Reddit Revenue Jumps 53%, but a Weak Forecast Sends Shares Down 23%
Reddit reported third-quarter 2026 revenue of $895 million on October 29, 2026, up 53% from a year earlier, but its shares fell 23% after the company guided fourth-quarter revenue below Wall Street expectations. Reddit's Q3 release and Yahoo Finance carry the headline figures.
The quarter beat on the bottom line. Adjusted earnings, the company's own profit measure, came in at $1.40 per share. Analysts expected $1.33, based on the consensus estimate, which is the average of their forecasts. Daily active uniques, the count of distinct users visiting in a given day, rose 12% year over year to 130.3 million. Weekly active uniques, the same measure taken over seven days, rose 16%.
In my view, the gap between those two growth rates is worth watching. It suggests the audience is growing faster across a week than on any single day.
The guidance is where the market reacted. Guidance is the company's forecast of next-quarter sales. Reddit expects fourth-quarter revenue of $1 billion to $1.03 billion, below the $1.05 billion Bloomberg consensus. Seeking Alpha reported the forecast alongside the slowing user growth. Even the top of Reddit's range sits under the consensus figure, so the shortfall does not depend on where the company lands within its own range.
The broader point is that for a stock priced on growth, a weak forecast tends to hurt more than a strong recent quarter helps. Investors are paying for what comes next.
The comparison with April is useful. In April 2026, Reddit forecast second-quarter revenue of $715 million to $725 million, above the $711.6 million LSEG average analyst estimate. Reuters reported that outlook at the time. The company's forward numbers moved from above consensus in the spring to below it this autumn.
The stock's earnings history adds context. Reddit reported its first quarterly profit on October 29, 2024, and its shares jumped 22% after that October report, which was boosted by AI deals. Reuters reported the 2024 move. The 2026 reaction runs the other way, and the contrast suggests how much of the share price depends on forward expectations rather than the most recent results.
Pinterest shares slumped 8% on October 30, 2026, amid weak user and revenue growth, according to Reuters. The two moves do not share a stated cause.
In my view, two ad-supported platforms falling on user and revenue softness in the same session is a signal worth watching, particularly for anyone holding both.
For ordinary holders, the practical question is whether the forecast reflects a temporary slowdown or a change in the growth trajectory. Reddit's user counts grew by double digits, and its third-quarter revenue grew by more than half. What the market has repriced is the expectation for the quarter ahead. Anyone weighing a position should keep two things separate: the results that were reported, and the guidance that now sets the price.
Nothing here amounts to a recommendation. Whether the fourth quarter lands inside the $1 billion to $1.03 billion range will be the number that settles the debate.
