Zacks Investment Research·18h ago
Reddit's AI Safety Drive Accelerates: Can User Trust Fuel Growth?RDDT ramps up AI safety with stronger bot detection and human verification as it works to protect authentic conversations and support future growth.
Reddit, Inc.(RDDT)Earnings, Financials & Key Ratios
RDDT•NYSE
$199.44
76.1× P/E·Price updated Jul 7, 2026
SectorCommunication ServicesIndustryInternet ServicesSub-IndustrySocial, Video, and Streaming Platforms
AboutReddit, Inc. operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California. Reddit, Inc. operates as a subsidiary of Advance Publications, Inc.Show more
- Revenue$2.2B+69.4%
- EBITDA$458M+184.0%
- Net Income$530M+209.4%
- EPS (Diluted)2.62+197.4%
- Gross Margin91.18%+0.8%
- EBITDA Margin20.79%+149.6%
- Operating Margin20.07%+146.5%
- Net Margin24.05%+164.6%
- ROE20.94%+137.1%
RDDT Price & Volume
Reddit, Inc. (RDDT) stock price & volume — 10-year historical chart
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Structural Margin Expansion Drives Rapid Profitability Scaling
Investment Thesis • Updated 2026Q1
VerdictPositive
Growth:Accelerating
Profitability:Strong
Financial:Fortress
Cash Flow:Robust
Primary Risk:Volunteer moderation ecosystem dependency
Key Thesis Takeaways
- Reddit is successfully leveraging its unique user-generated content ecosystem to drive 69.1% year-over-year revenue growth while simultaneously expanding operating margins to 27.6% as of 2026Q1.
- The company's transition to a self-funding model is supported by an asset-light architecture that requires less than 0.5% of revenue for capital expenditures.
- However, investors should monitor the sustainability of the volunteer-led moderation model and the impact of $68.3 million in quarterly stock-based compensation on long-term shareholder dilution.
Verdict Logic
the company's rapid shift to a 27.6% operating margin and its ability to generate $311.2 million in quarterly free cash flow suggest a sustainable path to long-term value creation.
RDDT Growth Metrics
Reddit, Inc. (RDDT) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years-
5 Years57.27%
3 Years48.93%
TTM70.64%
Profit CAGR
10 Years-
5 Years-
3 Years-
TTM505.01%
EPS CAGR
10 Years-
5 Years-
3 Years-
TTM452.43%
Return on Capital
10 Years-10%
5 Years-9.37%
3 Years-7.73%
Last Year17.24%
RDDT Recent Earnings
Reddit, Inc. (RDDT) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 8/12 qtrs (89%)●Beat Revenue 8/12 qtrs (89%)
Q2 2026Latest
Apr 30, 2026Metric
Actual
Est
EPS
$1.01+77.5%
$0.57
Rev
$663M+9.1%
$608M
Q1 2026
Feb 5, 2026Metric
Actual
Est
EPS
$1.24+32.3%
$0.94
Rev
$726M+9.0%
$666M
Q4 2025
Oct 30, 2025Metric
Actual
Est
EPS
$0.80-23.1%
$1.04
Rev
$585M+7.0%
$547M
Q3 2025
Jul 31, 2025Metric
Actual
Est
EPS
$0.45+136.6%
$0.19
Rev
$500M+17.4%
$426M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | Apr 30, 2026 | $1.01vs $0.57+77.5% | $663Mvs $608M+9.1% |
| Q1 2026 | Feb 5, 2026 | $1.24vs $0.94+32.3% | $726Mvs $666M+9.0% |
| Q4 2025 | Oct 30, 2025 | $0.80vs $1.04-23.1% | $585Mvs $547M+7.0% |
| Q3 2025 | Jul 31, 2025 | $0.45vs $0.19+136.6% | $500Mvs $426M+17.4% |
Based on last 12 quarters of dataView full earnings history →
Latest RDDT News
Recent stock market news and headlines for Reddit, Inc. (RDDT)
Seeking Alpha·1 day ago
Reddit: Primed To Go, As Tired Investors Give Up, Fundamentals Take OverReddit is delivering ~45% y/y revenue growth and is on track for $1.1B in free cash flow this year. RDDT trades at less than 1x adjusted PEG and 31x forward free cash flow, offering an attractive risk-reward profile. AI disruption fears are overblown; sustained high growth and advertiser demand reinforce RDDT's resilience and upside.
TechCrunch·1 day ago
Reddit is using LLMs to solve a problem LLMs largely createdIt's easier than ever for bad actors to spew spam across the internet as powerful large language models (LLMs) become effortlessly accessible. If you've spent about ten minutes on the internet in the last few years, you will know that this means spam and bot content have gotten become an even bigger problem than they already were.
Benzinga·5 days ago
Why Is Reddit Stock Pulling Back on Thursday?Reddit Inc. (NYSE:RDDT) stock is trading lower on Thursday, primarily due to profit-taking and a minor cooling period following a 12.5% single-day surge during the previous session.
24/7 Wall Street·5 days ago
Reddit Vs. Chewy: The Better Buy Stock In 2026Reddit (NYSE: RDDT | RDDT Price Prediction) and Chewy (NYSE: CHWY) just posted fresh quarters that read like opposite chapters of the same internet economy.
Peers Comparison
Key metrics vs top competitors for Reddit, Inc. (RDDT)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $199.44 | $38.19B | 76.12 | 69.4% | 24.05% | 20.94% | — | |
| $22.42 | $14.9B | 36.75 | 15.79% | 7.64% | 7.76% | — | |
| $4.65 | $7.87B | -17.22 | 10.63% | -6.72% | -18.93% | — | |
| $3.12 | $363.7M | -0.47 | -9.89% | -71.04% | -76.76% | — | |
| $39.18 | $9.11B | 16.46 | 0.22% | 18.83% | — | — | |
| $47.63 | $3.54B | -35.81 | -37.14% | 1.82% | 0.85% | — |
Compare RDDT vs Peers
Reddit, Inc. (RDDT) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
RDDT SEC Filings & Documents
Reddit, Inc. (RDDT) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
Apr 30, 2026·SEC
Material company update
Feb 5, 2026·SEC
Material company update
Oct 30, 2025·SEC
10-K Annual Reports
210-Q Quarterly Reports
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RDDT Frequently Asked Questions
Reddit, Inc. (RDDT) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Reddit, Inc.'s revenue?
Reddit, Inc. (RDDT) reported $2.47B in revenue for fiscal year 2025. This represents a 981% increase from $228.9M in 2020.
How fast is Reddit, Inc. growing?
Reddit, Inc. (RDDT) grew revenue by 69.4% over the past year. This is strong growth.
Is RDDT profitable?
Yes, Reddit, Inc. (RDDT) is profitable, generating $707.5M in net income for fiscal year 2025 (24.1% net margin).
Dividend & Returns
What is RDDT's return on equity?
Reddit, Inc. (RDDT) has a return on equity (ROE) of 20.9%. This is excellent, indicating efficient use of shareholder capital.
What is Reddit, Inc.'s free cash flow?
Reddit, Inc. (RDDT) generated $868.7M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.