What happened
Reddit (RDDT) is a community platform earning revenue from advertising and data licensing.
RDDTReddit·2026Q2 10-QPaidFiling score 58 · Moderate
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Reddit paid $4m of tax on $257m of pre-tax profit — 1.6%
Q2 2026 10-Q: revenue $805m (+61%), against which almost no tax was paid. The company writes that the valuation allowance on its US tax assets has a 'reasonable possibility' of being largely released within twelve months
Reddit (RDDT) reported revenue of $804.9m for the second quarter of 2026, up 61%, and net income of $252.8m. The income-tax note of the 10-Q filed on July 31 contains a sentence that will swing net income in coming quarters — about the write-down sitting on its U.S. deferred tax assets.
In plain terms
Reddit paid almost no tax against the profit it made this quarter. Past losses let it pay less for now. Once that cushion is used up, tax returns to a normal level.
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58 Filing score · Moderate
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FAQ
Is the release good news?
It reflects the accounting judgment that the company will keep earning profits, and net income in the release quarter rises sharply. But no cash comes in and it happens once. The company says the timing and amount depend on factors including the level of profitability it can forecast. What happens to the tax rate afterwards is explained in the subscriber section.
Why is the tax rate 1.6% now?
Past losses and stock-compensation deductions offset US taxable income, so the tax recorded is mostly foreign and state. The amounts are in the subscriber section.
What about stock compensation and buybacks?
Stock-based compensation as a share of revenue is set out in the subscriber section.
Where can I verify these numbers?
On SEC EDGAR: Reddit's Q2 2026 Form 10-Q (accession 0001713445-26-000100) — statement of operations, income-tax note, revenue table, equity note (repurchases), MD&A key metrics — and the income-tax note of the 2025 Form 10-K for the valuation-allowance amounts.
How aiSwingX™ wrote this
- We read the filing on SEC EDGAR in full — statements, notes, MD&A. Press releases and news are not used as sources.
- Every figure is reconciled to its location in the filing and to XBRL data. One mismatch means no publication.
- An editor reviews before publication; any later change is recorded in the revision history.
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Reddit Form 10-Q for Q2 2026: statement of operations (income tax), income-tax note (possible valuation-allowance release), revenue by type (advertising, other), stock-based compensation, share repurchase program, MD&A key metrics (DAUq, ARPU, gross margin); valuation-allowance amounts from the 2025 Form 10-K · SEC EDGAR · This article is not investment advice. Disclaimer