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Reddit RDDT Business Segments — 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 us-gaap:CostOfGoodsAndServicesSold.

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 — cost of revenue?
Reddit (RDDT) reported business segments — cost of revenue of $56.27M in Q1 2026.
How has Reddit's business segments — cost of revenue changed year-over-year?
Reddit's business segments — cost of revenue increased by 51.7% year-over-year, from $37.09M to $56.27M.
What is the long-term trend for Reddit's business segments — cost of revenue?
Over 3 years (2022 to 2025), Reddit's business segments — cost of revenue has grown at a 22.8% compound annual growth rate (CAGR), from $104.8M to $194.22M.
What does business segments — cost of revenue mean?
This metric represents the total direct costs incurred to generate revenue for the primary business segment, including all cash and non-cash expenses directly tied to service delivery. Unlike the adjusted version, this includes all GAAP-compliant costs such as stock-based compensation or depreciation allocated to production. It provides the most comprehensive view of the direct cost burden of the segment's operations.