Reddit, Inc.
Rank #66HypergrowthRDDT · NYSE · Communication Services
Reddit, Inc. (RDDT) — Rank #66 by gross profitability (GP/assets 0.55) · ROE 16.1% · Piotroski F-Score 6 / 9.
As-of 2026-09-15 · 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
Price History
Company Snapshot
P/S is the primary valuation lens — earnings are reinvested, not available for P/E.
Market Cap
$30.62B
P/E (annual)
60.7
P/S (annual)
13.9
P/B
9.3
P/OCF (annual)
44.3
Shareholder Yield
-38.9%
Employees
2,555
Industry
Internet Content & Information
Exchange
NYSE
Signal Flags
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
3/3 passGrowth
1/2 passTerry Smith quality gate
Passes 3/5 Terry Smith thresholds1 of 5 threshold not computable from filed data.
What Growth Is Priced In
Implied revenue growth (10Y)
19.4%
The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).
Dilution drag: 38.9% — per-share value needs a total required return of 58.3% once share-count change is priced in.
vs. own 6-year median revenue growth: 61.7%
within its own historyCost-of-equity sensitivity (implied growth at different discount rates)
r = 8%
14.4%
r = 10% (base)
19.4%
r = 12%
23.7%
Net debt / market cap: -8.7%
Note: current FCF margin is 1.5σ above its historical mean — implied growth may understate valuation risk if the margin reverts.
Valuation History
Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.
P / S
Price / revenue per share
P / GP
Price / gross profit per share
Earnings bubble check
Current margins may be above sustainable levels — a P/E based on peak earnings can overstate cheapness.
Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.
Profitability
Gross profitability (GP / assets)
0.55
Primary signal (Novy-Marx).
5th of 13 SIC 7374 peers
Return on equity
16.1%
Gross margin
91.2%
2nd of 13 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)
—
Anti-fragile safety
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
0.11
1st of 11 SIC 7374 peers (best = lowest)
Current ratio
10.49×
1st of 13 SIC 7374 peers
Quick ratio
10.17×
Net cash
$2.79B
Cash & equivalents minus total debt.
Cash-flow health
Free cash flow
$684.17M
Operating cash flow minus capex.
Positive free cash flow
FCF / net income
0.29
Cash-backing of earnings.
FCF/NI divergence
Unfavorable divergence (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
15.6%
Stock-based comp intensity.
Piotroski F-Score
F-Score
6 / 9
Fundamental-strength score (0-9).