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Reddit RDDT

Reddit scores excellent on business quality (8.2 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$159.91Oct 10, 2026
Business qualityExcellent
Next earningsNov 4, 2026
Insiders, 90 daysSelling

Why it matters

  1. What Reddit does

    Reddit makes money by selling targeted advertising across its vast network of human-curated discussion forums, paid for by brands seeking high-intent audiences. The company is scaling its data-licensing agreements and international user base to convert organic community engagement into higher monetization.

  2. What it does best

    Reddit extracts conversational data better than anyone, boasting a gross margin of 91.4% that beats Meta's 81.8% and Pinterest's 79.5%. This edge relies on decades of authentic human text that AI developers cannot replicate without breaking copyright or losing nuance. risk

  3. The main risk

    Overreliance on advertising exposure leaves revenue vulnerable to sudden shifts in brand marketing budgets and traffic algorithm changes. Without debt to absorb a shock, any top-line contraction flows straight into free cash flow declines. financial_desc

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityStrong

Operating margin stands at 28.3% and FCF margin at 36.7%, both expanding rapidly as revenue scales. The business shows immense operating leverage, generating more cash for every incremental dollar of revenue.

MoatFair

The moat rests on a content network that locks in users through proprietary community history, ranking in the top decile for gross margin at the 99th percentile. Rivals cannot replicate this user-generated archive within years. valuation_desc

GrowthFast

Revenue growth printed at 69.5%, placing it in the top decile of its sector at the 97th percentile. This engine is accelerating compared to prior historical periods. moat_desc

Financial healthStrong

The balance sheet holds zero debt and $2.4B in cash, turning interest expenses into a non-factor. Free cash flow surged to $1.0B, cementing a fortress-like financial reality. growth_desc

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 sold $820K outside pre-planned sales.

Our sealed record on RDDT

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is RDDT a good business?

Reddit scores excellent on the Cluenex quality check (8.2 of 10), measured against its own industry. Profitability is strong, moat fair, growth fast and financial health strong.

Are insiders buying RDDT?

In the last 90 days of SEC Form 4 filings: 1 sold $820K outside pre-planned sales.

When does RDDT report earnings?

Nov 4, 2026.

For members

See RDDT today

  • Today's verdict on RDDT, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Reddit (RDDT)”, https://cluenex.com/stocks/rddt/, data as of Oct 10, 2026.