AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 3/6 · 18/10/2026
Moat50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · Self-organizing communities, substantial audience scale and engagement-linked advertising support a network advantage. Its strength relative to competing networks and barriers to replication are not directly demonstrated.
durability · 2/4 · Audience growth and commercial gains support persistence over the disclosed periods. Dependence on continuing participation and uncommitted advertiser spending limits confidence in longer-term durability.
customer dependency · 2/4 · Higher ad prices alongside impression growth indicate advertisers currently value access to the audience. No long-term advertiser commitments or demonstrated switching costs establish deeper dependency.
erosion resilience · 2/4 · Observed growth in audience, pricing and impressions provides evidence of current resilience. Moderation, ad-load and measurement risks remain unresolved possibilities rather than demonstrated competitive deterioration.
Pricing power63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 3/4 · Ad prices rose approximately 40% in the second quarter and 35% in the first half of 2026 year over year, while impressions also increased. These are strong observed pricing outcomes; management's attribution to performance and demand does not establish permanent like-for-like pricing control.
retention · 2/4 · Audience growth and increased user engagement provide indirect evidence of continuing demand. The passages disclose neither cohort retention nor advertiser renewal rates, and impression growth partly reflects additional placements.
margin resilience · 3/4 · Gross margin increased in 2025, and both geographic revenue growth rates exceeded cost-of-revenue growth in the disclosed 2026 periods. Cash generation also improved. These demonstrate current resilience without independently proving a moat or performance through an advertising downturn.
contractual freedom · 2/4 · The absence of long-term advertiser commitments leaves spending and pricing exposed to current demand rather than secured contractually. Realized price increases show commercial flexibility, but auction rules, unilateral repricing rights and detailed pricing terms are not supplied.
Predictability—
Five consecutive annual periods are required for predictability; the accepted history is incomplete.
Financial strength—
Missing required inputs: debtFcfGrade, netDebtEbitGrade, interestCoverageGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- currentRatioGrade
- 100.00
- Current ratio (x)
- 11.56
Capital allocation—
Missing annual observations required by this category.
Management50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Cash generation improved and 2025 operating expenses declined while revenue grew. Completed repurchases demonstrate capital deployment, but outstanding shares increased in 2025, incentive-plan reserves expand automatically, and substantial cloud commitments constrain future spending. Buyback returns and net 2026 dilution are unestablished.
incentive alignment · 2/4 · Actual bonus metrics tie compensation to audience, revenue and adjusted EBITDA, and outstanding equity awards create financial exposure. One-year equity vesting and concentrated voting control temper alignment; equity awards and voting authority do not establish proportional economic ownership.
execution · 3/4 · Strong revenue, earnings, cash generation and realized ad-price gains demonstrate operating execution. The 2025 bonus table also shows revenue and adjusted EBITDA above maximum thresholds while DAUq missed target. Attribution to management is based on operating outcomes, not proof of every strategic claim.
governance · 1/4 · Independent committees and annual director elections provide safeguards, but approximately 74% voting control and Advance consent rights over major actions and CEO decisions materially limit minority-shareholder influence. These are disclosed structural constraints, not merely hypothetical misconduct risks.
Evidence
Instead, we rely on our communities to self-organize and supplement our site-wide rules by devising their own rules that are tailored to the unique circumstances of their particular community.
Risk factors: community self-organization and tailored moderation rules · Filed 06/02/2026
Highlights of 2025 Results User Metrics •Daily Active Uniques (“DAUq”) were 121.4 million for the three months ended December 31, 2025, an increase of 19% year over year •Average revenue per unique (“ARPU”) was $5.98 for the three months ended December 31, 2025, an increase of 42% year over year Financial Results •Revenue was $2.2 billion for the year ended December 31, 2025, an increase of 69% year over year •Gross margin was 91.2% for the year ended December 31, 2025, as compared to 90.5% in the year ended December 31, 2024 •Operating expenses were $1.6 billion for the year ended December 31, 2025, as compared to $1.7 billion in the year ended December 31, 2024 •Net income (loss) was $529.7 million for the year ended December 31, 2025, as compared to $(484.3) million in the year ended December 31, 2024 •Adjusted EBITDA was $845.1 million for the year ended December 31, 2025, as compared to $298.0 million in the year ended December 31, 2024 •Net cash provided by operating activities was $690.9 million for the year ended December 31, 2025, as compared to $222.1 million in the year ended December 31, 2024 •Free Cash Flow was $684.2 million for the year ended December 31, 2025, as compared to $215.8 million in the year ended December 31, 2024 •Cash, cash equivalents, and marketable securities were $2.5 billion as of December 31, 2025 Business and Macroeconomic Conditions In recent years, the global economy and other macroeconomic conditions, including concerns related to inflation and rising interest rates, tariffs, and geopolitical risks, have resulted in uncertainty in the advertising market and have impacted brands’ and agencies’ ability and willingness to invest in advertising.
2025 operating highlights: audience, monetization, expenses, earnings and cash generation · Filed 06/02/2026
During the three and six months ended June 30, 2026, the price of ads increased by approximately 40% and 35%, respectively, compared to the prior year periods driven by improved performance across the full funnel of ad objectives and higher advertiser demand.
Results of operations: realized advertising-price increases and management's explanation · Filed 31/07/2026
During the three and six months ended June 30, 2026, ad impressions delivered increased by approximately 17% and 24%, respectively, compared to the prior year periods driven in part by ad load optimization and improvements, including new ad placements, and by increases in the number of users and user engagement.
Results of operations: advertising impressions, placements, users and engagement · Filed 31/07/2026
In order to obtain new advertisers and further our relationship with current advertisers, we must increase the amount of monetizable content on our platform, including by increasing the absolute number of DAUq who post and consume content, and our monetization model depends on this engagement.
Risk factors: advertiser relationships depend on content and user engagement · Filed 31/07/2026
As is common in our industry, our advertisers do not have long-term advertising commitments with us, and we are at risk if we lose any major advertisers or experience a deterioration in our relationships with them or their agencies.
Risk factors: absence of long-term advertiser commitments · Filed 31/07/2026
In addition, a substantial portion of our revenue is derived from a small number of advertisers, with our top ten largest advertisers accounting for approximately 21% and 25% of our revenue for the years ended December 31, 2025 and 2024, respectively.
Risk factors: top-ten advertiser revenue concentration · Filed 31/07/2026
Our advertising revenue could be adversely affected by a number of factors, including: •our advertisers’ inability to optimize their campaigns or measure the results of their campaigns; •our inability to increase ARPU or otherwise monetize DAUq at the same or higher rate as DAUq growth, including if that growth occurs in markets that do not generate as much revenue as the United States; •restrictions placed on, or the relevance of, ads outside of the United States, such as China, where Reddit is not directly accessible; 42 Table of Contents •product or service changes we may make that change the size, frequency, or relative prominence of ads displayed on our platform or otherwise impact Redditor engagement with ads; •our inability to effectively monetize our international user base or audiences for which we have limited data; •the impact of new technologies or access to Reddit content through third-party applications that block or obscure the display of our ads; •timing and resources required to attract advertisers; •adverse legal developments relating to advertising, like those that constrain the use of certain advertising technologies or limit our ability to measure advertising effectiveness, including regulatory developments or litigation outcomes; and •other risks described in this Quarterly Report on Form 10-Q.
Risk factors: monetization, ad prominence, third-party access and advertising measurement · Filed 31/07/2026
Between our rules and the rules devised by our communities, we may not be able to adequately anticipate and cover every situation where offensive, inappropriate, hostile, or otherwise objectionable content may arise.
Risk factors: limitations of community and platform moderation rules · Filed 06/02/2026
Quarterly ARPU (in dollars) YoY Growth: 14% 23% 23% 47% 41% 42% 44% 36% YoY Growth: 12% 28% 31% 59% 54% 53% 54% 51% YoY Growth: 16% 25% 22% 40% 39% 38% 51% 31% During the three months ended June 30, 2026, ARPU was $6.18, an increase of 36% compared to $4.53 for the prior year period, United States ARPU was $11.85, compared to $7.87 for the prior year period, and rest of world ARPU was $2.26, compared to $1.73 for the prior year period.
Operating metrics: second-quarter 2026 global and geographic ARPU · Filed 31/07/2026
We define average revenue per unique (“ARPU”) as quarterly revenue in a given geography divided by the average DAUq in that geography.
Metric definitions: ARPU calculation · Filed 31/07/2026
Cost of Revenue Three months ended June 30, Six months ended June 30, 2026 2025 $ Change % Change 2026 2025 $ Change % Change (unaudited) (in thousands, except percentages) Cost of revenue $ 70,308 $ 45,900 $ 24,408 53 % $ 126,575 $ 82,989 $ 43,586 53 % Cost of revenue for the three and six months ended June 30, 2026 increased by $24.4 million and $43.6 million, respectively, or 53% for each period, compared to the prior year periods.
Results of operations: quarterly and first-half cost-of-revenue growth · Filed 31/07/2026
Revenue in the United States for the three and six months ended June 30, 2026 increased by $229.3 million and $441.0 million, or 56% and 61%, respectively, compared to the prior year periods.
Results of operations: United States revenue growth · Filed 31/07/2026
Revenue in the rest of world for the three and six months ended June 30, 2026 increased by $76.0 million and $135.3 million, or 84% and 80%, respectively, compared to the prior year periods.
Results of operations: rest-of-world revenue growth · Filed 31/07/2026
Free Cash Flow Free Cash Flow was $571.9 million and $237.4 million for the six months ended June 30, 2026 and 2025, respectively, and was composed of net cash provided by operating activities, resulting primarily from net income, adjustments for non-cash items, and changes in working capital.
Liquidity: first-half free cash flow and its components · Filed 31/07/2026
During the six months ended June 30, 2026, we repurchased 1,523,502 shares of Class A common stock for $239.6 million.
Stockholders' equity: completed first-half 2026 share repurchases · Filed 31/07/2026
We committed under this agreement to spend an aggregate of $880.0 million between July 2026 and June 2029.
Commitments: cloud-services spending obligation · Filed 31/07/2026
Consolidated Balance Sheets (in thousands, except share and per share amounts) December 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 953,569 $ 562,092 Marketable securities 1,523,242 1,278,717 Accounts receivable, net 590,162 349,534 Prepaid expenses and other current assets 69,012 33,058 Total current assets 3,135,985 2,223,401 Property and equipment, net 12,710 12,652 Operating lease right-of-use assets, net 20,788 23,249 Intangible assets, net 15,521 25,424 Goodwill 42,174 42,174 Other noncurrent assets 11,995 9,695 Total assets $ 3,239,173 $ 2,336,595 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Current liabilities: Accounts payable $ 62,929 $ 45,423 Operating lease liabilities 7,023 6,137 Accrued expenses and other current liabilities 201,331 124,464 Total current liabilities 271,283 176,024 Operating lease liabilities, noncurrent 16,191 20,565 Other noncurrent liabilities 22,661 9,257 Total liabilities 310,135 205,846 Commitments and contingencies (Note 11) Stockholders’ equity (deficit): Preferred stock, par value $0.0001 per share; 100,000,000 authorized as of December 31, 2025 and 2024; no shares issued and outstanding as of December 31, 2025 and 2024 — — Class A common stock, par value $0.0001 per share; 2,000,000,000 shares authorized as of December 31, 2025 and 2024; 139,218,373 and 125,001,880 shares issued and outstanding as of December 31, 2025 and 2024, respectively 14 12 Class B common stock, par value $0.0001 per share; 140,000,000 shares authorized as of December 31, 2025 and 2024; 51,673,735 and 55,314,099 shares issued and outstanding as of December 31, 2025 and 2024, respectively 5 5 Class C common stock, par value $0.0001 per share; 100,000,000 shares authorized as of December 31, 2025 and 2024; no shares issued and outstanding as of December 31, 2025 and 2024 — — Additional paid-in capital 3,595,772 3,331,546 Accumulated other comprehensive income (loss) 4,364 24 Accumulated deficit (671,117) (1,200,838) Total stockholders’ equity (deficit) 2,929,038 2,130,749 Total liabilities and stockholders’ equity (deficit) $ 3,239,173 $ 2,336,595 The accompanying notes are an integral part of these financial statements.
Consolidated balance sheets: liquidity, liabilities and outstanding shares · Filed 06/02/2026
Metric Weight (%) 2025 Threshold (50% Payout) (in millions) 2025 Target (100% Payout) (in millions) 2025 Maximum (225% Payout) (in millions) 2025 Results (in millions) Resulting 2025 Payout (%)(1) DAUq(2) 40 119.0 124.0 136.5 121.4 30 Revenue 40 $1,760 $1,850 $2,080 $2,203 90 Adjusted EBITDA(3) 20 $528 $575 $690 $845 45 Total 165 1The resulting payout for performance metric results between the threshold, target, and maximum levels are calculated on a pro-rata basis.
Executive compensation: actual 2025 bonus metrics, targets, results and resulting payout · Filed 23/04/2026
We offer competitive base salaries, and deploy an annual performance-based cash bonus program and grant equity awards that vest over a one-year period as the primary pay-for-performance and incentive vehicles.
Executive compensation: performance cash bonuses and one-year equity vesting · Filed 23/04/2026
Huffman 12/25/2023(2) 12/25/2023 590,194 897,154 25.29 12/25/2033 12/25/2023(3) 12/25/2023 436,102 897,153 25.29 12/25/2033 12/25/2023(3) 12/25/2023 398,735 598,102 45.00 12/25/2033 12/25/2023(3) 12/25/2023 398,735 598,102 60.00 12/25/2033 12/25/2023(3) 12/25/2023 398,735 598,102 90.00 12/25/2033 12/25/2023(4) 12/25/2023 448,576 103,114,165 12/25/2023(5) 12/25/2023 448,577 103,114,395 Jennifer Wong 6/12/2018(6) 4/19/2018 266,627 — 5.35 6/11/2028 5/20/2021(6) 4/19/2021 88,984 — 20.76 5/19/2031 12/25/2023(3) 12/25/2023 580,857 877,217 25.29 12/25/2033 12/25/2023(3) 12/25/2023 194,937 292,405 45.00 12/25/2033 12/25/2023(3) 12/25/2023 194,937 292,406 60.00 12/25/2033 12/25/2023(3) 12/25/2023 194,937 292,406 90.00 12/25/2033 3/24/2022(7) 5/20/2022 194,206 44,642,133 12/25/2023(4) 12/25/2023 438,608 100,822,821 2/8/2023(8) 2/20/2023 10,825 2,488,343 Andrew Vollero 9/3/2024(9) 11/20/2024 119,395 27,445,329 9/3/2024(10) 11/20/2024 89,546 20,583,939 2/25/2016(11) 1/4/2016 33,464 — 1.93 2/24/2026 5/28/2019(6) 1/4/2019 106,579 — 7.92 5/27/2029 Christopher Slowe, Ph.D.
Outstanding equity awards: executive options and unvested stock awards at 2025 year-end · Filed 23/04/2026
Huffman was entitled to vote shares representing approximately 74% of the voting power of our outstanding Class A and Class B common stock.
Governance risk factors: Huffman voting power at June 30, 2026 · Filed 31/07/2026
•All committees of the Board of Directors are entirely composed of independent directors in accordance with the applicable rules, regulations, and listing standards of the NYSE and the applicable rules and regulations promulgated by the SEC.
Governance: entirely independent board committees · Filed 23/04/2026
•Our Board of Directors is declassified, and directors are elected on an annual basis.
Governance: declassified board and annual director elections · Filed 23/04/2026
Additionally, the affirmative vote or written consent of Advance is required for us to take certain corporate actions including, among other things, to: establish any new class of securities or issue securities which, in the aggregate, represent more than 10% of the voting power of the securities beneficially owned by Advance and certain of its affiliates as of the closing of our initial public offering; amend our Certificate of Incorporation or Bylaws, if such amendment would adversely affect Advance’s rights thereunder; effect or consummate a change of control transaction or any other merger, consolidation, business combination, sale, or acquisition that changes the rights or preferences of our security holders; effect the liquidation, dissolution, or winding up of our business operations; terminate, reduce, or enlarge the responsibilities of, or elect, appoint, or remove, our Chief Executive Officer; or submit to our stockholders any proposal to effect the conversion of all then-outstanding shares of our Class C common stock into an equivalent number of fully paid and non-assessable shares of Class A common stock, as set forth in our Certificate of Incorporation or otherwise.
Governance agreement: Advance consent rights over major corporate actions and CEO decisions · Filed 23/04/2026
In addition, the number of shares reserved for issuance under our 2024 Plan increased automatically by 5% on January 1, 2026 and will increase automatically on the first day of January of each year for a period of up to ten years commencing on January 1, 2025 and ending on (and including) January 1, 2034 by the number of shares equal to 5% of the total outstanding shares of our common stock (on an as converted basis) as of the immediately preceding December 31 or a lower number approved by our Board of Directors.
Equity compensation: automatic annual incentive-plan share-reserve increases · Filed 23/04/2026
