Forensic Analysis · Technology / Software · as of Aug 9, 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.
B · Sound & dependable
Forensic grade
Safe
Financial health
18.6
Distress distance
Clean
Earnings quality
3
Forensic signals
41.1
P / E (ttm)
18.1%
ROE
$31.1B
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). 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 B (Sound & dependable) 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 total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). 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. The cash-flow cross-check is more mixed: reported earnings ran behind operating cash by 9% of net operating assets, diverging from the balance-sheet accrual read.
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. The cost of it is not in the cash flow — no cash left the business — it is in the count, and there it has run at about 38.9% a year, small enough that totals and per-share results tell the same story.
Key fundamentals
Latest Revenue$2.20B
Revenue Growth YoY+69.4%
Net Margin24.1%
Free Cash Flow$684.2M
Return on Equity18.1%
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