Reddit set for earnings beat as ad momentum, user growth build
Published: 14:46 16 Jul 2026 EDT
Reddit Inc (NYSE:RDDT) is expected to beat Wall Street's second-quarter revenue and EBITDA targets, according to Jefferies, which pointed to strong ad checks and improving user growth heading into the print.
The brokerage said investor conversations point to expectations for revenue and EBITDA to come in mid-single-digit and low-double-digit percent above consensus, respectively.
Jefferies also expects third-quarter guidance to beat consensus by a similar margin to last quarter, when the company's outlook topped the street by low-single-digit percent on revenue and mid-single-digit percent on EBITDA.
User growth remains the central debate for investors. Jefferies believes the market is looking for a sequential increase in quarter-over-quarter net adds in US logged-in daily active users, following growth of 200,000 in the first quarter. Its traffic analysis shows US web and app DAUs rebounded from declines in February and March to growth throughout the second quarter, while total web DAU growth improved to 16% year-over-year from 15% in the first quarter.
With Reddit set to drop its logged-in DAU disclosure starting in the third quarter, Jefferies said a strong second-quarter showing on that metric matters more for shifting investor focus back to monetization.
Jefferies said it will watch for progress on adoption of Reddit's newer low-funnel ad products and automation tools, which its Max offering is expected to help support, along with updated commentary on data licensing strategy ahead of potential 2027 renewal talks with Google and OpenAI.
Other focus areas for the earnings call include DAU growth drivers such as onboarding and personalization improvements, advertiser count growth and diversification into smaller advertisers, ARPU sustainability, and new product launches.
