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Reddit, Inc.

RDDT · Technology · $34.1B mkt cap · FY2025 filings · Narrow moat ·

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Narrow moat
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The five investor questions

78

2022–2025 (latest 4 aligned FYs; v3 window cap 5): revenue $667M to $2.2B, increasing; diluted EPS -2.77 to 2.62, increasing.

99

Median gross margin 88.3% over 4y, very stable.

18

Median ROIC -2.9%, above the 12% hurdle in 50% of years.

100

Net cash position — no leverage risk.

44

Owner earnings changed trend unclear over up to the ten most recent annual observations, share count n/a.

Price vs. value if growth stopped today

A cautious baseline, not a price target: what the shares may support if normalized owner earnings simply hold steady.

Above value if growth stopped todayBelow value if growth stopped today
No price data
Not reported
Unavailable — insufficient owner-earnings data
Unavailable — insufficient growth-model data
$168.70
No price data

This zero-growth estimate assumes trailing owner earnings persist — unreliable for declining businesses. The recent FY revenue series does not trigger the three-consecutive-declines flag.

Model details under moat-index@3.0.0: zero-growth multiple 11.1×, capped-growth comparison at no more than 18×; 9% discount rate; high-end growth 0% (capped at 4%) using min(5y revenue CAGR, 5y diluted-EPS CAGR), clamped to 0%–4%; maintenance capex uses min(capex, D&A); abstain when D&A is unavailable. This is a disclosed model range, not intrinsic value as fact.

5 years of fundamentals

The business, in plain English

Reddit, Inc. booked $2.2B of revenue in FY2025 in the Technology sector and kept 91.2% of it as gross profit — a high-margin business by that measure. After every other cost, 24.1% of each revenue dollar reached the bottom line.

RDDT's latest filed year, FY2025, doesn't disclose total debt in a form the methodology can use, so current leverage is treated as unmeasured — never assumed to be zero.

Put together: Balance-Sheet Safety is the strongest of the five filters (100/100) and Returns on Capital the weakest (18/100), which is how RDDT lands at 68/100 — a Narrow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

FY2021–FY2025 · 5 fiscal years, normalized from RDDT’s SEC filings

Sales, as filed$2.2B FY2025
$0$1B$2B202120232025
Revenue kept after cost of goods91.2% FY2025
0%50%202120232025
Standard ROIC or separately labeled Operating ROICROIC 22.4% FY2025
−20%0%20%202120232025
Cash an owner could take out$539M FY2025
−$500M$0$500M202120232025

Gaps in a line mean that item isn’t in RDDT’s filings for that year. The series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Flagship explainer

How Reddit, Inc. makes its money

Start with a dollar of revenue and follow what the filing says remains.

revenueBranching filed flows with values and percentages directly labeled. Missing filing concepts are omitted rather than estimated.Revenue$2.2B · 100%Cost of revenue$194M · 9%Gross profit$2.0B · 91%Operating income$442M · 20%Income before tax$529M · 24%Income tax−$1M · −0%Net income$530M · 24%As of 2025-12-31 · 1 SEC filing sourceBuy Like Buffett · buylikebuffett.com

Honest partial: the filing did not provide a normalized tag for Research and development, Selling, general and administrative; those components are omitted, not plugged.

Table alternative
Filed lineValue% of revenueSource
$2.2B100%
Cost of revenue$194M9%
$2.0B91%
$442M20%
Income before tax$529M24%
Income tax−$1M−0%
$530M24%
Source: · event Dec 31, 2025 · retrieved Jul 26, 2026 · annual-row source set
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Flagship explainer

What Reddit, Inc. owns — and owes

Reddit, Inc.'s filing tags don't support a full breakdown — here's what is filed:

Table alternative
Filed lineValue% of assetsSource
Total assets$3.2B100%
Cash and equivalents$954M29%
Stockholders’ equity$2.9B90%
Source: · event Dec 31, 2025 · retrieved Jul 26, 2026 · annual-row source set

Flagship explainer

What drives Reddit, Inc.’s return on equity?

ROE is five filed business factors multiplied together.

DuPont return on equity factor treeReturn on equity branches into tax burden, interest burden, operating margin, asset turnover, and the equity multiplier.Return on equity21%Tax burden100%net income ÷ pretax incomeInterest burden120%pretax ÷ operating incomeOperating margin20%operating income ÷ revenueAsset turnover0.79×revenue ÷ average assetsEquity multiplier1.10×average assets ÷ average equityAs of 2025-12-31 · 1 SEC filing sourceBuy Like Buffett · buylikebuffett.com
DuPont source inputs
InputValueFiscal yearSource
$530MFY2025
Income before tax$529MFY2025
Operating income$442MFY2025
$2.2BFY2025
Ending assets$3.2BFY2025
Beginning assets$2.3BFY2024
$2.9BFY2025
$2.1BFY2024
Source:
  • SEC filingFiling detailsAccession 0001713445-26-000022
· event Dec 31, 2025 · retrieved Jul 26, 2026 · annual-row source set
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Flagship explainer

Where Reddit, Inc.'s cash went

Reddit, Inc.’s filing does not supply enough provenance-matched cash-flow lines for a truthful flow chart — here’s what is filed:

Table alternative
Filed lineValue% of cash from operationsSource
Cash from operations$691M100%
Depreciation and amortization$15.9M2%
Source: · event Dec 31, 2025 · retrieved Jul 26, 2026 · annual-row source set

Curated 19-manager tier

Who reported holding Reddit, Inc.

Delayed public 13F reports for 2026-Q1—not live positions, trades, or recommendations.

0 holding0 exited0 not holding0/19 resolved19 unavailable

Named manager positions and quarter-over-quarter changes
ManagerReported positionQuarter-over-quarterFiling accession
Abrams CapitalUnavailableComparison unavailableFiling unavailable
Akre CapitalUnavailableComparison unavailableFiling unavailable
Baupost GroupUnavailableComparison unavailableFiling unavailable
Berkshire HathawayUnavailableComparison unavailableFiling unavailable
Brave Warrior AdvisorsUnavailableComparison unavailableFiling unavailable
Dodge & CoxUnavailableComparison unavailableFiling unavailable
First EagleUnavailableComparison unavailableFiling unavailable
FundsmithUnavailableComparison unavailableFiling unavailable
Gardner Russo & QuinnUnavailableComparison unavailableFiling unavailable
Gates Foundation TrustUnavailableComparison unavailableFiling unavailable
Mairs & PowerUnavailableComparison unavailableFiling unavailable
Markel / Markel-GaynerUnavailableComparison unavailableFiling unavailable
Oakmark / Harris AssociatesUnavailableComparison unavailableFiling unavailable
Pershing SquareUnavailableComparison unavailableFiling unavailable
Polen CapitalUnavailableComparison unavailableFiling unavailable
Sequoia / Ruane CunniffUnavailableComparison unavailableFiling unavailable
Southeastern Asset ManagementUnavailableComparison unavailableFiling unavailable
Tweedy, BrowneUnavailableComparison unavailableFiling unavailable
Yacktman Asset ManagementUnavailableComparison unavailableFiling unavailable

Position size uses shares and filed value from each manager’s 13F. Portfolio weight uses the eligible long-share filing denominator. Changes compare only with the immediately preceding calendar quarter.

Source: Filing source unavailable · event Mar 31, 2026 · retrieved Jul 26, 2026

Flagship explainer

What Reddit, Inc. insiders reported

Records still being gathered — partial as of retrieval Aug 14, 2026.

Partial coverage: the incomplete Form 4 walk cannot establish no activity, an activity date, or zero counts.

Moat Score history

12 logged readings since Jul 18, 2026 · append-only, never rewritten

Moat Score over timeLast scored reading of each day, on the 0–100 scale67.8 / 100
0406080100WideNarrowShallowNo moatJul 18, 2026Jul 26, 2026

Breaks in the line mark methodology or normalizer upgrades — readings across versions aren’t compared, so a level shift there isn’t a change in the business.

Tier changesSame-methodology and same-normalizer crossings of the Wide / Narrow / Shallow bars

  1. Normalizer upgraded unstamped (version unknown)moat-xbrl-normalizer@1.1.0 — readings across versions aren’t comparedJul 26, 2026
  2. Methodology upgraded moat-index@2.0.0moat-index@3.0.0 — readings across versions aren’t comparedJul 23, 2026
  3. Methodology upgraded moat-index@1.2.0moat-index@2.0.0 — readings across versions aren’t comparedJul 20, 2026

Scores are logged append-only and never overwritten — this record cannot be reconstructed retroactively, which is exactly why it’s worth keeping.

Insider activity

Form 4 reports mix P/S market or private transactions with compensation-plan mechanics. Activity casually described as “insider selling” can include compensation mechanics; awards, tax withholding, and option exercises are shown by their exact filed class here, never collapsed into “Bought” or “Sold.”

These are disclosed filing facts and arithmetic aggregates, not a signal or verdict.

This machine-readable surface covers SEC ownership filings from 2003; it does not represent earlier paper-era records.

Records still being gathered — partial as of retrieval Aug 14, 2026.

Trailing-12-month totals and the 90-day cluster result are withheld because this issuer walk is incomplete.

InsiderShares owned afterDateFiling detail
Huffman Steve LaddDirector, CEO & President, 10% ownerExercise or conversion of derivative security (M)Table I · Acquired · Class A Common Stock · 1 paired event18,000$25.29$455,220391,814Aug 4, 2026
1 filed lot
  • Table I · Class A Common Stock: 18,000 shares at $25.29 · code M · owned after 391,814 · Paired event: 18,000 Stock Option (Right to Buy) → 18,000 Class A Common Stock ·
Huffman Steve LaddDirector, CEO & President, 10% ownerOpen-market or private sale (S)Table I · Disposed · Class A Common Stock18,000$159.7787$2,876,017See lot detailAug 4, 2026
8 filed lots
  • Table I · Class A Common Stock: 700 shares at $154.51 · code S · owned after 391,114 ·
  • Table I · Class A Common Stock: 600 shares at $155.60 · code S · owned after 390,514 ·
  • Table I · Class A Common Stock: 300 shares at $157.18 · code S · owned after 390,214 ·
  • Table I · Class A Common Stock: 800 shares at $158.90 · code S · owned after 389,414 ·
  • Table I · Class A Common Stock: 9,521 shares at $159.87 · code S · owned after 379,893 ·
  • Table I · Class A Common Stock: 4,564 shares at $160.56 · code S · owned after 375,329 ·
  • Table I · Class A Common Stock: 1,200 shares at $161.78 · code S · owned after 374,129 ·
  • Table I · Class A Common Stock: 315 shares at $162.45 · code S · owned after 373,814 ·
Huffman Steve LaddDirector, CEO & President, 10% ownerExercise or conversion of derivative security (M)Table II · Disposed · Stock Option (Right to Buy) · 1 paired event18,000—Exercise or conversion of derivative security (M)—1,081,255Aug 4, 2026
1 filed lot
  • Table II · Stock Option (Right to Buy): 18,000 shares at — (Exercise or conversion of derivative security (M)) · code M · owned after 1,081,255 · Paired event: 18,000 Stock Option (Right to Buy) → 18,000 Class A Common Stock ·

Source-event as of . Retrieved .

Track record

How Reddit, Inc.’s moat rated in each of the years we can reconstruct from its filings — scored only on what was knowable at the time — and what its price and returns did afterward. The score never saw a price; the two are joined only in hindsight, for education, not as a signal.

Point-in-time scores 2024–2025, one methodology version · reconstructed from filings on file each Dec 31 — never with hindsight

Point-in-time Moat Score (dot colored by tier)Indexed price (total-return (dividends reinvested))Rated Wide-moat that year

How to read this: each dot is what the engine would have scored RDDT on that December 31; the line below is its total-return price path (dividends reinvested) in the years since.

0406080100WideNarrowShallowNo moatPoint-in-time Moat Score98149Indexed price · log scale (2025 = 100)202420252026

Two tracks, one timeline: the score has its own 0–100 scale (top), the price its own 100-based scale (bottom) — never a shared axis. The price path is a total-return (dividends reinvested) index built from the same data the forward returns use; gaps in the score line are years with no reconstructed rating (see the table for why). The Table view carries every value.

What followed, in the years it rated Wide

In the reconstructed history shown, RDDT did not rate Wide-moat in any year, so there is no wide-moat track record to report. That absence is itself the honest answer — we don’t manufacture a comparison where the rating never earned one.

Technology context

#124 of 744 scored Technology companies, ranked by Moat Score.

Nearest peers by Moat Score

  1. #122AKAM AKAMAI TECHNOLOGIES, INC.68.2Narrow moat
  2. #123CRTO Criteo S.A.68.0Narrow moat
  3. #125DBX Dropbox, Inc.67.4Narrow moat
  4. #126FISV FISERV INC67.3Narrow moat

Compare RDDT with its nearest peers →All Technology companies on the Index →

Common questions about RDDT

Does Reddit, Inc. have an economic moat?
Based on its FY2025 SEC filings, the Moat Index scores Reddit, Inc. (RDDT) 67.8 out of 100 — a Narrow moat. The five questions behind that score begin at 20% each; if exactly one genuinely lacks data, the other four weights are renormalized and disclosed. revenue and EPS trend 78, pricing power 99, returns on capital 18, balance-sheet safety 100, capital allocation 44.
How has RDDT's Moat Score changed over time?
The record logs 12 readings since Jul 18, 2026; the latest reads 67.8 out of 100 (narrow moat). No tier changes on record yet. (Methodology or normalizer upgrades on Jul 20, 2026, Jul 23, 2026, Jul 26, 2026 re-based the score; readings across versions aren't compared.) The history is append-only — readings are only ever added, never rewritten.

Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell RDDT. See the disclaimer.