Revenue of $894,957,000 beat the API Ninjas estimate of $874,907,200, and GAAP diluted EPS of $1.40 beat the $1.33 estimate. Revenue grew 53% year-over-year, ad revenue 54% to $847 million, and Adjusted EBITDA rose 70% to $402 million at a 44.9% margin.
Q4 2026 guidance calls for revenue of $1,000 million to $1,030 million and Adjusted EBITDA of $480 million to $510 million, against Q3 revenue of $895 million and Adjusted EBITDA of $402 million.
Growth is monetization-led: global ARPU rose 36% to $6.87 and U.S. ARPU 53% to $13.82, while global DAUq grew 12% to 130.3 million, all of it outside the U.S.
Cash scaled with profit: operating cash flow rose 96% to $364 million and free cash flow 98% to $363 million, and Reddit spent $100 million repurchasing about 670 thousand shares.
The one thing that matters: revenue is compounding on pricing power in a U.S. audience that is no longer growing. U.S. daily uniques fell 2% while U.S. ARPU rose 53%, so the Q4 guide rests on ad monetization continuing to outrun a flat-to-down home-market user base.
Key metrics
Metric
Reported
Prior year
Change
Daily Active Uniques (DAUq)
130.3 million
116.0
12%
Ad revenue
$847 million
—
54%
Adjusted EBITDA
$402 million
$ 236
70%
Adjusted EBITDA margin
44.9%
40.3%
—
Operating cash flow
$364 million
$ 185
96%
ARPU: Global
$ 6.87
$ 5.04
36%
Guidance changes
Item
New guidance
Prior guidance
Q4 2026 Revenue
$1,000 million to $1,030 million
—
Q4 2026 Adjusted EBITDA
$480 million to $510 million
—
Quality of earnings
Cash backs the earnings. Operating cash flow of $364 million ran ahead of net income of $283 million, and capital expenditures were only $1 million.
Net income benefits from a near-zero tax charge and interest income. Income tax expense was $5.8 million on $289.0 million of pretax income, and $27.5 million of other income, mostly net interest income of $26.8 million, sits above the tax line.
Adjusted EBITDA excludes a rising equity-comp bill. Stock-based compensation expense grew to $131.3 million from $83.5 million and is the main bridge from $283 million of net income to $402 million of Adjusted EBITDA; fully diluted shares still fell 0.3% sequentially to 206.3 million.
Gotchas & watch items
U.S. reach is shrinking: U.S. DAUq fell 2% to 50.7 million, U.S. logged-out DAUq fell 4% to 27.3 million, and U.S. WAUq was flat at 188.5 million.
Logged-in growth lags the headline: global logged-in DAUq, the users Reddit calls most monetizable, grew 7% to 53.5 million and only 1% in the U.S. to 23.4 million, against 17% growth in logged-out DAUq.
International is the user engine but monetizes at a fraction: International DAUq grew 24% to 79.6 million and revenue 67% to $176 million, yet International ARPU is $2.43 against $13.82 in the U.S.