Reddit Reports 183% Net Profit Increase for Q2 FY26
Reddit announced a net profit of $253 million for the second quarter of fiscal year 2026, an 183% increase year-over-year. Total revenue grew 61% to $805 million.
Social media platform Reddit reported a significant financial performance for the second quarter of fiscal year 2026, achieving a net profit of $253 million. This represents a substantial 183% increase compared to the same period last year. The company's total revenue also saw strong growth, rising 61% to $805 million.
The results surpassed expectations, with Reddit marking its eighth consecutive quarter of revenue growth exceeding 60%. Advertising revenue was a key driver, increasing by 64% to $762 million. User engagement also climbed, with daily active unique users (DAUq) up 18% to 130.3 million and weekly active users (WAUq) growing 24% to 514.6 million.
Profitability saw marked improvement, with gross profit reaching $735 million and a gross margin of 91.3%. Operational and free cash flow both recorded a 135% increase. The company also highlighted a 32.4% ratio of free cash flow to revenue.
Looking ahead, Reddit anticipates continued growth, forecasting third-quarter revenue between $860 million and $870 million. The company has been investing in product development, introducing features like comment section videos and AI-powered advertising tools to enhance user experience and monetization.