Reddit Inc (RDDT) Q3 2026 Earnings Call Highlights: Revenue Surges 53% as $3 Billion Milestone ...
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This article first appeared on GuruFocus. Revenue: $895 million, up 53% year-over-year; trailing 12-month revenue crossed $3 billion. Advertising Revenue: $847 million, up 54% year-over-year. Other Revenue: $48 million, up 35% year-over-year. US Revenue: Grew 50% year-over-year. International Revenue: Grew 67% year-over-year. Average Revenue Per Unique User: $6.87, up 36% year-over-year. Gross Margin: 91.5%, up 50 basis points year-over-year; above 90% for ninth consecutive quarter. Net Income: $283 million, or $1.47 per basic share and $1.40 per diluted share, versus $163 million ($0.87 basic / $0.80 diluted) a year ago. Net Income Margin: 32%. Adjusted EBITDA: Grew over 70% year-over-year; year-to-date surpassed $1 billion, nearly double a year ago. Adjusted EBITDA Margin: 45%. Free Cash Flow: $363 million, up 98% year-over-year; free cash flow margin of 41%. Cash and Investments: $3.03 billion in cash, cash equivalents and marketable securities, topping $3 billion for the first time. Total Adjusted Costs and Expenses: $493 million, up 41% year-over-year. Cost of Revenue: Approximately $76 million, up 44% year-over-year. Adjusted Operating Expenses: $417 million, or 47% of revenue, versus 51% last year. Stock-Based Compensation: $136 million, or 15% of revenue, down 80 basis points year-over-year. Capital Expenditures: $1.2 million; business remained capital light...
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Reddit Inc ( NYSE:RDDT ) was added to the S&P 500 Index, and its cash and investments topped $3 billion, providing flexibility for investments, M&A, and share repurchases.
