Reddit shares closed at $91.73 on Friday, 30 October, their lowest close in a year and 24.7% below the previous 52-week low of $121.84 set on 27 March 2026. The shares have fallen 56.5% over the past year, excluding dividends.

Reddit's share price over the year

Over the previous 52 weeks the shares closed between $121.84 and $258.93.

Profit is outgrowing sales

What stands out in the filings is that profit is outgrowing sales. Revenue over the twelve months to Q3 2026 was $3.1 billion, up 62.2% on the year before, though that growth rate was down 4.4 percentage points on the rate a quarter earlier. Net income of $991.7 million rose 184.0% over the same period, so more of each extra dollar of revenue is reaching the bottom line. The operating margin widened 15.6 percentage points to 29.4%. The trailing gross margin was 91.5% and the net margin was 32.1%.

Free cash flow is also outrunning sales. Operating cash flow of $1.2 billion rose 134.4% on the year before, and free cash flow of $1.2 billion rose 135.1%. Capital spending was $6.6 million, or 0.2% of revenue, so nearly all of the operating cash flow passed through as free cash flow. The free-cash-flow margin was 38.8%, up 12.0 percentage points from a year earlier. The average diluted share count rose 7.0% over the year.

Reported profit and cash are moving at different speeds. Net income rose 184.0% over the year while free cash flow rose 135.1%.

The free-cash-flow margin of 38.8% is above every past reading in the company's own record, which ran from −10.6% to 36.7%

Today's free-cash-flow margin of 38.8% is above every one of the company's own past quarterly readings, which have ranged from −10.6% to 36.7%. The operating margin of 29.4% is likewise above every past reading, which ranged from −74.6% to 28.2%.

The value hinges on growth more than margins

Our model's base-case value is $63.00 per share, below the $91.73 close. In our model, growth 5 percentage points lower would lower the value by 22.5%, and growth 5 percentage points higher would raise it by 28.8%.

What Reddit's next report has to show

A 52-week low says where the market's price has gone, not why. The next results will show whether the trends in the filings above support it.