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REDDIT INC Financials

RDDT
Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE December

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).

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 86 / 100
Financial Profile 86/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability
67

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 67/100, reflecting efficient cost management and pricing power. This is up from -43.1% the prior year.

Growth
100

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.

Leverage
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.

Liquidity
100

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.

Cash Flow
100

REDDIT INC converts 31.1% of revenue into free cash flow ($684.2M). This strong cash generation earns a score of 100/100.

Returns
51

REDDIT INC's ROE of 18.1% shows moderate profitability relative to equity, earning a score of 51/100. This is up from -22.7% the prior year.

Altman Z-Score Safe
52.23

REDDIT INC scores 52.23, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($26.0B) relative to total liabilities ($310.1M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Neutral
6/9

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.

Earnings Quality Cash-Backed
1.30x

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.

Key Financial Metrics

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Earnings & Revenue

Revenue
$2.2B
YoY+69.4%

REDDIT INC generated $2.2B in revenue in fiscal year 2025. This represents an increase of 69.4% from the prior year.

EBITDA
$457.9M
YoY+184.0%

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.

Net Income
$529.7M
YoY+209.4%

REDDIT INC reported $529.7M in net income in fiscal year 2025. This represents an increase of 209.4% from the prior year.

EPS (Diluted)
$2.62
YoY+178.7%

REDDIT INC earned $2.62 per diluted share (EPS) in fiscal year 2025. This represents an increase of 178.7% from the prior year.

Cash & Balance Sheet

Free Cash Flow
$684.2M
YoY+217.0%

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.

Cash & Debt
$953.6M
YoY+69.6%

REDDIT INC held $953.6M in cash against $0 in long-term debt as of fiscal year 2025.

Dividends Per Share
N/A
Shares Outstanding
N/A

Margins & Returns

Gross Margin
91.2%
YoY+0.7pp

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.

Operating Margin
20.1%
YoY+63.2pp

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.

Net Margin
24.1%
YoY+61.3pp

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.

Return on Equity
18.1%
YoY+40.8pp

REDDIT INC's ROE was 18.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 40.8 percentage points from the prior year.

Capital Allocation

R&D Spending
$783.1M
YoY-16.3%

REDDIT INC invested $783.1M in research and development in fiscal year 2025. This represents a decrease of 16.3% from the prior year.

Share Buybacks
N/A
Capital Expenditures
$6.7M
YoY+7.3%

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) N/A $0.80+77.8% $0.45+246.2% $0.13 N/A $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%+2.0pp -0.5%+30.8pp -31.3%
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

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.

REDDIT INC (RDDT) revenue grew by 69.4% year-over-year, from $1.3B to $2.2B in fiscal year 2025.

Yes, REDDIT INC (RDDT) reported a net income of $529.7M in fiscal year 2025, with a net profit margin of 24.1%.

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.

REDDIT INC (RDDT) had EBITDA of $457.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

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.

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.

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.

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.

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.

REDDIT INC (RDDT) generated $690.9M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

REDDIT INC (RDDT) had $3.2B in total assets as of fiscal year 2025, including both current and long-term assets.

REDDIT INC (RDDT) invested $6.7M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

REDDIT INC (RDDT) invested $783.1M in research and development during fiscal year 2025.

REDDIT INC (RDDT) had a current ratio of 11.56 as of fiscal year 2025, which is generally considered healthy.

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.

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.

REDDIT INC (RDDT) has an Altman Z-Score of 52.23, 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.

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.

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.

REDDIT INC (RDDT) scores 86 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.

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