Reddit Inc. - Ordinary Shares - Class A

Strong financial performance + profitability compounding (all the “good” items) - Q2 total revenue: $805M (+61% YoY); advertising: $762M (+64% YoY). - Profitability/cash: adjusted EBITDA margin 43%; key profit/cash flow metrics more than doubled YoY (operating cash flow and net income all up strongly). - Efficiency milestone: crossed $1M revenue per employee (LTM). - Cash generation: operating cash flow $262M (up from $111M a year ago); ended Q2 with $2.8B cash equivalents + marketable securities.

Guidance/outlook for next quarter (forecast) - Q3 2026 revenue: $860M–$870M (~47%–49% YoY; midpoint ~48%). - Q3 adjusted EBITDA: $385M–$395M (~63%–67% YoY) with adjusted EBITDA margin ~45% at the midpoint. - Expectations on SBC: full-year SBC ratio guide lowered from high teens to low–mid teens % of revenue (management sees continued leverage). - Q3 SBC expense expected to elevate to $140M–$155M due to grant timing/refurbishment effects.

User growth: “progress but volatile,” with a key challenge (negative + surprising) - Top goal unchanged: reach 1B daily users globally and 100M daily users in the U.S. - Quality signal improving: new app user retention up 50% YoY (relative)—coming from a small base, but management views it as a meaningful leading indicator. - Weekly audience: now over 500M weekly reach, including 130M+ daily (as stated). - Main headwind: search referrals were choppy, with more volatile traffic late in the quarter and visibility remaining low; management emphasized they are not building for “drive-by” traffic but for daily direct/app engagement. - Surprising/market-relevant context: investor questions highlighted logged-out / referral concerns amid AI search shifts, and the stock weakness was attributed by commenters to perceived “U.S. user problem.”