Reddit shares rose more than 6% on Thursday, ending a four-session decline after Piper Sandler data showed stronger audience growth in August. Average users increased 8% month over month, the platform’s strongest monthly gain of 2026, following a 2% decline in July. Total audience growth accelerated to 18% year over year from 12.8%, led by international users, whose growth reached 29.3% compared with 5.2% in the US. Feed users added 79 million during the month, while Conversation users declined by 1 million. Piper Sandler also raised its third-quarter advertising spending growth estimate for Reddit by 30 basis points after August spending across its digital advertising dataset exceeded forecasts by 60 basis points. Reddit’s second-quarter revenue rose 61% to $805 million, while international revenue increased 84% to $167 million. A September change to Reddit’s Ads Manager forecasting methodology is expected to reduce reported audience estimates by about 20%, without indicating weaker underlying activity or affecting ad auctions, campaign optimization or delivery. Before Thursday’s rally, RDDT traded at $156.42 and remained down 35.3% for the year and 42.2% below its September 2025 52-week peak of $270.71. Reddit also faces enhanced obligations after the European Union classified it as a Very Large Online Platform under the Digital Services Act, with compliance measures due by December 2026 and potential penalties of up to 6% of worldwide annual revenue.