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Financial statements

Reddit, Inc. financial statements

Income statement, balance sheet and cash flow statement for the last 4 fiscal years, taken from the XBRL data Reddit, Inc. files with the SEC in its annual reports.

In USD millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

FY2022FY2024FY2024FY2025
Revenue6678041,3002,203
Cost of revenue105111124194
Gross profit5626931,1772,008
Research and development365438935783
Selling and marketing225230351504
General and administrative144165451279
Operating income-172-140-561442
Other non-operating income14.253.175.486.7
Pre-tax income-158-87-485529
Income tax0.623.8-0.93-1.03
Net income-159-90.8-484530
EBITDA-164-126-545458
EPS, basic-2.77-1.54-3.332.84
EPS, diluted-2.77-1.54-3.332.62
Shares, basic (weighted)57.359.1145186
Shares, diluted (weighted)57.359.1145202

Balance sheet

FY2022FY2024FY2024FY2025
Cash and equivalents436401562954
Short-term investments8121,2791,523
Receivables245350590
Other current assets1.592.2869
Total current assets1,4802,2233,136
Property, plant and equipment14.912.712.7
Lease right-of-use assets2423.220.8
Goodwill26.342.242.2
Intangible assets32.125.415.5
Other non-current assets19.49.712
Total assets1,5962,3373,239
Accounts payable46.545.462.9
Accrued liabilities83.3124201
Deferred revenue7.2514.818
Total current liabilities134176271
Lease liabilities2220.616.2
Other non-current liabilities0.299.2622.7
Total liabilities156206310
Paid-in capital3033,3323,596
Retained earnings-717-1,201-671
Other comprehensive income0.810.024.36
Shareholders' equity-379-4132,1312,929
Total equity-379-4132,1312,929
Total liabilities and equity1,5962,3373,239

Cash flow statement

FY2022FY2024FY2024FY2025
Net income-159-90.8-484530
Depreciation and amortization813.715.615.9
Stock-based compensation55.347.6802343
Deferred income tax-2.08-0.09-2.12-4.63
Change in receivables-30.2-53.3-104-241
Change in payables10.912.5-0.5718.2
Cash from operations-94-75.1222691
Capital expenditures-6.23-9.72-6.25-6.71
Acquisitions-42.20-17.10
Purchases of investments-1,431-1,260-1,997-2,298
Sales and maturities of investments6741,2731,5742,066
Cash from investing-80441.3-441-219
Stock issued7.038.438925.1
Cash from financing-3.78-0.81380-80.6
Net change in cash-902-34.6161391
Free cash flow-100-84.8216684

Key metrics

Worked out from the statements above. Latest values use the trailing twelve months to June 30, 2026; growth uses fiscal years. Valuation uses the share price of $149.84 on September 25, 2026.

Profitability

MetricValueHow it is calculated
Gross margin91.4%Gross profit / revenue.
Operating margin28.2%Operating income / revenue.
EBITDA margin28.8%EBITDA (operating income + depreciation and amortization) / revenue.
Pre-tax margin31.6%Pre-tax income / revenue.
Net margin31.3%Net income / revenue.
FCF margin36.7%Free cash flow (cash from operations - capital expenditures) / revenue.
Operating cash flow margin36.9%Cash from operations / revenue.
Effective tax rate0.8%Income tax / pre-tax income, when pre-tax income is positive.
Return on equity (ROE)26.5%Net income / average shareholders' equity (opening and closing). Not shown when equity is negative.
Return on assets (ROA)24.0%Net income / average total assets.
Return on invested capital (ROIC)43.3%Approximation: operating income x (1 - tax rate) / average (total debt + equity - cash). Tax rate is the effective rate when between 0% and 50%, else 21%.
R&D / revenue30.0%Research and development expense / revenue.
Stock-based pay / revenue12.2%Stock-based compensation (from the cash flow statement) / revenue.
Capex / revenue0.3%Capital expenditures / revenue.
D&A / revenue0.6%Depreciation and amortization / revenue.

Growth

MetricValueHow it is calculated
Revenue growth, 1y69.4%Revenue vs the same period a year earlier. Only from a positive base.
Revenue CAGR, 3y48.9%Compound annual growth of revenue over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Gross profit growth, 1y70.7%Gross profit vs the same period a year earlier. Only from a positive base.
Gross profit CAGR, 3y52.9%Compound annual growth of gross profit over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating cash flow growth, 1y211.1%Operating cash flow vs the same period a year earlier. Only from a positive base.
Free cash flow growth, 1y217.0%Free cash flow vs the same period a year earlier. Only from a positive base.
Book value growth, 1y37.5%Book value vs the same period a year earlier. Only from a positive base.
Total assets growth, 1y38.6%Total assets vs the same period a year earlier. Only from a positive base.
Share count change, 1y38.9%Change in diluted weighted shares vs a year earlier. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 3y52.3%Change in diluted weighted shares, per year over 3 years. Negative means buybacks shrank the share count; positive means dilution.

Balance sheet health

MetricValueHow it is calculated
Current ratio10.5xCurrent assets / current liabilities.
Quick ratio10.2x(Cash + short-term investments + receivables) / current liabilities.
Cash ratio8.25x(Cash + short-term investments) / current liabilities.
Liabilities / assets9.6%Total liabilities / total assets.
Working capital$3.20BCurrent assets - current liabilities.
Goodwill and intangibles / assets1.5%(Goodwill + intangible assets) / total assets.
Tangible book value$3.23BShareholders' equity - goodwill - intangible assets.

Efficiency

MetricValueHow it is calculated
Asset turnover0.76xRevenue / average total assets.
Fixed asset turnover232xRevenue / average property, plant and equipment.
Receivables turnover4.27xRevenue / average receivables.
Days sales outstanding85 days365 x average receivables / revenue.
Days payables137 days365 x average accounts payable / cost of revenue.
FCF conversion116.9%Free cash flow / net income, when net income is positive.
Capex / operating cash flow0.7%Capital expenditures / cash from operations, when that is positive.

Per share

MetricValueHow it is calculated
EPS, diluted$4.31Net income per diluted share, as reported (split-adjusted). Over the last twelve months: the four quarters summed, or net income / latest diluted shares when a quarter has no reported EPS.
Revenue per share$13.75Revenue / diluted weighted shares.
FCF per share$5.04Free cash flow / diluted weighted shares.
Operating cash flow per share$5.08Cash from operations / diluted weighted shares.
Book value per share$16.26Shareholders' equity / shares outstanding (diluted weighted shares when not reported).
Tangible book per share$16.00Tangible book value / shares outstanding.
Cash per share$13.79(Cash + short-term investments) / shares outstanding.

Valuation

MetricValueHow it is calculated
Market cap$28.83BShare price x shares outstanding.
Enterprise value$26.04BMarket cap + total debt - cash - short-term investments.
P/E33.1xMarket cap / net income. Only when net income is positive.
P/S10.4xMarket cap / revenue.
P/B8.77xMarket cap / shareholders' equity. Only when equity is positive.
Price / tangible book8.92xMarket cap / tangible book value, when positive.
P/FCF28.3xMarket cap / free cash flow. Only when free cash flow is positive.
P/OCF28.1xMarket cap / cash from operations, when positive.
EV/Sales9.37xEnterprise value / revenue.
EV/EBIT33.2xEnterprise value / operating income, when both are positive.
EV/EBITDA32.5xEnterprise value / EBITDA, when both are positive.
EV/FCF25.6xEnterprise value / free cash flow, when both are positive.
FCF yield3.5%Free cash flow / market cap.
Earnings yield3.0%Net income / market cap (the inverse of P/E).
What was Reddit, Inc.'s revenue in fiscal 2025?

Reddit, Inc. reported revenue of $2.20B for fiscal 2025, 69.4% higher than the year before.

Was Reddit, Inc. profitable in fiscal 2025?

Yes. Net income was $529.7M, a net margin of 24.1%.

How much free cash flow did Reddit, Inc. generate in fiscal 2025?

Cash from operations of $690.9M minus capital expenditures of $6.7M left free cash flow of $684.2M.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

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