REDDIT INC-CL A (RDDT) Stock Fundamental Analysis

NYSE:RDDT • US75734B1008

139.65 USD
+8.58 (+6.55%)
At close: Feb 13, 2026
140 USD
+0.35 (+0.25%)
After Hours: 2/13/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Overall RDDT gets a fundamental rating of 7 out of 10. We evaluated RDDT 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes RDDT very considerable for growth investing!


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • RDDT had positive earnings in the past year.
  • RDDT had a positive operating cash flow in the past year.
  • In the past 5 years RDDT reported 4 times negative net income.
  • In multiple years RDDT reported negative operating cash flow during the last 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 2025 0 200M -200M 400M -400M 600M

1.2 Ratios

  • With an excellent Return On Assets value of 16.35%, RDDT belongs to the best of the industry, outperforming 85.51% of the companies in the same industry.
  • RDDT has a Return On Equity of 18.09%. This is amongst the best in the industry. RDDT outperforms 85.51% of its industry peers.
  • RDDT has a better Return On Invested Capital (11.76%) than 82.61% of its industry peers.
Industry RankSector Rank
ROA 16.35%
ROE 18.09%
ROIC 11.76%
ROA(3y)-3.35%
ROA(5y)-5.55%
ROE(3y)-3.65%
ROE(5y)-5.97%
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 2025 0 10 -10 -20

1.3 Margins

  • The Profit Margin of RDDT (24.05%) is better than 86.96% of its industry peers.
  • With an excellent Operating Margin value of 20.07%, RDDT belongs to the best of the industry, outperforming 85.51% of the companies in the same industry.
  • RDDT's Gross Margin of 91.18% is amongst the best of 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 20.07%
PM (TTM) 24.05%
GM 91.18%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.66%
GM growth 5Y3.72%
RDDT Yearly Profit, Operating, Gross MarginsRDDT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RDDT is still creating some value.
  • The number of shares outstanding for RDDT has been increased compared to 1 year ago.
  • Compared to 5 years ago, RDDT has more shares outstanding
  • RDDT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
RDDT Yearly Shares OutstandingRDDT Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 2024 2025 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 2025 1B 2B 3B

2.2 Solvency

  • RDDT has an Altman-Z score of 53.52. This indicates that RDDT is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of RDDT (53.52) is better than 100.00% of its industry peers.
  • RDDT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 53.52
ROIC/WACC1.36
WACC8.68%
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 2025 0 1B 2B

2.3 Liquidity

  • RDDT has a Current Ratio of 11.56. This indicates that RDDT is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of RDDT (11.56) is better than 95.65% of its industry peers.
  • A Quick Ratio of 11.56 indicates that RDDT has no problem at all paying its short term obligations.
  • RDDT's Quick ratio of 11.56 is amongst the best of the industry. RDDT outperforms 95.65% of its industry peers.
Industry RankSector Rank
Current Ratio 11.56
Quick Ratio 11.56
RDDT Yearly Current Assets VS Current LiabilitesRDDT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 133.89% over the past year.
  • RDDT shows a strong growth in Revenue. In the last year, the Revenue has grown by 69.40%.
  • The Revenue has been growing by 57.27% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)133.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%244.44%
Revenue 1Y (TTM)69.4%
Revenue growth 3Y48.93%
Revenue growth 5Y57.27%
Sales Q2Q%69.65%

3.2 Future

  • The Earnings Per Share is expected to grow by 41.56% 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 29.87% on average per year.
EPS Next Y46.27%
EPS Next 2Y41.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year38.98%
Revenue Next 2Y34.37%
Revenue Next 3Y29.76%
Revenue Next 5Y29.87%

3.3 Evolution

  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
RDDT Yearly Revenue VS EstimatesRDDT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2B 4B 6B 8B 10B
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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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 53.30 indicates a quite expensive valuation of RDDT.
  • The rest of the industry has a similar Price/Earnings ratio as RDDT.
  • Compared to an average S&P500 Price/Earnings ratio of 26.68, RDDT is valued quite expensively.
  • Based on the Price/Forward Earnings ratio of 36.44, the valuation of RDDT can be described as expensive.
  • RDDT's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, RDDT is valued a bit more expensive.
Industry RankSector Rank
PE 53.3
Fwd PE 36.44
RDDT Price Earnings VS Forward Price EarningsRDDT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • RDDT's Enterprise Value to EBITDA is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, RDDT is valued a bit cheaper than 60.87% of the companies in the same industry.
Industry RankSector Rank
P/FCF 38.99
EV/EBITDA 49.52
RDDT Per share dataRDDT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • RDDT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • RDDT has a very decent profitability rating, which may justify a higher PE ratio.
  • RDDT's earnings are expected to grow with 41.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)N/A
EPS Next 2Y41.56%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • RDDT does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

REDDIT INC-CL A

NYSE:RDDT (2/13/2026, 8:04:00 PM)

After market: 140 +0.35 (+0.25%)

139.65

+8.58 (+6.55%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-05
Earnings (Next)04-29
Inst Owners96.05%
Inst Owner Change7.82%
Ins Owners0.6%
Ins Owner Change-23.8%
Market Cap26.68B
Revenue(TTM)2.20B
Net Income(TTM)529.72M
Analysts77.71
Price Target258.95 (85.43%)
Short Float %14.19%
Short Ratio4.58
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)41.57%
Min EPS beat(2)29.18%
Max EPS beat(2)53.96%
EPS beat(4)4
Avg EPS beat(4)177.34%
Min EPS beat(4)29.18%
Max EPS beat(4)492.8%
EPS beat(8)8
Avg EPS beat(8)144.34%
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)5.99%
Min Revenue beat(2)5.08%
Max Revenue beat(2)6.9%
Revenue beat(4)4
Avg Revenue beat(4)7.73%
Min Revenue beat(4)3.96%
Max Revenue beat(4)14.99%
Revenue beat(8)8
Avg Revenue beat(8)8.03%
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)2.18%
PT rev (3m)8.51%
EPS NQ rev (1m)21.42%
EPS NQ rev (3m)15.88%
EPS NY rev (1m)2.13%
EPS NY rev (3m)-0.68%
Revenue NQ rev (1m)4.99%
Revenue NQ rev (3m)5.13%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)1.67%
Valuation
Industry RankSector Rank
PE 53.3
Fwd PE 36.44
P/S 12.11
P/FCF 38.99
P/OCF 38.62
P/B 9.11
P/tB 9.29
EV/EBITDA 49.52
EPS(TTM)2.62
EY1.88%
EPS(NY)3.83
Fwd EY2.74%
FCF(TTM)3.58
FCFY2.56%
OCF(TTM)3.62
OCFY2.59%
SpS11.53
BVpS15.33
TBVpS15.03
PEG (NY)1.15
PEG (5Y)N/A
Graham Number30.06
Profitability
Industry RankSector Rank
ROA 16.35%
ROE 18.09%
ROCE 14.89%
ROIC 11.76%
ROICexc 71.1%
ROICexgc 80.57%
OM 20.07%
PM (TTM) 24.05%
GM 91.18%
FCFM 31.06%
ROA(3y)-3.35%
ROA(5y)-5.55%
ROE(3y)-3.65%
ROE(5y)-5.97%
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
ROICexgc growth 3YN/A
ROICexgc 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 3Y2.66%
GM growth 5Y3.72%
F-Score7
Asset Turnover0.68
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 42.05%
Cap/Sales 0.3%
Interest Coverage 250
Cash Conversion 150.87%
Profit Quality 129.16%
Current Ratio 11.56
Quick Ratio 11.56
Altman-Z 53.52
F-Score7
WACC8.68%
ROIC/WACC1.36
Cap/Depr(3y)50.99%
Cap/Depr(5y)62.52%
Cap/Sales(3y)0.66%
Cap/Sales(5y)0.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)133.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%244.44%
EPS Next Y46.27%
EPS Next 2Y41.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)69.4%
Revenue growth 3Y48.93%
Revenue growth 5Y57.27%
Sales Q2Q%69.65%
Revenue Next Year38.98%
Revenue Next 2Y34.37%
Revenue Next 3Y29.76%
Revenue Next 5Y29.87%
EBIT growth 1Y178.85%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year229.18%
EBIT Next 3Y78.48%
EBIT Next 5Y59.43%
FCF growth 1Y217.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y211.11%
OCF growth 3YN/A
OCF growth 5YN/A

REDDIT INC-CL A / RDDT FAQ

What is the ChartMill fundamental rating of REDDIT INC-CL A (RDDT) stock?

ChartMill assigns a fundamental rating of 7 / 10 to RDDT.


Can you provide the valuation status for REDDIT INC-CL A?

ChartMill assigns a valuation rating of 4 / 10 to REDDIT INC-CL A (RDDT). This can be considered as Fairly Valued.


How profitable is REDDIT INC-CL A (RDDT) stock?

REDDIT INC-CL A (RDDT) has a profitability rating of 6 / 10.


What are the PE and PB ratios of REDDIT INC-CL A (RDDT) stock?

The Price/Earnings (PE) ratio for REDDIT INC-CL A (RDDT) is 53.3 and the Price/Book (PB) ratio is 9.11.


What is the financial health of REDDIT INC-CL A (RDDT) stock?

The financial health rating of REDDIT INC-CL A (RDDT) is 9 / 10.