Reddit vs. The Trade Desk: One's Revenue Growth Overtook the Other's Lead
Key Points
Reddit currently demonstrates a stronger trajectory in terms of overall revenue momentum, with its rapidly accelerating top-line figures overtaking The Trade Desk in the quarter ended Sept. 30, 2026.
Over the last eight comparable periods extending through the quarter ended Sept. 30, 2026, Reddit consistently demonstrated a pattern of rapid quarter-over-quarter expansion, whereas The Trade Desk maintained a much more moderate upward revenue trajectory.
Market observers and individual investors should monitor whether the newly established quarterly revenue gap between the two companies continues to widen or if the trend eventually reverses for The Trade Desk to reclaim its former top position.
- Motley Fool Issues Rare "Total Conviction" Buy Alert ›
Reddit: Rapid Expansion Reverses the Historical Revenue Deficit
Reddit (NYSE:RDDT) 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 (NASDAQ:TTD) 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 quarter | Reddit Revenue | Trade Desk Revenue |
|---|---|---|
| Q4 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.
Should you buy stock in Reddit right now?
Before you buy stock in Reddit, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Reddit wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $334,793!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,257,420!*
Now, it’s worth noting Stock Advisor’s total average return is 874% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of November 1, 2026.
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.
Recommended Articles
