What is Reddit, Inc. (RDDT) worth?

Reddit is a rare social-platform asset that has crossed into durable profitability: TTM revenue ~$2.78B (Q2'26 +61% YoY), 91% gross margin, ~28% operating margin expanding, TTM free cash flow ~$1.0B, and ~$2.6B net cash with negligible debt. Daily actives have grown past 130 million. The monetization story — US ad load, international ARPU (a fraction of US levels), new ad formats, and data-licensing to AI developers — still has substantial runway.

The question is price, not quality. After a sharp post-earnings selloff, the stock still discounts roughly 30%+ sustained growth with margin expansion. My work triangulates to a fair value around $125: EV/revenue comps ~$122, a normalized (SBC-charged, normally-taxed) DCF ~$100, and probability-weighted scenarios ~$129. That places the shares at a modest premium to intrinsic value — a fine business, richly but not absurdly valued, with an unusually wide outcome range driven by search-traffic dependency.

Two things to keep front-of-mind: GAAP EPS is flattered by a near-zero tax rate (NOLs) and by adding back ~$338M/yr of stock comp, and a meaningful chunk of traffic depends on Google — the source of the recent volatility.

Probability-weighted scenarios cross-checked with EV/revenue comps and a normalized DCF; reverse-DCF for implied expectations

Every figure is computed from SEC filings by the analyst’s calculator tools and fact-checked by a second, independent model.