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How Reddit (RDDT) makes money

Reddit (RDDT) made $895M of revenue in the third quarter 2026 (Q3 2026), +53% from a year earlier. Advertising revenue brought in $847M (95%); Other revenue brought in $48.0M (5%). Of every dollar of revenue, 29¢ was left as operating profit, 32¢ was left as net earnings.

Drawing the Sankey…

Reddit revenue by segment, Q3 2026Reddit revenue by segment, Q3 2026Advertising revenue$847MOther revenue$48.0M
Reddit: revenue by line, Q1 2025 to Q3 2026Reddit: revenue by line, Q1 2025 to Q3 2026Advertising revenueOther revenueAdvertising revenue: $847M latest$847MOther revenue: $48.0M latestQ1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026
Advertising revenue went from 91% of revenue in Q1 2025 to 95% in Q3 2026, the largest shift in the mix.
Reddit revenue by quarterReddit revenue by quarter$392MQ1 2025$500MQ2 2025$585MQ3 2025$726MQ4 2025$663MQ1 2026$805MQ2 2026$895MQ3 2026
Reddit: where each dollar of revenue goesReddit: where each dollar of revenue goesOperating profit29¢Income tax1¢Net earnings32¢Operating cash flow41¢Free cash flow41¢

Revenue by segment, Q3 2026

SegmentRevenueShareQ/QY/Y
Advertising revenue$847M94.6%+11%+54%
Other revenue$48.0M5.4%+11%+35%

Where each dollar of revenue goes

LineQ3 2026% of revenue
Revenue$895M100.0%
Operating profit$262M29.2%
Income tax$5.8M0.6%
Net earnings$283M31.7%
Operating cash flow$364M40.6%
Free cash flow$363M40.5%

Revenue, quarter by quarter

QuarterRevenueY/Y
Q3 2026$895M+53%
Q2 2026$805M+61%
Q1 2026$663M+69%
Q4 2025$726M+70%
Q3 2025$585M+68%
Q2 2025$500M+78%
Q1 2025$392M+62%

From Reddit's 10-Q filed Oct 30, 2026 (on EDGAR).

Questions

How does Reddit make money?

Reddit (RDDT) made $895M of revenue in the third quarter 2026 (Q3 2026), +53% from a year earlier. Advertising revenue brought in $847M (95%); Other revenue brought in $48.0M (5%). Of every dollar of revenue, 29¢ was left as operating profit, 32¢ was left as net earnings.

What is Reddit's biggest business?

Advertising revenue: $847M in the third quarter 2026, 95% of revenue, +54% from a year earlier.

What is Reddit's profit margin?

Net earnings were $283M, 31.7% of revenue, in the third quarter 2026; the operating margin was 29.2%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.