Reddit, Inc. (RDDT) Factsheet
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Reddit, Inc. (RDDT) Stock Analysis
Analysis from 10-Q filed 2026-07-31. Data as of Q2 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 26.7%. FCF margin 36.7%. Source: 10-Q filed 2026-07-31.
| Metric | Value | Context |
|---|---|---|
| ROIC | 26.7% | Above industry average |
| FCF Margin | 36.7% | Strong cash generation |
ROIC 26.7% — Top 10% of sector peers. FCF margin 36.7% — Top 5%.
Explore Reddit, Inc.: Earnings History | Filings
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 26.7% ROIC, Top 10% in Technology
ROIC TTM 26.7%, sector median 3.7%, Top 10%. DuPont: NOPAT margin 28.0% × asset turnover 0.9x. Gross margin 91.4%. Operating margin 28.2%. Source: 10-Q filed 2026-07-31.
| Metric | RDDT | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 26.7% | Excellent | Above sector median of 3.7% |
| Return on Equity (ROE) | 30.2% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 91.4% | Excellent | Strong pricing power |
| Operating Margin | 28.2% | Excellent | Efficient operations |
Cash Flow: Reddit, Inc. generates $1.0B FCF at 36.7% margin, positive NaN/8 quarters
FCF TTM $1.0B. FCF margin 36.7%, Top 5%. OCF/Net income 1.2x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-07-31.
| Metric | RDDT | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 36.7% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $1.0B | 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 8.3x. Source: 10-Q filed 2026-07-31.
| Metric | RDDT | Rating | Context |
|---|---|---|---|
| Interest Coverage | 8.3x | Good | Comfortable debt service |
Valuation Analysis for Reddit, Inc.
Source: 10-Q filed 2026-07-31.
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 26.7% | Top 10% | 7.2x above |
| Free Cash Flow Margin | 36.7% | Top 5% | 3.6x above |
| Gross Margin | 91.4% | Top 25% | 1.8x above |
| Operating Margin | 28.2% | Top 10% | 6.5x above |
| Return on Equity (ROE) | 30.2% | Top 25% | 5.7x above |
Financial Scorecard
| Metric | RDDT | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 26.7% | Excellent | Top 10% of sector (median: 3.7%) |
| Free Cash Flow Margin | 36.7% | Excellent | Top 5% of sector (median: 10.3%) |
| Gross Margin | 91.4% | Excellent | Top 25% of sector (median: 50.5%) |
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 26.7%. The 8-quarter median ROIC is 17.0% with a improving trend. Sector median 3.7%. Source: 10-Q filed 2026-07-31.
Q: What is Reddit, Inc.'s Free Cash Flow Margin?
Reddit, Inc. (RDDT) has a free cash flow margin of 36.7%, generating $1.0 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-07-31.
Q: What is Reddit, Inc.'s P/E ratio and how does it compare to peers?
Reddit, Inc. (RDDT) Source: 10-Q filed 2026-07-31.
Q: What is Reddit, Inc.'s revenue and earnings growth?
Reddit, Inc. (RDDT) grew revenue by 66.6% year-over-year. EPS +282.6% YoY. Source: 10-Q filed 2026-07-31.
Q: How does Reddit, Inc. compare to competitors in Technology?
Compared to other companies in Technology, Reddit, Inc. (RDDT) shows: ROIC 26.7%, sector median 3.7% (Top 10%). FCF margin 36.7%, sector median 10.3% (Top 5%). Gross margin 91.4%, 41.0pp 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 2026-07-31.
Data Source: Data sourced from 10-Q filed 2026-07-31. TTM metrics as of Q2 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.