Forensic Analysis · Technology / Software · as of Sep 25, 2026
Reddit, Inc. (RDDT)
A forensic read on Reddit, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
18.6
Distress distance
Clean
Earnings quality
3
Forensic signals
33.3
P / E (ttm)
18.1%
ROE
$29.2B
Market cap
69.4%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Reddit, Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 18.6, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by share-count dilution.
What the filings flag
+38.9%/yr
FY2024–FY2025
Share-count dilution.Diluted share count changed +39% over the last 1 year to FY2025 (+38.9%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~38.9% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2024 has been diluted ~28%.
+23.0%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +23.0% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply, and much of it is accounted for. The build is led by receivables up +69% against revenue +69%. That build tracks a +69% revenue year: net operating assets grew +26% and receivables +69%, so the balance sheet is carrying more volume rather than getting heavier per dollar of sales — the accrual build is funding demand the company is shipping, not earnings running ahead of collection. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 9% of net operating assets, against an accruals ratio of 23.0%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
16% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 16% of revenue and 50% of free cash flow in FY2025 — about $1.70 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 38.9% a year, above the level at which the count is a material claim on a stake, and only one year's change is on file — enough to state what a holder gave up, not enough to say whether the rate is climbing or coming down. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$2.20B
Revenue Growth YoY+69.4%
Net Margin24.1%
Free Cash Flow$684.2M
Return on Equity18.1%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Reddit, Inc.'s actual 10-K/10-Q/8-K filings?