Reddit Inc Class A (RDDT) Q3 2026 Earnings Report
MX:RDDT Q3 2026 EPS Results
- Actual EPS
- MXN 26.30
- Consensus EPS
- MXN 24.97
- Beat/Miss
- Beat by +MXN 1.33
- One Year Ago EPS
- MXN 15.03
MX:RDDT Q3 2026 Revenue Results
- Actual Revenue
- MXN 16.81B
- Expected Revenue
- MXN 16.44B
- Beat/Miss
- Beat by +MXN 376.67M
- YoY Revenue Growth
- +53.01%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- After Close
- Conference Call
- Thursday, October 29, 2026
MX:RDDT Upcoming Earnings
Reddit Inc Class A's next earnings date is estimated for February 17, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:RDDT Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Reddit reported 53% revenue growth, expanding margins, near-doubling year-to-date adjusted EBITDA, significant free cash flow generation, strong advertiser demand, and improving product and new-user retention. The principal challenges were the accelerating decline in search referral traffic, potential low-double-digit Q4 DAUq pressure, lower total sessions, and uncertainty around the logged-in-only transition. Management emphasized that logged-in and app users, which generate over 80% of monetization, continued to grow or remain strong.
Company Guidance
For the fourth quarter of 2026, Reddit estimates revenue in the range of $1 billion to $1.03 billion, representing 38% to 42% year-over-year growth with a midpoint of approximately 40%, and adjusted EBITDA in the range of $480 million to $510 million, representing 47% to 56% year-over-year growth and an adjusted EBITDA margin of approximately 49% at the midpoint; if the search-referral decline continues, current trends would suggest that total DAUqs could fall in Q4 by a low double-digit percentage from the current base of 130 million DAUqs, while Reddit plans to begin fully testing logged-in only in select markets outside the U.S. in Q4, and continues to track against its long-term guide of 1% to 3% annual dilution.
- Strong Revenue Growth and $3 Billion MilestoneQ3 revenue grew 53% year-over-year, on top of nearly 70% revenue growth last year, and trailing 12-month revenue crossed $3 billion.
- Advertising Revenue GrowthQ3 advertising revenue grew 54% year-over-year to $847 million, with growth from both pricing and impressions; pricing growth outpaced impression growth.
- Broad-Based Geographic and Vertical GrowthU.S. advertising revenue grew 51% year-over-year and international advertising revenue grew 68%. Growth was broad-based across verticals and regions, with business and finance, pharma, and travel performing strongly.
- Improved Advertising OutcomesClick volume grew over 50% year-over-year and conversion volume more than tripled. Lower-funnel shopping and app-install objectives each grew more than 95% year-over-year.
- Scaled and Mid-Market Advertiser ExpansionScaled revenue grew more than 80% year-over-year, driven by deeper relationships with existing advertisers, higher average spend, and new advertiser acquisition. Mid-market active advertisers grew more than 50% year-over-year across North America and EMEA.
- Growth in Advertising Automation and VideoReddit Max entered public beta in Q3, and Max advertiser adoption more than tripled quarter-over-quarter. Video-view revenue more than doubled year-over-year, and Reddit launched a 15-second engaged video-view objective in public beta.
- Expansion of Shopping and B2B Advertising ProductsReddit expanded its shopping product to support up to 20 million products. B2B advertisers using in-market audience tools saw an average cost-per-action improvement of about 7% compared with other first-party targeting options.
- Growing Ads API EcosystemRevenue from the Ads API ecosystem grew more than 45% quarter-over-quarter. Reddit added Innovid and Skai partnerships, began a beta integration with HubSpot, launched Smartly's first third-party Max campaign-management integration, and continued scaling its Shopify integration.
- Advertiser Case Study and Third-Party MeasurementEthnotek's campaign using Reddit's DPA product and Shopify integration delivered a 4x return on advertising spend and a 40% more efficient CPA. Third-party research found Reddit shoppers generated 17% higher lifetime value in personal care and beauty, 19% higher value in QSR, beverage, and snacks, and 11% higher value in retail beauty and personal care.
- Strong Cash Generation and ProfitabilityQ3 free cash flow was $363 million, up 98% year-over-year, with a 41% free cash flow margin. GAAP diluted EPS and adjusted EBITDA each grew over 70% year-over-year, while year-to-date adjusted EBITDA surpassed $1 billion, nearly double the prior year.
- Industry-Leading MarginsQ3 net income margin was 32%, adjusted EBITDA margin was 45%, and gross margin was 91.5%. Gross margin increased 50 basis points year-over-year and remained above 90% for the ninth consecutive quarter.
- Operating Leverage and Cost DisciplineTotal adjusted costs and expenses grew 41% year-over-year, while revenue grew approximately 1.3x the rate of total adjusted costs. Adjusted operating expenses were 47% of revenue versus 51% last year, reflecting operating leverage.
- Strong Balance Sheet and Capital ReturnsCash, cash equivalents, and marketable securities reached $3.03 billion. Reddit repurchased about $100 million of stock in Q3 at an average price slightly below $150 per share, with approximately $660 million remaining under the current authorization.
- Low Capital Intensity and Controlled DilutionCapital expenditures were $1.2 million. Gross dilution excluding buybacks was 1.2% year-to-date, tracking against the company's long-term guide of 1% to 3% annual dilution; after buybacks, fully diluted shares were up 0.1% year-to-date.
- Positive Fourth-Quarter OutlookReddit expects Q4 revenue of $1 billion to $1.03 billion, representing 38% to 42% year-over-year growth with a midpoint of approximately 40%. Adjusted EBITDA is expected to be $480 million to $510 million, representing 47% to 56% year-over-year growth, with an adjusted EBITDA margin of approximately 49% at the midpoint.
- Improved New-User Retention and Product EngagementThe percentage of new users returning during the first week after installing the Reddit app increased double digits quarter-over-quarter and over 50% year-over-year. Posts and comments increased sequentially, video creation and consumption increased, chained video views increased, and time on site remained solid.
- Growth in Reddit's Community Corpus and Moderation EfficiencyReddit added another 1 billion posts and comments to its corpus during the quarter, bringing the corpus to 27 billion posts and comments. AI-powered enforcement tools reduced the median time to action on violating content from 58 hours to 5 seconds this year.
- High-Value Logged-In and App User BaseLogged-in and app daily active users grew sequentially. These users account for the vast majority of engagement and over 80% of Reddit's monetization.
- Logged-In-Only Testing and Personalization StrategyReddit plans to begin fully testing a primarily logged-in experience in select markets outside the U.S. in Q4. Management said the approach is intended to improve personalization, ad targeting, engagement, data protection, and the company's ability to adapt to emerging regulations, while testing the appropriate balance between reach and engagement.
- Consumer Marketing and Brand ProgressReddit's People Are The Best brand campaign showed early gains in relevance and strong ad recall. The r/bodega community pop-up represented 75 Reddit communities and reached hundreds of thousands of people in person and online.
- S&P 500 Inclusion and Long-Term Growth AmbitionReddit was added to the S&P 500 earlier in the quarter. Management identified $5 billion in revenue as the company's next internal North Star.
MX:RDDT Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 17, 2027 | 2026 (Q4) | 34.06- | 23.3 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | 24.9726.30 | 15.03 | 75.00% (+11.27) | |
| Jul 30, 2026 | 2026 (Q2) | 17.8323.48 | 8.45 | 177.78% (+15.03) | |
| Apr 30, 2026 | 2026 (Q1) | 10.6918.97 | 2.44 | 676.92% (+16.53) | |
| Feb 05, 2026 | 2025 (Q4) | 17.6023.30 | 6.76 | 244.44% (+16.53) | |
| Oct 30, 2025 | 2025 (Q3) | 9.8615.03 | 3.01 | 400.00% (+12.02) | |
| Jul 31, 2025 | 2025 (Q2) | 3.578.45 | -1.13 | 850.00% (+9.58) | |
| May 01, 2025 | 2025 (Q1) | 0.322.44 | -153.86 | 101.59% (+156.31) | |
| Feb 12, 2025 | 2024 (Q4) | 4.736.76 | 3.95 | 71.43% (+2.82) | |
| Oct 29, 2024 | 2024 (Q3) | -1.373.01 | -0.85 | 455.56% (+3.85) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed