How Reddit (RDDT) Makes Money: A Visual Guide
Reddit (RDDT) generated $2.20B in revenue (TTM through Q4 2025), earning $529.72M in net profit (24.1% margin). Its largest revenue source is Advertising (93.6% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.
Reddit (RDDT) Income Statement Flow
Frequently asked questions
How does Reddit (RDDT) make money?
- Reddit (RDDT) primarily makes money through Advertising, which accounts for 93.6% of total revenue. For TTM through Q4 2025, Reddit generated $2.20B in total revenue with a net profit margin of 24.1%.
What is Reddit (RDDT) gross profit margin?
- Reddit (RDDT) reported a gross profit margin of 91.2% for TTM through Q4 2025, equivalent to $2.01B in gross profit. This means Reddit retains 91.2% of each revenue unit after direct costs of production.
What is Reddit (RDDT) operating profit margin?
- Reddit (RDDT) reported an operating profit margin of 20.1% for TTM through Q4 2025, equivalent to $441.98M in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Reddit (RDDT) net profit margin?
- Reddit (RDDT) reported a net profit margin of 24.1% for TTM through Q4 2025, equivalent to $529.72M in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Reddit (RDDT) invest in R&D?
- Reddit (RDDT) invested $783.14M in research and development in TTM through Q4 2025 (35.6% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Reddit (RDDT) spend on capital expenditures?
- Reddit (RDDT) spent $6.71M on capital expenditures in TTM through Q4 2025 (0.3% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Reddit (RDDT) free cash flow?
- Reddit (RDDT) generated $684.17M in free cash flow for TTM through Q4 2025 (31.1% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
About this data
- What is a Sankey diagram?
- A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
- How is the data calculated?
- We use the income statement from company filings. For TTM (Trailing Twelve Months), we sum the last four quarters. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
- When was this data last updated?
- Based on company filings through TTM through Q4 2025.