Reddit, Inc. (RDDT) Factsheet
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Reddit, Inc. (RDDT) Stock Analysis
Analysis from 10-Q filed 2026-10-30. Data as of Q3 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 28.5%. FCF margin 38.8%. Source: 10-Q filed 2026-10-30.
| Metric | Value | Context |
|---|---|---|
| ROIC | 28.5% | Above industry average |
| FCF Margin | 38.8% | Strong cash generation |
ROIC 28.5% — Top 5% of sector peers. FCF margin 38.8% — Top 5%.
Explore Reddit, Inc.: Earnings History | Overview
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_section, get_metric_history, compare_companies, screen_filing_signals.
Profitability: Reddit, Inc. earns 28.5% ROIC, Top 5% in Technology
ROIC TTM 28.5%, sector median 4.4%, Top 5%. DuPont: NOPAT margin 29.0% × asset turnover 0.9x. Gross margin 91.5%. Operating margin 29.4%. Source: 10-Q filed 2026-10-30.
| Metric | RDDT | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 28.5% | Excellent | Above sector median of 4.4% |
| Return on Equity (ROE) | 31.8% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 91.5% | Excellent | Strong pricing power |
| Operating Margin | 29.4% | Excellent | Efficient operations |
Cash Flow: Reddit, Inc. generates $1.2B FCF at 38.8% margin, positive NaN/8 quarters
FCF TTM $1.2B. FCF margin 38.8%, Top 5%. OCF/Net income 1.2x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-10-30.
| Metric | RDDT | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 38.8% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $1.2B | Good | Positive cash generation |
| OCF/Net Income | 1.2x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet Analysis for Reddit, Inc.
Interest coverage 9.2x. Source: 10-Q filed 2026-10-30.
| Metric | RDDT | Rating | Context |
|---|---|---|---|
| Interest Coverage | 9.2x | Good | Comfortable debt service |
Valuation: Reddit, Inc. trades at 19.3x earnings
P/E 19.3x. EV/Sales 5.2x. FCF yield 6.3%. Source: 10-Q filed 2026-10-30.
| Metric | RDDT | Rating | Context |
|---|---|---|---|
| P/E Ratio | 19.3x | Adequate | Reasonable valuation |
| EV/Sales | 5.2x | Adequate | Growth premium priced in |
| FCF Yield | 6.3% | Good | Attractive cash return |
Capital Allocation: Reddit, Inc. returns 0.0% shareholder yield
Total shareholder yield 0.0%. Capital returned $0 TTM. Source: 10-Q filed 2026-10-30.
| 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) | 28.5% | Top 5% | 6.5x above |
| Free Cash Flow Margin | 38.8% | Top 5% | 3.8x above |
| Gross Margin | 91.5% | Top 25% | 1.8x above |
| Operating Margin | 29.4% | Top 10% | 6.2x above |
| Return on Equity (ROE) | 31.8% | Top 25% | 5.1x above |
| P/E Ratio | 19.3x | N/A | - |
Financial Scorecard
| Metric | RDDT | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 28.5% | Excellent | Top 5% of sector (median: 4.4%) |
| Free Cash Flow Margin | 38.8% | Excellent | Top 5% of sector (median: 10.3%) |
| Gross Margin | 91.5% | Excellent | Top 25% of sector (median: 51.0%) |
| P/E Ratio (Price-to-Earnings) | 19.3x | Adequate | Fair value |
| Free Cash Flow Yield | 6.3% | Good | Solid cash 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 28.5%. The 8-quarter median ROIC is 22.9% with a improving trend. Sector median 4.4%. Source: 10-Q filed 2026-10-30.
Q: What is Reddit, Inc.'s Free Cash Flow Margin?
Reddit, Inc. (RDDT) has a free cash flow margin of 38.8%, generating $1.2 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-10-30.
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 19.3x, which is above the sector median of N/A. EV/Sales 5.2x. FCF yield 6.3%. Source: 10-Q filed 2026-10-30.
Q: What is Reddit, Inc.'s revenue and earnings growth?
Reddit, Inc. (RDDT) grew revenue by 62.2% year-over-year. EPS +173.8% YoY. Source: 10-Q filed 2026-10-30.
Q: How does Reddit, Inc. compare to competitors in Technology?
Compared to other companies in Technology, Reddit, Inc. (RDDT) shows: ROIC 28.5%, sector median 4.4% (Top 5%). FCF margin 38.8%, sector median 10.3% (Top 5%). Gross margin 91.5%, 40.6pp 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 2026-10-30.
Data Source: Data sourced from 10-Q filed 2026-10-30. TTM metrics as of Q3 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.
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