Reddit (RDDT) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

NYSE•Communication Services•Internet Content & Information

$102.53+6.38(0.07%)Market open

Market Cap

$18.52B

P/E

18.7x

P/S

6.0x

P/B

5.2x

Reddit, Inc. operates a digital community in the United States and internationally. The company's platform enables user to engage in conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share laughs, and find belonging. It also organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. Reddit, Inc. was founded in 2005 and is headquartered in San Francisco, California.

How this company scores

ExcellentMetricSide Score: 87/100

Strongest: Profitability (25/25); weakest: Balance Sheet & Red Flags (15/25).

Profitability25/25

Growth22/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality25/25

Strengths

Growing revenueRising free cash flowStrong marginsHigh ROE

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 18.7x5y range 18.7x – 163.3x

Currently below its 7-quarter median.

P/S · 6.0x5y range 6.0x – 23.9x

Currently below its 8-quarter median.

P/B · 5.2x5y range 1.8x – 17.4x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Share Dilution

Red Flag

Shares outstanding increased 32.4% — significant dilution, likely from stock compensation or capital raises.

Price & Volume

Market Cap $18.52B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $3.09B
Q. Revenue: $894.96M
TTM EBITDA: $924.92M
TTM Op. Income: $908.04M
Q. Op. Income: $261.59M
TTM Net Income: $991.70M
Q. Net Income: $283.26M
EPS: $1.47
Shares Out.: $192.60M

$3.09B in TTM revenue grew 62.2% YoY, reaching $894.96M last quarter. TTM EBITDA of $924.92M and TTM operating income of $908.04M show growth is flowing through to the bottom line. TTM net income of $991.70M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 91.5%
EBITDA Margin: 29.7%
Op. Margin: 29.2%
Net Margin: 31.7%

Op. margin of 29.2% is up 5.5% YoY — cost efficiency is improving. Net margin at 31.7% and gross margin of 91.5% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 2 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 18.7x
P/S Ratio: 6.0x
P/B Ratio: 5.2x

At 18.7x P/E, the stock trades within typical market levels. P/S of 6.0x and P/B of 5.2x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 86% — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $3.96B
Cash: $1.36B
Long-Term Debt: N/A
Book Value: $3.58B
D/E Ratio: N/A
Debt/EBITDA: 0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $363.80M
TTM Free Cash Flow: $1.20B
FCF Margin: 38.8%
FCF / Net Income: 1.2

TTM FCF of $1.20B on $363.80M in operating cash flow. The FCF / Net Income ratio of 1.2x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 7 consecutive quarters — an improving trend.