Reddit 2Q26: Twitter 2.0 deja vu

研报英文原文证据摘录

Reddit 2Q26: Twitter 2.0 deja vu

Mark Shmulik +1 917 344 8508 mark.shmulik@bernsteinsg.com 30 July 2026

DETAILS

We remain Market-Perform on Reddit with a price target at $180/share (-$10). We value Reddit using a 50/50

combination of 2027e EV/Sales multiple of 7x (-2x), and a DCF using a WACC of 11% and a terminal growth of 3.5%. We

consider Reddit primarily a digital advertising business and benchmark valuation to comparable peers in this industry set.

Reddit reported its 2Q26 results after the market close today.

• Strong top and bottom line performance. Reddit grew revenues +61% Y/Y, to $805, once again sticking to the pattern

of dominant performance well ahead of both guidance and consensus. Advertising revenues grew +64% Y/Y (vs. 74% Y/

Y in 1Q) with mid and lower funnel performance ads contributed meaningfully. Other Revenues (data licensing) improved

sequentially at ~$43M.

• Strong Ad revenue growth across the ad funnel. Reddit delivered another quarter of broad-based advertising strength.

Growth was driven by both pricing and impressions, with continued strength across upper/mid/lower funnel performance

objectives, and diversified strength across verticals highlighting performance from retail and travel as 11 of their top 15

verticals grew 50%+ Y/Y.

• Expanding advertiser base. Reddit grew active advertisers by 70%+ Y/Y supported by strength across large , mid-

market, and SMB customers. Scaled channel revenue, which includes mid-market and SMB advertisers, doubled Y/Y as

onboarding improvements, automation, and partner integrations (e.g. Shopify) drove broader platform adoption .

• International growth outpacing and continues to accelerate. US revenue growth of 56% Y/Y, decelerated from

1Q26 growth of 67%, while International accelerated to +84% Y/Y vs.