Company Reports

Reddit reported second-quarter financial results, which included sales growing 61% and adjusted EBITDA margins expanding 920 basis points. Shares fell after hours, likely due to flat sequential US user growth and continued search referral headwinds.

We view Reddit as a differentiated social media platform centered around communities and shared interests called “subreddits.” Users engage within these subreddits through posts and comments, creating valuable audience-generated data based on the users' explicit interest and intent.

Reddit kicked off 2026 with another outstanding quarter. Revenue grew 69% to $663 million, while adjusted EBITDA margins of 40% were up from 29% a year ago. Finally, the firm's ARPU, or average revenue per user, grew 44% year over year, while the user count grew 17% over the same period.

We view Reddit as a differentiated social media platform centered around communities and shared interests called “subreddits.” Users engage within these subreddits through posts and comments, creating valuable audience-generated data based on the users' explicit interest and intent.

We view Reddit as a differentiated social media platform centered around communities and shared interests called “subreddits.” Users engage within these subreddits through posts and comments, creating valuable audience-generated data based on the users' explicit interest and intent.

Reddit reported solid fourth-quarter results, led by a 70% year-over-year revenue growth that exceeded the high end of guidance. This performance was primarily driven by continued improvement in ad monetization, reflected in the 42% year-over-year growth in average revenue per unique, or ARPU.

On Jan. 27, an advertising trade publication reported that YouTube is now outpacing Reddit in generative AI chatbot citations. Specifically, 16% of gen AI answers cited YouTube versus 10% citing Reddit, leading to investors questioning Reddit's data advantage and gen AI-driven growth.

We view Reddit as a differentiated social media platform centered around communities and shared interests called “subreddits.” Users engage within these subreddits through posts and comments, creating valuable audience-generated data based on the users' explicit interest and intent.

Reddit delivered a solid third quarter, as revenue grew 68% year over year to $585 million, on the back of strong monetization and healthy user growth. Adjusted EBITDA margins exceeded consensus expectations, clocking in at 40%, helping Reddit achieve its 2024 IPO margin targets.

Reddit reported solid second-quarter results, exceeding top-line and bottom-line guidance. Average revenue per user, or ARPU, grew 47%, and daily active users, or DAUs, grew 21% year over year, both of which drove total revenue to $500 million, up 78% over the previous year.

We view Reddit as a differentiated social media platform centered around communities and shared interests called “subreddits.” Users engage within these subreddits through posts and comments, creating valuable audience-generated data based on the users' explicit interest and intent.

Narrow-moat Reddit reported solid fiscal first-quarter results, with both revenue and profitability exceeding expectations. Shares traded 7% higher on the strong results as well as management guiding to a midpoint 50% year-on-year top-line growth for the next quarter. However, we believe demand uncertainty could lead to weaker near-term growth prospects amid a volatile macroeconomic environment, something that Reddit’s peers like Snapchat alluded to this past week.

Reddit is a community-driven platform that is centered around shared interests and groups rather than personal networks. Instead of connecting primarily with friends and family (like on Facebook and Instagram), users explore over 100,000-plus specialized communities called “subreddits,” where conversations are primarily in the form of a discussion board-like format. We believe that this community-based environment drives robust engagement as well as creates a wealth of user insights that underpin the platform’s appeal.

We view Reddit as a differentiated social media platform centered around communities and shared interests called “subreddits.” Users engage within these subreddits through posts and comments, creating valuable audience-generated data based on the users' explicit interest and intent.