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Reddit RDDT Return on invested capital

Return on invested capital at other companies

Omnicom Group logo
Omnicom GroupOMC
21.3%-1.7pp
Applovin Corporation logo
Applovin CorporationAPP
118.2%+55.3pp
eBay logo
eBayEBAY
24.2%+3.0pp
Charter Communications, Inc. logo
Charter Communications, Inc.CHTR
9%-0.5pp
Amazon logo
AmazonAMZN
14%-3.8pp
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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Gross margin91.4%+0.6pp
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 return on invested capital?
Reddit (RDDT) reported return on invested capital of 36.2% in Q1 2026.
How has Reddit's return on invested capital changed year-over-year?
Reddit's return on invested capital increased by 2331.3% year-over-year, from -1.6% to 36.2%.
What does return on invested capital mean?
The after-tax return the business earns on all the capital — debt and equity — invested in it.
How do you interpret return on invested capital?
The cleanest measure of business quality: ROIC sustained above the cost of capital creates value, below it destroys value. Compare against WACC, not against zero.
How does return on invested capital compare across companies?
Highly comparable across companies as a quality screen. Sector-sensitive definitions of invested capital mean banks/insurers are best excluded.