What is Reddit's net margin?

Reddit (RDDT) reported net margin of 28.6% in Q1 2026.

What does net margin mean?

The share of every sales dollar that becomes bottom-line profit.

How do you interpret net margin?

Higher is better, but net margin mixes operating performance with financing and tax effects and one-off items — read it alongside operating margin to separate the operating story from the rest.

How does net margin compare across companies?

Comparable across peers but sensitive to leverage and tax structure; two operationally identical firms can show different net margins purely from financing.

Reddit RDDT Net margin

Net margin at other companies

Omnicom GroupOMC

0.3%-8.9pp

Applovin CorporationAPP

64.3%+12.5pp

eBayEBAY

17.6%-2.2pp

Charter Communications, Inc.CHTR

9%-0.4pp

AmazonAMZN

10.6%+0.5pp

Alphabet Inc.GOOGL

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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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Gross margin91.4%+0.6pp

Operating margin25.1%+23.8pp

Returns & leverage

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Return on equity26.2%—

Debt / equity0×0.0×

Current ratio12.7×+0.3×

Where this comes from

Calculated from Reddit’s reported figures.

net income/total revenue=28.6%

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 net margin?: Reddit (RDDT) reported net margin of 28.6% in Q1 2026.
What does net margin mean?: The share of every sales dollar that becomes bottom-line profit.
How do you interpret net margin?: Higher is better, but net margin mixes operating performance with financing and tax effects and one-off items — read it alongside operating margin to separate the operating story from the rest.
How does net margin compare across companies?: Comparable across peers but sensitive to leverage and tax structure; two operationally identical firms can show different net margins purely from financing.