What is Reddit's return on equity?

Reddit (RDDT) reported return on equity of 26.2% in Q1 2026.

What does return on equity mean?

How much profit the company earns on the money shareholders have invested.

How do you interpret return on equity?

Higher is better, but very high ROE can be manufactured by leverage — a thin equity base inflates the ratio. Read it next to debt-to-equity and ROIC to tell genuine returns from balance-sheet engineering.

How does return on equity compare across companies?

Comparable across peers, with the leverage caveat. Negative or near-zero equity makes ROE meaningless, so it is suppressed there.

Reddit RDDT Return on equity

Return on equity at other companies

Omnicom GroupOMC

0.9%-35.6pp

Applovin CorporationAPP

269.7%-17.8pp

eBayEBAY

44.2%+7.5pp

Charter Communications, Inc.CHTR

30.2%-6.7pp

AmazonAMZN

21.1%-4.1pp

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

Net margin28.6%—

Returns & leverage

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Debt / equity0×0.0×

Current ratio12.7×+0.3×

Where this comes from

Calculated from Reddit’s reported figures.

net income/total stockholders equity=26.2%

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 return on equity?: Reddit (RDDT) reported return on equity of 26.2% in Q1 2026.
What does return on equity mean?: How much profit the company earns on the money shareholders have invested.
How do you interpret return on equity?: Higher is better, but very high ROE can be manufactured by leverage — a thin equity base inflates the ratio. Read it next to debt-to-equity and ROIC to tell genuine returns from balance-sheet engineering.
How does return on equity compare across companies?: Comparable across peers, with the leverage caveat. Negative or near-zero equity makes ROE meaningless, so it is suppressed there.