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Reddit RDDT Business Segments — Adjusted cost of revenue

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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$32.14B+23.7%
Enterprise value$30.78B+21.8%
P/E45.4×
P/S13×-2.6×

Profitability

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Gross margin91.4%+0.6pp
Operating margin25.1%+23.8pp
Net margin28.6%
FCF margin35.1%+13.5pp

Returns & leverage

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

Where this comes from

Reported directly by Reddit in its filing.

Tagged under the XBRL concept rddt:CostOfGoodsAndServiceAdjusted.

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 business segments — adjusted cost of revenue?
Reddit (RDDT) reported business segments — adjusted cost of revenue of $56.12M in Q1 2026.
How has Reddit's business segments — adjusted cost of revenue changed year-over-year?
Reddit's business segments — adjusted cost of revenue increased by 52.2% year-over-year, from $36.87M to $56.12M.
What is the long-term trend for Reddit's business segments — adjusted cost of revenue?
Over 3 years (2022 to 2025), Reddit's business segments — adjusted cost of revenue has grown at a 23.0% compound annual growth rate (CAGR), from $103.95M to $193.34M.
What does business segments — adjusted cost of revenue mean?
This metric represents the direct costs associated with generating revenue for the company's primary reportable segment, excluding non-cash or non-recurring items. It captures expenses like server hosting, data center costs, and payment processing fees necessary to deliver the platform's services. By adjusting for specific items, it provides a clearer view of the core variable costs required to support the segment's operations.