A Business at a Glance
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| Metric | TTM | FY2025 | FY2024 | FY2023 |
|---|---|---|---|---|
| Revenue | 2.2B | 2.2B | 1.3B | 804M |
| Net Income | 530M | 530M | -484M | -91M |
| EPS | $2.62 | $2.62 | $-3.33 | $-1.54 |
| Free Cash Flow | 684M | 684M | 216M | -85M |
| ROIC | 22.2% | 115.5% | -22.7% | -8.8% |
| Gross Margin | 69.0% | 69.0% | 64.7% | 59.3% |
| Debt/Equity | 0.01 | 0.01 | 0.01 | -0.06 |
| Dividends/Share | $0.00 | - | - | - |
| Operating Income | 442M | 442M | -561M | -140M |
| Operating Margin | 20.1% | 20.1% | -43.1% | -17.4% |
| ROE | 18.1% | 20.9% | -22.7% | - |
| Shares Outstanding | 202M | 202M | 145M | 181M |
| Metric | 2023 | |||
|---|---|---|---|---|
| Income Statement | ||||
| Revenue | 804M | 1.3B | 2.2B | 2.2B |
| Gross Margin | 59.3% | 64.7% | 69.0% | 69.0% |
| R&D | 438M | 935M | 783M | 783M |
| SG&A | 165M | 451M | 279M | 279M |
| EBIT | -140M | -561M | 442M | 442M |
| Op. Margin | -17.4% | -43.1% | 20.1% | 20.1% |
| Net Income | -91M | -484M | 530M | 530M |
| Net Margin | -11.3% | -37.2% | 24.1% | 24.1% |
| Non-Recurring | 0 | 0 | 0 | 0 |
| Returns on Capital | ||||
| ROIC | -8.8% | -22.7% | 115.5% | 22.2% |
| ROE | N/A | -22.7% | 20.9% | 18.1% |
| ROA | -5.7% | -20.7% | 19.0% | 16.4% |
| Cash Flow | ||||
| Op. Cash Flow | -75M | 222M | 691M | 691M |
| Free Cash Flow | -85M | 216M | 684M | 684M |
| Owner Earnings | -136M | -595M | 332M | 332M |
| CapEx | 9.7M | 6.2M | 6.7M | 6.7M |
| Maint. CapEx | 14M | 16M | 16M | 16M |
| Growth CapEx | 0 | 0 | 0 | 0 |
| D&A | 14M | 16M | 16M | 16M |
| CapEx/OCF | N/A | 2.8% | 1.0% | 1.0% |
| Capital Allocation | ||||
| Dividends Paid | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 |
| Buyback Yield | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 48M | 802M | 343M | 343M |
| Debt Repayment | 0 | 0 | 0 | 0 |
| Balance Sheet | ||||
| Net Debt | -1.2B | -1.8B | -2.5B | -930M |
| Cash & Equiv. | 401M | 562M | 954M | 954M |
| Long-Term Debt | N/A | N/A | N/A | 23M |
| Debt/Equity | -0.06 | 0.01 | 0.01 | 0.01 |
| Interest Coverage | N/A | N/A | N/A | N/A |
| Equity | -413M | 2.1B | 2.9B | 2.9B |
| Total Assets | 1.6B | 2.3B | 3.2B | 3.2B |
| Total Liabilities | 156M | 206M | 310M | 310M |
| Intangibles | 32M | 25M | 16M | 16M |
| Retained Earnings | -717M | -1.2B | -671M | -671M |
| Working Capital | 1.3B | 2.0B | 2.9B | 2.9B |
| Current Assets | 1.5B | 2.2B | 3.1B | 3.1B |
| Current Liabilities | 134M | 176M | 271M | 271M |
| Per Share Data | ||||
| EPS | -1.54 | -3.33 | 2.62 | 2.62 |
| Owner EPS | -0.75 | -4.09 | 1.64 | 1.64 |
| Book Value | -2.28 | 14.65 | 14.49 | 14.49 |
| Cash Flow/Share | -0.42 | 1.53 | 3.42 | 2.70 |
| Dividends/Share | N/A | N/A | N/A | 0.00 |
| Shares Out. | 180.9M | 145.4M | 202.2M | 202.2M |
| Valuation | ||||
| P/E Ratio | N/A | N/A | 86.2 | 57.0 |
| P/FCF | N/A | 116.9 | 66.7 | 44.1 |
| EV/EBIT | N/A | N/A | N/A | 66.2 |
| Price/Book | N/A | 11.8 | 15.6 | 10.3 |
| Price/Sales | N/A | 8.7 | 15.9 | 13.7 |
| FCF Yield | N/A | 0.9% | 1.5% | 2.3% |
| Market Cap | N/A | 25.2B | 45.6B | 30.2B |
| Avg. Price | N/A | 77.83 | 173.09 | 149.35 |
| Year-End Price | N/A | 173.54 | 225.77 | 149.35 |
Reddit, Inc. passes 7 of 9 quality checks, indicating strong fundamentals.
Reddit, Inc. trades at 57.0x trailing earnings, compared to its 15-year median P/E of 86.2x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 30.5x vs a median of 66.7x. The company's 5-year average ROIC is 28.0% with a gross margin of 64.3%. At current prices, the estimated annualized return to fair value is +124.3%.
Reddit, Inc. (RDDT) has a current P/E ratio of 57.0, compared to its historical median P/E of 86.2. The stock is currently considered Cheap based on its historical valuation range.
Reddit, Inc. (RDDT) has a 5-year average return on invested capital (ROIC) of 28.0%. This indicates strong capital allocation and a potential competitive advantage.
Reddit, Inc. (RDDT) has a market capitalization of $30.2B. It is classified as a large-cap stock.
Reddit, Inc. (RDDT) does not currently pay a regular dividend.
Based on historical P/E analysis, Reddit, Inc. (RDDT) appears cheap. The current P/E of 57.0 is 34% below its historical median of 86.2.
Reddit, Inc. (RDDT) operates in the Services-Computer Processing & Data Preparation industry, within the Technology sector.
Reddit, Inc. (RDDT) reported annual revenue of $2.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Reddit, Inc. (RDDT) has a net profit margin of 24.1%. This is a strong margin indicating high profitability.
Reddit, Inc. (RDDT) generated $684 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Reddit, Inc. (RDDT) has a debt-to-equity ratio of 0.01. This indicates a conservatively financed balance sheet.
Reddit, Inc. (RDDT) reported earnings per share (EPS) of $2.62 in its most recent fiscal year.
Reddit, Inc. (RDDT) has a return on equity (ROE) of 20.9%. This indicates the company generates strong returns for shareholders.
Reddit, Inc. (RDDT) has a 5-year average gross margin of 64.3%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 3 years of financial data for Reddit, Inc. (RDDT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Reddit, Inc. (RDDT) has a book value per share of $14.49, based on its most recent annual SEC filing.