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Reddit RDDT Gross margin

Gross margin at other companies

Omnicom Group logo
Omnicom GroupOMC
18.1%-0.6pp
Applovin Corporation logo
Applovin CorporationAPP
88.4%+3.2pp
eBay logo
eBayEBAY
72%-0.1pp
Amazon logo
AmazonAMZN
50.6%+1.4pp
Alphabet Inc. logo
Alphabet Inc.GOOGL

Other financials

Income statement

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Revenue$663.4M+69.1%
Gross profit$607.1M+70.9%
Operating income$182.9M+4,586%
Net income$204.0M+680%
EPS (diluted)$1.01+677%

Balance sheet

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Cash & equivalents$1.4B+116%
Total debt$21.3M-19.8%
Total equity$3.2B+43.4%
Total assets$3.5B+43.0%

Cash flow

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Operating cash flow$312.3M+145%
CapEx$1.1M+11.3%
Free cash flow$311.2M+146%

Valuation

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Market cap$31.95B+35.5%
Enterprise value$30.59B+32.7%
P/E45.2×
P/S12.9×-3.3×

Profitability

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Operating margin25.1%+23.8pp
Net margin28.6%

Returns & leverage

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Return on equity26.2%
Debt / equity0.0×
Current ratio12.7×+0.3×

Where this comes from

Calculated from Reddit’s reported figures.

Based on trailing twelve months.

The official record: Reddit’s 10-Q, filed April 30, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Reddit's gross margin?
Reddit (RDDT) reported gross margin of 91.4% in Q1 2026.
How has Reddit's gross margin changed year-over-year?
Reddit's gross margin increased by 0.6% year-over-year, from 90.8% to 91.4%.
What is the long-term trend for Reddit's gross margin?
Over 2 years (2023 to 2025), Reddit's gross margin has grown at a 3.6% compound annual growth rate (CAGR), from 339.4% to 364.3%.
What does gross margin mean?
How much of every sales dollar is left after the direct cost of what was sold.
How do you interpret gross margin?
Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.
How does gross margin compare across companies?
Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.