Key Partners
- Volunteer moderators — community-led moderation (FACT letter).
- Contributors — 26B+ posts and comments; 100k+ active communities (FACT).
- Advertisers and Shopify merchants — Shopping ads GA (FACT letter).
- App stores — in-app Premium priced up to cover their fee (FACT Help).
- Licensing customers — inside Other revenue; names not listed (FACT letter).
Key Activities
- Feed, posts, votes, comments, video-in-comments (FACT letter).
- Safety — 23M spam views blocked daily; AI + mods (FACT).
- Ads platform — ML, Max campaigns, Shopping ads alpha (FACT).
- Web-to-app and login upsells to deepen habit (FACT).
- Developer Platform games for repeat visits (FACT letter).
Key Resources
- 26B+ posts and comments; 100k+ active communities (FACT).
- 514.6M WAUq and 130.3M DAUq (FACT Q2).
- Logged-out majority of DAUq — 77.7M vs 52.6M logged-in (FACT).
- $2.8B cash and marketable securities (FACT Jun 30, 2026).
- Brand — “People Are the Best” campaign launched in Q2 (FACT).
Value Propositions
- Human conversation by community — the core free promise (FACT).
- Advertiser intent — conversations next to purchase decisions (FACT).
- Shopify + Shopping Listing Ads — lower-funnel tools (FACT Q2).
- Premium — ad-free and higher limits from $5.99 web (FACT Help).
- Search/AI answers still point people at threads (FACT letter theme).
Customer Relationships
- Community-led — mods, votes, replies (FACT letter).
- Self-serve Premium, auto-renew, cancel-and-wait to switch pay rails (FACT Help).
- Self-serve and Max ads for advertisers (FACT letter).
- App retention +50% YoY relative, small base (FACT).
- r/RDDT used for earnings Q&A (FACT letter).
Channels
- reddit.com, including logged-out pages (FACT DAUq split).
- iOS and Android apps — higher engagement (FACT letter).
- Search referrals — choppy in Q2; not the strategy (FACT).
- Shopify as a merchant on-ramp (FACT).
- Premium checkout on web vs in-app (FACT Help).
Customer Segments
- Logged-out readers — 77.7M DAUq, +27% (FACT).
- Logged-in users — 52.6M DAUq, +7% (FACT).
- US vs international — 53.2M vs 77.1M DAUq; revenue $638M vs $167M (FACT).
- Advertisers and Shopify merchants (FACT letter).
- Premium buyers — priced, not material to revenue (FACT Help + 10-Q).
Cost Structure
- Cost of revenue $70.3M; gross margin 91.3% (FACT Q2).
- R&D $231.3M; S&M $195.9M; G&A $75.7M (FACT P&L).
- Stock-based compensation expense $101.0M (FACT).
- Capex $1.1M — third-party hosting (FACT).
- Moderator labor is unpaid — not in the P&L (INFERENCE from community-led model).
Revenue Streams
- Advertising Q2 $762M, +64% YoY (FACT letter).
- Other Q2 $43M, +24%; Premium/Gold not material (FACT letter + 10-Q).
- US revenue $638.1M vs international $166.8M (FACT).
- Premium list — web $5.99/mo or $49.99/yr; IAP higher (FACT Help).
- Q2 net income $253M; FCF $261M; cash $2.8B (FACT).