Reddit reported net income of $253 million for the second quarter, roughly triple the $89 million it earned in the same period a year earlier. The results extend a growth streak that has defined Reddit's early years as a public company following its March 2024 IPO. However, executives cautioned that search-engine referral traffic became increasingly erratic toward the end of the quarter — a concern for a company focused on converting its massive audience into daily active users.

Revenue Growth Exceeds 60% for an Eighth Consecutive Quarter

The results, detailed on a July 30 earnings call, were strong across key metrics. Total revenue rose 61% year-over-year to $805 million, marking the eighth straight quarter in which growth surpassed 60%. Advertising revenue increased 64% to $762 million, driven by higher ad pricing and a greater number of impressions.

Adjusted EBITDA reached $343 million, representing a 43% margin and more than doubling year-over-year. Diluted earnings per share came in at $1.25. Cash flow from operations totaled $262 million for the quarter, pushing the trailing-twelve-month figure above $1 billion for the first time, according to CFO Andrew Vollero. Reddit guided to revenue of $860 million to $870 million for the current quarter.

The company also launched its first formal shareholder-return program since going public, spending $235 million to repurchase 1.5 million shares at an average price of $157.57 each.

COO Jennifer Wong highlighted advertising performance improvements. Conversion volume more than doubled year-over-year, click volume rose over 30%, and the active advertiser base grew by more than 70%. Reddit also crossed a milestone of $1 million in revenue per employee on a trailing-twelve-month basis. Beginning next quarter, the company will stop reporting the split between logged-in and logged-out daily users — a metric investors have scrutinized as a gauge of how effectively Reddit converts casual search visitors into registered, engaged users.

Today, we shared Reddit's Q2'26 earnings results. A few highlights:

Revenue: $805M (+61% YoY)
Weekly Active Uniques: 514M+ (+24% YoY)
8th consecutive quarter of GAAP profitability
Ad revenue: +64%

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— Reddit, Inc. (@Reddit) July 30, 2026

Search Referral Volatility Clouds User Growth Outlook

Weekly active uniques surpassed 500 million for the first time, reaching 514.6 million. Daily active uniques climbed 18% to 130.3 million. However, management acknowledged that search referral traffic became less predictable as the quarter progressed, partially offsetting gains in daily user engagement that product improvements had driven.

"Visibility into referral traffic remains low," CEO Steven Huffman said, noting that search-driven visits turned volatile toward the end of the reporting period. Reddit has historically depended on traditional search engine links — particularly Google — for a substantial share of its inbound traffic, and Huffman stated that "AI overviews has yet to make a similar level of positive impact." Major search engines have been integrating AI-generated summaries that can surface answers directly, potentially reducing clicks through to source sites like Reddit.

Vollero told analysts that "user acquisition spending needs stronger attention to improve returns" as the company evaluates the balance between paid marketing and brand-building investments.

Reddit's cautious tone comes amid an earnings season in which investors have penalized even minor weaknesses. Microsoft shares rose 8% after the company beat revenue and profit estimates, while Meta fell 10% the same week as escalating costs and disappointing profit weighed on the stock. Alphabet shares declined after the company reported its first free-cash-flow deficit in decades and raised its 2026 capital expenditure forecast to as much as $205 billion.