Reddit (RDDT) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 3, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Jul 31, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the RDDT SEC filings page.
Reddit (RDDT) reported $2.8B in revenue over the twelve months to Jun 30, 2026, up 66.6% from the prior twelve months. This page shows its 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).
Reddit shifted from heavy investment and losses to cash-generating profitability, with growth now absorbing costs rather than requiring large reinvestment.
In FY2025, operating cash flow of$690.9M exceeded net income of$530M , indicating earnings were not merely accounting profit. Free cash flow of$684.2M sat close to operating cash flow despite only$6.7M of capital expenditure, revealing an asset-light cash model.
Gross margin edged from
FY2025 current ratio was 11.6x and debt-to-equity was 0.1x, pointing to limited near-term balance-sheet pressure. Liabilities of
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Reddit's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Reddit has an operating margin of 20.1%, meaning the company retains $20 of operating profit per $100 of revenue. This below-average margin results in a low score of 23/100, suggesting thin profitability after operating expenses. This is up from -43.1% the prior year.
Reddit's revenue surged 69.4% year-over-year to $2.2B, reflecting rapid business expansion. This strong growth earns a score of 97/100.
Reddit 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 80/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 11.56, Reddit holds $11.56 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 98/100.
Reddit converts 31.1% of revenue into free cash flow ($684.2M). This strong cash generation earns a score of 84/100.
Reddit generates a 18.1% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 24/100. This is up from -22.7% the prior year.
Reddit scores 56.94, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($28.4B) relative to total liabilities ($310.1M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Reddit passes 6 of 7 computable financial strength tests (2 of the nine could not be computed from available data). 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 generates $1.30 in operating cash flow ($690.9M OCF vs $530.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Earnings & Revenue
Reddit generated $804.9M in revenue in Q2 2026. This represents an increase of 61.1% from the same quarter a year earlier. Against the prior quarter it is up 21.3%.
Reddit's EBITDA was $236.0M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 229.4% from the same quarter a year earlier. Against the prior quarter it is up 26.1%.
Reddit reported $252.8M in net income in Q2 2026. This represents an increase of 183.2% from the same quarter a year earlier. Against the prior quarter it is up 24.0%.
Reddit earned $1.25 per diluted share (EPS) in Q2 2026. This represents an increase of 177.8% from the same quarter a year earlier. Against the prior quarter it is up 23.8%.
Cash & Balance Sheet
Reddit generated $260.7M in free cash flow in Q2 2026, representing cash available after capex. This represents an increase of 135.3% from the same quarter a year earlier. Against the prior quarter it is down 16.2%.
Reddit held $1.5B in cash as of Q2 2026; long-term debt is not reported for that period.
Not reported for Q2 2026.
Margins & Returns
Reddit's gross margin was 91.3% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is up 0.5 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.3 percentage points.
Reddit's operating margin was 28.8% in Q2 2026, reflecting core business profitability. This is up 15.2 percentage points from the same quarter a year earlier. Against the prior quarter it is up 1.2 percentage points.
Reddit's net profit margin was 31.4% in Q2 2026, showing the share of revenue converted to profit. This is up 13.5 percentage points from the same quarter a year earlier. Against the prior quarter it is up 0.7 percentage points.
Reddit's ROE was 7.7% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is up 4.0 percentage points from the same quarter a year earlier. Against the prior quarter it is up 1.3 percentage points.
Capital Allocation
Reddit invested $231.3M in research and development in Q2 2026. This represents an increase of 17.6% from the same quarter a year earlier. Against the prior quarter it is up 11.6%.
Reddit spent $234.6M on share buybacks in Q2 2026, returning capital to shareholders by reducing shares outstanding. Against the prior quarter it is up 4592.8%.
Reddit invested $1.1M in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 124.6% from the same quarter a year earlier. Against the prior quarter it is up 4.0%.
RDDT Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $804.9M+61.1% | $663.4M+69.1% | $725.6M+69.7% | $584.9M+67.9% | $499.6M+77.7% | $392.4M+61.5% | $427.7M+71.3% | $348.4M+67.9% |
| Cost of Revenue | $70.3M+53.2% | $56.3M+51.7% | $58.7M+84.4% | $52.5M+51.6% | $45.9M+55.6% | $37.1M+34.3% | $31.8M+10.1% | $34.6M+31.2% |
| Gross Profit | $734.6M+61.9% | $607.1M+70.9% | $666.9M+68.5% | $532.4M+69.7% | $453.7M+80.3% | $355.3M+65.0% | $395.9M+79.3% | $313.7M+73.2% |
| R&D Expenses | $231.3M+17.6% | $207.2M+8.4% | $198.9M+5.4% | $196.4M+17.8% | $196.6M+37.7% | $191.3M-56.2% | $188.6M+69.1% | $166.7M+53.9% |
| SG&A Expenses | $75.7M+10.1% | $65.5M-5.6% | $72.3M-2.0% | $68.8M+4.8% | $68.8M+0.4% | $69.4M-71.5% | $73.8M+52.8% | $65.7M+76.0% |
| Operating Income | $231.7M+242.2% | $182.9M+4586.4% | $231.8M+338.5% | $138.5M+1921.3% | $67.7M+318.1% | $3.9M+100.7% | $52.9M+1653.6% | $6.9M+135.0% |
| EBITDA | $236.0M+229.4% | $187.1M+2278.9% | $236.0M+313.8% | $142.4M+1216.1% | $71.6M+362.7% | $7.9M+101.3% | $57.0M+742.4% | $10.8M+166.4% |
| Income Tax | $4.0M+1008.2% | $1.7M+201.5% | $3.2M+406.5% | -$2.1M-6629.0% | -$439K-103.2% | -$1.7M-571.5% | -$1.0M-211.4% | -$31K-107.0% |
| Net Income | $252.8M+183.2% | $204.0M+679.8% | $251.9M+253.2% | $162.7M+444.9% | $89.3M+984.2% | $26.2M+104.5% | $71.3M+284.8% | $29.9M+504.3% |
| EPS (Basic) | $1.31+172.9% | $1.07+664.3% | $1.34+69.6% | $0.87+383.3% | $0.48+900.0% | $0.14+101.7% | $0.79+139.4% | $0.18+238.5% |
| EPS (Diluted) | $1.25+177.8% | $1.01+676.9% | $1.24 | $0.80+400.0% | $0.45+850.0% | $0.13 | $0.79 | $0.16 |
| Diluted Shares (Avg) | 202M+1.3% | 203M+0.6% | N/A | 203M+5.4% | 200M+21.4% | 201M | N/A | 192M |
Not reported in any period shown, so not listed: Interest Expense.
RDDT Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $3.6B+38.2% | $3.5B+43.0% | $3.2B+38.6% | $2.9B+32.4% | $2.6B+26.8% | $2.4B+20.9% | $2.3B+46.4% | $2.2B |
| Current Assets | $3.5B+40.0% | $3.4B+45.4% | $3.1B+41.0% | $2.8B+34.4% | $2.5B+27.7% | $2.3B+21.3% | $2.2B+50.3% | $2.1B |
| Cash & Equivalents | $1.5B+102.5% | $1.4B+116.2% | $953.6M+69.6% | $911.7M+76.7% | $734.1M+56.9% | $635.7M-34.4% | $562.1M+40.1% | $515.9M+18.8% |
| Short-Term Investments | $1.3B-2.0% | $1.4B+6.1% | $1.5B+19.1% | $1.3B+6.9% | $1.3B+7.7% | $1.3B+87.4% | $1.3B+57.5% | $1.2B |
| Accounts Receivable | $650.1M+59.6% | $522.9M+60.3% | $590.2M+68.8% | $487.6M+71.8% | $407.2M+69.6% | $326.1M+51.5% | $349.5M+42.5% | $283.9M |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $42.2M0.0% | $42.2M0.0% | $42.2M0.0% | $42.2M0.0% | $42.2M+60.4% | $42.2M+60.4% | $42.2M+60.4% | $42.2M |
| Total Liabilities | $350.9M+43.1% | $304.6M+38.5% | $310.1M+50.7% | $265.7M+36.9% | $245.2M+34.3% | $219.9M+23.8% | $205.8M-89.8% | $194.1M |
| Current Liabilities | $337.7M+60.2% | $265.9M+42.3% | $271.3M+54.1% | $228.3M+32.5% | $210.8M+32.2% | $186.8M+19.4% | $176.0M+31.8% | $172.3M |
| Non-Current Liabilities | $13.2M-61.7% | $38.7M+16.9% | $38.9M+30.3% | $37.4M+71.4% | $34.4M+49.4% | $33.1M+56.7% | $29.8M-98.4% | $21.8M |
| Total Equity | $3.3B+37.7% | $3.2B+43.4% | $2.9B+37.5% | $2.6B+32.0% | $2.4B+26.0% | $2.2B+20.6% | $2.1B+616.0% | $2.0B+534.4% |
| Retained Earnings | -$214.3M+80.3% | -$467.1M+60.2% | -$671.1M+44.1% | -$922.7M+27.5% | -$1.1B+16.6% | -$1.2B+9.1% | -$1.2B-67.6% | -$1.3B |
Not reported in any period shown, so not listed: Inventory, Long-Term Debt.
RDDT Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $261.9M+135.2% | $312.3M+144.8% | $266.8M+196.5% | $185.2M+158.5% | $111.3M+292.2% | $127.6M+297.9% | $90.0M+616.2% | $71.6M+1029.8% |
| Depreciation & Amortization | $4.3M+8.2% | $4.2M+6.2% | $4.2M-0.2% | $3.9M-1.7% | $3.9M+4.4% | $4.0M+5.9% | $4.2M+10.8% | $4.0M+20.7% |
| Stock-Based Compensation | $101.0M+13.3% | $68.3M-20.0% | N/A | $83.5M+11.7% | $89.1M+38.6% | $85.4M-85.2% | N/A | $74.8M+696.0% |
| Capital Expenditures | $1.1M+124.6% | $1.1M+11.3% | $3.2M+275.8% | $2.1M+52.1% | $505K-58.0% | $979K-65.7% | $842K-81.7% | $1.4M-65.6% |
| Free Cash Flow | $260.7M+135.3% | $311.2M+145.8% | $263.6M+195.7% | $183.1M+160.6% | $110.8M+307.7% | $126.6M+333.4% | $89.2M+504.6% | $70.3M+703.7% |
| Investing Cash Flow | $94.7M+4662.3% | $124.8M+553.9% | -$205.8M-377.6% | $16.5M+107.9% | -$2.1M+99.6% | -$27.5M-124.1% | -$43.1M-134.1% | $7.9M+208.5% |
| Financing Cash Flow | -$244.1M-2134.9% | -$16.3M+38.5% | -$19.1M-2612.2% | -$24.1M+23.9% | -$10.9M-17.3% | -$26.5M-106.3% | -$703K-126.0% | -$31.6M-14080.3% |
| Share Buybacks | $234.6M | $5.0M | N/A | N/A | $0 | $0 | N/A | N/A |
Not reported in any period shown, so not listed: Dividends Paid.
RDDT Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 91.3%+0.5pp | 91.5%+1.0pp | 91.9%-0.6pp | 91.0%+1.0pp | 90.8%+1.3pp | 90.5%+1.9pp | 92.5%+4.1pp | 90.1%+2.8pp |
| Operating Margin | 28.8%+15.2pp | 27.6%+26.6pp | 31.9%+19.6pp | 23.7%+21.7pp | 13.6%+24.6pp | 1.0% | 12.4%+11.2pp | 2.0%+11.4pp |
| Net Margin | 31.4%+13.5pp | 30.8%+24.1pp | 34.7%+18.0pp | 27.8%+19.2pp | 17.9%+21.5pp | 6.7% | 16.7%+9.2pp | 8.6%+12.1pp |
| Return on Equity | 7.7%+4.0pp | 6.4%+5.2pp | 8.6%+5.2pp | 6.2%+4.7pp | 3.7%+4.3pp | 1.2%+32.5pp | 3.4% | 1.5% |
| Return on Assets | 7.0%+3.6pp | 5.9%+4.8pp | 7.8%+4.7pp | 5.7%+4.3pp | 3.4%+3.9pp | 1.1%+29.6pp | 3.0%+1.9pp | 1.4% |
| Current Ratio | 10.49-1.5x | 12.73+0.3x | 11.56-1.1x | 12.13+0.2x | 12.00-0.4x | 12.46+0.2x | 12.63+1.6x | 11.96 |
| Debt-to-Equity | 0.110.0x | 0.100.0x | 0.110.0x | 0.100.0x | 0.100.0x | 0.100.0x | 0.10 | 0.10 |
| Asset Turnover | 0.220.0x | 0.190.0x | 0.220.0x | 0.200.0x | 0.19+0.1x | 0.160.0x | 0.180.0x | 0.16 |
| FCF Margin | 32.4%+10.2pp | 46.9%+14.6pp | 36.3%+15.5pp | 31.3%+11.1pp | 22.2%+12.5pp | 32.3%+20.3pp | 20.8%+29.7pp | 20.2%+25.8pp |
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Reddit RDDT | FY2025 | $2.2B | $530.0M | 24.1% | $28.4B | 68/100 |
| Baidu, Inc. BIDU | FY2025 | $18.5B | $799.0M | 4.3% | $28.7B | 34/100 |
| Pinterest, Inc. PINS | FY2025 | $4.2B | $416.9M | 9.9% | $10.9B | 70/100 |
| Zillow Group, Inc. Z | FY2025 | $2.6B | $23.0M | 0.9% | $6.2B | 57/100 |
| ZILLOW GROUP INC ZG | FY2025 | $2.6B | $23.0M | 0.9% | $6.3B | 57/100 |
Where Reddit Ranks
Frequently Asked Questions
What is Reddit's annual revenue?
Reddit (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's revenue growing?
Reddit (RDDT) revenue grew by 69.4% year-over-year, from $1.3B to $2.2B in fiscal year 2025.
Is Reddit profitable?
Yes, Reddit (RDDT) reported a net income of $530.0M in fiscal year 2025, with a net profit margin of 24.1%.
What is Reddit's EBITDA?
Reddit (RDDT) had EBITDA of $457.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Reddit's gross margin?
Reddit (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's operating margin?
Reddit (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's net profit margin?
Reddit (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's return on equity (ROE)?
Reddit (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's free cash flow?
Reddit (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's operating cash flow?
Reddit (RDDT) generated $690.9M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Reddit's total assets?
Reddit (RDDT) had $3.2B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Reddit's capital expenditures?
Reddit (RDDT) invested $6.7M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Reddit spend on research and development?
Reddit (RDDT) invested $783.1M in research and development during fiscal year 2025.
What is Reddit's current ratio?
Reddit (RDDT) had a current ratio of 11.56 as of fiscal year 2025, which is generally considered healthy.
What is Reddit's debt-to-equity ratio?
Reddit (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's return on assets (ROA)?
Reddit (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's P/E ratio?
Reddit (RDDT) trades at 32.6x earnings, its market capitalization divided by net income of $871.4M net income, trailing 12 months to June 30, 2026. The market capitalization is $28.4B as of Oct 3, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Reddit's price-to-sales ratio?
Reddit (RDDT) trades at 10.2x sales, its market capitalization divided by revenue of $2.8B revenue, trailing 12 months to June 30, 2026. The market capitalization is $28.4B as of Oct 3, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Reddit's Altman Z-Score?
Reddit (RDDT) has an Altman Z-Score of 56.94, 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's Piotroski F-Score?
Reddit (RDDT) has a Piotroski F-Score of 6 out of 7 computable signals; 2 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Reddit's earnings high quality?
Reddit (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?
Reddit (RDDT) scores 68 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.