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RDDT

Reddit, Inc.

RDDT

Reddit, Inc. • NYSE
$216.99 ▲ 4.54% (+9.43)
Market Cap $41.12 B
52w High $282.95
52w Low $79.75
Dividend Yield 0%
P/E 99.54
Volume 2.35M
Outstanding Shares 189.50M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $584.911M ▲ $393.86M ▲ $162.663M ▲ 27.81% ▲ $0.87 ▲ $164.477M ▲
Q2-2025 $499.627M ▲ $386.016M ▲ $89.297M ▲ 17.873% ▲ $0.48 ▲ $71.645M ▲
Q1-2025 $392.361M ▼ $351.369M ▲ $26.158M ▼ 6.667% ▼ $0.14 ▼ $7.866M ▼
Q4-2024 $427.707M ▲ $342.99M ▲ $71.036M ▲ 16.609% ▲ $0.39 ▲ $57.033M ▲
Q3-2024 $348.351M $306.864M $29.853M 8.57% $0.17 $10.823M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $2.226B ▲ $2.876B ▲ $265.713M ▲ $2.611B ▲
Q2-2025 $2.06B ▲ $2.632B ▲ $245.222M ▲ $2.387B ▲
Q1-2025 $1.951B ▲ $2.437B ▲ $219.903M ▲ $2.217B ▲
Q4-2024 $1.841B ▲ $2.337B ▲ $205.846M ▲ $2.131B ▲
Q3-2024 $1.745B $2.172B $194.1M $1.978B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $162.663M ▲ $185.159M ▲ $16.513M ▲ $-24.079M ▼ $177.593M ▲ $183.101M ▲
Q2-2025 $89.297M ▲ $111.331M ▼ $-2.076M ▲ $-10.922M ▲ $98.333M ▲ $110.826M ▼
Q1-2025 $26.158M ▼ $127.578M ▲ $-27.502M ▲ $-26.491M ▼ $73.585M ▲ $126.599M ▲
Q4-2024 $71.036M ▲ $89.997M ▲ $-43.097M ▼ $-703K ▲ $46.197M ▼ $89.155M ▲
Q3-2024 $29.853M $71.622M $7.943M $-31.622M $47.943M $70.269M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Advertising
Advertising
 $650.00M ▲$360.00M ▼$460.00M ▲$550.00M ▲
Other Revenue
Other Revenue
 $60.00M ▲$30.00M ▼$30.00M ▲$40.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Reddit’s revenue has grown very quickly over the past few years, showing that advertisers and partners are increasingly willing to pay for access to its audience. However, the company is still clearly in the “investment” phase: operating losses and net losses remain sizable, and they actually widened in the most recent year as spending on people, product, and infrastructure ramped up. Gross margins are strong, which is typical for a digital platform, but the high cost base (mainly compensation and product development) keeps overall profitability in the red. In simple terms, the business is scaling up its top line well, but has not yet converted that growth into consistent earnings for shareholders.

Balance Sheet

Balance Sheet The balance sheet looks relatively solid for a newly public, high-growth internet company. Reddit holds a meaningful cash cushion and carries very little debt, which gives it financial flexibility and lowers financing risk. Total assets and shareholder equity have both increased over time, reflecting repeated investment into the platform and capital raised to support growth. The main watch point is how quickly the company draws down its cash as it continues to invest, versus how fast it can move toward sustainable profitability.

Cash Flow

Cash Flow The most recent year shows a noteworthy improvement in cash generation from the core business, with operating and free cash flow turning positive after several years of outflows. This suggests the underlying model can fund itself better than the accounting losses alone might imply, helped by relatively modest capital spending needs. Reddit appears to be an “asset‑light” business where most costs are people and software, not heavy equipment, which helps cash efficiency. The key question is whether this positive cash flow is durable as the company keeps investing in growth and new products.

Competitive Edge

Competitive Edge Reddit’s main strength is its community structure: millions of topic-based forums with highly engaged users and volunteer moderators. This creates a strong network effect and a deep archive of user-generated content that is hard for a new entrant to replicate quickly. At the same time, its moat is described as “narrow” because users and advertisers can also spend their time and money on other social, video, and search platforms. Reddit’s reliance on community goodwill, effective moderation, and a healthy relationship with third-party developers and AI partners is a key risk area: missteps here can quickly trigger user backlash or content quality issues. Overall, it occupies a unique niche, but it operates in a very competitive and fast-moving online ecosystem.

Innovation and R&D

Innovation and R&D Reddit is leaning heavily into innovation, especially around artificial intelligence and better tools for users, moderators, and advertisers. Projects like AI-powered moderation and “Reddit Answers” aim to make the platform easier to navigate and more valuable as a real-time knowledge base. The company is also experimenting with new ad formats, data insights for marketers, subscription products, and data-licensing deals with large AI companies, all of which can broaden revenue sources beyond traditional ads. The upside is meaningful if these initiatives gain traction, but there is execution risk and potential community pushback if monetization feels too aggressive or harms the user experience.

Summary

Overall, Reddit looks like a classic high-growth, still-early public tech platform: revenue and user value are rising quickly, but profitability is not yet in place. The company has a distinctive community-driven model and a deep well of content that support a real, if not unassailable, competitive edge. Its balance sheet and improving cash flows provide some breathing room to pursue ambitious AI and product initiatives. The big variables for the future are how well it can monetize its communities and data without alienating users, how effectively it can turn scale into sustainable profits, and how it navigates intense competition across social media, search, and AI-powered information tools.

NEWS

October 30, 2025 · 4:07 PM UTC

Reddit Announces Third Quarter 2025 Results

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October 28, 2025 · 10:00 AM UTC

INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Reddit, Inc. - RDDT

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October 23, 2025 · 10:00 AM UTC

INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Reddit, Inc. - RDDT

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October 18, 2025 · 10:00 AM UTC

INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Reddit, Inc. - RDDT

Read more

October 13, 2025 · 1:50 PM UTC

INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Reddit, Inc. - RDDT

Read more