- The European Union designated Reddit as a Very Large Online Platform after its user base exceeded 45 million monthly active users in the bloc. Reddit must meet stricter anti-harm and systemic-risk requirements by the end of December 2026, with penalties reaching 6% of annual global revenue.
- Reddit’s Q2 revenue rose about 61% year over year to $805 million, net income more than doubled to about $253 million, and adjusted-EBITDA margin reached about 43%.
- U.S. daily active uniques declined sequentially as search-referral traffic and AI-driven search features changed, creating a user-growth concern despite record profits.
- RDDT shares fell as much as 3.4% intraday after the EU regulatory designation and later traded at $148.08, down 3.2%.
Quotes
“Shares of online community and discussion platform Reddit (NYSE:RDDT) fell 3.4% in the afternoon session after the European Union officially added the company to its strictest regulatory tier under the Digital Services Act because its user base exceeded 45 million monthly active users in the bloc.”
“Reddit reported strong financial results for the second quarter of 2026, with revenue increasing approximately 61% year-over-year to $805 million, marking its eighth consecutive quarter of over 60% growth, primarily from advertising revenue .”