Reddit's growth in Q2-2026 was up 61% vs. Q2-2025 (operating income up 242%), and that's amazing, but I do think its revenue growth will decelerate.
Almost all revenue comes from advertising, so future growth has to come from an increase in users and/or an increase in APRU.
The user base in the U.S. isn't growing.
The user base internationally is growing.
ARPU is \~40% of Meta's ARPU (where users spend a lot more time, and Meta has a lot more information to better target)
Don't get me wrong, the company did a great job at creating a valuable advertising product for the companies that want to reach the audience, and it is a valuable platform. But I do think the growth will decelerate, and when that happens, the stock price will adjust.
My full deep dive is below and covers revenue split over time, why there is growth, logged-out users, dependency on Google, and valuation.
Blog: [https://thefinancecorner.substack.com/p/reddit-becoming-cash-generating-machine](https://thefinancecorner.substack.com/p/reddit-becoming-cash-generating-machine)
Video: [https://youtu.be/MS4yFw27-4E](https://youtu.be/MS4yFw27-4E)
Looking forward to your feedback, and feel free to share your thoughts.
