TORVANTA
Communication Services · S&P 500 · data as of 2026-10-05

RDDT stock analysis: Reddit

Reddit (RDDT) is an S&P 500 company in Interactive Media & Services. It grades strongest on growth and profitability and weakest on value and momentum.

The model's view of RDDT · subscribers

Where RDDT ranks among the 1,500 U.S. stocks the model scores each trading day, its expected return, the evidence for and against it, and whether the model portfolio holds it. The grades below describe the company's data; they are not the model's view.

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What's happening with RDDT · updated 2026-10-05 · from prices and SEC filings

RDDT price performance

RDDT against the S&P 500, one year
-40%-20%+0%+20%S&P 500 +18%RDDT -38%2025-09-292026-10-05
Year to date-34.6%S&P 500 +14.5% · behind by 49.1 pts
1 year-27.4%S&P 500 +17.0% · behind by 44.4 pts

Total returns with dividends reinvested.

RDDT factor grades

Each grade compares RDDT with the rest of its sector (A+ best, F worst); the numbers behind it are shown with the typical figure for its peers.

C-ValueP/E 35.0x (sector 17.3x)FCF yield 3.4% (sector 4.6%)
A+GrowthRevenue growth +67% (sector +5%)EPS growth +181% (sector -11%)
AProfitabilityOperating margin 28.2% (sector 20.0%)ROIC 43.3% (sector 17.5%)
D-Momentum12-month change -27%From 52-wk high -42%

RDDT in plain numbers

RDDT key statistics

SectorCommunication Services
IndustryInteractive Media & Services
IndexS&P 500
Market value$30.4B
Revenue growth (y/y)+67%
Free-cash-flow yield3.4%
Dividend yieldn/a
Next earnings (expected)2026-10-29
Valuation measures
Market value$30.4B
Enterprise value$28.9B
P/E (trailing)35.0x
Forward P/E (Torvanta estimate)23.3x
PEG (Torvanta estimate)0.47
Price / sales10.9x
Price / book9.2x
EV / revenue10.4x
EV / EBITDA36.1x
Financial highlights
Revenue, last 12 months$2.8B
Net income, last 12 months$871.1M
EPS, last 12 months (GAAP)$4.30
Gross margin91.4%
Operating margin28.2%
Net margin31.3%
Return on equity30.7%
Return on invested capital43.3%
Cash$1.5B
Total debt$0
Free cash flow, last 12 months$1.0B
Current ratio10.49x

Company figures from its latest SEC filings; market value and returns from end-of-day prices.

RDDT earnings trends

Revenue vs earnings
$0$201.2M$402.5M$603.7M$804.9MSep 2024 Revenue: $348.4MDec 2024 Revenue: $427.7MMar 2025 Revenue: $392.4MJun 2025 Revenue: $499.6MSep 2025 Revenue: $584.9MDec 2025 Revenue: $725.6MMar 2026 Revenue: $663.4MJun 2026 Revenue: $804.9MSep 2024 Net income: $29.9MDec 2024 Net income: $71.0MMar 2025 Net income: $26.2MJun 2025 Net income: $89.3MSep 2025 Net income: $162.7MDec 2025 Net income: $251.6MMar 2026 Net income: $204.0MJun 2026 Net income: $252.8MSep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026Net margin: 8.6%Net margin: 16.6%Net margin: 6.7%Net margin: 17.9%Net margin: 27.8%Net margin: 34.7%Net margin: 30.7%Net margin: 31.4%0%17%35%■ Revenue ■ Net income ━ Net margin
Earnings per share$0.0$0.3$0.6$0.9$1.3Sep 2024 EPS (GAAP, diluted): $0.2Dec 2024 EPS (GAAP, diluted): $0.8Mar 2025 EPS (GAAP, diluted): $0.1Jun 2025 EPS (GAAP, diluted): $0.5Sep 2025 EPS (GAAP, diluted): $0.8Dec 2025 EPS (GAAP, diluted): $1.2Mar 2026 EPS (GAAP, diluted): $1.0Jun 2026 EPS (GAAP, diluted): $1.3Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026■ EPS (GAAP, diluted) Change from a year earlier: Sep 2025 +400% · Dec 2025 +57% · Mar 2026 +677% · Jun 2026 +178%

From the company's 10-Q and 10-K filings with the SEC.

Reddit financials (from SEC filings)

Fiscal yearFY2023FY2024FY2025
Revenue$804.0M$1.3B$2.2B
Net income-$90.8M-$484.3M$529.7M
EPS (GAAP)$-1.55$-7.30$2.62
Free cash flow-$84.8M$215.8M$684.2M

RDDT earnings history

ReportedEPS (GAAP)EPS y/yRevenue y/yStock vs S&P 500, 2 days
2026-07-30$1.25+178%+61%-23.4%
2026-04-30$1.01+677%+69%+11.4%
2026-02-05$1.24+57%+70%-9.1%
2025-10-30$0.80+400%+68%-0.1%
2025-07-31$0.45n/a+78%+28.3%
2025-05-01$0.13n/a+61%-4.5%

About Reddit

HeadquartersSan Francisco, CA
Industry (SEC code)Services-Computer Processing & Data Preparation
Fiscal year endsDecember 31
Incorporated inDE
Listed onNYSE
FormerlyReddit, Inc.

From the company's SEC registration record.

Companies similar to RDDT

CompanyMarket valueP/ERevenue growthOperating margin12-month change
RDDT Reddit$30.4B35.0x+67%28.2%-27%
FOXA Fox Corp A$27.8B16.6x+5%n/a+3%compare
ECHO EchoStar$34.5Bn/a-5%-112.7%+27%compare
FOX Fox Corp B$24.9B14.8x+5%n/a+3%compare
TTWO Take-Two$38.0Bn/a+15%-2.4%-21%
LYV Live Nation$40.2Bn/a+11%3.0%+9%
OMC Omnicom$21.4Bn/a+26%3.2%+1%

All Communication Services stock ratings

Frequently asked questions

Is RDDT stock a buy?

Torvanta does not tell individuals what to buy. Its grades for RDDT are shown above. Subscribers see the model's rank, expected return and whether the model portfolio holds it. This is research, not a recommendation.

What is RDDT's P/E ratio?

RDDT trades at about 35.0 times its last 12 months of GAAP earnings reported to the SEC, and about 23.3 times Torvanta's own estimate of the next 12 months.

When does RDDT report earnings next?

Based on its filing history, Torvanta expects Reddit to report around 2026-10-29.

How has RDDT performed against the S&P 500?

Over the past year RDDT returned -27.4%, against +17.0% for the S&P 500, dividends reinvested.

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Subscribers get the model's rank and expected return for every covered company, the reasoning behind each, and the Torvanta model portfolio's trades each trading day, sized and explained, at three risk levels.

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Torvanta is research only - not investment advice and not a recommendation to buy or sell any security. Grades describe a company's reported data against its sector; they are not the model's view, change as data changes and can be wrong. Financial figures come from the company's SEC filings; returns include reinvested dividends. Past performance does not predict future results.

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