At a glance
Reddit, Inc. is worth $26.35B, about 52 times its fiscal 2025 earnings. Revenue grew 69.4% to $2.20B in fiscal 2025, with 24.1% kept as profit; over 3 years it has grown 48.9% a year. It pays no dividend. The stock returned −37.8% over the past year with dividends reinvested, against +11.5% for the S&P 500.
The business in plain English
Reddit, Inc. runs Reddit, a website and app made up of more than 100,000 active communities called subreddits. Each centers on one interest, such as r/parenting or r/NFL. Members post, comment and vote content up or down, and volunteer moderators enforce each community's rules. In the three months ended December 31, 2025, Reddit averaged 121.4 million daily active uniques (DAUq, its count of distinct daily visitors) and 471.6 million weekly ones.
Advertising brings in most of the revenue. Brands pay to place ads beside conversations where people often come looking for product and service recommendations. Reddit also offers businesses tools such as Reddit Insights, an AI-powered tool that tracks what people say about brands. A newer income source is licensing its archive of more than two billion posts and 22 billion comments, including for training AI models. The 10-K calls this effort early-stage and gives no assurance the revenue will last.
Revenue reached $2.2 billion in the fiscal year ended December 31, 2025, up 69.4% from the year before. By region, the United States supplied about $1.79 billion, or 81.1%, and the rest of the world about $417 million, or 18.9%. The 10-K says Reddit is still in the early stages of making money from its platform and of expanding abroad.
Price history
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RDDT -37.8% over the year to Oct 27, 2026, total return with dividends reinvested.
How it makes money
By geography
| United States | $1.79B | 81.1% |
| Rest of world | $417.0M | 18.9% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $895.0M, up 53% from a year earlier, and net income was $283.3M (+74.1%).
- For fiscal 2025, revenue was $2.20B (+69.4% year over year; +48.9% a year from FY2022 to FY2025) with a 24.1% net margin.
Financial health check
| Revenue growth a year (FY2022–FY2025) | +48.9% good |
|---|---|
| Operating margin | 20.1% good |
| Free cash flow margin | 31.1% good |
| Return on equity (FY2025) | 18.1% good |
| Return on assets (FY2025) | 16.4% good |
| Cash and investments | $3.03B (no borrowings found in the filings) good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2022 | $666.7M | $-158.6M | $-100.3M |
| FY2023 | $804.0M | $-90.8M | $-84.8M |
| FY2024 | $1.30B | $-484.3M | $215.8M |
| FY2025 | $2.20B | $529.7M | $684.2M |
Valuation snapshot
| Market value | $26.35B |
|---|---|
| P/E ratio | 52.1 |
| Dividend yield | None |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| RDDT price data to Oct 27, 2026 | -40.6% | -37.8% | — | — | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -40.6% |
| 2025 | +40.6% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 97 sales ($61.1M), 96 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 14, 2026 | Jennifer L. Wong Chief Operating Officer | sell (plan) | $3.9M |
| Oct 14, 2026 | Jennifer L. Wong Chief Operating Officer | sell (plan) | $3.9M |
| Aug 14, 2026 | Jennifer L. Wong Chief Operating Officer | sell (plan) | $2.5M |
| Aug 14, 2026 | Jennifer L. Wong Chief Operating Officer | sell (plan) | $2.2M |
| Sep 14, 2026 | Jennifer L. Wong Chief Operating Officer | sell (plan) | $2.1M |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 7.38% | Sep 30, 2026 |
| BlackRock, Inc. | 7.3% | Sep 30, 2026 |
| Vanguard Portfolio Management | 5.12% | Sep 30, 2026 |
| BAILLIE GIFFORD & CO | 4.9% | Sep 30, 2026 |
| Tencent Holdings Ltd | 4.17% | Sep 30, 2025 |
| COATUE MANAGEMENT, L.L.C. | 3.7% | Mar 31, 2025 |
| FMR LLC | 2.3% | Mar 31, 2026 |
ETFs with the most weight in RDDT
| LOUP Innovator Deepwater Frontier Tech ETF | 5.25% |
| SOCL Global X Social Media ETF | 3.12% |
| FCUS Pinnacle Focused Opportunities ETF | 3.03% |
| IPO Renaissance IPO ETF | 2.7% |
| NBDS Neuberger Berman Disrupters ETF | 2.46% |
| BAI iShares A.I. Innovation and Tech Active ETF | 2.1% |
| GVIP Goldman Sachs Hedge Industry VIP ETF | 1.23% |
| ARKF ARK Fintech Innovation ETF | 1.02% |
What could go wrong
- Depends on unpaid posters and volunteer moderators. Reddit depends on users to post for free and volunteer moderators to police communities. If contributions dry up or offensive content spreads, engagement could fall, advertisers could leave and the brand could be damaged.
- Search engine changes could cut traffic. Reddit relies partly on search engines to bring in visitors. If search providers change how they rank or display results, fewer people may reach Reddit, slowing user growth and the ad revenue that follows.
- Most revenue depends on advertisers. Advertising brings in the majority of revenue. If advertisers trim budgets, leave, or can't measure whether their Reddit ads work, revenue could drop. Companies often cut ad spending in downturns.
- AI content licensing is new and uncertain. Reddit licenses its posts and comments, including for training AI models. The 10-K says this market is new and changing fast, and there is no assurance the revenue will continue.
- Voting control sits with early holders. Reddit's share classes carry unequal votes. Voting control is concentrated among holders from before its NYSE listing, including insiders, and a principal stockholder has special governance rights. Class A owners have limited influence.
- A short record of profits. Reddit lost money in fiscal 2022, 2023 and 2024 before earning $530 million in 2025. The company warns it may not stay profitable, and its results can vary from quarter to quarter.
Recent events
- Quarterly results released
- Executive or board change
- Quarterly results released
- Shareholder vote results
- Quarterly results released
- Quarterly results released; Other company announcement
For income and retirement investors
Reddit pays no dividend, and its 10-K says it does not intend to pay one in the foreseeable future. Any return must come from a rising share price, so an investor who needs regular income would have to cash in shares, possibly at a low price. The company spent nothing on share repurchases (buybacks) from fiscal 2022 through 2025, though the 10-K mentions a repurchase program it cannot guarantee will be completed.
The stock has traded for about 2.6 years as of October 27, 2026, so it has no record through the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market. Its swings have been large: up 40.6% in calendar 2025, then down 40.6% year to date, with a worst peak-to-trough drop of 61.4%. A one-year beta of 1.87 means it has tended to move almost twice as much as the market. Like any single stock, Reddit carries more risk than a diversified fund.
Questions investors ask
How does Reddit make money?
Mostly from advertising. Reddit earns the majority of its revenue by showing ads alongside conversations in its communities, where people often look for product and service recommendations. It also licenses its archive of over two billion posts and 22 billion comments, including for training AI models, though the 10-K calls that effort early-stage. Revenue was $2.2 billion in the fiscal year ended December 31, 2025, with 81.1% coming from the United States.
Does Reddit pay a dividend?
No. Reddit does not pay a dividend, and its 10-K says it does not intend to in the foreseeable future. It also recorded no share buybacks from fiscal 2022 through 2025. Shareholders earn a return only if the share price rises. Retirees who need steady income would have to cash in shares to fund spending, which hurts most when the price is down, as it was by 40.6% year to date as of October 27, 2026.
Is Reddit profitable?
Yes, based on its latest results. After net losses in fiscal 2022, 2023 and 2024, Reddit earned $529.7 million in the year ended December 31, 2025, a net margin of 24.1%, or about 24 cents of profit per dollar of revenue. It also produced $684.2 million of free cash flow, the cash left after running and investing in the business. In the quarter ended September 30, 2026, net income was $283.3 million, up 74.1% from a year earlier. The company warns it may not stay profitable.
How volatile is Reddit stock?
Very volatile. As of October 27, 2026, the shares were down 40.6% year to date and 37.8% over one year, after rising 40.6% in calendar 2025. Their worst peak-to-trough fall was 61.4%. A one-year beta of 1.87 means the stock has tended to move almost twice as much as the market. The 10-K warns that interest from retail investors can add swings unrelated to the business.
What is Reddit's P/E ratio?
About 52 as of October 27, 2026. The price-to-earnings (P/E) ratio compares the share price with profit per share, and Reddit's was 52.1 based on earnings for the fiscal year ended December 31, 2025. Its market value was about $26.3 billion. A multiple that high reflects expectations that fast growth will continue; revenue rose 69.4% in fiscal 2025. If growth slows, the share price could fall.