Reddit Q2 FY2026: revenue up 61% to $805 million, EPS beats at $1.25
Reddit's Q2 FY2026 beat on both lines: revenue of $804.9 million rose 61.0%, and diluted EPS of $1.25 came in 28.9% above the $0.97 consensus. Profitability held—91.3% gross margin, 31.4% net margin—while $234.6 million of buybacks reduced the share count. Read it as a highly profitable ad machine; the open question is the Q3 guide, which implies growth well below 60%. View: Bullish.
1 · Expected vs. Actual
Free preview belowDiluted GAAP EPS of $1.25 was 28.9% above the $0.97 consensus estimate and nearly triple the $0.45 reported a year earlier. That came from net income of $252.8 million, a 31.4% net margin versus 17.9% in the prior-year quarter. Operating income of $231.7 million and other income of $25.1 million did the work; income tax expense was only $4.0 million.
Revenue was $804.9 million, up 61.0% from $499.6 million a year earlier, and up 21.3% from $663.4 million in Q1 FY2026. Advertising did the heavy lifting at $761.6 million, or 94.6% of the total, while Other revenue was $43.3 million. International revenue grew 84.0% to $166.8 million and U.S. revenue grew 56.0% to $638.1 million.
For Q3 FY2026 the company guides revenue of $860 million to $870 million, a mid-point of $865 million with a tight ±0.58% spread, plus Adjusted EBITDA of $385 million to $395 million. Against Q2's $804.9 million that is only 7.5% sequential growth, and against Q3 FY2025's $584.9 million it implies growth of roughly 47.9%. The prior guide was also conservative: a $720 million mid-point in Q1 versus $804.9 million actually delivered, 11.8% higher.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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