RDDTReddit, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.3×) and elite returns on assets.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 20% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is RDDT?
Reddit, Inc. keeps 28% of every revenue dollar as operating profit, against 4.9% for the median Internet Content & Information name.
Operating margin · Internet Content & Information median 4.9% · 12 months to Q2 2026
- Cash conversion
- 1.32×
Cash conversion · 3.86× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +1.3%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 30%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2022 | −26% |
| FY2023 | −17% |
| FY2024 | −43% |
| FY2025 | 20% |
Details›
- Gross margin12 months to Q2 2026
- 91%
- Operating margin12 months to Q2 2026
- 28%
- Net margin12 months to Q2 2026
- 31%
- Free cash flow margin
- 37%
- R&D as % of revenue
- 30%
- Revenue, trailing twelve months
- $2.78B
- Free cash flow, trailing twelve months
- $1.02B
- Net income, trailing twelve months
- $871M
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Internet Content & Information
Ranks #17 of 31 by RyuScore