Reddit, Inc. — research brief

NYSE: RDDT. Educational notes. Not affiliated with Reddit. Figures are Q2 FY2026 (quarter ended June 30, 2026) unless noted. Source unless marked: shareholder letter filed as Exhibit 99.2 (SEC accession 0001713445-26-000098), dated with the July 30, 2026 release.

FACT — financial (shareholder letter / P&L)

Revenue $804.9M, +61% YoY. Advertising $762M, +64%. Other $43M, +24%.
Gross margin 91.3% (cost of revenue $70.3M). GAAP operating expenses $502.9M: R&D $231.3M, S&M $195.9M, G&A $75.7M.
Net income $252.8M (31% margin). Diluted EPS $1.25; basic $1.31.
Adjusted EBITDA $342.8M, 43% margin (non-GAAP). Operating cash flow $261.9M. Free cash flow $260.7M. Capex $1.1M.
Cash + marketable securities $2.8B at June 30, 2026. SBC expense $101.0M. Buybacks: 1.5M shares / $235M in the quarter.
US revenue $638.1M (+56%); international $166.8M (+84%).
ARPU: global $6.18, US $11.85, international $2.26.
Q3 2026 guidance (not a result): revenue $860–870M; Adjusted EBITDA $385–395M.

FACT — users

DAUq 130.3M (+18%): US 53.2M, international 77.1M.
Logged-in DAUq 52.6M (+7%); logged-out 77.7M (+27%).
WAUq 514.6M (+24%).
Letter also cites 100k+ active communities and 26B+ posts and comments; 23M spam views blocked daily.
Trailing revenue per employee crossed $1M (four-quarter revenue / average headcount). Headcount itself is not printed — do not invert the ratio.

FACT — product and ads

Shopify integration generally available. Shopping Listing Ads in alpha. Video in comments. Reddit Max campaigns. “People Are the Best” brand campaign.
Search referrals described as choppy; strategy is a daily destination, with a stated long-term aim of 1B global DAU and 100M US DAU (goal, not a result).

FACT — Premium (Help Center, updated May 26, 2026)

Web: $5.99/month or $49.99/year. In-app: $6.99/month or $59.99/year. Higher in-app price is explicitly tied to Apple/Google fees.
Perks include ad-free browsing, comment highlighting, higher post/video limits, 100 daily AI-search questions, r/lounge.

FACT — 10-Q color

Form 10-Q for the quarter (accession 0001713445-26-000100) states revenue from products sold directly to users, including Reddit Premium and Reddit Gold, was not material. Other revenue is therefore not a Premium story. Content licensing is the usual home of the Other line; the shareholder letter does not publish a licensing-only dollar figure, so this canvas does not invent one.

INFERENCE

Unpaid moderator labor is economically real and absent from the P&L.

Not invented

No licensing rate card, no Premium subscriber count, no headcount.

Teaching arc

Communities create threads → logged-out and logged-in attention → ads (~95% of revenue) → small Other/licensing line → Premium is a priced sideshow.

Sources

# Reddit, Inc. — research brief NYSE: RDDT. Educational notes. **Not affiliated with Reddit.** Figures are Q2 FY2026 (quarter ended June 30, 2026) unless noted. Source unless marked: shareholder letter filed as Exhibit 99.2 (SEC accession 0001713445-26-000098), dated with the July 30, 2026 release. ## FACT — financial (shareholder letter / P&L) - Revenue $804.9M, +61% YoY. Advertising $762M, +64%. Other $43M, +24%. - Gross margin 91.3% (cost of revenue $70.3M). GAAP operating expenses $502.9M: R&D $231.3M, S&M $195.9M, G&A $75.7M. - Net income $252.8M (31% margin). Diluted EPS $1.25; basic $1.31. - Adjusted EBITDA $342.8M, 43% margin (non-GAAP). Operating cash flow $261.9M. Free cash flow $260.7M. Capex $1.1M. - Cash + marketable securities $2.8B at June 30, 2026. SBC expense $101.0M. Buybacks: 1.5M shares / $235M in the quarter. - US revenue $638.1M (+56%); international $166.8M (+84%). - ARPU: global $6.18, US $11.85, international $2.26. - Q3 2026 guidance (not a result): revenue $860–870M; Adjusted EBITDA $385–395M. ## FACT — users - DAUq 130.3M (+18%): US 53.2M, international 77.1M. - Logged-in DAUq 52.6M (+7%); logged-out 77.7M (+27%). - WAUq 514.6M (+24%). - Letter also cites 100k+ active communities and 26B+ posts and comments; 23M spam views blocked daily. - Trailing revenue per employee crossed $1M (four-quarter revenue / average headcount). Headcount itself is not printed — do not invert the ratio. ## FACT — product and ads - Shopify integration generally available. Shopping Listing Ads in alpha. Video in comments. Reddit Max campaigns. “People Are the Best” brand campaign. - Search referrals described as choppy; strategy is a daily destination, with a stated long-term aim of 1B global DAU and 100M US DAU (goal, not a result). ## FACT — Premium (Help Center, updated May 26, 2026) - Web: $5.99/month or $49.99/year. In-app: $6.99/month or $59.99/year. Higher in-app price is explicitly tied to Apple/Google fees. - Perks include ad-free browsing, comment highlighting, higher post/video limits, 100 daily AI-search questions, r/lounge. ## FACT — 10-Q color - Form 10-Q for the quarter (accession 0001713445-26-000100) states revenue from products sold directly to users, including Reddit Premium and Reddit Gold, was not material. Other revenue is therefore not a Premium story. Content licensing is the usual home of the Other line; the shareholder letter does not publish a licensing-only dollar figure, so this canvas does not invent one. ## INFERENCE - Unpaid moderator labor is economically real and absent from the P&L. ## Not invented - No licensing rate card, no Premium subscriber count, no headcount. ## Teaching arc Communities create threads → logged-out and logged-in attention → ads (~95% of revenue) → small Other/licensing line → Premium is a priced sideshow. ## Sources - https://www.sec.gov/Archives/edgar/data/1713445/000171344526000098/exhibit992q226.htm - https://www.sec.gov/Archives/edgar/data/1713445/000171344526000100/R10.htm - https://support.reddithelp.com/hc/en-us/articles/360043034412-What-is-a-Reddit-Premium-subscription