Key Highlights

  • Revenue rose 53% to $895.0 million, from $584.9 million a year earlier.
  • Net income was $283.3 million, or $1.40 per diluted share, versus $162.7 million, or $0.80.
  • Adjusted EBITDA was $402.3 million, compared with $236.0 million.
  • Daily Active Uniques reached 130.3 million, up 12%, while ARPU rose 36% to $6.87.
  • Cash, cash equivalents and marketable securities totaled $3.0 billion at September 30, 2026.

Revenue climbs 53% on pricing strength

Reddit (NYSE:RDDT) operates a community platform of topic-based discussion forums and earns most of its Revenue from Advertising on its mobile applications and website, with smaller amounts from content licensing. The company filed its Quarterly Report for the period ended September 30, 2026 on October 30, 2026, showing revenue of $895.0 million, up $310.0 million, or 53%, from $584.9 million.

Advertising revenue increased $297.7 million, or 54%. The filing says the gain came mainly from pricing, with the price of ads up about 34%, and to a lesser extent from ad impressions delivered, which rose about 15%. U.S. revenue grew 50% and rest of world revenue grew 67%.

Users: global growth, a softer U.S.

Daily Active Uniques were 130.3 million, up 12% year over year, and Weekly Active Uniques grew 16%. Rest of world daily uniques grew 24%, but U.S. daily uniques declined 2% from the prior year and fell 5% from the prior quarter. Global daily uniques were flat sequentially.

The company attributed the picture to Marketing investments and product improvements, offset by changes at third-party search engines. It also said the growing use of artificial intelligence summaries has made referral traffic more volatile, so it continues to report logged-in and logged-out users, with logged-in growth at 7%.

ARPU rises 36% to $6.87

Average revenue per unique was $6.87 against $5.04 a year earlier. U.S. ARPU was $13.82, compared with $9.04, and rest of world ARPU was $2.43, compared with $1.84.

The combination of fewer U.S. users and sharply higher U.S. monetization shows how much of the growth is coming from advertiser Demand and price rather than audience size. The filing credits improved performance across the full funnel of ad objectives and higher advertiser demand for the price increase.

Costs rise, but margins widen

Gross Margin was 91.5%, up from 91.0%. Research and Development expense rose 34% to $263.5 million, and sales and marketing rose 63% to $209.4 million on Brand and user marketing.

Total costs and expenses were $633.4 million, or 69% of revenue versus 77% a year ago. Income from operations was $261.6 million, up from $138.5 million, which is about 29% of revenue on a calculated basis. Net Income was $283.3 million, with income tax expense of $5.8 million, and diluted EPS was $1.40 versus $0.80.

Cash generation and buybacks

Adjusted EBITDA was $402.3 million, up from $236.0 million. Net cash from Operating Activities was $363.8 million and Free Cash Flow was $362.6 million, roughly double the $183.1 million of the prior year period.

During the nine months ended September 30, 2026, Reddit repurchased 2,193,461 Class A shares for $340.0 million under a $1.0 billion program authorized on February 4, 2026, leaving $660.0 million available. Nine-month revenue was $2.4 billion, up 60%, and nine-month net income was $740.1 million, or $3.66 per diluted share.

What to watch next

The filing notes that a release of the U.S. deferred tax valuation allowance may become possible within the next 12 months, which would create a large income tax benefit when it occurs. Readers will likely watch whether U.S. user trends stabilize, whether ad pricing growth near 34% persists, and how a UK data protection fine of GBP 14.5 million, which the company is appealing, develops.