Reddit reported second-quarter 2026 results: total revenue rose 61% to $805 million, advertising revenue grew 64% to $762 million, and net income reached $253 million. Global daily active uniques climbed 18% to 130.3 million. Yet the stock fell more than 10% after hours as investors focused on “choppy” search referrals and cautious comments about the US audience.
Headlines quickly claimed Reddit “earned more from ads than Meta”. That is not true. Meta is still far larger in absolute dollars; Reddit only outpaced it on growth. Here is what the numbers actually say, why the business is growing while the stock falls, and what it means for media buyers.
- Revenue: $805 million, +61% year over year.
- Advertising: $762 million, +64%.
- Audience: 130.3 million DAU, +18%; 514.6 million WAU, +24%.
- But: the stock fell 10% on search traffic and US audience concerns.
What Reddit reported in Q2 2026
| Metric | Q2 2026 | Change |
|---|---|---|
| Total revenue | $805 million | +61% YoY |
| Advertising revenue | $762 million | +64% |
| Other revenue | $43 million | +24% |
| Net income | $253 million | +183% |
| DAUq | 130.3 million | +18% |
| WAUq | 514.6 million | +24% |
| ARPU | $6.18 | +36% |
| Q3 guidance | $860–870 million | above expectations |
This is the eighth consecutive quarter of more than 60% revenue growth. Net income and adjusted EBITDA more than doubled, and the adjusted EBITDA margin reached 43%. By ad-market standards, that is a strong print.
“Reddit beat Meta” is about growth, not size
The Meta comparison is not baseless, but it gets twisted. Meta’s advertising revenue in Q2 2026 was $59.36 billion, up 27% year over year. Reddit’s was $762 million, up 64%. Reddit is growing faster, but it is roughly 78 times smaller than Meta’s ad business.
The accurate framing: Reddit is one of the fastest-growing ad businesses among large platforms, not “bigger than Meta”. Growth rate and absolute size are different things, and mixing them up in a story about billions is misleading.
Why the stock fell on a strong quarter
The issue was not advertising but audience and search traffic. CEO Steve Huffman wrote in the shareholder letter that search referrals were “choppy” in the quarter and traffic became more volatile later on. Investors read that as a risk: AI answers from Google and other search engines are taking more clicks, and Reddit depends on search discovery.
The stock dropped more than 10% after the close even though revenue and profit beat expectations. The market is looking past the current quarter to whether Reddit can hold its audience as search shifts to generative answers.
Audience: global growth, a US plateau
The “audience fell 17%” figure circulating in summaries does not match the report. Global DAU rose 18% to 130.3 million and WAU rose 24% to 514.6 million. International DAU grew 28%, while US DAU grew 6% year over year.
The US nuance: 53.2 million DAU versus 53.5 million in Q1. That is a slight sequential decline, not a 17% collapse. It still matters because the US is the most valuable market, with ARPU of $11.85 versus $2.26 internationally.
How AI is helping Reddit’s ads
Reddit sells intent, not just reach: people come to communities for answers before they buy. In Q2 the company leaned harder on machine learning across the funnel. The shareholder letter lists these effects:
- CTR up more than 40% year over year as models improve click selection.
- Six-second engaged video views +130% and completion rates +71%.
- CPA down 22% in the lower funnel.
- App install volume up more than 100% in App Install campaigns.
- Shopify integration reached general availability, and Shopping Listing Ads launched in alpha.
Reddit is trying to move from “a place for discussions” to a measurable performance channel. For media buyers, that means testing not only reach campaigns but also App Event Optimization, Reddit Max and shopping formats.
What it means for affiliate media buying
Upside. High purchase intent, strong verticals — finance, crypto, SaaS, gaming, e-commerce, health. Less competition than Facebook or TikTok, and a paying US audience. Ads can fit into discussions if the creative looks like a useful answer rather than a banner.
Downside. Scale is smaller: 130 million DAU versus billions at Meta. Community moderation and ad policies are strict, and creatives fatigue quickly. Search volatility affects organic reach and investor sentiment, though not the ads manager itself.
The practical takeaway: Reddit is not a volume replacement for Facebook; it is an additional source for tests. Start with a small budget, track CPA and LTV, and check how the creative lands in specific subreddits. For a broader source comparison, see our Facebook Ads vs TikTok Ads breakdown, and for creative production, the AI creative guide.
Risks to keep in mind
- Search traffic. If Google keeps answering queries with AI summaries, organic referrals may decline.
- US audience. A US plateau alongside international growth weighs on ARPU and investor sentiment.
- Ad load. Revenue growth partly comes from pricing and impressions; more load can hurt the user experience.
- Moderation. Reddit is sensitive to spam and “advertising” tone; community-native creative beats direct selling.
- Measurement. Attribution on Reddit is harder than on Facebook; check postbacks and reconcile with your tracker.
FAQ
How much did Reddit earn in Q2 2026?
Total revenue was $805 million (+61% YoY), advertising revenue $762 million (+64%), and net income $253 million.
Did Reddit really earn more from ads than Meta?
No. Meta’s ad revenue was $59.36 billion for the quarter; Reddit’s was $762 million. Reddit only outpaced Meta on growth: 64% versus 27%.
Why did Reddit’s stock fall after a good report?
Because of “choppy” search referrals and concerns about the US audience. Revenue and profit beat expectations, but investors are watching traffic durability.
Did Reddit’s audience fall 17%?
No. Global DAU rose 18% to 130.3 million and WAU rose 24% to 514.6 million. US DAU was 53.2 million versus 53.5 million in Q1 — a slight sequential decline.
How many users does Reddit have?
130.3 million daily active uniques and 514.6 million weekly active uniques on average for the quarter.
What is Reddit’s ARPU?
Global ARPU was $6.18 (+36%), US ARPU $11.85 (+51%), and international ARPU $2.26 (+31%).
What is the Q3 2026 outlook?
Reddit expects revenue of $860–870 million and adjusted EBITDA of $385–395 million.
Should media buyers test Reddit Ads?
As an additional source, yes — especially in finance, crypto, SaaS, gaming and e-commerce. But scale is smaller than Meta, and creative and moderation need a dedicated approach.
Which ad metrics improved thanks to AI?
CTR +40% YoY, six-second video views +130%, completion +71%, CPA -22%, and app installs +100%.
Sources
Press release: Reddit Reports Second Quarter 2026 Results. Shareholder letter: Q2 2026 Shareholder Letter. Context: TechCrunch. Meta data: Meta Reports Second Quarter 2026 Results.