Revenue scaled to $895.0M in 2026Q3 with gross margin steady near 91% and operating margin rising from -11.0% in 2024Q2 to 29.2%, though net income of $283.3M exceeding operating income of $261.6M warrants scrutiny of non-operating contributions.
Reddit, Inc. (RDDT) annual income statement — 6-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Sales/Revenue | 3.09B | 2.2B | 1.3B | 804.03M | 666.7M | 484.92M | 228.91M |
| Revenue Growth % | 62.18% | 69.4% | 61.71% | 20.6% | 37.49% | 111.84% | - |
| Cost of Goods Sold | 261.08M | 194.22M | 123.59M | 111.01M | 104.8M | 72.56M | 55.03M |
| COGS % of Revenue | - | 8.82% | 9.51% | 13.81% | 15.72% | 14.96% | 24.04% |
| Gross Profit | 2.83B | 2.01B | 1.18B | 693.02M | 561.9M | 412.35M | 173.88M |
| Gross Margin % | 91.55% | 91.18% | 90.49% | 86.19% | 84.28% | 85.04% | 75.96% |
| Gross Profit Growth % | - | 70.68% | 69.78% | 23.33% | 36.27% | 137.14% | - |
| Operating Expenses | 1.92B | 1.57B | 1.74B | 833.18M | 734.06M | 539.56M | 236.44M |
| OpEx % of Revenue | - | 71.11% | 133.61% | 103.63% | 110.1% | 111.27% | 103.29% |
| Selling, General & Admin | 1.02B | 783.16M | 802.03M | 394.83M | 368.9M | 282.59M | 118.91M |
| SG&A % of Revenue | - | 35.56% | 61.68% | 49.11% | 55.33% | 58.28% | 51.95% |
| Research & Development | 900.94M | 783.14M | 935.15M | 438.35M | 365.16M | 256.98M | 117.53M |
| R&D % of Revenue | - | 35.56% | 71.92% | 54.52% | 54.77% | 52.99% | 51.34% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 908.04M | 441.98M | -560.57M | -140.16M | -172.16M | -127.21M | -62.56M |
| Operating Margin % | 29.4% | 20.07% | -43.11% | -17.43% | -25.82% | -26.23% | -27.33% |
| Operating Income Growth % | - | 178.85% | -299.95% | 18.59% | -35.33% | -103.36% | - |
| EBITDA | 924.92M | 457.93M | -544.92M | -126.46M | -164.16M | -124.4M | -60.62M |
| EBITDA Margin % | 29.94% | 20.79% | -41.91% | -15.73% | -24.62% | -25.65% | -26.48% |
| EBITDA Growth % | 231.53% | 184.04% | -330.91% | 22.97% | -31.96% | -105.2% | - |
| D&A (Non-Cash Add-back) | 16.88M | 15.95M | 15.64M | 13.7M | 8M | 2.81M | 1.93M |
| EBIT | 1.01B | 528.69M | -485.21M | -87.02M | -157.93M | -127.56M | -59.07M |
| Net Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 98.39M | 86.71M | 75.36M | 53.14M | 14.23M | -343K | 3.49M |
| Pretax Income | 1.01B | 528.69M | -485.21M | -87.02M | -157.93M | -127.56M | -59.07M |
| Pretax Margin % | 32.58% | 24% | -37.32% | -10.82% | -23.69% | -26.3% | -25.81% |
| Income Tax | 14.73M | -1.03M | -931K | 3.8M | 622K | 340K | 102K |
| Effective Tax Rate % | 1.46% | -0.2% | 0.19% | -4.37% | -0.39% | -0.27% | -0.17% |
| Net Income | 991.7M | 529.72M | -484.28M | -90.82M | -158.55M | -127.9M | -59.17M |
| Net Margin % | 32.11% | 24.05% | -37.25% | -11.3% | -23.78% | -26.37% | -25.85% |
| Net Income Growth % | 184.03% | 209.38% | -433.2% | 42.72% | -23.97% | -116.14% | - |
| Net Income (Continuing) | 991.7M | 529.72M | -484.28M | -90.82M | -158.55M | -127.9M | -59.17M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.91 | 2.62 | -2.69 | -0.56 | -0.97 | -0.78 | -0.36 |
| EPS Growth % | 170.72% | 197.4% | -380.36% | 42.27% | -24.36% | -116.67% | - |
| EPS (Basic) | - | 2.84 | -2.69 | -0.56 | -0.97 | -0.78 | -0.36 |
| Diluted Shares Outstanding | 201.86M | 202.11M | 180.32M | 163.35M | 163.35M | 163.35M | 163.35M |
| Basic Shares Outstanding | 192.6M | 186.38M | 180.32M | 163.35M | 163.35M | 163.35M | 163.35M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying RDDT stock.
For fiscal year 2025, Reddit, Inc. (RDDT) reported total revenue of $2.20B. This represents a 862.2% increase compared to $228.9M in 2020.
Reddit, Inc. (RDDT) is profitable, generating $529.7M in net income for the fiscal year ending 2025 with a net profit margin of 24.1%.
Reddit, Inc. (RDDT) reported an operating income of $442.0M, resulting in an operating profit margin of 20.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Reddit, Inc. (RDDT) generated $2.01B in gross profit for the year, representing a gross profit margin of 91.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Sustained growth dependence on advertising cycle
Metrics are mathematically derived from official filings.
Revenue Growth Reaccelerating Across Recent Quarters
Based on the reported income statement, Reddit's quarterly revenue rose from $281.2M in 2024Q2 to $895.0M in 2026Q3, with year-over-year growth running between 53% and 78% through the most recent eight quarters, indicating sustained expansion rather than a one-time step-up.
The 2026Q3 year-over-year growth of 53.0% is a deceleration from the 61.1% and 69.1% recorded in the two prior quarters, which suggests the growth curve may be normalizing from an elevated base. Because the supplied data does not break revenue into advertising versus data licensing or into user versus pricing drivers, investors should monitor whether the trajectory is volume-led or monetization-led before extrapolating current rates.
Gross Margin Stability Near 91 Percent
According to the reported figures, Reddit's gross margin has held in a narrow 89.5% to 92.6% band across ten quarters, with the 2026Q3 reading of 91.5% sitting close to the peer-leading structure implied by Pinterest's 80.1%.
A gross margin this stable at scale suggests the cost of serving content and infrastructure is largely fixed or grows slower than revenue, which supports a high-margin model. The gap versus Pinterest's 80.1% gross margin appears to reflect a structurally lighter cost base, though investors should not assume this advantage persists if infrastructure or data costs rise faster than revenue.
Operating Leverage Driving Margin Expansion
Based on Reddit's reported figures, operating margin expanded from a negative 11.0% in 2024Q2 to 29.2% in 2026Q3 as SG&A and R&D held relatively flat in dollar terms while revenue grew more than threefold.
The pattern indicates operating income is scaling substantially faster than gross profit, which is the signature of operating leverage. Quarterly R&D of roughly $263.5M in 2026Q3 is substantial, so the margin trajectory depends on continued revenue growth outpacing headcount and product investment rather than on cost cuts.
Net Income Inflated by Stock Compensation Context
As reported in the income statement, Reddit's 2026Q3 net income of $283.3M exceeded operating income of $261.6M, and stock-based compensation of $131.3M is material relative to operating income, which warrants further investigation of earnings quality.
Net income exceeding operating income in the most recent quarter suggests a meaningful non-operating contribution, such as interest income or tax effects, which the supplied data does not decompose. Stock-based compensation consuming roughly half of operating income is a significant economic cost that GAAP operating income already reflects, so investors should evaluate earnings after considering dilution and the recurring nature of these awards.
Advertising Cyclicality Could Compress Growth
Reddit's revenue growth has been strong, but the supplied data does not separate advertising cyclicality from structural demand, and decelerating year-over-year growth from 69.7% in 2025Q4 to 53.0% in 2026Q3 may be an early signal of slowing momentum.
Revenue concentration in advertising-driven monetization, if confirmed, would expose the company to macroeconomic and advertiser budget cycles that the reported quarters have not yet stress-tested through a full downturn. The combination of decelerating growth and elevated stock-based compensation suggests that margins could compress if revenue growth slows faster than the cost base can flex, a risk investors should monitor closely.