Reddit (RDDT): revenue up 61%, its first profitable year, a stock down 23% and executives selling $259 million

Reddit closed at $155.65 on October 20, 2026, worth $29.95 billion counting its Class A and Class B shares. The stock is down 23.1% over twelve months, against a 14.5% gain for the S&P 500, and 32.3% in 2026. Its highest close was $270.71 on September 18, 2025; it is 42.5% below that. It is still 357.8% above its $34.00 IPO price of March 2024. Reddit pays no dividend, and its third-quarter results are not out yet.

Revenue, profit and users

Revenue rose from $804.0 million in 2023 to $2.20 billion in 2025, and 2025 was Reddit’s first profitable year: net income of $529.7 million, after a loss of $484.3 million in 2024, a year whose expenses included stock-based compensation recognized all at once at the IPO, according to the 10-K. In the second quarter of 2026, revenue was $805 million, up 61% from a year earlier — the company says its eighth consecutive quarter above 60% — and net income was $253 million, or $1.25 a share. Advertising was $762 million of that revenue.

Daily active uniques averaged 130.3 million in the second quarter, up 18%; in the United States they grew 6%, and internationally 28%. Reddit bought back 1.5 million shares in the quarter for $235 million and ended it with $2.8 billion of cash and marketable securities. For the third quarter it guided to revenue of $860 million to $870 million. On earnings of $4.30 a share over the last twelve months, the stock trades at 36.2 times earnings.

Control sits with the Class B shares, which carry ten votes each. According to the 2026 proxy statement, Advance Magazine Publishers, the owner of Condé Nast, held 83.5% of the Class B stock and 65.2% of the total vote; entities affiliated with Tencent held 6.1% of the vote.

Who held it at the end of June

Twelve of the 38 managers held more than $1 million of Reddit at the end of June, up from eleven in March; counting Steve Cohen’s $0.5 million position, thirteen held it. Stanley Druckenmiller and Ken Griffin opened small positions and Two Sigma sold out. Baillie Gifford remained by far the largest holder, with 7.2 million shares. Israel Englander’s Millennium and Cliff Asness’s AQR multiplied their stakes, while Andreas Halvorsen’s Viking cut its stake by 38.6%. A 13F does not say on which day of the quarter shares were traded. Since June 30 the stock is down 10.3%.

Insiders

In the twelve months to October 20, 2026, Reddit executives and directors sold $258.9 million of stock, 99.7% of it under 10b5-1 trading plans, according to the notes on each Form 4. Chief operating officer Jennifer Wong sold $116.7 million, chief executive Steve Huffman $74.9 million, chief technology officer Christopher Slowe $32.8 million and Benjamin Lee, who stepped down as chief legal officer in September, $26.8 million.

There was one buyer in the market: director Sarah Farrell bought $8.87 million of stock in February and March 2026, at prices between about $132 and $150, within each day’s trading range. The filings do not say why anyone bought or sold. Daily data and every Form 4 are on the Reddit page. Not investment advice.