Reddit vs. The Trade Desk: One’s Revenue Growth Overtook the Other’s Lead
Reddit: Rapid Expansion Reverses the Historical Revenue Deficit
Reddit (RDDT -29.22%) generates revenue by operating an online platform where users interact within specific passion-driven digital communities.
It officially joined the widely tracked S&P 500 index prior to the market open on Aug. 18, 2026, and it extended its existing cloud services agreement with Alphabet-owned Google Cloud through 2029 while simultaneously initiating tests for a mandatory logged-in experience targeting specific international user bases.
The Trade Desk: Maintaining Moderate and Steady Revenue Trends
The Trade Desk (TTD -5.90%) earns revenue by providing a self-service cloud platform for advertising buyers to precisely optimize digital ad campaigns.
It announced a plan to eliminate approximately 15% of its global workforce on Sept. 3, 2026, affecting more than 500 employees, to functionally restructure internal operational teams into smaller units, while its former finance director faced federal regulatory charges regarding alleged insider trading activities involving the company’s publicly traded securities.
Why Revenue Matters for Investors
Revenue represents the total money brought in by sales before any expenses are deducted. This metric helps investors measure a company’s overall size, market footprint, and long-term trajectory.
Reddit vs. Trade Desk Revenue over the last 8 quarters.
Reviewing the Comparative Quarterly Revenue for Reddit and Trade Desk
Calendar quarterReddit RevenueTrade Desk RevenueQ4 2024$427.7 million (quarter ended Dec. 31, 2024)$741.0 million (quarter ended Dec. 31, 2024)Q1 2025$392.4 million (quarter ended March 31, 2025)$616.0 million (quarter ended March 31, 2025)Q2 2025$499.6 million (quarter ended June 30, 2025)$694.0 million (quarter ended June 30, 2025)Q3 2025$584.9 million (quarter ended Sept. 30, 2025)$739.4 million (quarter ended Sept. 30, 2025)Q4 2025$725.6 million (quarter ended Dec. 31, 2025)$846.8 million (quarter ended Dec. 31, 2025)Q1 2026$663.4 million (quarter ended March 31, 2026)$688.9 million (quarter ended March 31, 2026)Q2 2026$804.9 million (quarter ended June 30, 2026)$715.1 million (quarter ended June 30, 2026)Q3 2026$895.0 million (quarter ended Sept. 30, 2026)Not yet reported
Data source: Financial Modeling Prep. Data as of Nov. 1, 2026.
Foolish Take
Reddit and The Trade Desk both rely on digital advertising to generate income. However, their revenue trends reveal sales growth is going in opposite directions for the two companies.
Back in 2024, Reddit’s revenue was well below The Trade Desk’s. Over the course of 2025, the provider of an online community platform saw sales soar. In its latest quarterly earnings report, for 2026’s third quarter, Reddit’s $895 million represented an impressive 53% year-over-year increase. This spectacular growth trend is due to its steadily rising consumer usage. For example, Q3’s daily active unique users increased 12% to 130.3 million.
In 2024, The Trade Desk was one of the largest platforms enabling businesses to execute digital advertising campaigns. But over time, advertisers had increasingly greater choices for where to do so. For instance, streaming giant Netflix ramped up its advertising offerings, and as Reddit’s results reveal, it was taking a greater share of advertiser’s dollars as well.
This has led to a decline in The Trade Desk’s sales growth. In Q4 of 2026, its $741 million represented a strong 22% year-over-year jump. By its latest quarterly earnings report, for Q2 2026, that growth had fallen to 3%. For Q3, the company expects revenue to drop year over year. The Trade Desk’s sales trend makes it clear the advertising giant’s business is struggling in the face of increased competition.
Robert Izquierdo has positions in Alphabet, Netflix, Reddit, and The Trade Desk. The Motley Fool has positions in and recommends Alphabet, Netflix, Reddit, and The Trade Desk. The Motley Fool has a disclosure policy.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.