Reddit Financials
Reddit (RDDT) reported $2.2B in revenue for fiscal year 2025, up 69.4% from the prior fiscal year. 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’s model became self-funding at scale as high gross margins and minimal reinvestment needs turned revenue growth into cash.
The least obvious shift is that cash generation arrived before GAAP profitability: FY2024 produced$215.8M of free cash flow despite a-$484.0M net loss. By FY2025, earnings quality caught up, with$530.0M of net income turning into$684.2M of free cash flow, confirming the business was already funding itself internally.
Revenue nearly doubled across FY2024-FY2025, which matters because a platform with already-high gross margins can let extra sales fall through quickly. That is visible in operating margin, which moved from
Capital intensity is unusually low: FY2025 free cash flow 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 26/100, 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 96/100.
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 79/100, 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 85/100.
Reddit generates a 18.1% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 27/100. This is up from -22.7% the prior year.
Reddit scores 57.85, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($28.9B) 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 $2.2B in revenue in fiscal year 2025. This represents an increase of 69.4% from the prior year.
Reddit'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 reported $530.0M in net income in fiscal year 2025. This represents an increase of 209.5% from the prior year.
Reddit 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
Reddit 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 held $953.6M in cash as of fiscal year 2025; long-term debt is not reported for that period.
Not reported for fiscal year 2025.
Margins & Returns
Reddit'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'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'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'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
Reddit invested $783.1M in research and development in fiscal year 2025. This represents a decrease of 16.3% from the prior year.
Reddit 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.
Not reported for fiscal year 2025.
RDDT Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 |
|---|---|---|---|---|---|
| Revenue | $2.8B | $2.2B+69.4% | $1.3B+61.7% | $804.0M+20.6% | $666.7M |
| Cost of Revenue | $237.8M | $194.2M+57.1% | $123.6M+11.3% | $111.0M+5.9% | $104.8M |
| Gross Profit | $2.5B | $2.0B+70.7% | $1.2B+69.8% | $693.0M+23.3% | $561.9M |
| R&D Expenses | $833.8M | $783.1M-16.3% | $935.2M+113.3% | $438.3M+20.0% | $365.2M |
| SG&A Expenses | $282.3M | $279.3M-38.1% | $451.4M+174.2% | $164.7M+14.5% | $143.8M |
| Operating Income | $785.0M | $442.0M+178.8% | -$560.6M-299.9% | -$140.2M+18.6% | -$172.2M |
| Income Tax | $6.9M | -$1.0M-10.7% | -$931K-124.5% | $3.8M+511.1% | $622K |
| Net Income | $871.4M | $530.0M+209.5% | -$484.0M-432.9% | -$90.8M+42.7% | -$158.6M |
| EPS (Diluted) | — | $2.62+178.7% | -$3.33 | -$1.54+44.4% | -$2.77 |
Not reported in any period shown, so not listed: Interest Expense.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
RDDT Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 |
|---|---|---|---|---|
| Total Assets | $3.2B+38.6% | $2.3B+46.4% | $1.6B | N/A |
| Current Assets | $3.1B+41.0% | $2.2B+50.3% | $1.5B | N/A |
| Cash & Equivalents | $953.6M+69.6% | $562.1M+40.1% | $401.2M-7.9% | $435.8M |
| Accounts Receivable | $590.2M+68.8% | $349.5M+42.5% | $245.3M | N/A |
| Goodwill | $42.2M0.0% | $42.2M+60.4% | $26.3M | N/A |
| Total Liabilities | $310.1M+50.7% | $205.8M-89.8% | $2.0B | N/A |
| Current Liabilities | $271.3M+54.1% | $176.0M+31.8% | $133.6M | N/A |
| Total Equity | $2.9B+37.5% | $2.1B+616.0% | -$412.9M-8.9% | -$379.1M |
| Retained Earnings | -$671.1M+44.1% | -$1.2B-67.6% | -$716.6M | N/A |
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.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 |
|---|---|---|---|---|---|
| Operating Cash Flow | $1.0B | $690.9M+211.1% | $222.1M+395.6% | -$75.1M+20.1% | -$94.0M |
| Capital Expenditures | $7.4M | $6.7M+7.3% | $6.2M-35.7% | $9.7M+56.0% | $6.2M |
| Free Cash Flow | $1.0B | $684.2M+217.0% | $215.8M+354.4% | -$84.8M+15.4% | -$100.3M |
| Investing Cash Flow | $30.2M | -$218.9M+50.3% | -$440.7M-1167.3% | $41.3M+105.1% | -$804.2M |
| Financing Cash Flow | -$303.5M | -$80.6M-121.2% | $379.5M+46898.4% | -$811K+78.6% | -$3.8M |
Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
RDDT Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 |
|---|---|---|---|---|
| Gross Margin | 91.2%+0.7pp | 90.5%+4.3pp | 86.2%+1.9pp | 84.3% |
| Operating Margin | 20.1%+63.2pp | -43.1%-25.7pp | -17.4%+8.4pp | -25.8% |
| Net Margin | 24.1%+61.3pp | -37.2%-25.9pp | -11.3%+12.5pp | -23.8% |
| Return on Equity | 18.1%+40.8pp | -22.7% | N/A | N/A |
| Return on Assets | 16.4%+37.1pp | -20.7%-15.0pp | -5.7% | N/A |
| Current Ratio | 11.56-1.1x | 12.63+1.6x | 11.08 | N/A |
| Debt-to-Equity | 0.110.0x | 0.10 | N/A | N/A |
| FCF Margin | 31.1%+14.5pp | 16.6%+27.2pp | -10.5%+4.5pp | -15.0% |
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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 Altman Z-Score?
Reddit (RDDT) has an Altman Z-Score of 57.85, 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 69 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.