Reddit, Inc. (RDDT) Factsheet
Reddit, Inc. (RDDT) Stock Analysis
Analysis from 10-Q filed 2025-10-31. Data as of Q1 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 23.1%. FCF margin 35.1%. D/E 0.0x. Source: 10-Q filed 2025-10-31.
| Metric | Value | Context |
|---|---|---|
| ROIC | 23.1% | Above industry average |
| FCF Margin | 35.1% | Strong cash generation |
| Debt/Equity | 0.0x | Conservative leverage |
ROIC 23.1% — Top 25% of sector peers. FCF margin 35.1% — Top 10%.
Explore Reddit, Inc.: Earnings History | Filings | ROIC Analysis
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for RDDT: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: Reddit, Inc. earns 23.1% ROIC, Top 25% in Technology
ROIC TTM 23.1%, sector median 4.6%, Top 25%. DuPont: NOPAT margin 25.0% × asset turnover 0.8x. Gross margin 91.4%. Operating margin 25.1%. Source: 10-Q filed 2025-10-31.
| Metric | RDDT | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 23.1% | Excellent | Above sector median of 4.6% |
| Return on Equity (ROE) | 26.6% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 91.4% | Excellent | Strong pricing power |
| Operating Margin | 25.1% | Excellent | Efficient operations |
Cash Flow: Reddit, Inc. generates $868.7M FCF at 35.1% margin, positive NaN/8 quarters
FCF TTM $868.7M. FCF margin 35.1%, Top 10%. OCF/Net income 1.2x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-31.
| Metric | RDDT | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 35.1% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $868.7M | Good | Positive cash generation |
| OCF/Net Income | 1.2x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Reddit, Inc. at 0.0x leverage
Debt/Equity 0.0x. Source: 10-Q filed 2025-10-31.
| Metric | RDDT | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Valuation: Reddit, Inc. trades at 38.9x earnings
P/E 38.9x. EV/Sales 10.2x. FCF yield 3.2%. Source: 10-Q filed 2025-10-31.
| Metric | RDDT | Rating | Context |
|---|---|---|---|
| P/E Ratio | 38.9x | Adequate | Premium valuation |
| EV/Sales | 10.2x | Warning | Growth premium priced in |
| FCF Yield | 3.2% | Adequate | Lower cash yield |
Capital Allocation: Reddit, Inc. returns 0.0% shareholder yield
Total shareholder yield 0.0%. Capital returned $0 TTM. Source: 10-Q filed 2025-10-31.
| Metric | RDDT | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.0% | Warning | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $0 | Adequate | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 23.1% | Top 25% | 5.0x above |
| Free Cash Flow Margin | 35.1% | Top 10% | 4.1x above |
| Gross Margin | 91.4% | Top 25% | 1.8x above |
| Operating Margin | 25.1% | Top 25% | 5.2x above |
| Return on Equity (ROE) | 26.6% | Top 25% | 5.2x above |
| P/E Ratio | 38.9x | N/A | - |
Financial Scorecard
| Metric | RDDT | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 23.1% | Excellent | Top 25% of sector (median: 4.6%) |
| Free Cash Flow Margin | 35.1% | Excellent | Top 10% of sector (median: 8.5%) |
| Gross Margin | 91.4% | Excellent | Top 25% of sector (median: 51.0%) |
| Debt to Equity Ratio | 0.0% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 38.9x | Adequate | High expectations priced in |
| Free Cash Flow Yield | 3.2% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is Reddit, Inc.'s Return on Invested Capital (ROIC)?
Reddit, Inc. (RDDT) has a trailing twelve-month Return on Invested Capital (ROIC) of 23.1%. Sector median 4.6%. Source: 10-Q filed 2025-10-31.
Q: What is Reddit, Inc.'s Free Cash Flow Margin?
Reddit, Inc. (RDDT) has a free cash flow margin of 35.1%, generating $868.7 million in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-31.
Q: What is Reddit, Inc.'s P/E ratio and how does it compare to peers?
Reddit, Inc. (RDDT) trades at a P/E ratio of 38.9x, which is above the sector median of N/A. EV/Sales 10.2x. FCF yield 3.2%. Source: 10-Q filed 2025-10-31.
Q: What is Reddit, Inc.'s revenue and earnings growth?
Reddit, Inc. (RDDT) grew revenue by 70.6% year-over-year. EPS +387.5% YoY. Source: 10-Q filed 2025-10-31.
Q: How does Reddit, Inc. compare to competitors in Technology?
Compared to other companies in Technology, Reddit, Inc. (RDDT) shows: ROIC 23.1%, sector median 4.6% (Top 25%). FCF margin 35.1%, sector median 8.5% (Top 10%). Gross margin 91.4%, 40.4pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with Reddit, Inc.?
No quantitative warning flags fired for Reddit, Inc. (RDDT) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-31.
Data Source: Data sourced from 10-Q filed 2025-10-31. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.