What are the top risks for Reddit, Inc. (RDDT)?

The top risks identified in the 10-K filing are: Customer concentration and reliance on advertising revenue, Intense competition and evolving technology landscape, Cybersecurity threats and data security breaches. The company faces significant risks related to its heavy reliance on advertising revenue from a concentrated advertiser base and intense competition from established players and AI technologies. Cybersecurity threats also pose a high risk, potentially impacting user trust and financial performance.

RDDT - Comprehensive Filing Intelligence

FY 2025•10-K•Filed Feb 6, 2026

5.0/10

Filing Health:CAUTION

Notable concerns that warrant closer review

Executive Summary

Significant revenue growth of 69% driven by advertising and content licensing.. Turnaround from net loss to substantial net income, indicating improved profitability.. Significant non-cancelable purchase obligations totaling $372 million for cloud services, extending through 2028.. Revenue increased 69% year over year.

Top Concerns

!Amortization expense for acquired intangibles was immaterial, which can sometimes mask the true economic consumption of these assets.
!Significant non-cancelable purchase obligations totaling $372 million for cloud services, extending through 2028.
!Involvement in a securities class action lawsuit alleging misleading statements regarding AI features, with unspecified damages sought.
!Customer concentration and reliance on advertising revenue (high)
!Intense competition and evolving technology landscape (high)

Analysis Dimensions

Our 5-pass AI analysis examines this filing across multiple dimensions. Each dimension score is derived from direct analysis of SEC filing text.

Narrative Intelligence

7.0/10

Management tone is confidently optimistic with focus on increase in advertising revenue driven by an increase in impressions delivered.

Full analysis includes: tone changes vs prior quarter, margin driver breakdown, forward guidance analysis, strategic priorities.

Accounting Quality

7.0/10

Earnings quality shows moderate accounting practices.

Full analysis includes: reserve and allowance changes, non-recurring item analysis, stock-based compensation impact, disclosure concerns.

Hidden Liabilities

Off-balance sheet risk is moderate with $372,179,000 in identified exposure.

Full analysis includes: cloud and purchase commitments, VIE/SPE exposure, covenant compliance status, refinancing risk assessment.

Risk Landscape

3.0/10

Overall risk profile shows customer concentration and reliance on advertising revenue as primary concern.

Full analysis includes: 8 risk categories with severity, new vs escalated risks, management response assessment, risk trend analysis.

Segment Performance

7.0/10

Segment health analysis.

Full analysis includes: segment-by-segment revenue breakdown, geographic concentration risk, customer concentration analysis, segment margin trends.