Revenue growth remains robust at 69.1% year-over-year, while the company maintains a structural competitive advantage with gross margins consistently exceeding 90%.
| Sales/Revenue | 2.47B | 2.2B | 1.3B | 804.03M | 666.7M | 484.92M | 228.91M |
| Revenue Growth % | 70.64% | 69.4% | 61.71% | 20.6% | 37.49% | 111.84% | - |
| Cost of Goods Sold | 213.39M | 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 | 2.26B | 2.01B | 1.18B | 693.02M | 561.9M | 412.35M | 173.88M |
| Gross Margin % | 91.37% | 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 | 1.64B | 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 | 840.05M | 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 | 799.12M | 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 | 620.99M | 441.98M | -560.57M | -140.16M | -172.16M | -127.21M | -62.56M |
| Operating Margin % | 25.11% | 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 | 632.98M | 457.93M | -544.92M | -126.46M | -164.16M | -124.4M | -60.62M |
| EBITDA Margin % | 25.59% | 20.79% | -41.91% | -15.73% | -24.62% | -25.65% | -26.48% |
| EBITDA Growth % | 1206.38% | 184.04% | -330.91% | 22.97% | -31.96% | -105.2% | - |
| D&A (Non-Cash Add-back) | 11.98M | 15.95M | 15.64M | 13.7M | 8M | 2.81M | 1.93M |
| EBIT | 643.03M | 441.98M | -560.57M | -140.16M | -172.16M | -127.21M | -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 | 88.99M | 86.71M | 75.36M | 53.14M | 14.23M | -343K | 3.49M |
| Pretax Income | 709.98M | 528.69M | -485.21M | -87.02M | -157.93M | -127.56M | -59.07M |
| Pretax Margin % | 28.7% | 24% | -37.32% | -10.82% | -23.69% | -26.3% | -25.81% |
| Income Tax | 2.44M | -1.03M | -931K | 3.8M | 622K | 340K | 102K |
| Effective Tax Rate % | 0.34% | -0.2% | 0.19% | -4.37% | -0.39% | -0.27% | -0.17% |
| Net Income | 707.54M | 529.72M | -484.28M | -90.82M | -158.55M | -127.9M | -59.17M |
| Net Margin % | 28.6% | 24.05% | -37.25% | -11.3% | -23.78% | -26.37% | -25.85% |
| Net Income Growth % | 505.01% | 209.38% | -433.2% | 42.72% | -23.97% | -116.14% | - |
| Net Income (Continuing) | 707.54M | 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) | 3.49 | 2.62 | -2.69 | -0.56 | -0.97 | -0.78 | -0.36 |
| EPS Growth % | 452.43% | 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 | 202.52M | 202.11M | 180.32M | 163.35M | 163.35M | 163.35M | 163.35M |
| Basic Shares Outstanding | 191.52M | 186.38M | 180.32M | 163.35M | 163.35M | 163.35M | 163.35M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Moderator ecosystem dependency
As reported in recent financial statements, Reddit's revenue growth has consistently hovered near 70% year-over-year, with the most recent quarter reaching $663.4 million, suggesting that the company is successfully diversifying its top-line beyond traditional advertising through high-margin data licensing agreements with AI developers.
The sustained revenue growth rate indicates that the platform is effectively capturing value from its unique, human-curated content corpus. Investors should monitor whether this trajectory remains durable as the initial wave of AI training demand potentially normalizes into a more standard recurring licensing model.
Based on the provided income statement data, Reddit maintains a gross margin consistently exceeding 90%, a figure that significantly outperforms peers like Pinterest and Snap, reflecting the minimal marginal cost of hosting user-generated content and the high operating leverage inherent in the platform's architecture.
This structural margin profile suggests that the company possesses significant pricing power and operational efficiency. However, the sustainability of these margins depends heavily on the volunteer moderation model, which effectively offloads content curation costs that would otherwise weigh on the income statement.
According to the latest quarterly filings, Reddit's operating margin has expanded from negative territory in early 2024 to 27.6% in 2026Q1, demonstrating that the company is successfully converting its high gross profit into bottom-line earnings as it achieves greater scale in its advertising operations.
The rapid improvement in operating margins suggests that fixed costs, particularly R&D and SG&A, are being absorbed more efficiently as revenue grows. This trend implies that the business model is reaching a critical inflection point where incremental revenue flows more directly to operating income.
Analysis of the income statement reveals that stock-based compensation remains a significant expense, totaling $68.3 million in 2026Q1, which warrants careful scrutiny as it continues to represent a meaningful portion of operating expenses and potentially dilutes the quality of reported net income for shareholders.
While the company has achieved GAAP profitability, the reliance on equity-based incentives suggests that cash-generative potential may be lower than the headline net income figures imply. Investors should evaluate the long-term impact of this compensation structure on share count and overall capital allocation efficiency.
As noted in recent industry analysis, the primary threat to Reddit's income statement is the potential for community unrest, which could force a transition from a volunteer-led moderation system to a paid model, thereby structurally impairing the company's industry-leading 91% gross margin profile.
The reliance on unpaid labor creates an off-balance-sheet dependency that is not captured in standard financial metrics but remains a critical operational vulnerability. Any shift in the relationship between the platform and its moderators could lead to a rapid and permanent compression of profitability.
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.