Reddit Q2 Earnings Call Highlights

Reddit Q2 Earnings Call Highlights Written by MarketBeat July 31, 2026 Share Link copied to clipboard. Image from MarketBeat Media, LLC. Key Points Reddit’s second-quarter results showed strong financial momentum: Revenue rose 61% year over year to $805 million, advertising revenue increased 64% to $762 million, and net income reached $253 million. Operating cash flow doubled to $262 million, while trailing-12-month operating cash flow exceeded $1 billion for the first time. Advertising growth broadened across products and customers. Active advertisers increased more than 70%, scaled-channel revenue doubled, and revenue from Dynamic Product Ads, app-install campaigns and Reddit Max more than doubled year over year. Reddit is prioritizing direct, frequent user engagement as search referrals remain volatile. Management is investing in feed recommendations, app retention, community discovery and internal search, while forecasting third-quarter revenue of $860 million to $870 million and adjusted EBITDA of $385 million to $395 million. MarketBeat previews the top five stocks to own by August 1st . A $1.5 Billion Wake-Up Call for Every AI Company on Wall Street Reddit NYSE: RDDT reported second-quarter revenue growth of 61% as advertising sales rose 64%, while executives said the company is prioritizing product improvements intended to convert more weekly visitors into daily, direct users amid volatility in search referrals. Total revenue reached $805 million in the quarter, including $762 million in advertising revenue. International revenue increased 84% year over year, outpacing 56% growth in U.S. revenue. Average revenue per unique user rose 36% to $6.18, according to Chief Financial Officer Drew Vollero. Get Reddit alerts: Sign Up Is Reddit's Stock Collapse a Buying Opportunity? The company reported net income of $253 million, or $1.25 per diluted share, compared with $0.45 per diluted share a year earlier. Operating cash flow doubled to $262 million, and trailing-12-month operating cash flow surpassed $1 billion for the first time. Reddit ended the quarter with $2.8 billion in cash, cash equivalents and marketable securities. Advertising momentum broadens Chief Operating Officer Jen Wong said advertising growth reflected strength across pricing and impressions, as well as increased advertiser adoption of Reddit’s automation and performance tools. Active advertisers increased more than 70% from a year earlier, while revenue from the company’s scaled channel, which includes mid-market and small and medium-sized businesses, doubled. Insiders Step in to Buy These 3 Tanking Stocks “Our strategy has been making every impression more valuable,” Wong said, pointing to year-over-year conversion-volume growth of more than 100% and click-volume growth of more than 30%. Revenue from Dynamic Product Ads and app-install campaigns each more than doubled year over year. Wong said retail and travel were among the stronger industry verticals, while 11 of 15 verticals grew by more than 50%. Reddit Max, the company’s AI-driven campaign automation suite, remained in private beta during the quarter. The number of advertisers using Max grew more than 60% from the first quarter, while revenue generated through Max increased more than 150%. The company added app-install objectives and introduced tailored creatives, which use AI to identify relevant communities and produce creative variations. The company also highlighted growing demand for video advertising. Video-view revenue was its fastest-growing upper-funnel objective, more than doubling from a year earlier. Reddit said its six-second engaged-video-view objective delivered a more than 130% lift in six-second view-through rates and an 80% reduction in cost per six-second video view in testing using auto-bidding. User strategy centers on direct engagement Chief Executive Officer Steve Huffman said Reddit reached more than half a billion people weekly, including more than 130 million daily users. T...