Reddit Triples Profit to $253 Million, But Notes Search Query Volatility

cryptonews.ru2026-07-31 tarihinde yayınlandı2026-07-31 tarihinde güncellendi

Özet

Reddit reported second-quarter 2026 net income of $253 million, roughly triple the $89 million from a year earlier. Revenue surged 61% year-over-year to $805 million, marking the eighth consecutive quarter of over 60% growth. Advertising revenue jumped 64% to $762 million, driven by higher ad prices and increased impressions. The company's weekly active unique users surpassed 500 million for the first time, reaching 514.6 million. However, executives flagged a concern: traffic from search engines became volatile toward the end of the quarter, creating headwinds for converting its large audience into daily users. CEO Steven Huffman noted that "AI overviews have not yet had a similarly positive impact" on search referrals compared to traditional links. Other highlights include adjusted EBITDA rising 43% to $343 million, operating cash flow of $262 million for the quarter, and the launch of Reddit's first shareholder return program with $235 million spent on share repurchases. For the current quarter, Reddit forecasts revenue between $860 million and $870 million.

On Thursday, Reddit reported net income of $253 million for the second quarter. This is roughly three times the $89 million earned a year earlier.

However, executives warned that traffic from search engines became volatile towards the end of the quarter, a weakness for a company betting on turning its massive audience into daily users.

Reddit Revenue Grew 61% for the Eighth Consecutive Quarter

Key metrics were released during the July 30th earnings conference call and were strong across the board. Total revenue grew 61% to $805 million compared to the previous year. This marks the eighth consecutive quarter with growth exceeding 60%. Advertising revenue jumped 64% to $762 million, which the company attributed to higher ad prices and an increased number of impressions.

Adjusted EBITDA was $343 million, a 43% increase from the year before. Diluted earnings per share were $1.25. The company's operating cash flow for the quarter was $262 million, bringing the trailing twelve-month figure above $1 billion for the first time, CFO Andrew Vollero told analysts. Reddit forecasts revenue for the current quarter to be between $860 and $870 million.

Reddit also launched its first substantial shareholder return program. The company spent $235 million to repurchase 1.5 million shares at an average price of $157.57 per share.

COO Jennifer Wong highlighted advertiser success. Conversions more than doubled, and clicks grew over 30% year-over-year. The active advertiser base grew more than 70%. Reddit achieved $1 million in revenue per employee over the last twelve months. And next quarter, the company will no longer separately disclose daily authorized and unauthorized user data.

Today we released Reddit's Q2 2026 financial results. Here are a few key highlights:

Revenue: $805M USD (+61% YoY)
Weekly Active Unique Users: over 514M (+24% YoY)
8th consecutive quarter of GAPP profitability
Advertising Revenue: +64%

Read more: https://t.co/aDAoYR8DKY

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

Search Queries on Reddit Became Volatile Late in the Quarter

Weekly Active Unique Users surpassed 500 million for the first time, reaching 514.6 million. Daily Active Unique Users grew 18% to 130.3 million. Management stated that search queries became less predictable as the quarter progressed, somewhat dampening the daily user growth achieved through product work.

"Referrer transparency remains low," said CEO Steven Huffman, adding that visits driven by search queries were volatile by the period's end. Reddit has long relied on traditional search engine referrals, and he said "AI reviews have not yet provided a similar positive lift." Vollero said "user acquisition costs need strong attention for profitability improvement" as Reddit balances paid advertising with branding.

The caution from Reddit users comes during an earnings season where Wall Street shows little patience for vulnerabilities. Cryptopolitan reported that Microsoft shares jumped 8% after the company exceeded revenue and profit forecasts, while Meta shares fell 10% the same week due to a sharp increase in expenses and profit disappointment.

Alphabet shares declined after the company reported its first quarterly decline in free cash flow in decades and raised its 2026 capital expenditure forecast to $205 billion, reports Cryptopolitan.

İlgili Sorular

QWhat was Reddit's net profit in Q2, and how does it compare to the previous year?

AReddit's net profit in the second quarter was $253 million. This is roughly three times the $89 million earned in the same quarter a year earlier.

QWhat major concern did Reddit's executives highlight regarding traffic at the end of the quarter?

AReddit's executives warned that traffic from search engines became unstable towards the end of the quarter. This is a weak point as the company relies on turning its vast audience into daily users.

QHow many consecutive quarters has Reddit achieved revenue growth over 60%?

AReddit has achieved revenue growth of over 60% for eight consecutive quarters.

QWhat new shareholder initiative did Reddit launch, and how much was spent on it?

AReddit launched its first genuine shareholder return program, spending $235 million to buy back 1.5 million shares at an average price of $157.57 per share.

QWhat milestone did Reddit reach in terms of weekly active unique users, and what was the figure?

AReddit's weekly active unique users surpassed 500 million for the first time, reaching 514.6 million.

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