The filings tell a different part of the story: net income rose 184.0% over the trailing twelve months while revenue grew 62.2%, so more of each extra dollar of sales reached the bottom line.
Source: SEC EDGAR XBRL company facts. Latest period shown: FY26 Q3.
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| Period | Revenue growth, TTM YoY | Operating margin (TTM) | FCF margin (TTM) |
|---|---|---|---|
| FY24 Q4 | 61.7% | -43.1% | 16.6% |
| FY25 Q1 | 64.1% | 2.2% | 21.6% |
| FY25 Q2 | 70.0% | 7.9% | 23.8% |
| FY25 Q3 | 69.7% | 13.8% | 26.8% |
| FY25 Q4 | 69.4% | 20.1% | 31.1% |
| FY26 Q1 | 70.6% | 25.1% | 35.1% |
| FY26 Q2 | 66.6% | 28.2% | 36.7% |
| FY26 Q3 | 62.2% | 29.4% | 38.8% |
What Reddit's latest figures show
Profit is outgrowing sales. Net income over the twelve months was $991.7 million, up 184.0% on the year before, while revenue over the same period was $3.1 billion, up 62.2%. The operating margin widened 15.6 percentage points over the same stretch, reaching 29.4%.
Free cash flow is accelerating faster than sales. Operating cash flow over the twelve months was $1.2 billion, up 134.4% on the year before, and free cash flow, operating cash flow less capital spending of $6.6 million, or 0.2% of revenue, rose 135.1%. The free-cash-flow margin came in at 38.8% of revenue, up 12.0 percentage points from a year earlier.
Reported profit and cash are moving at different speeds. Net income rose 184.0% while free cash flow rose 135.1% over the same year.
Those two figures bear directly on the concerns raised in the coverage.
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 ran from −74.6% to 28.2%.
The value hinges on growth more than margins
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%. A free-cash-flow margin 1 percentage point lower would lower it by 2.4%.
What the filings cannot tell you at Reddit
Our figures run to Q3 2026, from the company's own filings; they cannot confirm, explain or rule out anything in the reports. The revenue growth deceleration and the diluted share-count increase bear directly on the user-growth and dilution concerns raised in the coverage, but the filings do not say why growth slowed or what drove the share count up.