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Reddit Posts Big Ad Gains as Data Licensing Stays Small and Concentrated

Markets sold the stock after earnings showed licensing made up only about 5 percent of revenue and relied on a few large buyers.

Overview

  • Reddit reported $805 million in revenue for Q2 2026 with advertising revenue rising 64% year over year to $762 million.
  • The company’s data‑licensing line grew 24% to $43 million but still represented roughly 5% of total revenue and sat inside “other” revenue.
  • OpenAI and Google are the two largest licensing customers, leaving the business highly concentrated and exposed to a major Google renewal reportedly worth about $60 million a year.
  • Investors repriced the stock sharply after the results, with the share price falling more than 20% as the market reset expectations for how large and diversified licensing could become.
  • Reddit is focused on converting weekly users into daily users to sustain ad growth while it seeks more licensing customers and clearer, durable contracts to reduce concentration risk.