RDDT · NYSE · Communication Services
Reddit, Inc. (RDDT) — Rank #64 by gross profitability (GP/assets 0.55) · ROE 16.1% · Piotroski F-Score 6 / 9.
As-of 2026-10-30 · CIK 0001713445 · all metrics point-in-time as of the filing date.
About
Reddit, Inc. operates a digital community in the United States and internationally.
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The company's platform enables user to engage in conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share laughs, and find belonging. It also 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. Reddit, Inc.
was founded in 2005 and is headquartered in San Francisco, California.
- Industry
- Internet Content & Information
- Sector
- Communication Services
- State
- DE
- Filer Category
- Large accelerated filer
- Fiscal Year End
- December 31
- Website
- redditinc.com
Company Snapshot
P/S is the primary valuation lens — earnings are reinvested, not available for P/E.
Market Cap
—
P/E (annual)
—
P/S (annual)
—
P/B
—
P/OCF (annual)
—
Shareholder Yield
—
Employees
2,555
Industry
Internet Content & Information
Exchange
NYSE
11/12
Flags passed
RDDT passes 11/12 quality flags
1 caution to review
- CAUTIONDilution above 2%
Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
- PASSGross margin holding
- PASSFCF not negative from investment
- PASSDisclosure consistent
- PASSRevenue not declining
- PASSOperating margin holding
- PASSFree cash flow intact
- PASSPasses safety gate
- PASSBalance sheet stable
- PASSNo competitive retreat
- PASSSBC not compressing margin
- PASSNo valuation convergence
Strengths Revenue growth accelerating · Deferred revenue growing · Sequential beat (rev + EPS)
A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
3/3 passGrowth
1/2 passRevenue growth and the path to profitability (margin trend) are the primary reads at this stage.
Profitability
Does it make money well?
No warning flags · GP/assets 0.55
Gross profitability (GP / assets)
0.55
Primary signal (Novy-Marx).
6th of 14 SIC 7374 peers
Return on equity
16.1%
Gross margin
91.2%
3rd of 14 SIC 7374 peers
Revenue growth (YoY)
69.4%
RPO growth (YoY)
-43.2%
Remaining performance obligations growth — RPO > revenue = forward demand building.
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|
| Revenue vs COGS | ||||
| Revenue vs OpEx | ||||
| Op. Income vs Revenue |
Growth
Revenue CAGR (3Y)
48.9%
Revenue CAGR (5Y)
—
Earnings CAGR (3Y)
—
FCF CAGR (3Y)
—
Cash Flow Health
Is the cash real?
No warning flags · FCF 29% above net income
Free cash flow
$684.17M
Operating cash flow minus capex.
Positive free cash flow
FCF vs net income
29.2%
(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.
FCF not below net income
Fails when free cash flow is below net income (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
15.6%
Stock-based comp intensity.
Balance Sheet Strength
Can it survive a storm?
Caution: Dilution above 2% · net cash $2.79B, F-Score 6/9
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
0.11
1st of 12 SIC 7374 peers (best = lowest)
Current ratio
10.49×
1st of 14 SIC 7374 peers
Quick ratio
10.17×
Net cash
$2.79B
Cash & equivalents minus total debt.
Piotroski F-Score
6 / 9
Fundamental-strength score (0-9).
Valuation
Is the price reasonable?
No warning flags
Capital allocation quality
Composite score
2.7 / 5
Lifecycle Phase History
Price History
Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports