How does Reddit (RDDT) make money?

Reddit (RDDT) generates revenue primarily from Advertising, which accounted for 94.1% of total revenue in TTM through Q1 2026. The company reported $2.47B in revenue and converted 28.6% of it into net profit, equivalent to roughly $708M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Reddit (RDDT)?

Reddit (RDDT) reported a gross profit margin of 91.4% in TTM through Q1 2026, equivalent to $2.26B in gross profit on $2.47B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Reddit (RDDT)?

Reddit (RDDT) reported an operating profit margin of 25.1% in TTM through Q1 2026, equivalent to $621M in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Reddit (RDDT)?

Reddit (RDDT) reported a net profit margin of 28.6% in TTM through Q1 2026, equivalent to $708M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Reddit (RDDT) profitable?

Yes. Reddit (RDDT) reported $708M in net income for TTM through Q1 2026, with a net profit margin of 28.6%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Reddit (RDDT) invest in research and development?

Reddit (RDDT) invested $799M in research and development during TTM through Q1 2026, roughly 32.3% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Reddit (RDDT) spend on capital expenditures?

Reddit (RDDT) spent $6.82M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 0.3% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Reddit (RDDT) generate?

Reddit (RDDT) generated $869M in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 35.1%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Reddit (RDDT)?

Reddit (RDDT) had an effective tax rate of 0.3% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Reddit (RDDT)?

Reddit (RDDT) reports revenue across 2 reportable product segments, led by Advertising at 94.1% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Reddit (RDDT) generate most of its revenue?

UNITED STATES is the largest geographic market for Reddit (RDDT), accounting for 80.7% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Reddit Makes Money: 2026 Visual Revenue Map

Reddit (RDDT) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 1, 2026).

Reddit (RDDT) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Reddit (RDDT), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Advertising	$2.33B	94.1%
Other Revenue	$145M	5.9%
Total	$2.47B	100%

Advertising$2.33B
Other Revenue$145M
Total$2.47B

Reddit (RDDT) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Reddit (RDDT), TTM through Q1 2026
Region	Revenue (USD)	% of total
UNITED STATES	$2B	80.7%
Non-US	$476M	19.3%
Total	$2.47B	100%

UNITED STATES
Non-US
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Reddit (RDDT) reports revenue across 2 reportable product segments; the largest segment was Advertising at 94.1%, followed by Other Revenue (5.9%). Geographically, UNITED STATES accounted for 80.7% of revenue, followed by Non-US (19.3%).

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