Fundamental analysis · SEC EDGAR · TTM through 31/03/2026
RDDT · NYSE · Technology
Fundamental quality
94
out of 100
Reddit, Inc. fits the profile of a quality compounder: it pairs high return on capital (ROE 22.3%) with wide margins (net margin 28.6%) and a business that keeps growing (49.7% a year). On fundamental quality it scores 94 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.
Reddit is one of the world's largest forum platforms: millions of communities discussing everything. It monetizes through advertising and, increasingly, by licensing its archive of human conversations to train AI models.
Revenue growth: 49.7%
Net margin: 28.6% · ROE: 22.3%
Net debt/EBITDA: -2.16x · FCF: 35.1%
Source: SEC EDGAR · TTM through 31/03/2026
The score combines growth, profitability and financial strength, and here its pillars hold up evenly.
Key concepts
What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow
| Year | Revenue | Net income | Free cash flow | Net debt |
|---|---|---|---|---|
| 2022 | 667 | -159 | -100 | -436 |
| 2023 | 804 | -91 | -85 | -401 |
| 2024 | 1,300 | -484 | 216 | -562 |
| 2025 | 2,203 | 530 | 684 | -954 |
Between 2022 and 2025, revenue went from $667M to $2,203M (+230%) and net income went from -$159M to $530M (+434%).
Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.
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Is Reddit, Inc. cheap or expensive?
That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).
Compute the valuation →Is Reddit, Inc. a good company to invest in?
In terms of business quality, Reddit, Inc. scores 94 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.
Is Reddit, Inc. a profitable company?
Very. Reddit, Inc. shows a net margin of 28.6% and an ROE of 22.3%, typical of a highly profitable business.
Does Reddit, Inc. have a lot of debt?
No. Reddit, Inc. has a net cash position: more cash than debt.
Is Reddit, Inc. growing?
Its revenue has grown 49.7% annualized in recent years, and without interruption since 2022.
Does Reddit, Inc. generate cash?
Yes. It converts about 35.1% of its revenue into free cash flow.
The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.
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