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Fri, 30 Oct 2026
BreakingEarnings

Reddit shares down 27% intraday; Q4 sales guide trails forecasts, search traffic drops

Third-quarter revenue rose 53% to $895m, but Reddit guided fourth-quarter revenue to $1,000m-$1,030m and said daily users could fall if search referrals keep declining.

By AI markets desk·Sources: 4 sources·Published ·AI-generated·2 min read
Key facts
  • Q3 revenue · Q3 2026895 $m +53% year on year ($585m)
  • Q3 diluted EPS (GAAP) · Q3 20261.40 $ $0.80 a year earlier
  • Daily active uniques · Q3 2026130.3 m +12% year on year
  • Q4 revenue outlook · Guidance issued 29 October 20261,000-1,030 $m Wall Street estimate $1.05bn (CNBC)
  • Share price (intraday) · 30 Oct 2026, 11:16 ET (16:16 CET), Google Finance; moving94.30 $ -27.2% vs 29 October close

Reddit shares were trading at $94.30 at 11:16 a.m. New York time (16:16 CET) on Friday 30 October 2026, down $35.30, or 27.2%, from Thursday's close, according to Google Finance; the session was still open and the price still moving. On 29 October the company forecast fourth-quarter revenue of $1,000m-$1,030m and adjusted EBITDA, a non-GAAP measure, of $480m-$510m, according to its results release. Wall Street had expected fourth-quarter revenue of $1.05bn, CNBC reported.

Third-quarter revenue rose 53% to $895m from $585m a year earlier, ahead of the $878m LSEG consensus cited by CNBC, and GAAP diluted EPS of $1.40, up from $0.80, topped the $1.35 analysts had expected. Net income rose 74% to $283m, adjusted EBITDA (non-GAAP) grew 70% to $402m and advertising revenue climbed 54% to $847m. CNBC noted that the growth rate ended a run of eight quarters above 60%.

Daily active uniques, Q3 2026
  • Global130.3 m+12% year on year
  • US50.7 m-2% year on year
  • International79.6 m+24% year on year
  • Logged-in, global53.5 m+7% year on year

Source: Reddit Q3 2026 shareholder letter (Form 8-K, Exhibit 99.2), Q3 2026.

Daily active uniques (DAUq) averaged 130.3m, short of the 133.7m Wall Street estimate, according to CNBC. US DAUq slipped 2% to 50.7m, below the 53.5m analysts had projected, CNBC said, while international DAUq grew 24% to 79.6m. Logged-in DAUq, part of the group Reddit calls its most engaged and monetisable users, rose 7% to 53.5m worldwide.

“Our search referral traffic was down meaningfully in Q3, with the decline accelerating later in the quarter.”

Steve Huffman, Co-founder and chief executive, Reddit, in the Q3 2026 shareholder letter · sec.gov

The shareholder letter said the decline continued into October, when search traffic fell by more than 1 million referrals a week on average. If that pace holds, total DAUq could drop by a low double-digit percentage in the fourth quarter from the current base of 130 million, the company said. Huffman told CNBC the loss of Google referrals reflected a "shift to AI mode and AI overviews", and said Reddit was still "in negotiations" with Google about the agreement under which it licenses its data.

Reddit said in its shareholder letter that it is shifting to a logged-in-only experience, which the letter also describes as moving to primarily logged-in. It said it would begin testing this in select markets outside the US in the fourth quarter, and that the results would shape its approach globally. Huffman gave no timing for the wider change and said Reddit was still deciding what logged-out visitors would be able to see, CNBC reported.