RDDTHIGH SIGNALFINANCIAL10-K

Reddit achieved a dramatic turnaround from a $484M loss to $530M profit while revenue grew 69% and the company moved from operational losses to strong profitability.

This represents a fundamental transformation in Reddit's business model execution, demonstrating the company has successfully scaled its advertising platform and achieved sustainable profitability. The combination of strong revenue growth with even stronger margin expansion suggests Reddit has found effective monetization strategies for its user base and achieved operational leverage.

Comparing 2026-02-06 vs 2025-02-13View on EDGAR →
FINANCIAL ANALYSIS

Reddit delivered exceptional financial performance with revenue growing 69% to $2.2B while simultaneously achieving a remarkable turnaround from -$484M net loss to +$530M profit. Operating cash flow surged 211% to $691M, demonstrating strong cash generation capabilities, while the balance sheet strengthened with cash increasing 70% to $954M and total assets growing 39% to $3.2B. The overall picture signals Reddit has successfully transitioned from a loss-making growth company to a profitable, cash-generating business with strong operational leverage.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
+211.1%
$222.1M→$690.9M

Operating cash flow surged 211.1% — exceptional cash generation, highest quality earnings signal.

Net Income
P&L
+209.4%
-$484.3M→$529.7M

Net income grew 209.4% — bottom-line growth signals improving overall business health.

Operating Income
P&L
+178.8%
-$560.6M→$442.0M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Cash & Equivalents
Balance Sheet
+69.6%
$562.1M→$953.6M

Cash position surged 69.6% — strong cash generation or capital raise providing significant financial cushion.

Revenue
P&L
+69.4%
$1.3B→$2.2B

Strong top-line growth of 69.4% — accelerating demand or successful expansion into new markets.

Accounts Receivable
Balance Sheet
+68.8%
$349.5M→$590.2M

Receivables surged 68.8% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

Current Liabilities
Balance Sheet
+54.1%
$176.0M→$271.3M

Current liabilities surged 54.1% — significant near-term obligations; verify ability to meet short-term debt.

Total Liabilities
Balance Sheet
+50.7%
$205.8M→$310.1M

Liabilities grew 50.7% — significant increase in debt or obligations, assess impact on financial flexibility.

Current Assets
Balance Sheet
+41%
$2.2B→$3.1B

Current assets grew 41% — improving short-term liquidity or inventory/receivables build.

Total Assets
Balance Sheet
+38.6%
$2.3B→$3.2B

Asset base grew 38.6% — expansion through organic growth, acquisitions, or capital deployment.

LANGUAGE CHANGES
NEW — 2026-02-06
PRIOR — 2025-02-13
ADDED
As of February 4, 2026, the registrant had outstanding 139,649,508 shares of Class A common stock, 51,386,276 shares of Class B common stock, and no shares of Class C common stock each with a par value of $0.0001.
All statements other than statements of historical facts contained in this Annual Report on Form 10-K, including statements regarding our strategy, future financial condition, future operations, our plans with respect to our share repurchase program, projected costs, prospects, plans, objectives of management, and expected market growth, are forward-looking statements.
They come together to share the rhythm of their daily discoveries, ask questions and receive advice, and search for a breadth of perspectives and knowledge not accessible anywhere else.
We do not require that users disclose their identities on Reddit, freeing them from having to perform and the associated pressures to always appear perfect.
Powerful Platform Built Around Context and User Interest As more content online is synthesized, summarized, and sanitized by artificial intelligence ( AI ), Reddit stands out for its honesty and subjectivity.
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REMOVED
As of February 5, 2025, the registrant had outstanding 125,531,501 shares of Class A common stock and 55,372,848 shares of Class B common stock, each with a par value of $0.0001.
All statements other than statements of historical facts contained in this Annual Report on Form 10-K, including statements regarding our strategy, future financial condition, future operations, projected costs, prospects, plans, objectives of management, and expected market growth, are forward-looking statements.
We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.
They come together to share the rhythm of their daily discoveries, ask questions and receive advice, research before making a purchase decision, hear reactions to recent events, and thrive as a community.
We do not require that users disclose their identities, freeing them from having to perform and the associated pressures to always appear perfect.
+7 more — sign up free →
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