Reddit posts 61% revenue jump, boosts ad targeting with community‑driven AI

Reddit reported a 61% increase in second‑quarter 2026 revenue, reaching $805 million, with advertising revenue climbing 64% to $762 million, which now accounts for about 95% of total sales. Adjusted EBITDA more than doubled to $342.8 million, lifting the margin to roughly 43%.

The company said its growth is driven by new advertising tools that draw on real‑time conversations within its subreddits. Using deep‑learning models, user‑interest profiling and content‑understanding, Reddit matches ads to high‑intent shopping discussions, which rose 40% year‑over‑year. Features such as Dynamic Product Ads, Shopping Listing Ads and AI‑generated ad copy allow advertisers to retarget users based on both their browsing behavior and the context of community posts. Active advertisers grew about 70% year‑over‑year, and daily active uniques rose 18% to 130.3 million, while average revenue per user jumped 36% to $6.18.