Live: Will Reddit’s Q2 Earnings Tonight Send Shares Higher?

That wraps up our initial coverage of Reddit’s Q2 results. Thank you for stopping by!

International revenue soared 84% to $166.8 million, substantially outpacing the 56% growth recorded in the United States. International daily active uniques increased 28%, while weekly active uniques jumped 35%.

International ARPU remains only $2.26 compared with $11.85 in the US, leaving significant room for future monetization. Reddit is expanding fastest in the markets where its revenue per user has the most runway.

One risk to watch is that logged-out daily active unique uers increased 27%, including 41% international growth, while logged-in daily active uniques rose only 7%. US logged-in users were nearly flat, increasing just 1%.

This suggests that search visibility and casual visitors remain major audience-growth drivers. That traffic is valuable, but Reddit still needs to convert more of those visitors into logged-in users to deepen engagement and reduce its dependence on external discovery channels.

Reddit expects Q3 revenue of $860 million to $870 million, comfortably above the $829.1 million consensus estimate. Adjusted EBITDA guidance of $385 million to $395 million also topped Wall Street’s $369 million forecast.

At the midpoint, that outlook implies an adjusted EBITDA margin of approximately 45.1%, up from 42.6% in Q2. Reddit is guiding for continued revenue growth alongside another meaningful expansion in profitability.

Reddit’s revenue soared 61% year over year to $805 million even as daily active uniques increased 18% to 130.3 million. This means average revenue per user (ARPU) did a lot of the heavy lifting, which speaks to the monetization potential of Reddit’s user base.

Global average revenue per unique rose 36% to $6.18, while US ARPU jumped 51% to $11.85 despite US daily active uniques growing only 6%. Reddit is extracting substantially more advertising revenue from each user rather than relying solely on audience growth.

Reddit just reported Q2 earnings, with shares initially down 1% following the report. Here are the key numbers:

• Revenue: $805M vs. $730.4M expected
• EPS: $1.25 vs. $0.95 expected
• Net Income: $253M vs. $196.5M expected
• Adjusted EBITDA: $343M vs. $297.2M expected
• Daily Active Uniques: 130.3M, up 18% YoY

Guidance:

• Q3 Revenue: $860M–$870M vs. $829.1M expected
• Q3 Adjusted EBITDA: $385M–$395M vs. $369M expected

Quick Read:

Reddit crushed expectations across the board, beating revenue estimates by nearly $75 million while delivering stronger-than-expected profitability.

Q3 guidance also came in comfortably ahead of Wall Street forecasts, though the initial stock decline suggests investors had priced in an exceptional report.

Reddit (NYSE:RDDT | RDDT Price Prediction) reports at 4:05 PM ET, with Polymarket pricing a 91.5% chance of a beat.

Top 5 Analyst Questions

• Progress toward the 100 million US DAU goal from Q1’s ~50 million
• Sustainability of 74% ad revenue growth while lapping tough Q2 2025 comps
• AI licensing economics and the reported Google data-access dispute
• Reddit Max adoption beyond the initial thousands of advertisers
• Pace of the $1 billion buyback after only $5 million repurchased in Q1

Key Topics Management Must Address

• H2 revenue outlook and advertiser commitment cycles
• Gross margin trend after 91.5% in Q1
• International monetization runway

Buzzwords to Listen For

• “One-of-one,” “authentic human conversation,” “age of AI,” “flywheel”

Red Flags

• Shorter advertiser planning cycles
• Guidance below the Street
• Any softening in US ARPU growth from 54%

Bull Case

• Reddit (NYSE:RDDT) has beaten revenue estimates every quarter shown, with Q1 2026 EPS of $1.01 vs. $0.5639 and ad revenue up 74% YoY.
• Adjusted EBITDA margin hit 40.1%; FCF surged +145.79% YoY.
• Polymarket traders assign a 91.5% beat probability; analyst consensus target sits at $227.30.
• International DAU growth of +26% plus AI licensing renewals with Google and OpenAI expand the monetization runway.

Bear Case

• Q4 2025 EPS missed by -14.48%, sending shares down roughly 9%.
• Shares are down 22.57% YTD, and options imply a 12% post-earnings move.
• CEO Steve Huffman sold shares as recently as July 15, 2026, dampening insider sentiment.
• International ARPU of $2.02 lags US ARPU of $9.63, exposing a wide monetization gap.

Reddit reports Q2 2026 earnings at 4:05 PM ET after today’s close, with management guiding for revenue between $715 and $725 million. Prediction-market traders currently assign a 91.5% probability that the company beats earnings expectations.

The bigger questions involve the breadth of Reddit’s advertising funnel, US daily active user growth, and momentum from AI data-licensing agreements. Reddit trades at about 24x forward earnings while generating roughly 95% of its revenue from advertising.

A strong report with raised guidance could reinforce the company’s AI-era community moat, but a softer advertising outlook could reopen the growth-deceleration debate that pressured shares earlier this year.