REDDIT INC Financials
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
REDDIT INC has an operating margin of 20.1%, meaning the company retains $20 of operating profit per $100 of revenue. This strong profitability earns a score of 100/100, reflecting efficient cost management and pricing power. This is up from -43.1% the prior year.
REDDIT INC's revenue surged 69.4% year-over-year to $2.2B, reflecting rapid business expansion. This strong growth earns a score of 100/100.
REDDIT INC carries a low D/E ratio of 0.11, meaning only $0.11 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 11.56, REDDIT INC holds $11.56 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 100/100.
REDDIT INC converts 31.1% of revenue into free cash flow ($684.2M). This strong cash generation earns a score of 100/100.
REDDIT INC earns a strong 18.1% return on equity (ROE), meaning it generates $18 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 72/100.
REDDIT INC scores 53.51, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($26.7B) relative to total liabilities ($310.1M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
REDDIT INC passes 6 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), both operating efficiency signals pass.
For every $1 of reported earnings, REDDIT INC generates $1.30 in operating cash flow ($690.9M OCF vs $529.7M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
This page shows REDDIT INC (RDDT) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 4 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
REDDIT INC generated $2.2B in revenue in fiscal year 2025. This represents an increase of 69.4% from the prior year.
REDDIT INC's EBITDA was $457.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 184.0% from the prior year.
REDDIT INC generated $684.2M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 217.0% from the prior year.
REDDIT INC reported $529.7M in net income in fiscal year 2025. This represents an increase of 209.4% from the prior year.
REDDIT INC earned $2.62 per diluted share (EPS) in fiscal year 2025. This represents an increase of 178.7% from the prior year.
REDDIT INC held $953.6M in cash against $0 in long-term debt as of fiscal year 2025.
REDDIT INC's gross margin was 91.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 0.7 percentage points from the prior year.
REDDIT INC's operating margin was 20.1% in fiscal year 2025, reflecting core business profitability. This is up 63.2 percentage points from the prior year.
REDDIT INC's net profit margin was 24.1% in fiscal year 2025, showing the share of revenue converted to profit. This is up 61.3 percentage points from the prior year.
REDDIT INC's ROE was 18.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity.
REDDIT INC invested $783.1M in research and development in fiscal year 2025. This represents a decrease of 16.3% from the prior year.
REDDIT INC invested $6.7M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 7.3% from the prior year.
RDDT Income Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $725.6M+24.1% | $584.9M+17.1% | $499.6M+27.3% | $392.4M-8.3% | $427.7M+22.8% | $348.4M+23.9% | $281.2M+15.7% | $243.0M |
| Cost of Revenue | $58.7M+11.8% | $52.5M+14.4% | $45.9M+23.8% | $37.1M+16.5% | $31.8M-8.1% | $34.6M+17.4% | $29.5M+6.8% | $27.6M |
| Gross Profit | $666.9M+25.3% | $532.4M+17.3% | $453.7M+27.7% | $355.3M-10.3% | $395.9M+26.2% | $313.7M+24.6% | $251.7M+16.9% | $215.3M |
| R&D Expenses | $198.9M+1.3% | $196.4M-0.1% | $196.6M+2.8% | $191.3M+1.4% | $188.6M+13.2% | $166.7M+16.8% | $142.8M-67.3% | $437.0M |
| SG&A Expenses | $72.3M+5.2% | $68.8M0.0% | $68.8M-0.9% | $69.4M-6.0% | $73.8M+12.5% | $65.7M-4.1% | $68.5M-71.9% | $243.5M |
| Operating Income | $231.8M+67.3% | $138.5M+104.6% | $67.7M+1634.8% | $3.9M-92.6% | $52.9M+671.4% | $6.9M+122.1% | -$31.0M+94.7% | -$589.3M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $3.2M+254.1% | -$2.1M-375.2% | -$439K+74.5% | -$1.7M-64.1% | -$1.0M-3283.9% | -$31K+85.6% | -$216K-159.2% | $365K |
| Net Income | $251.6M+54.7% | $162.7M+82.2% | $89.3M+241.4% | $26.2M-63.2% | $71.0M+138.0% | $29.9M+395.6% | -$10.1M+98.2% | -$575.1M |
| EPS (Diluted) | $1.24+55.0% | $0.80+77.8% | $0.45+246.2% | $0.13-97.3% | $4.76+2875.0% | $0.16+366.7% | $-0.06+99.3% | $-8.19 |
RDDT Balance Sheet
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $3.2B+12.6% | $2.9B+9.3% | $2.6B+8.0% | $2.4B+4.3% | $2.3B+7.6% | $2.2B+4.6% | $2.1B+3.0% | $2.0B |
| Current Assets | $3.1B+13.2% | $2.8B+9.5% | $2.5B+8.6% | $2.3B+4.7% | $2.2B+7.9% | $2.1B+4.0% | $2.0B+3.2% | $1.9B |
| Cash & Equivalents | $953.6M+4.6% | $911.7M+24.2% | $734.1M+15.5% | $635.7M+13.1% | $562.1M+9.0% | $515.9M+10.2% | $468.0M-51.7% | $968.5M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $590.2M+21.0% | $487.6M+19.7% | $407.2M+24.9% | $326.1M-6.7% | $349.5M+23.1% | $283.9M+18.2% | $240.1M+11.5% | $215.3M |
| Goodwill | $42.2M0.0% | $42.2M0.0% | $42.2M0.0% | $42.2M0.0% | $42.2M0.0% | $42.2M+60.4% | $26.3M0.0% | $26.3M |
| Total Liabilities | $310.1M+16.7% | $265.7M+8.4% | $245.2M+11.5% | $219.9M+6.8% | $205.8M+6.1% | $194.1M+6.3% | $182.5M+2.8% | $177.6M |
| Current Liabilities | $271.3M+18.8% | $228.3M+8.3% | $210.8M+12.9% | $186.8M+6.1% | $176.0M+2.2% | $172.3M+8.0% | $159.5M+1.9% | $156.5M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $2.9B+12.2% | $2.6B+9.4% | $2.4B+7.7% | $2.2B+4.1% | $2.1B+7.7% | $2.0B+4.4% | $1.9B+3.0% | $1.8B |
| Retained Earnings | -$671.1M+27.3% | -$922.7M+15.0% | -$1.1B+7.6% | -$1.2B+2.2% | -$1.2B+5.6% | -$1.3B+2.3% | -$1.3B-0.8% | -$1.3B |
RDDT Cash Flow Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $266.8M+44.1% | $185.2M+66.3% | $111.3M-12.7% | $127.6M+41.8% | $90.0M+25.7% | $71.6M+152.3% | $28.4M-11.5% | $32.1M |
| Capital Expenditures | $3.2M+53.7% | $2.1M+307.5% | $505K-48.4% | $979K+16.3% | $842K-37.8% | $1.4M+12.6% | $1.2M-57.8% | $2.9M |
| Free Cash Flow | $263.6M+44.0% | $183.1M+65.2% | $110.8M-12.5% | $126.6M+42.0% | $89.2M+26.9% | $70.3M+158.5% | $27.2M-6.9% | $29.2M |
| Investing Cash Flow | -$205.8M-1346.4% | $16.5M+895.4% | -$2.1M+92.5% | -$27.5M+36.2% | -$43.1M-642.6% | $7.9M+101.5% | -$519.6M-555.4% | $114.1M |
| Financing Cash Flow | -$19.1M+20.8% | -$24.1M-120.5% | -$10.9M+58.8% | -$26.5M-3668.3% | -$703K+97.8% | -$31.6M-239.6% | -$9.3M-102.2% | $421.2M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
RDDT Financial Ratios
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 91.9%+0.9pp | 91.0%+0.2pp | 90.8%+0.3pp | 90.5%-2.0pp | 92.5%+2.5pp | 90.1%+0.5pp | 89.5%+0.9pp | 88.6% |
| Operating Margin | 31.9%+8.3pp | 23.7%+10.1pp | 13.6%+12.6pp | 1.0%-11.4pp | 12.4%+10.4pp | 2.0%+13.0pp | -11.0%+231.5pp | -242.5% |
| Net Margin | 34.7%+6.9pp | 27.8%+9.9pp | 17.9%+11.2pp | 6.7%-9.9pp | 16.6%+8.0pp | 8.6%+12.2pp | -3.6%+233.1pp | -236.7% |
| Return on Equity | 8.6%+2.4pp | 6.2%+2.5pp | 3.7%+2.6pp | 1.2%-2.2pp | 3.3%+1.8pp | 1.5% | N/A | N/A |
| Return on Assets | 7.8%+2.1pp | 5.7%+2.3pp | 3.4%+2.3pp | 1.1%-2.0pp | 3.0%+1.7pp | 1.4%+1.9pp | -0.5%+28.0pp | -28.5% |
| Current Ratio | 11.56-0.6 | 12.13+0.1 | 12.00-0.5 | 12.46-0.2 | 12.63+0.7 | 11.96-0.5 | 12.42+0.1 | 12.27 |
| Debt-to-Equity | 0.110.0 | 0.100.0 | 0.100.0 | 0.100.0 | 0.100.0 | 0.100.0 | 0.100.0 | 0.10 |
| FCF Margin | 36.3%+5.0pp | 31.3%+9.1pp | 22.2%-10.1pp | 32.3%+11.4pp | 20.8%+0.7pp | 20.2%+10.5pp | 9.7%-2.4pp | 12.0% |
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Frequently Asked Questions
What is REDDIT INC's annual revenue?
REDDIT INC (RDDT) reported $2.2B in total revenue for fiscal year 2025. This represents a 69.4% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is REDDIT INC's revenue growing?
REDDIT INC (RDDT) revenue grew by 69.4% year-over-year, from $1.3B to $2.2B in fiscal year 2025.
Is REDDIT INC profitable?
Yes, REDDIT INC (RDDT) reported a net income of $529.7M in fiscal year 2025, with a net profit margin of 24.1%.
What is REDDIT INC's earnings per share (EPS)?
REDDIT INC (RDDT) reported diluted earnings per share of $2.62 for fiscal year 2025. This represents a 178.7% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is REDDIT INC's EBITDA?
REDDIT INC (RDDT) had EBITDA of $457.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is REDDIT INC's gross margin?
REDDIT INC (RDDT) had a gross margin of 91.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is REDDIT INC's operating margin?
REDDIT INC (RDDT) had an operating margin of 20.1% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is REDDIT INC's net profit margin?
REDDIT INC (RDDT) had a net profit margin of 24.1% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is REDDIT INC's return on equity (ROE)?
REDDIT INC (RDDT) has a return on equity of 18.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is REDDIT INC's free cash flow?
REDDIT INC (RDDT) generated $684.2M in free cash flow during fiscal year 2025. This represents a 217.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is REDDIT INC's operating cash flow?
REDDIT INC (RDDT) generated $690.9M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are REDDIT INC's total assets?
REDDIT INC (RDDT) had $3.2B in total assets as of fiscal year 2025, including both current and long-term assets.
What are REDDIT INC's capital expenditures?
REDDIT INC (RDDT) invested $6.7M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does REDDIT INC spend on research and development?
REDDIT INC (RDDT) invested $783.1M in research and development during fiscal year 2025.
What is REDDIT INC's current ratio?
REDDIT INC (RDDT) had a current ratio of 11.56 as of fiscal year 2025, which is generally considered healthy.
What is REDDIT INC's debt-to-equity ratio?
REDDIT INC (RDDT) had a debt-to-equity ratio of 0.11 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is REDDIT INC's return on assets (ROA)?
REDDIT INC (RDDT) had a return on assets of 16.4% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is REDDIT INC's Altman Z-Score?
REDDIT INC (RDDT) has an Altman Z-Score of 53.51, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is REDDIT INC's Piotroski F-Score?
REDDIT INC (RDDT) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are REDDIT INC's earnings high quality?
REDDIT INC (RDDT) has an earnings quality ratio of 1.30x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is REDDIT INC?
REDDIT INC (RDDT) scores 95 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.