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RDDT · NYSE · United States · Services-Computer Processing & Data Preparation
In shortReddit, Inc. is profitable.
Financial health
Strong
Built from five areas over the last five annual reports. Tap an area to see the figures behind it.
| Operating marginShare of each sale left after running the business, before interest and tax. | 20.1% | 84/100 |
|---|---|---|
| Net marginShare of each sale left as profit after every cost, interest and tax. | 24.1% | 100/100 |
| Return on equityProfit earned on the money shareholders put in. Above 15% is strong. | 20.9% | 100/100 |
| Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge. | – | n/a |
Weight in the score: 25%
| Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash. | 11.56× | 100/100 |
|---|---|---|
| Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted. | – | n/a |
| Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable. | – | n/a |
| Interest coverageHow many times operating profit covers interest. Below 2 is risky. | – | n/a |
| Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress. | 15.96 | 100/100 |
Weight in the score: 25%
| Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt. | 31.1% | 100/100 |
|---|---|---|
| Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy. | 1.29× | 100/100 |
| Years with positive free cash flow (last 5) | 2 of 4 | 37/100 |
Weight in the score: 20%
| Profitable years (last 5) | 1 of 4 | 25/100 |
|---|---|---|
| Years of revenue decline (last 5) | 0 of 3 | 100/100 |
| Revenue growth volatility | 26.2% | 14/100 |
| Operating margin volatility | 26.7% | 0/100 |
Weight in the score: 20%
| Revenue growth, 3-year average | 48.9% | 100/100 |
|---|---|---|
| EPS growth, 3-year average | – | n/a |
Weight in the score: 10%
Fiscal year 2025 · change vs prior year
Annual figures as reported. Hover a bar or point for the exact value.
The last 4 fiscal years from the company's annual reports.
USD millions; negative values in parentheses.
| Fiscal year | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenue | 667 | 804 | 1,300 | 2,203 |
| Cost of revenue | 105 | 111 | 124 | 194 |
| Gross profit | 562 | 693 | 1,177 | 2,008 |
| Research & development | 365 | 438 | 935 | 783 |
| Operating income | (172) | (140) | (561) | 442 |
| Pre-tax income | (158) | (87) | (485) | 529 |
| Income tax | 0.6 | 3.8 | (0.9) | (1) |
| Net income | (159) | (91) | (484) | 530 |
| Diluted EPS | −$2.77 | −$1.54 | −$3.33 | $2.62 |
| Diluted shares (millions) | 57 | 59 | 145 | 202 |
The last 8 reported quarters (10-Q and 10-K filings), in USD millions. The fourth quarter is derived from the annual report.
The last 8 quarters of Reddit, Inc. are included in the Investor plan. Try free for 7 days →
15.96 Safe zone
Estimates bankruptcy risk from working capital, retained earnings, operating profit and equity. Above 2.6 is considered safe, below 1.1 signals distress.
7/9
Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.
All figures: SEC EDGAR. Ratios and scores are computed by Scorvest (see how it works). Information only, not investment advice. How it works
Latest annual report: Jun 30, 2026 · Data updated Jul 31, 2026