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REDDIT INC-CL A (RDDT) Stock Fundamental Analysis

USA - NYSE:RDDT - US75734B1008 - Common Stock

205.92 USD
+2.29 (+1.12%)
Last: 10/7/2025, 6:40:01 PM
205.8 USD
-0.12 (-0.06%)
After Hours: 10/7/2025, 6:40:01 PM
Fundamental Rating

6

RDDT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 69 industry peers in the Interactive Media & Services industry. RDDT has an excellent financial health rating, but there are some minor concerns on its profitability. RDDT is valued quite expensive, but it does show an excellent growth. With these ratings, RDDT could be worth investigating further for growth investing!.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

RDDT had positive earnings in the past year.
In the past year RDDT had a positive cash flow from operations.
RDDT had negative earnings in each of the past 5 years.
RDDT had negative operating cash flow in 4 of the past 5 years.
RDDT Yearly Net Income VS EBIT VS OCF VS FCFRDDT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2020 2021 2022 2023 2024 0 200M -200M -400M

1.2 Ratios

The Return On Assets of RDDT (8.22%) is better than 84.06% of its industry peers.
RDDT has a Return On Equity of 9.06%. This is in the better half of the industry: RDDT outperforms 78.26% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.29%, RDDT is in the better half of the industry, outperforming 72.46% of the companies in the same industry.
Industry RankSector Rank
ROA 8.22%
ROE 9.06%
ROIC 4.29%
ROA(3y)-12.11%
ROA(5y)-11.08%
ROE(3y)-13.26%
ROE(5y)-12.17%
ROIC(3y)N/A
ROIC(5y)N/A
RDDT Yearly ROA, ROE, ROICRDDT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 2024 -5 -10 -15 -20

1.3 Margins

Looking at the Profit Margin, with a value of 12.97%, RDDT is in the better half of the industry, outperforming 79.71% of the companies in the same industry.
RDDT's Operating Margin of 7.87% is fine compared to the rest of the industry. RDDT outperforms 71.01% of its industry peers.
RDDT has a Gross Margin of 91.04%. This is amongst the best in the industry. RDDT outperforms 92.75% of its industry peers.
RDDT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 7.87%
PM (TTM) 12.97%
GM 91.04%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.1%
GM growth 5YN/A
RDDT Yearly Profit, Operating, Gross MarginsRDDT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 2024 0 20 -20 40 -40 60 80

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8

2. Health

2.1 Basic Checks

RDDT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RDDT has more shares outstanding
There is no outstanding debt for RDDT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
RDDT Yearly Shares OutstandingRDDT Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 2024 50M 100M 150M
RDDT Yearly Total Debt VS Total AssetsRDDT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

RDDT has an Altman-Z score of 94.53. This indicates that RDDT is financially healthy and has little risk of bankruptcy at the moment.
RDDT has a better Altman-Z score (94.53) than 100.00% of its industry peers.
There is no outstanding debt for RDDT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 94.53
ROIC/WACC0.43
WACC9.88%
RDDT Yearly LT Debt VS Equity VS FCFRDDT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

2.3 Liquidity

A Current Ratio of 12.00 indicates that RDDT has no problem at all paying its short term obligations.
RDDT has a better Current ratio (12.00) than 95.65% of its industry peers.
RDDT has a Quick Ratio of 12.00. This indicates that RDDT is financially healthy and has no problem in meeting its short term obligations.
RDDT has a Quick ratio of 12.00. This is amongst the best in the industry. RDDT outperforms 95.65% of its industry peers.
Industry RankSector Rank
Current Ratio 12
Quick Ratio 12
RDDT Yearly Current Assets VS Current LiabilitesRDDT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 132.25% over the past year.
The Revenue has grown by 69.97% in the past year. This is a very strong growth!
RDDT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.93% yearly.
EPS 1Y (TTM)132.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%850%
Revenue 1Y (TTM)69.97%
Revenue growth 3Y38.93%
Revenue growth 5YN/A
Sales Q2Q%77.69%

3.2 Future

The Earnings Per Share is expected to grow by 37.19% on average over the next years. This is a very strong growth
Based on estimates for the next years, RDDT will show a very strong growth in Revenue. The Revenue will grow by 40.78% on average per year.
EPS Next Y124.37%
EPS Next 2Y55.84%
EPS Next 3Y37.19%
EPS Next 5YN/A
Revenue Next Year62.25%
Revenue Next 2Y47.67%
Revenue Next 3Y40.78%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
RDDT Yearly Revenue VS EstimatesRDDT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
RDDT Yearly EPS VS EstimatesRDDT Yearly EPS VS EstimatesYearly EPS VS Estimates 2024 2025 2026 2027 0 2 -2 4 -4 -6

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2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 187.20, RDDT can be considered very expensive at the moment.
RDDT's Price/Earnings is on the same level as the industry average.
RDDT is valuated expensively when we compare the Price/Earnings ratio to 27.76, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 62.14, RDDT can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as RDDT.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.21, RDDT is valued quite expensively.
Industry RankSector Rank
PE 187.2
Fwd PE 62.14
RDDT Price Earnings VS Forward Price EarningsRDDT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

RDDT's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as RDDT.
Industry RankSector Rank
P/FCF 97.12
EV/EBITDA 235.64
RDDT Per share dataRDDT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RDDT's earnings are expected to grow with 37.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.51
PEG (5Y)N/A
EPS Next 2Y55.84%
EPS Next 3Y37.19%

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0

5. Dividend

5.1 Amount

RDDT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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REDDIT INC-CL A

NYSE:RDDT (10/7/2025, 6:40:01 PM)

After market: 205.8 -0.12 (-0.06%)

205.92

+2.29 (+1.12%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)07-31 2025-07-31/amc
Earnings (Next)10-27 2025-10-27
Inst Owners88.19%
Inst Owner Change0.01%
Ins Owners4.64%
Ins Owner Change-17.23%
Market Cap38.54B
Analysts78.82
Price Target231.72 (12.53%)
Short Float %15.31%
Short Ratio2.89
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)313.11%
Min EPS beat(2)133.43%
Max EPS beat(2)492.8%
EPS beat(4)4
Avg EPS beat(4)245.43%
Min EPS beat(4)40.18%
Max EPS beat(4)492.8%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)9.47%
Min Revenue beat(2)3.96%
Max Revenue beat(2)14.99%
Revenue beat(4)4
Avg Revenue beat(4)7.9%
Min Revenue beat(4)3.47%
Max Revenue beat(4)14.99%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)11.27%
PT rev (3m)48.15%
EPS NQ rev (1m)6.92%
EPS NQ rev (3m)63.36%
EPS NY rev (1m)1.91%
EPS NY rev (3m)49.9%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)15.45%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)12.47%
Valuation
Industry RankSector Rank
PE 187.2
Fwd PE 62.14
P/S 23.1
P/FCF 97.12
P/OCF 96.22
P/B 16.15
P/tB 16.58
EV/EBITDA 235.64
EPS(TTM)1.1
EY0.53%
EPS(NY)3.31
Fwd EY1.61%
FCF(TTM)2.12
FCFY1.03%
OCF(TTM)2.14
OCFY1.04%
SpS8.91
BVpS12.75
TBVpS12.42
PEG (NY)1.51
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 8.22%
ROE 9.06%
ROCE 5.42%
ROIC 4.29%
ROICexc 28.71%
ROICexgc 34.73%
OM 7.87%
PM (TTM) 12.97%
GM 91.04%
FCFM 23.79%
ROA(3y)-12.11%
ROA(5y)-11.08%
ROE(3y)-13.26%
ROE(5y)-12.17%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.1%
GM growth 5YN/A
F-Score7
Asset Turnover0.63
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 22.96%
Cap/Sales 0.22%
Interest Coverage 250
Cash Conversion 271.79%
Profit Quality 183.43%
Current Ratio 12
Quick Ratio 12
Altman-Z 94.53
F-Score7
WACC9.88%
ROIC/WACC0.43
Cap/Depr(3y)62.94%
Cap/Depr(5y)85.65%
Cap/Sales(3y)0.87%
Cap/Sales(5y)0.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)132.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%850%
EPS Next Y124.37%
EPS Next 2Y55.84%
EPS Next 3Y37.19%
EPS Next 5YN/A
Revenue 1Y (TTM)69.97%
Revenue growth 3Y38.93%
Revenue growth 5YN/A
Sales Q2Q%77.69%
Revenue Next Year62.25%
Revenue Next 2Y47.67%
Revenue Next 3Y40.78%
Revenue Next 5YN/A
EBIT growth 1Y120.62%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year227.36%
EBIT Next 3Y66.82%
EBIT Next 5YN/A
FCF growth 1Y354.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y395.64%
OCF growth 3YN/A
OCF growth 5YN/A