Reddit, Inc.
- Open
- 151.29
- Day high
- 151.94
- Day low
- 146.62
- Prev close
- 152.92
- Volume
- 3.8M
- Mkt cap
- $28.4B
- P/E (TTM)
- 32.3
- EPS (TTM)
- $4.57
- P/B
- 8.7
- P/S
- 10.2
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$44.1M over the last 3 months (0 open-market buys, 72 sales)
- 🏛Institutions accumulating (13F)
Reddit, Inc. (RDDT) is a Communication Services company listed on NYSE. The stock is down 33% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 72 sales (SEC Form 4). Drillr has 1 published research article covering RDDT.
Reddit, Inc. (RDDT) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 13 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
RDDT earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 30, 2026 | $0.95 | $1.25 | +31.7% | $805M | +10.1% |
| Apr 30, 2026 | $0.62 | $1.01 | +62.9% | $663M | +9.1% |
| Feb 5, 2026 | $0.96 | $1.24 | +29.2% | $726M | +25.7% |
| Oct 30, 2025 | $1.04 | $0.80 | -23.1% | $585M | +7.0% |
| Jul 31, 2025 | $0.19 | $0.45 | +136.6% | $500M | +17.4% |
| May 1, 2025 | $0.02 | $0.13 | +647.6% | $392M | +6.2% |
| Feb 12, 2025 | $0.25 | $0.36 | +43.0% | $428M | +5.4% |
| Mar 21, 2024 | — | $0.11 | — | $250M | — |
| Sep 30, 2023 | — | $-0.05 | — | $208M | — |
| Mar 31, 2023 | — | $-0.37 | — | $164M | — |
| Dec 31, 2022 | — | $-0.14 | — | $200M | — |
| Sep 30, 2022 | — | $-0.28 | — | $172M | — |
RDDT insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 27, 2026 | Sauerberg Robert A.director | Sell | 5,128 | $159.92 |
| Aug 24, 2026 | Vollero Andrewofficer: Chief Financial Officer | Tax | 10,319 | $151.71 |
| Aug 24, 2026 | Lee Benjamin Seongofficer: Chief Legal Officer | Tax | 3,887 | $151.71 |
| Aug 24, 2026 | Huffman Steve Ladddirector, 10 percent owner, officer: CEO & President | Tax | 40,336 | $151.71 |
| Aug 24, 2026 | Reynolds Michelle Marieofficer: Chief Accounting Officer | Tax | 1,265 | $151.71 |
| Aug 24, 2026 | Wong Jennifer L.officer: Chief Operating Officer | Tax | 38,113 | $151.71 |
| Aug 18, 2026 | Huffman Steve Ladddirector, 10 percent owner, officer: CEO & President | Sell | 1,300 | $175.04 |
| Aug 18, 2026 | Huffman Steve Ladddirector, 10 percent owner, officer: CEO & President | Sell | 2,800 | $178.95 |
| Aug 18, 2026 | Wong Jennifer L.officer: Chief Operating Officer | Sell | 1,000 | $182.70 |
| Aug 18, 2026 | Wong Jennifer L.officer: Chief Operating Officer | Sell | 400 | $183.95 |
| Aug 18, 2026 | Huffman Steve Ladddirector, 10 percent owner, officer: CEO & President | Sell | 2,292 | $176.11 |
| Aug 18, 2026 | Wong Jennifer L.officer: Chief Operating Officer | Sell | 14,000 | $177.91 |
| Aug 18, 2026 | Huffman Steve Ladddirector, 10 percent owner, officer: CEO & President | Sell | 2,808 | $177.04 |
| Aug 18, 2026 | Huffman Steve Ladddirector, 10 percent owner, officer: CEO & President | Sell | 600 | $181.06 |
| Aug 18, 2026 | Wong Jennifer L.officer: Chief Operating Officer | Sell | 2,796 | $174.82 |
Source: RDDT SEC Form 4 filings, latest Aug 27, 2026. For informational purposes only — not investment advice.
See the full RDDT insider & 13F page →Reddit, Inc. company profile
Overview
Reddit, Inc. (NYSE:RDDT) is a social media platform that organizes digital communities around specific interests, enabling users to engage in conversations through content sharing and discussion. Founded in 2005 and headquartered in San Francisco, California, Reddit went public in March 2024 after nearly two decades as a private company. The platform has evolved from a simple link-sharing site into one of the world's largest community-driven discussion platforms, with over 400 million weekly users globally. Reddit operates as a subsidiary of Advance Publications, Inc., and has positioned itself as "the front page of the internet" where authentic conversations and community-driven content thrive.
Business
Reddit operates in the social media and online community space, functioning as a discussion platform organized around user-created communities called "subreddits." Each subreddit focuses on specific topics, interests, or themes, ranging from news and politics to hobbies, entertainment, and niche interests. Users can submit various types of content including text posts, links, images, and videos, while other community members can vote content up or down and engage in threaded discussions through comments. The platform's core value proposition lies in its community-driven content curation system. Unlike algorithm-heavy social media platforms, Reddit relies on user voting (upvotes and downvotes) and community moderation to surface the most relevant and engaging content. This creates an environment where authentic, unfiltered discussions can flourish, making Reddit a valuable source for product recommendations, advice, and real-time information on virtually any topic. Reddit operates two primary business segments. Advertising revenue represents approximately 90-92% of total revenue, generated through various ad formats including promoted posts, display ads, and video ads that appear within users' feeds and conversation threads. The company has been expanding its advertising capabilities with performance-based products like Dynamic Product Ads (DPA) and multi-objective advertising platforms. Data licensing revenue accounts for roughly 8-10% of total revenue, derived from partnerships with AI companies, search engines, and other platforms that license Reddit's content for training machine learning models and providing enhanced search experiences.
Revenue model
Reddit generates revenue through two primary channels that leverage its vast repository of user-generated content and engaged community base. The advertising business model forms the core revenue stream, where brands and advertisers pay to reach Reddit's highly engaged user base through various ad formats. These include sponsored posts that appear in users' feeds, display advertisements, video ads, and conversation page ads. The platform's advertising appeal stems from its users' high intent and authentic engagement - when Reddit users discuss products or services, their recommendations carry significant weight with other community members. The company's advertising revenue benefits from several key factors. Reddit users tend to have higher purchasing intent compared to other social platforms, with research showing that 40% of internet users consider Reddit recommendations most influential in their buying decisions. The platform's conversation-based format creates natural opportunities for contextual advertising, while its diverse community structure allows for precise targeting across numerous interest categories. Revenue growth drivers include expanding the advertiser base beyond traditional brand advertisers to include more performance-focused and mid-market advertisers, international expansion where advertising markets are less mature, and the development of more sophisticated ad products like Dynamic Product Ads for e-commerce. The data licensing business model represents a growing secondary revenue stream where Reddit licenses its content to AI companies, search engines, and other technology platforms. Partners like Google and OpenAI pay for access to Reddit's conversations and discussions to train language models and enhance search results. This model capitalizes on the unique value of Reddit's authentic, real-time discussions that provide insights into consumer sentiment, product feedback, and trending topics. Several factors could impact Reddit's revenue margins positively or negatively. International expansion presents both opportunities and challenges - while international markets offer significant growth potential, they typically command lower advertising rates initially and require investment in localization and user acquisition. Competition from other social platforms and changes in digital advertising spending patterns could pressure advertising rates. On the positive side, Reddit's improving ad targeting capabilities, growing user base, and the development of higher-value advertising products like shopping ads could drive margin expansion. The data licensing business offers particularly attractive margins since it monetizes existing content with minimal additional costs.
Competitive moat
Reddit's competitive moat stems from its unique community-driven ecosystem and the network effects generated by its user base, though this moat faces both strengths and vulnerabilities. The platform's primary advantage lies in its authentic, unfiltered discussion format that has created irreplaceable repositories of knowledge and conversation across thousands of specialized communities. Unlike algorithm-driven social media platforms, Reddit's community moderation and voting system creates a self-regulating environment that users trust for genuine recommendations and advice. The platform benefits from strong network effects - as more users join specific subreddits, the quality and frequency of discussions improve, attracting even more participants. This creates switching costs for users who have invested time building reputation and relationships within specific communities. Reddit's "Ask Me Anything" format and real-time discussion threads around breaking news events have established it as a go-to destination for authentic information and expert insights that would be difficult for competitors to replicate. However, Reddit's moat has notable weaknesses. The platform's dependence on volunteer moderators creates operational risks, and its historically slower pace of product innovation has allowed competitors to capture user attention with more engaging formats like short-form video. The company's advertising technology has lagged behind platforms like Facebook and Google, limiting its ability to compete for performance advertising dollars. Additionally, Reddit's content is largely accessible to search engines and AI crawlers, potentially reducing the exclusivity of its data over time. Competitive threats come from multiple directions. TikTok and other short-form video platforms have captured younger demographics with more engaging content formats. Discord has attracted many gaming and interest-based communities with its real-time chat features. Traditional social media platforms continue to evolve their community features, while AI-powered search tools could potentially reduce users' need to visit Reddit directly for information and recommendations. The platform's challenge lies in maintaining its authentic community culture while modernizing its product experience and advertising capabilities to compete effectively.
Risks & safety
Reddit demonstrates a strong financial safety profile with substantial cash reserves and minimal debt obligations, though valuation metrics suggest elevated risk levels. **Liquidity and Solvency:** - Cash and short-term investments of $636 million provide significant financial cushion - Current ratio of 12.5 indicates excellent short-term liquidity position - Debt-to-equity ratio of just 0.012 shows minimal leverage risk - Positive free cash flow of $127 million in Q1 2025 demonstrates operational cash generation - No significant solvency concerns given strong balance sheet position **Valuation Metrics:** - EV/EBITDA ratio of 1,184 suggests extremely high valuation relative to current earnings - Price-to-book ratio of 8.6 indicates substantial premium to book value - Graham number of 6.3 suggests significant overvaluation relative to conservative metrics - High valuation multiples reflect growth expectations but create downside risk if growth disappoints **Other Considerations:** - Recent IPO status (March 2024) creates additional volatility risk - Strong revenue growth of 61% year-over-year provides some justification for premium valuation - Transition to profitability achieved in recent quarters reduces execution risk - International expansion and product development initiatives require continued investment
Recent development
Over the past few years, Reddit has undergone significant strategic evolution focused on international expansion, product innovation, and revenue diversification. The company has prioritized global growth through machine translation capabilities, expanding from initial French language support to 13 languages by early 2025. This international push has yielded strong results, with international revenue growing 82% year-over-year in Q1 2025 and international users now representing approximately 50% of the user base. Product development has centered around improving user experience and engagement. Reddit launched Reddit Answers, an AI-powered search tool that has quickly gained traction with over 1 million weekly users. The platform has invested heavily in search functionality improvements, recognizing that better search capabilities can drive both user engagement and future monetization opportunities. The company has also focused on reducing friction for new users through simplified onboarding processes and tools to help users discover relevant communities. On the advertising front, Reddit has made substantial investments in performance advertising capabilities. The launch of Dynamic Product Ads (DPA) represents a significant step toward capturing e-commerce advertising dollars, with early testing showing 90% higher return on ad spend compared to traditional formats. The company has expanded its multi-objective advertising platform and improved measurement capabilities to compete more effectively with established digital advertising platforms. The data licensing business has emerged as a meaningful secondary revenue stream through partnerships with major technology companies including Google and OpenAI. Reddit has developed policies around content usage and AI training while selectively partnering with companies that can provide fair compensation for access to its content. This represents a strategic shift toward monetizing Reddit's unique conversational data beyond traditional advertising models. Operationally, Reddit has invested in AI-powered moderation tools to reduce the burden on volunteer moderators while maintaining community quality standards. The company has also updated its mission statement to "empower communities and make their knowledge accessible to all," reflecting its evolution from a simple discussion platform to a comprehensive knowledge and community hub.
RDDT company profile · for informational purposes only — not investment advice.
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