Reddit, Inc. (RDDT) reported third-quarter revenue of $895 million, up 53% from a year earlier, a slower pace than the 61% increase in the second quarter and 69% in the first.

Search referral traffic was down meaningfully in the third quarter, with the decline accelerating later in the period, and in October search traffic had dropped by more than 1 million referrals on average per week. The company said those declines had continued into early fourth quarter and that, if the October rate held, current trends would suggest total daily active uniques could fall in the fourth quarter by a low-double-digit percentage from a 130 million base.

Daily active uniques averaged 130.3 million, up 12% year over year, after 18% growth in the second quarter. Weekly active uniques averaged 515.2 million, up 16%. U.S. daily active uniques declined 2% to 50.7 million; international daily active uniques rose 24% to 79.6 million. The company said logged-in and app daily active uniques, which it described as its most engaged and monetizable users, grew quarter over quarter in the U.S. and rest of world.

Advertising revenue was $847 million, up 54% year over year, after 64% growth in the second quarter. Other revenue was $48 million, up 35%. U.S. revenue was $719 million, up 50%; international revenue was $176 million, up 67%. Global average revenue per unique rose 36% to $6.87, with U.S. ARPU up 53% to $13.82 and international ARPU up 32% to $2.43. Reddit said advertising growth was driven by year-over-year growth in pricing and impressions and that it had expanded Reddit Max campaigns to general availability, adding Advertising API access and Smartly integration.

Net income was $283 million, or 32% of revenue, versus $163 million a year earlier. Diluted earnings were $1.40 a share, up 75% year over year. Adjusted EBITDA was $402 million, or 44.9% of revenue, up 70% from $236 million. GAAP gross margin was 91.5%. Operating cash flow was $364 million, and free cash flow was $363 million.

Cash, cash equivalents, and marketable securities were $3.03 billion as of September 30, 2026. Reddit repurchased about 670 thousand Class A shares for $100 million at an average $149.81. Fully diluted shares outstanding were 206.3 million, down 0.3% from the prior quarter. The company said it was added to the S&P 500 index during the quarter.

For the fourth quarter of 2026, Reddit estimated revenue of $1,000 million to $1,030 million and adjusted EBITDA of $480 million to $510 million.

The company said it helped offset the search-referral decline by driving reach primarily through user marketing and improving the product, and that it will continue to convert search-referred mobile-web users to the app, noting that only about 13% of eligible mobile-web users were seeing the app conversion prompt. It also said it is shifting toward a primarily logged-in experience to improve ad targeting signals, engagement, and protection of its data corpus.