 54% year over year to $847 million, while other revenue increased 35% to $48 million 1. Geographically, U.S. revenue increased 50% to $719 million and international revenue grew even faster, up 67% to $176 million 1.
Engagement also remained healthy. Daily Active Uniques increased 12% year over year to 130.3 million, and Weekly Active Uniques rose 16% to 515.2 million 1. Management also said that logged-in DAUq and app DAUq, which it called its most engaged and monetizable users, grew quarter over quarter in both the U.S. and Rest of World 1.
Ad revenue: $847 million in fiscal Q3 2026, up 54% year over year 1
Other revenue: $48 million, up 35% year over year 1
U.S. revenue: $719 million, up 50% year over year 1
International revenue: $176 million, up 67% year over year 1
DAUq: 130.3 million, up 12% year over year 1
WAUq: 515.2 million, up 16% year over year 1
Profitability and cash generation improved meaningfully
The quality of the quarter looks strong because revenue growth translated into higher margins and cash conversion. GAAP gross margin improved to 91.5% from 91.0%, net margin reached 31.7% from 27.8%, and adjusted EBITDA margin increased to 44.9% from 40.3% 1. Reddit also said capital expenditures were only $1 million, or 0.1% of revenue, helping free cash flow almost match operating cash flow 1.
This quarter also fits into a broader step-up in the business. According to the reported financial statements, full-year revenue rose to $2,203 million in FY2025 from $1,300 million in FY2024, while net income swung to a profit of $529.7 million in FY2025 from a loss of $484.3 million in FY2024. Operating cash flow also improved to $690.9 million in FY2025 from $222.1 million in FY2024.
Balance sheet and capital allocation remain supportive
That is a very strong liquidity position relative to the size of the business. During the quarter, the company also repurchased about 670 thousand Class A shares for $100 million at an average price of $149.81 per share 1.
According to the reported financial statements, total assets were $3,239 million and total equity was $2,929 million at FY2025, up from $2,337 million and $2,131 million respectively at FY2024. That points to a balance sheet that has strengthened alongside profitability.
Q4 2026 outlook implies another step up
Reddit guided for fiscal Q4 2026 revenue of $1,000 million to $1,030 million and adjusted EBITDA of $480 million to $510 million 1. The company stated: "In the fourth quarter of 2026, we estimate Revenue in the range of $1,000 million to $1,030 million"1.
The Q4 range points to momentum carrying through the year-end, following an exceptionally strong third quarter. Taken together, fiscal Q3 2026 was a high-quality quarter: rapid revenue growth, widening margins, solid user trends, heavy cash generation and a well-funded balance sheet 1.
Sources
Reddit, Inc. · Reddit Reports Third Quarter 2026 Results · p. 1