Reddit warns of a possible audience decline as advertising revenue surges

Reddit ($RDDT)’s third-quarter 2026 revenue increased 53% to $895 million, led by advertising sales of $847 million, up 54%. Net income reached $283 million and diluted EPS was $1.40. Adjusted EBITDA increased 70% to $402 million, while free cash flow totaled $363 million. Global daily active uniques increased 12% to 130.3 million, showing that revenue expanded faster than the audience measure.

For fourth-quarter 2026, Reddit forecasts revenue of $1.00–1.03 billion and adjusted EBITDA of $480–510 million. However, its shareholder letter says search referrals fell by more than one million per week on average during October. If that pace continues, total daily active uniques could drop by a low-double-digit percentage from the current base of approximately 130 million. The warning concerns a potential audience contraction, while the revenue and profit ranges remain forecasts rather than achieved results.

Sources:

• investor.redditinc.com
• Issuer release or filing via StockTitan
• Issuer release or filing via StockTitan