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Reddit shares slide after earnings beat as U.S. user growth stalls
Despite 61% year over year revenue growth to a record $805 million and a 43% adjusted EBITDA margin, the company showed logged-in U.S. users up just 1% year over year.
Reddit Inc. posted a strong Q2 2026 earnings release, but its stock fell 22% the following morning as results failed to address a decline in key U.S. engagement metrics, MarketBeat Ratings reported.
The company reported revenue up 61% year over year to a record $805 million, topping analyst consensus by nearly 10%. Earnings per share were $1.25, beating estimates by more than 30%, and adjusted EBITDA margins reached 43%, with guidance for Q3 calling for top-end revenue of $870 million and 45% adjusted EBITDA margins.
Under the hood, advertising revenue rose 64% to $762 million, and global daily active unique users increased to 130.3 million, up 18% year over year. Operating cash flow also surpassed $1 billion on a trailing 12-month basis for the first time.
Still, U.S. metrics pointed to softer momentum, with U.S. users slipping to 53.2 million in Q2 from 53.5 million in Q1, and logged-in user growth falling to 1% year over year. MarketBeat Ratings noted that Reddit’s earnings presentation will stop reporting the logged-in versus logged-out split after this quarter.