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Reddit Stock Falls 17% After Hours as Q4 Outlook Trails Estimates

Steven Levine, Founder of TickerPosts and OpenClassActions.com2 min read
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Illustrative photo by Mike Bird on Pexels

Reddit shares (NYSE: RDDT) ended regular trading down about 3.8% on Thursday, October 29. After the company released its third-quarter results, shares fell roughly 17% in a 5:46 p.m. ET after-hours snapshot. The two moves occurred in separate sessions; extended-hours prices can change before the next open.

Reddit's completed quarter showed rapid revenue growth, but the forward outlook included two concerns: a fourth-quarter revenue range below the cited analyst estimate and a warning that daily users could decline if search referrals keep falling.

Q3 revenue and earnings increased

Reddit reported revenue of $895 million, up 53% year over year. Advertising revenue rose 54% to $847 million. Diluted EPS was $1.40, compared with $0.80 a year earlier. Global daily active uniques increased 12% to 130.3 million, but U.S. daily active uniques fell 2% to 50.7 million, according to the company's results.

Those figures compare the quarter with the same period last year. They do not establish how quickly growth will continue in future quarters.

The fourth-quarter range was below expectations

Reddit forecast Q4 revenue of $1.00 billion to $1.03 billion and adjusted EBITDA of $480 million to $510 million. The revenue midpoint is $1.015 billion. Wall Street's estimate was about $1.05 billion, according to Yahoo Finance's earnings coverage.

The shareholder letter added a more direct warning about user growth. Reddit said search referrals were down meaningfully during Q3 and fell by more than one million referrals per week on average in October. If the decline continues, the company said global daily active uniques could fall by a low-double-digit percentage in Q4 from a base of about 130 million. The letter described a possibility, not a certain outcome. Readers can find it through Reddit's quarterly-results page.

The lower revenue midpoint and user-growth warning help explain why a strong completed quarter did not prevent a sharp after-hours decline. They point to uncertainty about the next quarter's traffic and revenue, not a settled outcome for Reddit's longer-term business.

Reddit's shareholder letter also reported $3.03 billion in cash, cash equivalents and marketable securities at quarter end, and $363 million in free cash flow for Q3. Those figures provide additional context, but they do not remove the uncertainty around the next quarter's growth.

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Published October 29, 2026. This article is informational and is not investment advice. After-hours prices can change quickly.

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