SAN FRANCISCO, August 13, 2026, 17:48 EDT — U.S. equity markets are closed.
- Reddit rose 3.04% in regular trading; Google Finance later showed a 10.26% after-hours gain.
- The company’s $157.57 average Q2 buyback price sat just 0.35% below Thursday’s close.
- Reddit spent 90% of quarterly free cash flow on repurchases, but diluted shares still increased 0.2%.
Reddit, Inc. NYSE:RDDT jumped in late trading on Thursday as investors searched for the stock. Google Finance showed shares at $174.35 after hours, up 10.26%. The stock had already closed 3.04% higher at $158.12.
The immediate catalyst was not confirmed. No new earnings release accompanied the move on Reddit’s investor site. Google Trends showed “rddt stock” among newly active U.S. searches after the closing bell. Google Trends
One number gives the move a useful valuation anchor. Reddit bought 1.5 million shares during the second quarter at an average $157.57. Thursday’s regular close was only $0.55 higher, a gap of 0.35%.
| Market measure | August 13 reading | Change |
|---|---|---|
| Reddit regular close | $158.12 | +3.04% |
| Reddit after hours, 17:48 EDT | $174.35 | +10.26% |
| S&P 500 | 7,798.99 | +0.65% |
| Nasdaq Composite | 26,803.03 | +0.81% |
The repurchases used $235 million, equal to 90% of Q2 free cash flow. Yet fully diluted shares reached 207.0 million, up 0.2% from a year earlier. The program therefore offset dilution without producing a net year-over-year share reduction.
| Buyback measure | Q2 2026 | Investor read-through |
|---|---|---|
| Cash spent | $235 million | 90.0% of quarterly free cash flow |
| Shares repurchased | 1.5 million | Open-market support, not net shrinkage |
| Average purchase price | $157.57 | 0.35% below Thursday’s close |
| Fully diluted shares | 207.0 million | Up 0.2% year over year |
The underlying quarter was strong. Revenue rose 61% to $805 million. Net income climbed 183% to $253 million, while free cash flow more than doubled to $261 million.
| Operating measure | Q2 2026 | Year-over-year change |
|---|---|---|
| Revenue | $805 million | +61% |
| Ad revenue | $762 million | +64% |
| Net income | $253 million | +183% |
| Adjusted EBITDA | $343 million | +106% |
| Free cash flow | $261 million | +135% |
| Daily active uniques | 130.3 million | +18% |
“In an increasingly automated web, the value of real human perspective has never been higher,” founder and Chief Executive Steve Huffman said. He tied the company’s commercial momentum to that demand. Reddit Q2 results
The mix remains concentrated. Advertising supplied 94.7% of revenue. International revenue grew 84%, 28 percentage points faster than U.S. revenue, but it represented only 20.7% of the total.
Management’s preliminary Q3 estimates imply another step up. The midpoint calls for $865 million of revenue and $390 million of adjusted EBITDA. That would lift the implied adjusted EBITDA margin to about 45.1%.
| Measure | Q2 actual | Q3 preliminary midpoint | Sequential change |
|---|---|---|---|
| Revenue | $805 million | $865 million | +7.5% |
| Adjusted EBITDA | $343 million | $390 million | +13.7% |
| Adjusted EBITDA margin | 42.6% | 45.1% implied | +2.5 percentage points |
Wall Street remains positive but divided on price. Google Finance’s three-month panel counted 14 buy ratings and nine holds, with no sells. The average target of $218.32 sat 38.1% above Thursday’s regular close.
| Analyst measure | Reading | Versus $158.12 close |
|---|---|---|
| Buy / Hold / Sell | 14 / 9 / 0 | 23 analysts, past three months |
| Average target | $218.32 | +38.1% |
| High target | $300.00 | +89.7% |
| Low target | $142.00 | -10.2% |
| Latest listed call | J.P. Morgan, Hold, $185 | +17.0% |
The target range is unusually wide. Needham’s Laura Martin carried a $300 target, while Wells Fargo’s Alec Brondolo listed $142. J.P. Morgan’s Doug Anmuth maintained a hold and $185 target on August 4.
At the regular close, Reddit traded at 36.79 times trailing earnings. The shares remained 44.1% below their $282.95 annual high and 32.6% above the $119.27 low. That range reflects both fast profit growth and fragile expectations.
Risks: The late move lacked a confirmed catalyst and could reverse. Search-distribution changes may affect logged-out traffic. Advertising concentration, stock-based compensation and international execution could also weaken per-share returns.
The next test is simple. Investors need the after-hours gain to hold, then need diluted shares to decline. Until both happen, the $157.57 buyback price is an anchor—not proof that the repurchase program is compounding value.
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