Reddit, Inc.RDDT
NYSE•Communication Services•Internet Content & Information
Reddit, Inc. operates a digital community in the United States and internationally. 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.
Reddit, Inc. (RDDT) reported trailing twelve months revenue of $2.47B as of March 2026, a 70.6% increase year-over-year. Quarterly revenue reached $663.41M, reflecting continued top-line momentum.
Reddit, Inc. generated $707.54M in TTM net income, with quarterly EBITDA of $187.12M. The operating margin expanded from 1.0% to 27.6%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (27.6%) and net margin (30.7%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 6.7% a year ago, signaling stronger bottom-line efficiency.
RDDT trades at a P/E of 33.6x (a premium multiple) and a P/S of 9.6x. The price-to-book ratio of 7.5x indicates a significant premium over book value.
The company generated $311.16M in free cash flow over the trailing twelve months, a 145.8% increase year-over-year, indicating cash generation ability. The balance sheet shows $3.48B in total assets with no in long-term debt against $3.18B in stockholders equity. Data based on the most recent quarterly reports.
Competitive analysis based on 9 quarters of fundamental data
Operating margins are under pressure, averaging 12.6%. The business may lack pricing power or face rising costs.'
ROE is low or negative, suggesting limited competitive advantage or capital allocation challenges.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.
Data-driven red flags and warnings across 9 quarters
The company posted negative operating margins in recent quarters — core operations are unprofitable.
FCF covers net income by 1.3x on average — earnings are well-supported by cash generation.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares outstanding increased 16.5% — significant dilution, likely from stock compensation or capital raises.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation