Reddit, Inc. (RDDT)

Communication Services · Interactive Media & Services · US stock · S&P 500 component

$144.25 ▼ -6.01 (4.00%)

At close 23 Oct 2026 · USD · Volume 4,058,333

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Interactive chart Research report Forecast ranges Pro workspace SEC filings Historical data

Fair valueUndervalued

$171 +18.2% to fair value

$85fair band $145–$207$256

Day's range

$143.92 – $149.50

52-week range

$119.27 – $263.50

Red flags⚠ Heavy dilution⚠ Heavy dilution⚠ Heavy dilution⚠ Heavy dilution⚠ Heavy dilution⚠ Heavy dilution

About Reddit, Inc.

Reddit operates a social platform made up of thousands of topic-based communities where users post, comment and vote on content. Moderation is carried out largely by volunteer community members. The company earns most of its money from advertising shown alongside user content, and it also licenses its large body of user-generated text to technology firms for use in training artificial intelligence systems. Its audience is global, and activity is driven by user participation.

Revenue over the last twelve months was $2.8 billion, with growth of 48.9% a year over three years. The operating margin stands at 28.2%. The return on invested capital is shown as 141%. The company does not pay a dividend. Its X-Ray Score is 69 out of 100. These numbers describe past results and current financial position, and they are shown for reference only.

Price chart

Interactive chart Historical data & CSV

52-wk range $119.27 – $263.50Volume 4,058,333Daily, split-adjusted

Vitals

Market cap$29.1B

52-week range$119.27 – $263.50

Volume (last day)4,058,333

P/E (TTM)33.5

EBIT / EV yield3.0%

Free-cash-flow yield3.5%

Dividend yieldNo dividend

Revenue (TTM)$2.8B

Net income (TTM)$871M

Operating margin28.2%

Return on capital141.5%

Debt incl. leasesData missing

Cash & securities$2.8B

Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.

Fair value estimate

$171middle half of models $152 – $194

Undervalued +18.2% to fair value

Average of the 9 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Low, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.

Price $144

Undervalued < $145Fair $145 – $207Overvalued > $207

P/E multiple

$194

P/B multiple

$153

P/S multiple

$152

EV/EBITDA multiple

$205

EV/EBIT multiple · not used

$315

EV/revenue multiple

$152

10-year DCF, EBITDA exit

$162

5-year DCF, EBITDA exit

$206

10-year DCF, revenue exit

$145

5-year DCF, revenue exit

$165

10-year DCF, growth exit · not used

$57

5-year DCF, growth exit · not used

$55

Earnings power value · not used

$31

Growth the price implies

33.1%/yr

A model estimate, not a price target or recommendation. Inputs: risk-free 4.96%, equity risk premium 4.30% (Damodaran). How it works.

What this means

Strong business at an attractive price

Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.

Before you invest · decision checklist

I understand how this company makes money Business quality is average or better ✓ 74 The price is not above fair value $171 fair value Debt looks manageable Revenue has been growing 48.9% a year Profits are backed by cash There are no red flags 6 raised I know what share of my savings this would be

Ticked boxes are filled in from our data; the rest are yours to answer.

The five-lens scan

Every score explained in one sentence, ranked against Communication Services peers. Open a lens to see the numbers behind it.

Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data

Valuation Weak

43/100

Expensive against its sector on earnings and cash flow.

See the numbers →

EBIT / EV yield3.0%

Free-cash-flow yield3.5%

Fair value vs price1.2×

Growth Strong

92/100

Growing faster than most of its sector.

See the numbers →

Revenue growth (3y)48.9%

Growth consistency100%

Profitability Fair

64/100

Returns on capital are typical for its sector.

See the numbers →

Return on invested capital141.5%

Operating margin28.2%

Gross profitability69.9%

Financial health Strong

84/100

Balance sheet looks strong: debt is well covered.

See the numbers →

Piotroski F-Score7 / 9

Interest coverNo interest cost

Dividends None

–/100

Pays no dividend.

See the numbers →

Quarterly results: last 6 quarters

+61.5%

Mar '25

+77.7%

Jun '25

+67.9%

Sep '25

+69.7%

Dec '25

+69.1%

Mar '26

+61.1%

Jun '26

Revenue against the same quarter a year earlier. Latest quarter revenue $805M, diluted EPS $1.25.

Compare with peers

META Meta Platforms, Inc.58 GOOG Alphabet Inc.50

Other Interactive Media & Services companies by X-Ray Score.

SWOT analysis: Reddit, Inc.

Strengthsinside the company

Return on invested capital is 141.5%, against a median of 8.9% for sector peers.
Operating margin of 28.2% is well above the 18.8% median of sector peers, a sign of pricing power or lower costs.
Revenue has grown 48.9% a year over three years (median 4.7% for sector peers).
Operating profit covers interest 50x, so debt costs are a small drag.

Weaknessesinside the company

No clear weakness in the figures we track.

Opportunitiesvaluation and setting

Revenue growth picked up to 69.4% last year from 48.9% a year over three years.
The price is 18% below our fair value estimate, with the gap larger than the margin we allow for error.
Our Market Compass rates the backdrop for Communication Services as favourable.

Threatsvaluation and setting

Trades at 34.8x earnings, 70% above the 20.5x median of sector peers, so the price already assumes better results.
The price trend is down on the daily and weekly signals.
Our checks raised: Heavy dilution; Heavy dilution.

Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.

Compare RDDT with peers and sector

Medians of 17 Communication Services peers and of 17 Communication Services stocks in our universe. Largest peers (X-Ray Score): GOOG 50, META 58, NFLX 58, CCZ 48, DIS 56, VZ 49.

Metric	RDDT	Peers	Sector
X-Ray Score (out of 100)	69	51	51
Valuation	43	54	54
Growth	92	48	48
Profitability	64	52	52
Financial health	84	51	51
Dividends	–	47	47

Sector leaders: highest X-Ray Score in Communication Services

RDDT ranks #2 of 18 in Communication Services by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.

Company	X-Ray Score
#1 APP AppLovin Corp	72
#2 RDDT Reddit, Inc. (this stock)	69
#3 TMUS T-Mobile US, Inc.	69
#4 META Meta Platforms, Inc.	58
#5 NFLX Netflix Inc	58

Metric	RDDT	Peers	Sector
P/E ratio	34.8x	20.5x	20.5x
PEG ratio	–	0.46	0.46
Price / book	9.2x	2.6x	2.6x
Price / sales	10.9x	2.0x	2.0x
EV / EBITDA	34.4x	12.4x	12.4x
Price / free cash flow	29.8x	23.8x	23.8x
Dividend yield	–	1.8%	1.8%
Gap to our fair value	+15.5%	+12.2%	+12.2%

Metric	RDDT	Peers	Sector
Price change, 1 month	−5.1%	−5.0%	−5.0%
Price change, 3 months	−14.5%	−2.7%	−2.7%
Price change, 6 months	−5.7%	−4.1%	−4.1%
Price change, 1 year	−28.2%	+1.0%	+1.0%

Metric	RDDT	Peers	Sector
Market value	$30.4B	$89.1B	$89.1B
Revenue (last 12 months)	$2.8B	$48.4B	$48.4B
EBITDA (last 12 months)	$802M	$14.7B	$14.7B
Net income (last 12 months)	$871M	$8.6B	$8.6B
Free cash flow (last 12 months)	$1.0B	$6.3B	$6.3B

Metric	RDDT	Peers	Sector
Revenue growth, last year	+69.4%	+6.8%	+6.8%
Revenue growth, 3 years a year	+48.9%	+4.7%	+4.7%
EPS growth, 3 years a year	–	+36.6%	+36.6%
Free cash flow growth, 3 years a year	–	+11.5%	+11.5%
Dividend growth	–	−0.1%	−0.1%

Metric	RDDT	Peers	Sector
Gross margin	91.4%	58.5%	58.5%
EBITDA margin	28.8%	28.8%	28.8%
Operating margin	28.2%	18.8%	18.8%
Net margin	31.4%	9.8%	9.8%
Return on invested capital	141.5%	8.9%	8.9%
Return on equity	26.5%	17.1%	17.1%

Metric	RDDT	Peers	Sector
Net debt / EBITDA	–	1.4x	1.4x
Interest cover	50.0x	6.7x	6.7x
Current ratio	10.5x	1.1x	1.1x
Piotroski F-score (0 to 9)	7	6	6

Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.

Factor ratings for RDDT

Each factor is rated by where RDDT stands among the 18 Communication Services stocks in our universe.

Rating against the sector

Goodthe top third of these stocks

Averagethe middle third of these stocks

Badthe bottom third of these stocks

"Beats" is the share of those stocks it is ahead of.

Against its own history

The last columns set today's figure against the company's own median of its last five financial years:

▲ Betterbetter than its usual level

▼ Worseworse than its usual level

≈ In linewithin its usual range

For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.

In total: 10 Good · 4 Average · 5 Bad of 19 Growth: 2 · 0 · 0 Profitability: 4 · 1 · 0 Financial strength: 3 · 0 · 0 Valuation: 0 · 1 · 4 Cash flow: 1 · 2 · 0 Efficiency: 0 · 0 · 1

Factor	RDDT	Rating	Sector median	Own 5-year median	Against own history
Growth
Revenue growth, 3 years a year	+48.9%	Good beats 97%	+5.6%	–	–
Revenue growth, last year	+69.4%	Good beats 92%	+7.7%	+61.7%	▲ Better
Profitability
Gross margin	91.4%	Good beats 98%	47.1%	88.3%	≈ In line
Operating margin	28.2%	Good beats 75%	19.3%	-21.6%	▲ Better
Net margin	31.4%	Good beats 81%	10.6%	-17.5%	▲ Better
Return on invested capital	141.5%	Good beats 92%	10.4%	–	–
Return on equity	26.5%	Average beats 64%	17.9%	–	–
Financial strength
Interest cover	50.0x	Good beats 78%	11.8x	–	–
Current ratio	10.49	Good beats 97%	1.10	11.56	≈ In line
Piotroski F-score	7 / 9	Good beats 75%	6 / 9	–	–
Valuation
P/E ratio	34.8x	Bad beats 21%	20.8x	–	–
Price / book	9.2x	Bad beats 25%	2.8x	–	–
Price / sales	10.9x	Bad beats 8%	2.0x	–	–
EV / EBITDA	34.4x	Bad beats 9%	13.4x	–	–
Free cash flow yield	3.4%	Average beats 42%	3.9%	–	–
Cash flow
Free cash flow margin	36.7%	Good beats 91%	15.7%	3.0%	▲ Better
Cash from operations / net income	1.18	Average beats 37%	1.98	–	–
Accruals (lower is better)	−4.3%	Average beats 41%	−5.8%	–	–
Efficiency
Days sales outstanding	85 days	Bad beats 16%	47 days	98 days	▲ Better

These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.

Fundamentals checklist

● 9 Good · ● 3 Average · ● 1 Bad

Cash quality

Earnings backed by cashAverage

Free-cash-flow yieldAverage

Risk models

Altman Z''Good

Piotroski F-ScoreGood

Growth

Revenue growth (3y)Good

Growth consistencyGood

Balance sheet

Current ratioGood

Interest coverGood

Valuation

Fair value vs priceAverage

EBIT / EV yieldBad

Profitability

Return on invested capitalGood

Operating marginGood

Gross profitabilityGood

Each check is graded against the company's sector, not a fixed number. Checklist score 72/100.

Financials

	FY22	FY23	FY24	FY25
Revenue	$667M	$804M	$1.3B	$2.2B
Operating income	−$172M	−$140M	−$561M	$442M
Net income	−$159M	−$91M	−$484M	$530M
Operating cash flow	−$94M	−$75M	$222M	$691M
Operating margin	-25.8%	-17.4%	-43.1%	20.1%
Free cash flow	−$100M	−$85M	$216M	$684M
Diluted EPS	$-2.77	$-1.54	$-3.33	$2.62

Fiscal years, from SEC filings.

Technical summary

Daily

Strongly bearish

2 bullish · 2 neutral · 12 bearish

Weekly

Strongly bearish

1 bullish · 1 neutral · 8 bearish

Monthly

Strongly bearish

0 bullish · 1 neutral · 4 bearish

Moving averages (daily)

SMA 10	153.8	Bearish
EMA 10	152.1	Bearish
SMA 20	151.7	Bearish
EMA 20	152.7	Bearish
SMA 50	153.8	Bearish
EMA 50	155.3	Bearish
SMA 100	164.3	Bearish
EMA 100	159.4	Bearish
SMA 200	162.5	Bearish
EMA 200	164.1	Bearish

Oscillators (daily)

RSI (14)	41.06	Neutral
MACD (12, 26)	-0.76	Bearish
Momentum (12)	-5.54	Bearish
Stochastic %K (14)	1.57	Bullish
Williams %R (14)	-98.43	Bullish
CCI (20)	-95.36	Neutral

Pivot points (classic, last session)

136.7

140.3

142.3

Pivot

145.9

147.9

151.5

153.4

Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.

ETFs that hold RDDT

ETF	Share of the fund
ULTY YieldMax Ultra Option Income Strategy	2.92%
XOVR ERShares Private-Public Crossover	2.78%
CLSE Convergence Long/Short Equity	1.36%
VOX Vanguard Communication Services	1.07%
FCOM Fidelity MSCI Communication Services I...	0.99%
IWP iShares Russell Mid-Cap Growth	0.63%
FDG American Century Focused Dynamic Growt...	0.55%
VOT Vanguard Mid-Cap Growth	0.52%

The eight funds with the largest weight in RDDT among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.