Alongside the earnings release, Reddit’s board authorized a share-buyback program that allows the company to repurchase up to $1 billion of its common stock on the open market or through privately negotiated transactions. The initiative gives management flexibility to deploy excess capital and may offset potential dilution from employee equity compensation.
Total revenue during the December quarter grew 70 percent year over year, one of the strongest expansions since Reddit began reporting as a public company. Net income came in at $252 million, representing a nearly 255 percent increase from the same period last year. Executives said disciplined expense control magnified the benefit of surging sales, producing higher operating margins.
The United States remained Reddit’s largest contributor, accounting for $583 million of fourth-quarter revenue. That figure exceeded analyst projections of $529 million and reflected healthy advertiser interest in the platform’s targeted formats. International markets continued to expand as well, although the company did not break out specific regional numbers in this report.
Global daily active uniques (DAUq) – Reddit’s primary traffic metric – reached 121.4 million in the quarter, up 19 percent from a year earlier and slightly ahead of the 120 million that analysts expected. Within the United States, DAUq climbed 9 percent to 52.5 million, narrowly beating forecasts of 52.3 million. The audience figures underscore Reddit’s ability to retain existing users while attracting newcomers through community-driven content.
Growth among logged-in U.S. users continued, though at a slower rate than in prior periods. This segment rose 5 percent year over year to 23 million, easing from 7 percent growth recorded in the previous quarter. The December result represents the sixth consecutive quarter of deceleration in U.S. logged-in user expansion, a trend investors have been monitoring because registered accounts generally monetize at higher advertising rates.
Advertisers value the logged-in cohort because these individuals browse more frequently, participate in discussions, and generate richer first-party data. According to industry definitions, such engagement metrics often correlate with improved ad performance and pricing power on social platforms.
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Reddit indicated that the distinction between logged-in and logged-out users is becoming less relevant as recent product changes deliver personalized content to all visitors. Features such as streamlined onboarding and instant customization encourage casual browsers to stay on the site longer, narrowing behavioral differences between account holders and one-time viewers. Because of this convergence, Reddit plans to stop breaking out logged-in and logged-out DAUq later this year. However, the company will continue to provide both statistics for the first two quarters of 2026 to allow investors time to adjust to the new reporting framework.
While management did not provide detailed commentary on future product enhancements, it emphasized that refining personalization and supporting community moderation remain top priorities. Executives believe these efforts will help Reddit capture a larger share of digital advertising budgets and drive incremental revenue from emerging categories such as commerce and data licensing.
Reddit’s balance sheet continues to strengthen as cash inflows rise. The newly authorized repurchase program will be executed based on market conditions, share price levels, and alternative uses of capital. Analysts noted that buybacks of this magnitude can boost per-share earnings by reducing the number of outstanding shares, although the timing and scale of actual purchases remain at management’s discretion.
Following the release, Reddit’s stock initially advanced about 6 percent in extended trading, but the gains faded as investors digested the updated user metrics and the plan to phase out certain reporting lines. The shares finished the after-hours session roughly flat, reflecting mixed sentiment on near-term user growth versus longer-term monetization prospects.
Looking ahead, the company reiterated its commitment to expanding its global footprint and deepening engagement through community tools and creator initiatives. Management said it expects the advertising environment to remain supportive, citing ongoing shifts of marketing budgets toward platforms that offer contextual conversations and niche audiences.
The next financial update, covering the March quarter, will be the first to test the company’s elevated revenue guidance. Market participants will closely watch whether overall DAUq and logged-in figures can maintain momentum amid broader competition for consumer attention in the social media landscape.
Crédito da imagem: Sopa Images | Lightrocket | Getty Images
