Reddit Inc. Class A Common Stock (RDDT)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach this as a Graham-style value investor: price is what you pay, value is what you get. Reddit is a digital community platform. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $804.9M and net income was $252.8M, or diluted EPS of $1.25. That compares with fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $499.6M and net income was $89.3M. The latest quarter's 31.41% net margin is impressive. Full-year fiscal 2025, the year ended 2025-12-31, produced revenue of $2.2B and net income of $529.7M, reversing the fiscal 2024, the year ended 2024-12-31, loss of $484.3M. FairStock calls this a TURNAROUND — returned to profit after a loss within the last three years — and the turnaround is real so far. The balance sheet appears conservative: debt-to-equity is 0.01, Altman Z-Score is 55.05, and Piotroski F-Score is 7/9. The FairStock Score of 64/100 suggests moderate overall quality. FairStock calculates ROE 30.71%, ROCE 15.65%, and trailing free cash flow of $1.0B, a 3.2% FCF yield. Network effects from user communities may be a moat, but the figures alone cannot prove durability. Valuation is the rub. At the 2026-10-13 close of $155.29, FairStock calculates P/E 36.11, P/B 9.09, EV/EBITDA 37.31, and a Graham Number of $40.65, implying a -282.02% margin of safety. The PEG of 0.20 is attractive only if growth persists. With beta 2.02, the market is pricing continued rapid profit expansion. I would want a larger discount to intrinsic value before calling it a classic value purchase.

In plain English: Reddit runs online communities where people talk, share links, photos and videos. The business has become solidly profitable lately, with sales and profit rising quickly and very little debt. But the stock price looks high compared with the company’s recent earnings and accounting value, so it needs strong growth to justify the price.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer