Reddit (NYSE:RDDT) is gearing up to announce its quarterly earnings on Thursday, 2025-10-30. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Reddit will report an earnings per share (EPS) of $0.52.
Investors in Reddit are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Overview of Past Earnings
The company's EPS beat by $0.26 in the last quarter, leading to a 17.47% increase in the share price on the following day.
Here's a look at Reddit's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.19 | 0.02 | 0.24 | -0.07 |
| EPS Actual | 0.45 | 0.13 | 0.36 | 0.16 |
| Price Change % | 17.00 | -4.00 | -5.00 | 42.00 |
Stock Performance
Shares of Reddit were trading at $212.97 as of October 28. Over the last 52-week period, shares are up 78.99%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analysts' Take on Reddit
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Reddit.
Reddit has received a total of 21 ratings from analysts, with the consensus rating as Buy. With an average one-year price target of $245.43, the consensus suggests a potential 15.24% upside.
Peer Ratings Overview
The following analysis focuses on the analyst ratings and average 1-year price targets of Pinterest, Snap and ZoomInfo Technologies, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Pinterest, with an average 1-year price target of $45.12, suggesting a potential 78.81% downside.
- Analysts currently favor an Neutral trajectory for Snap, with an average 1-year price target of $8.91, suggesting a potential 95.82% downside.
- Analysts currently favor an Underperform trajectory for ZoomInfo Technologies, with an average 1-year price target of $9.8, suggesting a potential 95.4% downside.
Insights: Peer Analysis
The peer analysis summary provides a snapshot of key metrics for Pinterest, Snap and ZoomInfo Technologies, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Buy | 77.69% | $453.73M | 3.88% | |
| Buy | 16.93% | $795.22M | 0.82% | |
| Snap | Neutral | 8.75% | $691.60M | -11.99% |
| ZoomInfo Technologies | Underperform | 5.21% | $257.20M | 1.50% |
Key Takeaway:
Reddit ranks highest in Revenue Growth among its peers, with a growth rate of 77.69%. In terms of Gross Profit, Reddit is also at the top with $453.73M. However, Reddit's Return on Equity is the lowest among its peers at 3.88%. Overall, Reddit outperforms its peers in revenue growth and gross profit but lags behind in return on equity.
Get to Know Reddit Better
Reddit is a social media platform where users can engage in conversations, explore, and create communities centered around their interests. Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit has evolved into a vast network of user-generated content organized into specialized forums known as "subreddits." The platform's unique community-driven model relies on volunteer moderators to manage content and maintain subreddit guidelines. Reddit generates revenue through advertising, Premium Memberships, and data licensing agreements.
Reddit: A Financial Overview
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Reddit displayed positive results in 3 months. As of 30 June, 2025, the company achieved a solid revenue growth rate of approximately 77.69%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Communication Services sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 17.87%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Reddit's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 3.88%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Reddit's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.52%, the company showcases efficient use of assets and strong financial health.
Debt Management: Reddit's debt-to-equity ratio is below the industry average at 0.01, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for Reddit visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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