AppLovin vs. Reddit: What Quarterly Revenue Growth Patterns Tell Investors About These Media Companies
Robert Izquierdo, The Motley Fool
Sun, September 6, 2026 at 9:49 PM GMT+3 4 min read
AppLovin: Observing the Steady Scaling of Revenue
AppLovin (NASDAQ:APP) primarily generates revenue by offering a specialized digital software suite featuring products like AppDiscovery, which effectively helps mobile application developers market their digital assets globally.
While dealing with multiple law firm inquiries regarding its recent business disclosures, it expanded its advertising tools to all e-commerce merchants and reported an operating margin of 78% for the quarter ended June 30, 2026.
Reddit: A Volatile but Growing Revenue Trajectory Over Time
Reddit (NYSE:RDDT) primarily generates revenue by managing an internet platform where everyday individuals form highly specific digital communities to discuss shared passions, exchange links, and consume multimedia content.
It recently rolled out new automated campaign management tools for advertisers and gained formal inclusion in the S&P 500 index, while reporting an operating margin of 29% for the quarter ended June 30, 2026.
Why Revenue Matters for Investors
Revenue helps everyday investors understand exactly how much gross capital a company successfully captures from its core commercial operations before necessary business expenses are calculated. This metric reveals whether an organization is successfully attracting customers and growing its overall business volume over time.
Comparing the Quarterly Revenue Trends for AppLovin and Reddit
Data source: Company filings. Data as of Sept. 4, 2026.
Foolish Take
Examining the revenue trends for AppLovin and Reddit reveal interesting insights about their businesses. Both depend on digital advertising income to fund their organizations. The ad industry is seasonal, with advertiser spending typically shooting up in the fourth quarter to capture consumers during the key holiday shopping period.
Reddit's sales show this industry trend as its annual income peaks in Q4. Every year, the sales drop in Q1, but display a consistent upward trajectory. This demonstrates the company's ability to capture ad dollars. Key to that success is growth in platform users.
In Q2 of 2026, Reddit's daily active users increased 18% year over year to 130.3 million. This helped it achieve $804.9 million in Q2 sales, which represents the eighth consecutive quarter of more than 60% year-over-year revenue growth.
While Reddit's performance is impressive, AppLovin is perhaps even more so. Until recently, it displayed the typical ad industry Q4 sales spike seen with Reddit. That changed in 2025.
Suddenly, AppLovin's revenue trend showed quarter-over-quarter growth, with Q1 of 2026 exceeding 2025's Q4, which is unusual. This illustrates the company's strength in the mobile advertising arena.
However, AppLovin's stock is down this year, dropping to a 52-week low of $297.50 in August because its sales growth decelerated. Wall Street analysts downgraded the stock as its Q2 revenue of $1.9 billion missed expectations.
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Robert Izquierdo has positions in Reddit. The Motley Fool has positions in and recommends Reddit. The Motley Fool has a disclosure policy.
AppLovin vs. Reddit: What Quarterly Revenue Growth Patterns Tell Investors About These Media Companies was originally published by The Motley Fool
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