RDDT US Russell 1000 Earnings call
Reddit (RDDT) · Q2 2026 results and valuation
Share price: $105.66 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 30 Jul 2026 and 30 Apr 2026
Net income up 24.0% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+24.0%
Net income vs Q1 2026
Net income 252.8M vs 204.0M
Revenue +21.3%
Against the same quarter last year (Q2 2025) it is +183.2%, so it is not just seasonal.
2 · How management spoke
Typical
More upbeat than 60% of company calls
Answers to analysts: typical, in line with the script.
Last call it was different: the answers were less upbeat than the script.
3 · What stood out
Reddit reported its eighth consecutive quarter of over 60% revenue growth and achieved an adjusted EBITDA margin of 43%.
Valuation
Is Reddit undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 20.0% growth a year (3-year revenue growth), the model's fair value is $180.58 a share — the stock trades 41% below it. Today's price assumes 11.9% growth a year.
Current price
$105.66
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+11.9% for 10 yrs
Fair value / share
$180.58
Buy below
$135.43
Price vs fair value
Undervalued 41%
Price vs buy-below price
Undervalued 22%
Read between the lines
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Key theme
Most key profit and cash flow metrics doubled year-over-year, supporting continued growth in profitability.
Source quote
“We did see some encouraging signals with our newly launched brand campaign called People Are the Best, but user acquisition... In the quarter, overall paid marketing results were mixed. We'll continue to evaluate the mix of our spend moving forward.”
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Figure
The company achieved its eighth consecutive quarter of over 60% revenue growth and an adjusted EBITDA margin of 43%.
Source quote
“We delivered our eighth consecutive quarter of over 60% revenue growth, hit an adjusted EBITDA margin of 43%, and crossed...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“The financial headline from a strong Q2 is that Reddit's consistent revenue growth continues to fuel compounding growth in cash flow and profitability.”
“For example, Lenovo achieved 40% higher purchase value with Max than with standard campaigns, demonstrating how AI-driven optimization can turn high-intent users into high-value customers.”
“We did see some encouraging signals with our newly launched brand campaign called People Are the Best, but user acquisition spending needs stronger attention to improve returns.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 804.9M | 663.4M | +21.3% | 499.6M | +61.1% |
| Gross profit | 734.6M | 607.1M | +21.0% | 453.7M | +61.9% |
| Operating income | 231.7M | 182.9M | +26.7% | 67.7M | +242.2% |
| Net income | 252.8M | 204.0M | +24.0% | 89.3M | +183.2% |
| EPS | 1.25 | 1.01 | +23.8% | 0.45 | +177.8% |
| P/E today 35.0 | 40.4 | 38.5 | +1.9 | 67.2 | −26.8 |
Topics
Most discussed now
- As the internet becomes flooded with synthetic content, people are craving real human perspective.
- Helping people access human perspective is central to Reddit's mission and strategy to reach one billion daily users and to...
- Advertising revenue grew 64% to $762 million, reflecting broad-based strength across the business.
- The financial headline from a strong Q2 is that Reddit's consistent revenue growth continues to fuel compounding growth in cash...
- Reddit is better directing users to which subreddit they will be successful posting in, making better community recommendations.
Faded since Q1 2026
- Dropped On a GAAP basis, EPS reached triple digits in Q1 at $1.01 a share, up more than 7x from last...
- Dropped Specifically, Reddit's Q1 47% free cash flow margin was a powerful proof point to superior cash flow generation.
- Fading This adds to Reddit's billions of conversations and perspectives that help people evaluate products, services and ideas through the lens...
- Fading Q1 revenues of $663 million grew 69% year-over-year, driven by a ramp in ad revenue, which grew 74% year-over-year to...
Metrics dropped
Language like “we will no longer report X”, sometimes used to hide a weakening number.
In Q3 2026 disclosures, we'll continue to report total U.S. and international daily and weekly active users, but we'll no longer report logged in and logged out daily active users.
— Drew Vollero
Latest announcements
Official filings, newest first.
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations; Other events · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K