The company’s U.S. weekly active count was down in the third quarter and search referral traffic saw a significant dropoff, although revenue rose more than 50%.

Reddit posted its Q3 2026 earnings report on Oct. 29, which showed that the app has continued to evolve its revenue base, while it also reported that more users are signing in to the app, and returning more often.

At the same time, Reddit also reported significant declines in search engine referral traffic, which had become a key advantage for the app.

First, on users, Reddit reported a slight increase in weekly active users in the third quarter, with users outside the U.S. becoming more active participants in Reddit discussion.

The downside here is that Reddit’s U.S. weekly active user count declined in the same period, which is also reflected in its daily active user numbers.

On balance, Reddit saw more growth year over year, and maintaining more than 500 million weekly actives is clearly significant. But a decline in U.S. users could also have a longer-term impact on the platform’s revenue opportunities, since Reddit is still heavily reliant on the U.S. market.

As per the above chart, Reddit posted $895 million in revenue for the quarter, up 53% year over year. However, only about 20% of that intake came from outside the U.S. market.

Reddit does have potential to tap into more growth opportunities through its popularity in other regions, but it also has some work to do in making ads a bigger consideration in these markets.

Source link