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$28.9B
Market Cap
82.2
P/E
1.62
PEG
111.8%
ROCE
20.9%
ROE
0.01
D/E
20.1%
OPM
-40.0%
% from 52W High
20
α RS
🔍 RDDT is showing a high-conviction setup because it matches 19 of 39 tracked screener presets, Sector RRG has Communication Services in the Leading quadrant with the trail still strengthening, and an ECS of 90.5 last quarter. Net: Broad signal stack, not a recommendation. ? Conviction RRG ECS
Sources
Conviction 19/39 · Communication Services in Leading quadrant · ECS 90.5
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🌏 Global Investor Returns
Currency-adjusted total returns for RDDT including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
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By Category
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About

Reddit, Inc. operates a digital community in the United States and internationally. The company’s platform enables user to engage in conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share laughs, and find belonging. It also organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. Reddit, Inc. was founded in 2005 and is headquartered in San Francisco, California.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding RDDT
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Manager Shares Value % of Fund Period
Andreas Halvorsen Viking Global Investors 2.55M $343.6M 0.96% Mar 2026
Tiger Global Management Tiger Global Management LLC 2.50M $336.6M 1.47% Mar 2026
Jim Simons Renaissance Technologies LLC 1.57M $210.8M 0.33% Mar 2026
Steve Cohen Point72 Asset Management 4.5K $611K 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$0.8B
+61% YoY
Adjusted EBITDA
$0.3B
+106% YoY
Adjusted EBITDA Margin
42.6%
+9.2pp YoY
Net Income
$0.25B
+183% YoY
What Went Right
  • Ad revenue grew 64% to $762M, with conversion volume up over 100% and click volume up over 30% YoY.
  • Adjusted EBITDA doubled to $343M and operating cash flow crossed $1B on an LTM basis for the first time.
  • Product momentum showed up in new app user retention, up 50% YoY on a relative basis, and revenue per employee crossed $1M on an LTM basis.
What to Watch
  • Search referrals were choppy during the quarter and more volatile late in Q2; AI Overviews have not yet made the same positive impact as traditional 10 blue links.
  • Paid marketing results were mixed and user acquisition spending returns need stronger attention, according to management.
  • Q3 revenue guidance implies 47%-49% growth, a deceleration from the recent 60%+ growth pace, and Q3 SBC is expected to rise to $140M-$155M due to vesting grants.
Management Guidance
  • Q3 2026 revenue expected between $860M and $870M, representing 47%-49% YoY growth.
  • Q3 2026 adjusted EBITDA expected between $385M and $395M, implying 63%-67% YoY growth and 45% margin at the midpoint.
  • Full-year 2026 SBC guidance lowered from high-teens to low-to-mid teens as a percentage of revenue; Q3 SBC and related taxes expected at $140M-$155M.
  • Full-year dilution expected at the lower end of the 1%-3% target range, excluding buybacks and acquisitions.
  • Q2 2026 is the last quarter Reddit will report logged-in and logged-out user metrics; future disclosures will include total U.S. and international DAU and WAU.
Investor Lens
The commercial thesis is stronger after this call: ad revenue grew 64%, active advertisers rose over 70%, and adjusted EBITDA margin hit 42.6%. The user-growth thesis remains the weaker link, with search referrals volatile, some U.S. DAU pressure suggested by an analyst, and management acknowledging new app user retention is improving from a small base. The Q3 guide implies 47%-49% revenue growth, still rapid but a clear step down from recent 60%+ prints. Monetization is compounding well and the feed/ML roadmap offers a potential catalyst, but investors will likely need to see direct DAU growth accelerate before giving full credit.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong quarter: revenue +61%, EBITDA doubled, user concerns linger
Revenue
Total revenue grew 61% YoY to $805M, with advertising revenue up 64% to $762M and other revenue up 24% to $43M. U.S. revenue grew 56%, international revenue grew 84%, and ARPU rose 36% to $6.18.
Profitability
Net income was $253M, up 183% YoY from $89M, and diluted EPS was $1.25 versus $0.45 a year ago. Adjusted EBITDA more than doubled to $343M from $167M.
Margins
Adjusted EBITDA margin was 42.6%, up from 33.4% last year. Gross margin expanded 50bps to 91.3%, and adjusted OpEx fell to 49% of revenue from 57% YoY.
Balance Sheet
Cash, cash equivalents, and marketable securities were $2.8B at quarter-end, up over $700M YoY. Operating cash flow was $262M, up 135%, CapEx was just $1M, and the company repurchased $235M of stock.
Key Risks
Management flagged search referral volatility, with AI Overviews not yet creating the same positive impact as traditional search links. Paid marketing returns were mixed and need improvement, while Q3 SBC will step up due to vesting of prior grants at higher share prices.
Outlook
Q3 revenue is guided to $860M-$870M, or 47%-49% YoY growth. Adjusted EBITDA is guided to $385M-$395M, implying 63%-67% YoY growth and approximately 45% margin at the midpoint.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-30
Q2 saw 61% revenue growth to $805M, with adjusted EBITDA margin at 43% and net income more than doubling year-over-year. User retention and direct engagement improved, while ad business and international growth remained strong. Guidance for Q3 projects continued high growth.
Q1 2026 Q1 2026 2026-04-30
Q1 2026 saw 69% revenue growth to $663M, 40% adjusted EBITDA margin, and record cash flow, with strong ad performance and user growth initiatives underway. Q2 guidance projects continued robust growth and profitability, supported by product innovation and expanding advertiser adoption.
Q4 2025 Q4 2025 2026-02-05
Revenue grew 69% to $2.2B in 2025, with Q4 net income of $252M and strong ad growth across all segments. Announced a $1B share repurchase, maintained high margins, and guided for 52%-54% revenue growth in Q1 2026.
Q3 2025 Q3 2025 2025-10-30
Q3 saw 68% revenue growth and 40% adjusted EBITDA margin, with strong gains in user engagement, ad revenue, and international expansion. Guidance for Q4 projects continued robust growth and margin improvement, while product innovation and new ad formats drive future opportunity.
Q2 2025 Q2 2025 2025-07-31
Q2 2025 saw 78% revenue growth to $500M, record profitability, and 21% DAU growth. Advertising revenue rose 84% and ARPU increased 47%. Outlook for Q3 is strong, with continued investment in product, search, and international expansion.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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