RDDTReddit, Inc.
Services-Computer Processing & Data Preparation
- Revenue
- $2.2B
- 69% YoY
- Operating margin
- 20.1%
- 147% YoY
- EBITDA
- $458M
- 184% YoY
- Market cap
- $18.5B
- Employees
- 2,555
- $862K revenue each
- Net debt / EBITDA
- —
- AI in 10-K
- 10.1
- mentions per 10K words
Takeover score 2 of 13
Fixable underperformance 1 of 7
- TSR below peersNo0 of 2 years3+ of last 5 years
- High CEO pay despite TSRNo$3M medianMedian CEO pay ≥ $15M while TSR trails
- Earnings not backed by cashNo130% of net incomeCash flow under 80% of net income
- Dilutive SBCYes16% of revenueOver 10% of revenue
- Payouts exceed cash flowNo0% of cash flowBuybacks + dividends over cash flow
- Goodwill-heavyNo1% of assetsOver 40% of assets
- Shareholder dissentNo95% lowest supportAny vote under 80% support
Buyer economics 0 of 4
- Low revenue per employeeNo$862K · 74th pctBottom quartile of its SIC industry
- Quiet on AINo10.1 per 10K words · 92nd pctBottom quartile of AI mentions in 10-Ks
- Net cashNo—More cash than debt, positive EBITDA
- Buyout-sizedNo$18.5B market capMarket cap $500M–$5B
Catalysts 1 of 2
- Active 13DNo0 filingsActive-intent 13D in 18 months
- Net insider sellingYes−$239M netNet sales over $10M in 12 months
Financials
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $667M | $804M | $1.3B | $2.2B | 69% |
| Operating income | −$172M | −$140M | −$561M | $442M | 179% |
| Net income | −$159M | −$91M | −$484M | $530M | 210% |
| Operating cash flow | −$94M | −$75M | $222M | $691M | 211% |
| Capex | $6M | $10M | $6M | $7M | 7.3% |
| Stock-based comp | $55M | $48M | $802M | $343M | 57% |
Deal filings
None.
13D filers
| Filed | Filer | Form | Stake | Intent |
|---|---|---|---|---|
| May 6, 2026 | Huffman Steve Ladd | SCHEDULE 13D/A | 24.8% | Passive |
| Nov 3, 2025 | Huffman Steve Ladd | SCHEDULE 13D/A | 27.2% | Passive |
| Aug 19, 2025 | Huffman Steve Ladd | SCHEDULE 13D/A | 30.7% | Passive |
| Aug 22, 2024 | Huffman Steve Ladd | SC 13D/A | 41.0% | Passive |
| May 3, 2024 | Huffman Steve Ladd | SC 13D | 61.5% | Passive |
Insider trading
- Open-market buys, 12 mo
- $9M · 4
- Open-market sells, 12 mo
- $247M · 473
- Net
- −$239M
Pay vs performance
| Year | CEO total comp | Comp actually paid | TSR (indexed) | Peer TSR |
|---|---|---|---|---|
| FY2025 | $3M | $307M | 456 | 131 |
| FY2024 | $3M | $862M | 324 | 118 |