Reddit, Inc.
For the period ended Sep 30, 2026. Filed Oct 30, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 30, 2026
RDDT$95.10+1.4%Stored close · as of Nov 6, 2026
What changed in Risk Factors?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-31.
0001713445-26-000100
Item 1A. Risk FactorsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-30.
0001713445-26-000116
Item 1A. Risk FactorsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 307 previous paragraphs and 327 current paragraphs.
210 unchanged; 85 reworded; 32 added; 6 removed; 6 previous and 0 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (32)
Current report
•We face intense competition from companies with greater resources and larger user bases, including large language models (“LLMs”), other artificial intelligence (“AI”) companies, and other AI features that retrieve and synthesize information.
Current report
•Declines in traffic to Reddit from internet search engines during the current quarter could continue or worsen and have a continuing negative impact on traffic to Reddit's website and application, and ultimately on our business, results of operations, financial condition, and prospects.
Current report
•The development of AI agents allowing users to access Reddit content without accessing our platform directly could harm our business.
Current report
•Unauthorized and uncompensated scraping, copying, and use of Reddit content and data could undermine our content licensing business, enable competing products, and impair our ability to protect users’ privacy and deletion choices.
Current report
•Our upcoming experiments with requiring users to log in to an account to access parts or all of Reddit's platforms, services, or content, and subsequent implementation of such logged-in requirements, could have adverse impacts on our business.
Current report
•Changes to our marketing expenditures for user acquisition can negatively impact both our user growth rate and advertising reach. In addition, we have historically invested in marketing for user acquisition, and we may reduce, redirect, or redeploy paid marketing spends generally or with respect to specific regions, categories, products and services.
Current report
We may not be successful in our user growth and retention strategies, which aim to drive traffic to the platform and convert casual users into daily users. To the extent our DAUq growth rate slows or becomes negative, our success will increasingly depend on our ability to increase levels of engagement, retention, and monetization on our platform, including our ability to convert casual users into users who visit Reddit more frequently and directly. Declines in user growth could also negatively impact the reach of advertisements on Reddit. We may also make product and strategy changes intended to improve long-term retention, engagement, and direct traffic, and these changes may discourage some users from accessing Reddit or reduce user traffic. Although any such changes would be designed to build a more engaged and retentive user base, and/or to improve the quality of our products and services, we may not realize or immediately realize the anticipated long-term benefits, and adverse effects on user growth may persist. Furthermore, we anticipate that our DAUq growth rate will slow over time as the absolute number of our DAUq increases. For example, we rely on initiatives like machine translation to drive growth in international DAUq, and the growth derived from this strategy may slow as we complete the roll out of machine translation to all major global languages.
Current report
A number of factors could harm Reddit user growth and engagement, including if:
Current report
•we continue to experience a decline in traffic to Reddit from internet search engines;
Current report
•we experiment with or require users to log in to an account to access parts of Reddit’s platforms, services, and content;
Current report
•the development of products by competitors that may be a substitute for visiting Reddit, including products that may utilize Reddit content obtained from unauthorized sources;
Current report
•we reduce, redirect, or redeploy our investment in paid marketing for user acquisition;
Current report
•the other risks and uncertainties described in this Quarterly Report on Form 10-Q.
Current report
If we are unable to grow or maintain our DAUq or sustain user engagement, our business, results of operations, financial condition, and prospects could be adversely affected.
Current report
We face intense competition for users, and if we are not able to compete effectively, our business could suffer.
Current report
We face intense competition from companies with greater resources and larger user bases, including large language models LLMs, other AI companies, and other AI features that retrieve and synthesize information, such as those built by Google, Meta, OpenAI, and Anthropic. Users may choose to find information through AI agents, AI-generated summaries and answers, or other AI tools, which in some cases may have been trained using Reddit content, instead of visiting Reddit directly. Some of these competitors, like Google, operate third-party search engines that are increasingly integrating AI-generated summaries and answers into their user experiences. These features may change how Reddit content is displayed and reduce the likelihood that users click through to Reddit, which could reduce referral traffic, adversely affect our DAUq and user growth, and negatively impact the reach of advertisements on Reddit. As other AI-powered products and interfaces become more capable and widely adopted, they may reduce users’ need or desire to visit Reddit directly, which would harm our reputation, business, results of operations, financial condition, and prospects.
Current report
•the popularity, usefulness, ease of use, performance, and reliability of our products compared to our competitors' products;
Current report
•the timing and market acceptance of products, including the developments and enhancements to those products, offered by us or our competitors;
Current report
•our brand strength relative to our competitors; and
Current report
•the other risks and uncertainties described in this Quarterly Report on Form 10-Q.
Current report
If we are not able to compete effectively for users, our business, results of operations, financial condition, and prospects would be adversely affected.
Current report
Declines in traffic to Reddit from internet search engines during the current quarter could continue or worsen and have a continuing negative impact on traffic to Reddit's website and applications, and ultimately on our business, results of operations, financial condition, and prospects.
Current report
The development of AI agents allowing users to access Reddit content without accessing our platform directly could harm our business.
Current report
AI agents are increasingly able to log in to websites and applications, including Reddit, on users’ behalf to obtain and synthesize information. If Reddit is unable sufficiently to block, or alternatively monetize, such non-human agent interactions with Reddit and Reddit content, it could negatively impact Reddit's business by, among other things, reducing actual human interaction, content creation, and advertising views.
Current report
Unauthorized and uncompensated scraping, copying, and use of Reddit content and data could undermine our content licensing business, enable competing products, and impair our ability to protect users’ privacy and deletion choices.
Current report
Third parties have accessed and used Reddit content and data for commercial purposes without our authorization and without compensating us. These activities include scraping and copying content directly from our platform or obtaining it indirectly through third-party search results, data brokers, and other intermediaries, and have involved circumventing technical measures designed to control access. These activities could undermine our ability to control the commercial use of Reddit content and may adversely affect the market for licensing that content. Such unauthorized access and use could undermine the market for licensing Reddit content by reducing existing and prospective partners’ incentives to enter into licensing agreements with us, including where scraped or copied content is available through third-parties. Third parties may also use Reddit content and data obtained without our authorization to train or improve AI models and develop competing products that allow users to obtain information from Reddit without visiting our platform. These risks could reduce user traffic, make our platform less attractive to advertisers, and harm our business.
Current report
Unauthorized scraping and copying also bypass the contractual and technical safeguards through which we seek to protect users' privacy and choices regarding their content. We may be unable to identify all recipients of scraped or copied content, monitor its subsequent use, or ensure that third parties stop using or displaying posts or comments after they have been deleted from Reddit. Content could remain in third-party datasets or products or be used for purposes inconsistent with our policies, and this could also expose us to regulatory scrutiny, investigations, or enforcement actions relating to our compliance with applicable data privacy laws. Such activities could also harm users, undermine their trust in us, discourage participation and content contributions, and expose us to reputational harm and/or regulatory scrutiny. Any resulting decline in user engagement or content contributions could reduce the value of our platform to users and advertisers, and adversely affect our business, results of operations, and financial condition.
Current report
Our upcoming experiments with requiring users to log in to an account to access parts or all of Reddit's platforms, services, or content, and subsequent implementation of such logged-in requirements, could have adverse impacts on our business.
Current report
Beginning in the quarter ending December 31, 2026, we intend to conduct experiments in one or more international markets to require Reddit users to log in to an account to access parts of Reddit’s platforms, services and content, including Reddit’s websites and applications. After considering the results and learnings of those experiments, we intend to implement some form of logged-in restrictions globally, including in the United States. It is possible that the results of our experimentation will not accurately predict the outcome of implementing logged-in requirements globally or otherwise at scale. These experiments and subsequent implementation to require users to log in to an account could have adverse impacts on our business, including but not limited to, the total number of Reddit users and/or the reach of advertisements on Reddit.
Current report
Changes to our marketing expenditures for user acquisition can negatively impact both our user growth rate and advertising reach.
Current report
We have historically invested in paid marketing to increase user acquisition. Users that come to the Reddit platforms from paid marketing comprise a not insubstantial portion of total users. Returns on our marketing spend have varied by category and geography, and we adjust our spend to attempt to improve effectiveness. To the extent that such expenditures do not achieve sufficiently attractive returns, we may reduce, redirect, or redeploy paid marketing spends generally or with respect to specific regions, categories, types of users, products and services, which could have a negative impact on user traffic as well as on the reach and value of advertisements on Reddit.
Current report
•any adverse consequence to the business that negatively impacts user traffic and the reach and attractiveness to advertisers of advertisements on Reddit; and
Removed paragraphs (6)
Previous report
•Changes in internet search engine algorithms, user interfaces, and AI-generated search or answer features could have a negative impact on traffic for our website and, ultimately, our business, results of operations, financial condition, and prospects.
Previous report
The absolute number of our DAUq and our DAUq growth rate has decreased in the past and may fluctuate or decrease in one or more markets from time to time due to various factors, especially after periods of high growth, such as we have experienced. For example, although we saw increased growth in our user base during the COVID-19 pandemic, we experienced lower levels of DAUq growth and declining DAUq as the effects of the COVID-19 pandemic subsided. DAUq has also declined in the past in periods following usage peaks surrounding certain worldwide events, such as the onset of the conflict between Russia and Ukraine in the three months ended March 31, 2022. These usage peaks are driven by external factors that are outside of our control. Accordingly, such growth may not be repeatable and we may experience declines in DAUq in the future in similar circumstances. DAUq has also been volatile during community responses to domestic and international social unrest as well as in response to actions by us. For example, we saw increased growth in our user base in the three months ended December 31, 2023, which may have been driven in part by performance improvements in our product and possibly by migration of usage from certain third-party applications in response to changes in our application program interface (“API”) terms and policies. Such growth may not be sustainable and does not necessarily mean these users are retained. Furthermore, we anticipate that our DAUq growth rate will slow over time as the absolute number of our DAUq increases. To the extent our DAUq growth rate slows or becomes negative, our success will increasingly depend on our ability to increase levels of engagement, retention, and monetization on our platform, including the level at which users visiting us from search traffic become more frequent users of our platform. For example, we have increased our investment in paid marketing and seen an increase in the proportion of users attributed to paid channels. Although these efforts increase our traffic in the near term, users acquired through paid marketing may not remain active on our platform, and we may need to continue or increase our marketing investments to retain them as users. If these investments are not cost-effective or if we reduce them, our user traffic could be lower than it otherwise would be or could decline over time. We also rely on initiatives like machine translation to drive growth in international DAUq, and the growth derived from this strategy may slow as we complete the roll out of machine translation to all major global languages.
Previous report
•our competitors incorporate features into their products that are substantially similar to ours or improve upon such features when including them in their products;
Previous report
•we fail to effectively adopt new technologies, such as machine learning and artificial intelligence (“AI”), that our competitors may have more experience utilizing and leveraging in their products and services;
Previous report
We believe that sustained meaningful active Redditor growth is dependent on improving our products and services to demonstrate our value proposition to a larger, global audience and penetrating additional demographics, which we believe may take a considerable amount of time. If we are unable to increase our DAUq, or its growth rate, or if this metric declines, our products and services could be less attractive to potential new users, as well as to advertisers, which would harm our business, results of operations, financial condition, and prospects.
Previous report
Changes in internet search engine algorithms and dynamics could have a negative impact on traffic for our website and, ultimately, our business, results of operations, financial condition, and prospects.
Reworded paragraphs (85)
Previous wording
•If Redditors do not continue to contribute content or their contributions are not valuable or appealing to other Redditors, we may experience a decline in the number of Redditors accessing our products and services and in user engagement, which could result in the loss of advertisers and may harm our reputation, business, results of operations, financial condition, and prospects.
Current wording
•If Reddit users do not continue to contribute content or their contributions are not valuable or appealing to other Reddit users, we may experience a decline in the number of Reddit users accessing our products and services and in user engagement, which could result in the loss of advertisers and may harm our reputation, business, results of operations, financial condition, and prospects.
Previous wording
•We have limited operating history at our current scale, and there is no assurance we will be able to continue scaling our business for future growth.
Current wording
•We may not sustain our growth rate, and our results of operations may fluctuate from quarter to quarter. We have limited operating history at our current scale, and there is no assurance we will be able to continue scaling our business for future growth.
Previous wording
•We may not succeed in further expanding and monetizing our platform internationally and may be subject to increased international business and economic risks.
Current wording
•We may not succeed in further expanding and monetizing our platform internationally and may be subject to increased international business, economic, and geopolitical risks.
Previous wording
•We are exploring business opportunities in content licensing, but the market is relatively new and evolving rapidly.
Current wording
•We are exploring business opportunities in content licensing, but the market is relatively new and evolving rapidly, and such opportunities may be undermined by the availability of Reddit content from third parties or directly from Reddit servers without authorization or payment. In addition, for similar reasons, Reddit's existing content licensing deals may or may not be renewed.
Previous wording
•If our security measures are breached, or if our products and services are subject to attacks involving our systems or data, some of which contain personal information, or that degrade or deny the ability of users to access our products and services, our products and services may be perceived as not being secure, Redditors and advertisers may curtail or stop using our products and services, and our reputation, business, results of operations, financial condition, and prospects could be harmed.
Current wording
•If our security measures are breached, or if our products and services are subject to attacks involving our systems or data, some of which contain personal information, or that degrade or deny the ability of users to access our products and services, our products and services may be perceived as not being secure, Reddit users and advertisers may curtail or stop using our products and services, and our reputation, business, results of operations, financial condition, and prospects could be harmed.
Previous wording
•Redditor growth and engagement depends upon effective interoperation with operating systems, networks, devices, web browsers, online application stores, regulations, and standards that we do not control. Changes in our products or to those operating systems, networks, devices, web browsers, online application stores, regulations, or standards may harm Redditor retention, growth, and engagement, which could harm our business, results of operations, financial condition, and prospects.
Current wording
•Reddit user growth and engagement depends upon effective interoperation with operating systems, networks, devices, web browsers, online application stores, regulations, and standards that we do not control. Changes in our products or to those operating systems, networks, devices, web browsers, online application stores, regulations, or standards may harm Reddit user retention, growth, and engagement, which could harm our business, results of operations, financial condition, and prospects.
Previous wording
We face intense competition, and if we fail to grow or retain our user base or maintain user engagement, our business, results of operations, financial condition, and prospects could be adversely affected.
Current wording
If we fail to grow or retain our user base or maintain or increase user engagement, our business, results of operations, financial condition, and prospects could be adversely affected.
Previous wording
The size of our user base and their level of engagement are critical to our success. Our financial performance has been, and will continue to be, significantly determined by our success in growing and retaining our user base so that we add Redditors, and those Redditors become daily users—more specifically, DAUq. We define a user whom we can identify with a unique identifier who has visited a page on the Reddit website, www.reddit.com, or opened a Reddit application at least once during a 24-hour period as a DAUq. DAUq is a user metric utilized by our management team. While it may be used to gauge usage of our platform, it may not correlate to revenue. We also measure weekly active uniques (“WAUq”) to help us understand the reach of our platform. We may not be successful in our user growth and retention strategies, which in part aim to convert monthly users or WAUq into more DAUq.
Current wording
The size of our user base and their level of engagement are critical to our success. Our financial performance has been, and will continue to be, significantly determined by our success in growing and retaining our user base so that we add Reddit users, and those Reddit users become daily users—more specifically, DAUq. We define a user whom we can identify with a unique identifier who has visited a page on the Reddit website, www.reddit.com, or opened a Reddit application at least once during a 24-hour period as a DAUq. DAUq is a user metric utilized by our management team. While it may be used to gauge usage of our platform, it may not correlate to revenue. We also measure weekly active uniques (“WAUq”) to help us understand the reach of our platform.
Previous wording
•Redditors engage with other products, services, or activities as an alternative to ours;
Current wording
•Reddit users engage with other products, services, or activities as an alternative to ours;
Previous wording
•we fail to introduce new and improved products or services or we introduce new or improved products or services that negatively affect Redditor engagement;
Current wording
•we fail to introduce new and improved products or services or we introduce new or improved products or services that negatively affect Reddit user engagement;
Previous wording
•Redditors feel that their Reddit experience is diminished as a result of our decisions with respect to the frequency, prominence, and size of ads that we display, or the quality of the ads displayed;
Current wording
•Reddit users feel that their Reddit experience is diminished as a result of our decisions with respect to the frequency, prominence, and size of ads that we display, or the quality of the ads displayed;
Previous wording
•influential Redditors or certain demographics of Redditors conclude that an alternative product or service better meets their needs;
Current wording
•influential Reddit users or certain demographics of Reddit users conclude that an alternative product or service better meets their needs;
Previous wording
•we are unable to convince new Redditors of the value and usefulness of our products and services;
Current wording
•we are unable to convince new Reddit users of the value and usefulness of our products and services;
Previous wording
•technical or other problems prevent us from delivering our products or services in a rapid and reliable manner or otherwise negatively affect Redditors’ experience with our platform;
Current wording
•technical or other problems prevent us from delivering our products or services in a rapid and reliable manner or otherwise negatively affect Reddit users’ experience with our platform;
Previous wording
•Redditors have difficulty installing, updating, searching, or otherwise accessing our products and content or prefer to utilize third-party applications that have shut down or no longer integrate with our platform;
Current wording
•Reddit users have difficulty installing, updating, searching, or otherwise accessing our products and content or prefer to utilize third-party applications that have shut down or no longer integrate with our platform;
Previous wording
•Redditors have difficulty locating content, in their local language, that is interesting and relevant to them, particularly in their early experiences on our platform;
Current wording
•Reddit users have difficulty locating content, in their local language, that is interesting and relevant to them, particularly in their early experiences on our platform;
Previous wording
•Redditors find content available on our platform offensive, inappropriate, hostile, or otherwise objectionable;
Current wording
•Reddit users find content available on our platform offensive, inappropriate, hostile, or otherwise objectionable;
Previous wording
•there are Redditor concerns related to privacy and communication, safety, security, or other factors or changes to our platform or policies that are not well received by Redditors;
Current wording
•there are Reddit user concerns related to privacy and communication, safety, security, or other factors or changes to our platform or policies that are not well received by Reddit users;
Previous wording
•we fail to keep pace with evolving online, market, and industry trends; or
Current wording
•we fail to keep pace with evolving online, market, and industry trends;
Previous wording
•we are the subject of adverse media reports or other negative publicity.
Current wording
•we are the subject of adverse media reports or other negative publicity; and
Previous wording
We also compete to attract and retain Redditors’ attention on the basis of our content and Redditor experiences with our platform and face significant competition for prospective users, both domestically and internationally. We compete against many companies that provide content and communications services to online users, including Google (including YouTube, Search, Maps, and Shopping), Meta (including Facebook, Instagram, Threads, and WhatsApp), Wikipedia, Snap, X, Pinterest, TikTok, Roblox, Discord, and Twitch, and which offer a variety of internet- and mobile device-based products, services, and content. Many of these companies have greater financial resources and substantially larger user bases than Reddit. Our competitors may draw users towards their products or services and away from ours. This could decrease the growth, engagement, or retention of Redditors, which, in turn, would negatively affect our business. In addition, we face competition from large language models (“LLMs”) and other AI models and features that retrieve and synthesize information, such as those built by Google, Meta, OpenAI, and Anthropic. Redditors may choose to find information through AI tools or AI-generated summaries, which in some cases may have been trained using Reddit content, instead of visiting Reddit directly. While we have made, and expect to continue to make, significant investments to integrate AI, including generative AI, into our platform, AI technologies are rapidly evolving and there can be no guarantee that our products and services will remain competitive as new AI technologies are developed, adopted, and integrated.
Current wording
We face significant competition to attract, retain, and engage users and for their time and attention. We compete against many companies that provide content and communications services to online users, including Google (including YouTube, Search, Maps, and Shopping), Meta (including Facebook, Instagram, Threads, and WhatsApp), Wikipedia, Snap, X, Pinterest, TikTok, Roblox, Discord, and Twitch, and others that offer a variety of internet and mobile device-based products, services, and content. Many of these companies have greater financial resources and substantially larger user bases than Reddit. Our competitors may draw users towards their products or services and away from ours, which could make our products and services less attractive to advertisers and harm our business, results of operations, financial condition, and prospects.
Previous wording
A number of factors could harm Redditor growth and engagement or impact our ability to compete effectively, including if:
Current wording
A number of factors could harm our ability to compete effectively, including:
Previous wording
Our success depends partly on our ability to attract online visitors to our website. We rely, in part, on internet search engines, such as Google, to generate traffic to our website, primarily through free or organic searches. Search engines frequently update and change the logic and user interface that determine the placement and display of the results of a user’s search, such that the purchased or algorithmic placement of links to our websites may be ranked lower in the search results or otherwise less visible in a user’s search or displayed along AI-generated summaries or answers. For example, we use machine translation to make our content accessible in multiple languages, but we have seen and may continue to see the search engine ranking performance of this content be negatively impacted when a search engine deprioritizes machine-generated content. In addition, a search engine could, for competitive or other purposes, alter its search algorithms, results or user experience, causing our website to place lower in organic search query results or receive less traffic from search results. If a major search engine changes its algorithms or user interface in a manner that negatively affects the search engine ranking performance of our website or those of our partners, our business, results of operations, financial condition, and prospects could be adversely affected.
Current wording
Our success depends partly on our ability to attract online visitors to our website and to Reddit’s applications. We rely, in part, on internet search engines, such as Google, to generate traffic to our website and applications, primarily through free or organic searches. Search engines frequently update and change the logic and user interface that determine the placement and display of the results of a user’s search, such that the purchased or algorithmic placement of links to our website is ranked lower in the search results or otherwise less visible in a user’s search. In addition, our content is increasingly summarized in AI-generated summaries and answers in response to user search queries, and traditional search links to websites are increasingly pushed down below AI-generated responses. These and other third-party changes to search engine operation, features, and functionalities have resulted in declines in referral traffic from third-party search engines that have adversely affected our DAUq growth in the current quarter. These declines may continue and worsen. Such declines impact our business not only by putting downward pressure on the number of Reddit users, including both logged-in and logged-out users, but can also lower the reach of advertisements on Reddit, which can negatively impact our appeal to existing and future advertisers, which would have negative consequences for our advertising revenue.
Previous wording
If Redditors do not continue to contribute content or their contributions are not valuable or appealing to other Redditors, we may experience a decline in the number of Redditors accessing our products and services and in user engagement, which could result in the loss of advertisers and may harm our reputation, business, results of operations, financial condition, and prospects.
Current wording
If Reddit users do not continue to contribute content or their contributions are not valuable or appealing to other Reddit users, we may experience a decline in the number of Reddit users accessing our products and services and in user engagement, which could result in the loss of advertisers and may harm our reputation, business, results of operations, financial condition, and prospects.
Previous wording
Our success depends on our ability to provide users of our products and services with valuable content, which in turn depends on the content contributed by Redditors. We seek to foster a broad and engaged Redditor community. If Redditors do not continue to contribute content and otherwise engage with our platform, and we are unable to provide Redditors with valuable and timely content, our user base and their engagement may decline. A large portion of the content on our platform comes from a small number of Redditors contributing to communities (which are also known as subreddits). If prolific Redditors do not continue to contribute content and otherwise engage with our platform, or decide to leave our platform and encourage other Redditors to follow them to a new platform, our user base and their engagement may decline. Our platform may also be used by third parties to disseminate abusive or other harmful content in violation of our terms and applicable law. We may not proactively discover or quickly respond to such content once alerted to it due to our scale and the limitations of existing technology and operational infrastructure. If we are unable to successfully prevent or detect and timely address abusive or other harmful behavior on our platform, our user base and their engagement may decline. Additionally, in keeping with our mission to empower communities and make their knowledge accessible to everyone, our site-wide content policy is designed to be protective, but not intrusive. If Redditors perceive the content available on Reddit to be offensive, inappropriate, hostile, or otherwise objectionable, we may experience a decline in user activity generally, or among certain demographics. We generate a majority of our revenue from the sale of advertising services. If we experience a decline in the number of Redditors, or a decrease in Redditor growth rate or engagement, including as a result of a lack of valuable or appealing content, or the loss of influential Redditors or subreddits, advertisers may not view our products and services as attractive for their marketing expenditures, and may reduce their spending with us, which would harm our reputation, business, results of operations, financial condition, and prospects.
Current wording
Our success depends on our ability to provide users of our products and services with valuable content, which in turn depends on the content contributed by Reddit users. We seek to foster a broad and engaged Reddit user community. If Reddit users do not continue to contribute content and otherwise engage with our platform, and we are unable to provide Reddit users with valuable and timely content, our user base and their engagement may decline. A large portion of the content on our platform comes from a small number of Reddit users contributing to communities (which are also known as subreddits). If prolific Reddit users do not continue to contribute content and otherwise engage with our platform, or decide to leave our platform and encourage other Reddit users to follow them to a new platform, our user base and their engagement may decline. Our platform may also be used by third parties to disseminate abusive or other harmful content in violation of our terms and applicable law. We may not proactively discover or quickly respond to such content once alerted to it due to our scale and the limitations of existing technology and operational infrastructure. If we are unable to successfully prevent or detect and timely address abusive or other harmful behavior on our platform, our user base and their engagement may decline. Additionally, in keeping with our mission to empower communities and make their knowledge accessible to everyone, our site-wide content policy is designed to be protective, but not intrusive. If Reddit users perceive the content available on Reddit to be offensive, inappropriate, hostile, or otherwise objectionable, we may experience a decline in user activity generally, or among certain demographics. We generate a majority of our revenue from the sale of advertising services. If we experience a decline in the number of Reddit users, or a decrease in Reddit user growth rate or engagement, including as a result of a lack of valuable or appealing content, or the loss of influential Reddit users or subreddits, advertisers may not view our products and services as attractive for their marketing expenditures, and may reduce their spending with us, which would harm our reputation, business, results of operations, financial condition, and prospects.
Previous wording
We believe that our brand identity and reputation, including that our service is an empowering environment, has significantly contributed to the success of our business. We also believe that maintaining and enhancing the “Reddit” brand and reputation is critical to retaining and growing our user and advertiser bases. We anticipate that maintaining and enhancing our brand and reputation will depend largely on our continued ability to provide high-quality, relevant, reliable, trustworthy, and innovative products, which may require substantial investment and may not be successful. We may need to introduce new products or updates to existing products that require Redditors to agree to new terms of service that Redditors do not like, which may negatively affect our brand and reputation. Additionally, advertisements or actions of our advertisers may affect our brand and reputation if Redditors do not think the advertisements help them accomplish their objectives, view the advertisements as intrusive, annoying, or misleading, or have poor experiences with our advertisers.
Current wording
We believe that our brand identity and reputation, including that our service is an empowering environment, has significantly contributed to the success of our business. We also believe that maintaining and enhancing the “Reddit” brand and reputation is critical to retaining and growing our user and advertiser bases. We anticipate that maintaining and enhancing our brand and reputation will depend largely on our continued ability to provide high-quality, relevant, reliable, trustworthy, and innovative products, which may require substantial investment and may not be successful. We may need to introduce new products or updates to existing products that require Reddit users to agree to new terms of service that Reddit users do not like, which may negatively affect our brand and reputation. Additionally, advertisements or actions of our advertisers may affect our brand and reputation if Reddit users do not think the advertisements help them accomplish their objectives, view the advertisements as intrusive, annoying, or misleading, or have poor experiences with our advertisers.
Previous wording
Our brand and reputation may also be negatively affected by the content or actions of Redditors that are deemed to be offensive, inappropriate, hostile, or otherwise objectionable to other Redditors, by the actions of Redditors acting under false or inauthentic pretenses, by the use of our products or services to disseminate information that is deemed to be misleading, or by the use of our service for illicit, illegal, or objectionable ends. We also may fail to respond expeditiously or at all to the sharing of illegal, illicit, offensive, inappropriate, hostile, or otherwise objectionable content on our platform or to objectionable practices by advertisers, or to otherwise address Redditors’ concerns, which could erode confidence in our brand and damage our reputation. We expect that our ability to identify and respond to such content in a timely manner may decrease as the number of Redditors grows, as the amount of content on our platform increases, or as we expand our product and service offerings, such as an increase in video content. Any governmental or regulatory inquiry, investigation, or action, including based on the appearance of illegal, illicit, or objectionable content on our platform or the failure to comply with applicable laws, rules, and regulations, could damage our brand and reputation, regardless of the outcome.
Current wording
Our brand and reputation may also be negatively affected by the content or actions of Reddit users that are deemed to be offensive, inappropriate, hostile, or otherwise objectionable to other Reddit users, by the actions of Reddit users acting under false or inauthentic pretenses, by the use of our products or services to disseminate information that is deemed to be misleading, or by the use of our service for illicit, illegal, or objectionable ends. We also may fail to respond expeditiously or at all to the sharing of illegal, illicit, offensive, inappropriate, hostile, or otherwise objectionable content on our platform or to objectionable practices by advertisers, or to otherwise address Reddit users’ concerns, which could erode confidence in our brand and damage our reputation. We expect that our ability to identify and respond to such content in a timely manner may decrease as the number of Reddit users grows, as the amount of content on our platform increases, or as we expand our product and service offerings, such as an increase in video content. Any governmental or regulatory inquiry, investigation, or action, including based on the appearance of illegal, illicit, or objectionable content on our platform or the failure to comply with applicable laws, rules, and regulations, could damage our brand and reputation, regardless of the outcome.
Previous wording
We receive a high degree of media coverage globally. We have experienced, and expect to continue to experience, media, legislative, governmental, and regulatory scrutiny of our decisions. Unfavorable publicity and scrutiny involving us, including regarding our data privacy, intellectual property, content, or other practices, product changes, product quality, pricing increases, litigation, or regulatory action, or regarding the actions of our employees, Redditors, moderators, or advertisers, or other issues, may significantly harm our brand and reputation, and could adversely affect the size, demographics, engagement, and loyalty of our user base. For instance, in May and June 2023, we experienced negative publicity as a result of our API policy changes. In addition, unfavorable publicity and scrutiny of other companies in our industry, including controversies surrounding their product design choices, content-related decisions, or their data privacy practices, could also have a negative impact on our brand and reputation. These concerns, whether actual or unfounded, may also deter Redditors or advertisers from using our service.
Current wording
We receive a high degree of media coverage globally. We have experienced, and expect to continue to experience, media, legislative, governmental, and regulatory scrutiny of our decisions. Unfavorable publicity and scrutiny involving us, including regarding our data privacy, intellectual property, content, or other practices, product changes, product quality, pricing increases, litigation, or regulatory action, or regarding the actions of our employees, Reddit users, moderators, or advertisers, or other issues, may significantly harm our brand and reputation, and could adversely affect the size, demographics, engagement, and loyalty of our user base. For instance, in May and June 2023, we experienced negative publicity as a result of our API policy changes. In addition, unfavorable publicity and scrutiny of other companies in our industry, including controversies surrounding their product design choices, content-related decisions, or their data privacy practices, could also have a negative impact on our brand and reputation. These concerns, whether actual or unfounded, may also deter Reddit users or advertisers from using our service.
Previous wording
In addition, we may fail to adequately address the needs of Redditors or our advertisers, which could erode confidence in our brand and damage our reputation. If we fail to promote and maintain the “Reddit” brand or preserve our reputation, or if we incur excessive expenses in this effort, our business, results of operations, financial condition, and prospects could be harmed.
Current wording
In addition, we may fail to adequately address the needs of Reddit users or our advertisers, which could erode confidence in our brand and damage our reputation. If we fail to promote and maintain the “Reddit” brand or preserve our reputation, or if we incur excessive expenses in this effort, our business, results of operations, financial condition, and prospects could be harmed.
Previous wording
Although we had net income for the three months ended September 30, 2024 and every quarter since, we have a history of net losses, and we may incur net losses again in the future. We incurred a net loss of $(484.3) million for the year ended December 31, 2024. As of June 30, 2026, we had an accumulated deficit of $(214.3) million. Our costs and expenses may continue to increase in future periods, and if our revenue growth does not increase to more than offset these anticipated increases in our costs and expenses, our business, results of operations, financial condition, and prospects will be harmed, and we may not be able to maintain profitability. We expect our costs and expenses to increase in future periods as we intend to continue to make significant investments to broaden and retain our user base, develop and implement new products, market new and existing products and promote our brand, expand our technical infrastructure, and hire additional employees (with a related expected increase in payroll and stock-based compensation expense). Some of these investments may not deliver an effective return on investment and may reduce our operating margin. For example, our reported DAUq includes an increasing number of users from marketing efforts, and if our investments in marketing are not cost-effective or if we reduce these investments, then our ability to maintain and grow DAUq could be adversely affected, which could harm our business, results of operations, financial condition, and prospects.
Current wording
Although we had net income for the three months ended September 30, 2024 and every quarter since, we have a history of net losses, and we may incur net losses again in the future. We incurred a net loss of $(484.3) million for the year ended December 31, 2024. We expect our costs and expenses to increase in future periods as we intend to continue to make significant investments to broaden and retain our user base, develop and implement new products, market new and existing products and promote our brand, expand our technical infrastructure, and hire additional employees (with a related expected increase in payroll and stock-based compensation expense). If our revenue growth does not increase to more than offset these anticipated increases in our costs and expenses, our business, results of operations, financial condition, and prospects will be harmed, and we may not be able to maintain profitability. Some of these investments may not deliver an effective return on investment and may reduce our operating margin. For example, we may decrease investments in paid marketing if those investments are not generating sufficient user acquisition, engagement and/or retention, the expense could be better invested in other aspects of our products or services, or we reduce spend by focusing our marketing efforts on specific audiences. Any such reductions in paid marketing would likely result in lower user traffic.
Previous wording
•seasonal or other fluctuations in spending by our advertisers or in Redditor usage or engagement on our platform, including, but not limited to, around significant planned events such as the Super Bowl and unplanned ones like natural disasters;
Current wording
•seasonal or other fluctuations in spending by our advertisers or in Reddit user usage or engagement on our platform, including, but not limited to, around significant planned events such as the Super Bowl and unplanned ones like natural disasters;
Previous wording
As we continue to grow our advertiser base, our revenue depends on our ability to effectively serve enough advertisements that meet the objectives of our advertisers while maintaining a high-quality, relevant, reliable, trustworthy, and innovative user experience. If we are unable to do this on our platform due to either a decline in DAUq, or changes in our products or services or Redditor behavior that reduce our ability to display as many advertisements as our advertisers may request, our business, results of operations, financial condition, and prospects would be adversely affected. Our advertising business can be inventory constrained at times, and the attendant impact on the supply and pricing of our advertising inventory could affect the financial performance of our business. We could find ourselves unable to match customer advertising specifications with available inventory, leaving us unable to deliver the advertising inventory requested and receiving less revenue than otherwise expected. This also could put upward pressure on advertising prices and potentially impact the return advertisers get on their spend, which in turn could affect future advertiser spending. To scale the growth of our advertising services, we will have to successfully develop and target ad products tailored to the interests of our advertisers and our user base, which may require additional user data. If we are unable to do this with the data, technology, and resources available to us, we may need to rely more heavily on alternative revenue sources to grow our business.
Current wording
As we continue to grow our advertiser base, our revenue depends on our ability to effectively serve enough advertisements that meet the objectives of our advertisers while maintaining a high-quality, relevant, reliable, trustworthy, and innovative user experience. If we are unable to do this on our platform due to either a decline in DAUq, or changes in our products or services or Reddit user behavior that reduce our ability to display as many advertisements as our advertisers may request, our business, results of operations, financial condition, and prospects would be adversely affected. Our advertising business can be inventory constrained at times, and the attendant impact on the supply and pricing of our advertising inventory could affect the financial performance of our business. We could find ourselves unable to match customer advertising specifications with available inventory, leaving us unable to deliver the advertising inventory requested and receiving less revenue than otherwise expected. This also could put upward pressure on advertising prices and potentially impact the return advertisers get on their spend, which in turn could affect future advertiser spending. To scale the growth of our advertising services, we will have to successfully develop and target ad products tailored to the interests of our advertisers and our user base, which may require additional user data. If we are unable to do this with the data, technology, and resources available to us, we may need to rely more heavily on alternative revenue sources to grow our business.
Previous wording
We will make efforts to continue to identify and develop potential new revenue streams. We have explored and continue to explore different ways for Redditors to make money on Reddit, including Reddit’s earnings programs for contributors, developers, and creators, while also providing a source of revenue for Reddit as well. We also continue to explore reasonable content licensing opportunities as another possible source of revenue where those opportunities do not conflict with our values and the rights of our Redditors and have only recently generated revenue from this opportunity. There are many aspects of these possible revenue sources which are novel and untested, which makes it challenging to evaluate the viability of any future revenue opportunities or to identify the risks and challenges we may encounter in seeking to execute on our strategies. There can be no assurance that we will be successful in generating meaningful revenue from any of these non-advertising sources. If we are unable to succeed in these monetization efforts or identify new revenue opportunities, our business, results of operations, financial condition, and prospects could be harmed.
Current wording
We will make efforts to continue to identify and develop potential new revenue streams. We have explored and continue to explore different ways for Reddit users to make money on Reddit, including Reddit’s earnings programs for contributors, developers, and creators, while also providing a source of revenue for Reddit as well. We also continue to explore reasonable content licensing opportunities as another possible source of revenue where those opportunities do not conflict with our values and the rights of our Reddit users. There are many aspects of these possible revenue sources which are novel and untested, which makes it challenging to evaluate the viability of any future revenue opportunities or to identify the risks and challenges we may encounter in seeking to execute on our strategies. There can be no assurance that we will be successful in generating meaningful revenue from any of these non-advertising sources. If we are unable to succeed in these monetization efforts or identify new revenue opportunities, our business, results of operations, financial condition, and prospects could be harmed.
Previous wording
In addition, we plan to continue expanding our business operations outside the United States and offering content and advertising to Redditors and advertisers in other languages and countries. We plan to continue to enter new international markets where we have limited or no experience in deploying our services or selling advertisements. In order to expand successfully, we need to offer content and products that are tailored to the interests of local Redditors and the needs of local advertisers, each of which requires significant investment of time and resources. As we expand into new international markets, we may not yet understand the full scope of prospective users’ interests, demographics, and culture, or advertiser expectations, target audiences, and return on advertising spend, in those markets. This may cause us to expand into markets before we are able to offer a service and advertising platform that has been sufficiently localized for those markets or where those markets lack the necessary demand and infrastructure for long-term adoption of our services. In addition, as our international operations increase, or more of our revenue agreements or operating expenses are denominated in currencies other than the U.S. dollar, the impact of foreign currency fluctuations may become material. If we are unsuccessful in deploying, scaling, or managing our operations in international markets, our business, results of operations, financial condition, and prospects could be adversely affected.
Current wording
In addition, we plan to continue expanding our business operations outside the United States and offering content and advertising to Reddit users and advertisers in other languages and countries. We plan to continue to enter new international markets where we have limited or no experience in deploying our services or selling advertisements. In order to expand successfully, we need to offer content and products that are tailored to the interests of local Reddit users and the needs of local advertisers, each of which requires significant investment of time and resources. As we expand into new international markets, we may not yet understand the full scope of prospective users’ interests, demographics, and culture, or advertiser expectations, target audiences, and return on advertising spend, in those markets. This may cause us to expand into markets before we are able to offer a service and advertising platform that has been sufficiently localized for those markets or where those markets lack the necessary demand and infrastructure for long-term adoption of our services. In addition, as our international operations increase, or more of our revenue agreements or operating expenses are denominated in currencies other than the U.S. dollar, the impact of foreign currency fluctuations may become material. If we are unsuccessful in deploying, scaling, or managing our operations in international markets, our business, results of operations, financial condition, and prospects could be adversely affected.
Previous wording
•product or service changes we may make that change the size, frequency, or relative prominence of ads displayed on our platform or otherwise impact Redditor engagement with ads;
Current wording
•product or service changes we may make that change the size, frequency, or relative prominence of ads displayed on our platform or otherwise impact Reddit user engagement with ads;
Previous wording
•adverse legal developments relating to advertising, like those that constrain the use of certain advertising technologies or limit our ability to measure advertising effectiveness, including regulatory developments or litigation outcomes; and
Current wording
•adverse legal developments relating to advertising, like those that constrain the use of certain advertising technologies or limit our ability to measure advertising effectiveness, including regulatory developments or litigation outcomes;
Previous wording
Our ability to retain, increase, and engage Redditors and increase our revenue depends heavily on our ability to continue to evolve our existing products and services and to create successful new products and services. We have invested, and expect to continue to invest, in improvements to our platform, changes to our existing products and services, new and unproven products and services, including machine learning and AI, and other initiatives to generate revenue and increase our user base and user engagement. We have incorporated and may continue to incorporate AI into and across our platform. For example, in 2025, we began integrating AI search into the platform’s core search to further streamline the path from question to answer on Reddit. These development efforts may require significant investments in talent and infrastructure, including access to specialized resources such as graphical processing units. If we are unable to secure these resources on commercially reasonable terms, or if we are unable to continue developing and integrating advanced solutions at a pace that meets user expectations or competitive benchmarks, our market position and prospects could be adversely affected.
Current wording
Our ability to retain, increase, and engage Reddit users and increase our revenue depends heavily on our ability to continue to evolve our existing products and services and to create successful new products and services. We have invested, and expect to continue to invest, in improvements to our platform, changes to our existing products and services, new and unproven products and services, including machine learning and AI, and other initiatives to generate revenue and increase our user base and user engagement. We have incorporated and may continue to incorporate AI into and across our platform. For example, in 2025, we began integrating AI search into the platform’s core search to further streamline the path from question to answer on Reddit. These development efforts may require significant investments in talent and infrastructure, including access to specialized resources such as graphical processing units. If we are unable to secure these resources on commercially reasonable terms, or if we are unable to continue developing and integrating advanced solutions at a pace that meets user expectations or competitive benchmarks, our market position and prospects could be adversely affected.
Previous wording
Improvements to our platform, new products and services, and other initiatives may be costly, difficult to operate, and could divert management’s attention, and there is no guarantee that they will be positively received by Redditors or provide positive returns on our investment. For example, we are developing interactive ads on our developer platform, allowing advertisers to create custom experiences directly within an ad, but we cannot assure that Redditors or advertisers will effectively engage with this new ad feature. Further, new products or services that we develop may, in certain cases, require regulatory approval prior to launch, result in increased litigation, or subject us to new or enhanced governmental or regulatory requirements or scrutiny. There is no guarantee that we will be able to obtain any required regulatory approval, and our efforts to comply with these laws and regulations could be costly and divert management’s time and effort and may still not guarantee compliance. These new products and updates may also fail to increase the engagement of Redditors and our advertisers or partners, and may even result in short- or long-term decreases in such engagement by disrupting existing Redditor, advertiser, or partner behavior or by introducing performance and quality issues. In addition, in some cases, we may have little or no prior experience related to developing the technologies underlying the new products and services. If our new or enhanced products or services fail to engage, or meet the expectations of, Redditors or our advertisers or developers, or if our business plans or new approaches to monetization are unsuccessful, we may fail to attract new users, retain existing Redditors, or generate sufficient revenue, operating margin, or other value to justify our investments, and our business, results of operations, financial condition, and prospects could be harmed.
Current wording
Improvements to our platform, new products and services, and other initiatives may be costly, difficult to operate, and could divert management’s attention, and there is no guarantee that they will be positively received by Reddit users or provide positive returns on our investment. For example, we are developing interactive ads on our developer platform, allowing advertisers to create custom experiences directly within an ad, but we cannot assure that Reddit users or advertisers will effectively engage with this new ad feature. Further, new products or services that we develop may, in certain cases, require regulatory approval prior to launch, result in increased litigation, or subject us to new or enhanced governmental or regulatory requirements or scrutiny. There is no guarantee that we will be able to obtain any required regulatory approval, and our efforts to comply with these laws and regulations could be costly and divert management’s time and effort and may still not guarantee compliance. These new products and updates may also fail to increase the engagement of Reddit users and our advertisers or partners, and may even result in short- or long-term decreases in such engagement by disrupting existing Reddit user, advertiser, or partner behavior or by introducing performance and quality issues. In addition, in some cases, we may have little or no prior experience related to developing the technologies underlying the new products and services. If our new or enhanced products or services fail to engage, or meet the expectations of, Reddit users or our advertisers or developers, or if our business plans or new approaches to monetization are unsuccessful, we may fail to attract new users, retain existing Reddit users, or generate sufficient revenue, operating margin, or other value to justify our investments, and our business, results of operations, financial condition, and prospects could be harmed.
Previous wording
There can also be significant good faith differences in opinion as to whether particular content violates our site-wide rules or the rules of a specific community. We and our moderators may inconsistently apply the rules, or make decisions regarding content with which other Redditors disagree. From time to time, we and the moderators may need to make difficult moderation decisions that are highly publicized or controversial, including those that result in the departure or disengagement of large numbers of Redditors.
Current wording
There can also be significant good faith differences in opinion as to whether particular content violates our site-wide rules or the rules of a specific community. We and our moderators may inconsistently apply the rules, or make decisions regarding content with which other Reddit users disagree. From time to time, we and the moderators may need to make difficult moderation decisions that are highly publicized or controversial, including those that result in the departure or disengagement of large numbers of Reddit users.
Previous wording
•have an increased risk of reputational harm in the event that content or actions of some Redditors are deemed to be hostile or inappropriate, even if that content is permitted under our policies;
Current wording
•have an increased risk of reputational harm in the event that content or actions of some Reddit users are deemed to be hostile or inappropriate, even if that content is permitted under our policies;
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Previous report — wording carried elsewhere
•We have a history of net losses and we may not be able to maintain profitability in the future.
Previous report — wording carried elsewhere
•Our results of operations may fluctuate from quarter to quarter, which makes them difficult to predict.
Previous report — wording carried elsewhere
Our ability to efficiently execute our business strategy is dependent upon the continued service and performance of our senior management team and other key employees, particularly Steven Huffman, our co-founder, Chief Executive Officer, and
Previous report — wording carried elsewhere
Any of these or similar developments or changes to tax laws or rulings could adversely affect our effective tax rate and our results of operations and financial condition.
Previous report — wording carried elsewhere
Our Class B common stock has ten votes per share, our Class A common stock has one vote per share, and our Class C common stock has no votes per share. Because of the ten-to-one voting ratio between our Class B and Class A common stock, the holders of our Class B common stock collectively continue to control a significant percentage of the combined voting power of our common stock and therefore are able to control all matters submitted to our stockholders for approval until a substantial number of such outstanding shares of Class B common stock have converted into shares of our Class A common stock.
Previous report — wording carried elsewhere
•the requirement that a special meeting of stockholders may be called only by the chairperson of our Board of Directors (if any), our Chief Executive Officer, our Board of Directors pursuant to a resolution adopted by a majority of our Board of