RDDT · Q2 FY2026
Reddit, Inc. Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $804.9M | $0.50B yr ago | Beat |
| EPS | $1.25 | $0.45 yr ago | Beat |
| Free Cash Flow | $260.7M supplemental | $0.11B yr ago supplemental | Beat |
| Gross Margin | Not meaningful | Not meaningful yr ago | Miss |
| Operating Margin | 28.8% pre-tax margin | 13.6% yr ago | Beat |
What changed
Revenue increased to $804.9 million from approximately $0.50 billion a year earlier, while EPS rose to $1.25 from $0.45. The more important change was operating leverage: the supplied pre-tax margin expanded to 28.8% from 13.6%, and supplemental cash flow after capital expenditure reached $260.7 million.
Impact on the investment thesis
There was no prior SageNoodle fair value to revise; this update establishes a $155 base-case value. The quarter strengthens the operating thesis, but the current $155.34 price already discounts substantial growth and sustained profitability.