**[Reddit Q2 Earnings Exceed Expectations, But AI's Impact on Search Traffic Causes Stock Price Plunge]** According to Deep Tide TechFlow on July 31, as reported by TechCrunch, Reddit released its Q2 2026 earnings report, with total revenue reaching $805 million, a year-over-year increase of 61%; net profit was $253 million, a year-over-year increase of 183%, both surpassing Wall Street expectations. The revenue guidance for Q3 also exceeded forecasts. However, CEO Steve Huffman warned in a letter to shareholders that there were significant fluctuations in search engine referral traffic this quarter, compounded by market concerns over the substitution effect of AI-powered search. As a result, Reddit's stock price plummeted more than 10% in after-hours trading. Data shows that Reddit's daily active users in the U.S. saw a slight quarter-over-quarter decline, dropping from 53.5 million in Q1 to 53.2 million. Additionally, uncertainty remains over whether Reddit's AI training data licensing agreement with Google will be renewed. Huffman stated that the company will ensure "maximization of Reddit's value" but did not provide a definitive answer.