RedditFRA:6VO +3.45%42 Gross Margin % is 91.52% as of Mar. 2026, which is 7% above its 10-year median of 85.62. GuruFocus rates FRA:6VO with a GF Score™ of 42/100. The stock has 2 warning signs investors should review. Among 497 Interactive Media companies, Reddit ranks better than 80.08% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Reddit's Gross Profit for the
three
months ended in Mar. 2026 was €525 Mil. Reddit's Revenue for the
three
months ended in Mar. 2026 was €574 Mil. Therefore, Reddit's Gross Margin % for the quarter that ended in Mar. 2026 was 91.52%.
The historical rank and industry rank for Reddit's Gross Margin % or its related term are showing as below:
FRA:6VO'
s Gross Margin % Range Over the Past 10 Years
Min: 75.96 Med: 85.62 Max: 91.37
Current: 91.37
During the past 6 years, the highestGross Margin % of Reddit was 91.37%. The lowest was 75.96%. And the median was 85.62%.
FRA:6VO's Gross Margin % is ranked better than 80.08% of 497
companies
in the Interactive Media industry
Industry Median: 62.58
vs FRA:6VO: 91.37
Reddit had a gross margin of 91.52% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Reddit was 3.30% per year.
Reddit (FRA:6VO) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Reddit had a gross margin of 91.52% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Reddit Gross Margin % Related Terms
Reddit Gross Margin % Historical Data
* Premium members only.
The historical data trend for Reddit's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:6VO vs BIDU, TME, PINS: Gross Margin % Comparison
For the Internet Content & Information subindustry, Reddit's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Reddit Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Reddit's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Reddit's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Reddit (FRA:6VO) has a Gross Margin % of 91.52% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Reddit and its competitors. This is near median its historical median of 85.62. Over the past decade, Reddit's Gross Margin % has ranged from 75.96 to 91.37. According to the industry distribution chart, Reddit ranks #99 out of 497 companies in the Interactive Media industry, placing it in the top 19.9%.
Is Reddit's Gross Margin % too high?
Reddit's current Gross Margin % of 91.52% is near median its 10-year median of 85.62. Over the past 10 years, this metric has ranged from a low of 75.96 to a high of 91.37. The Interactive Media industry median Gross Margin % is 62.58. Reddit's value of 91.52% is 46.2% above this industry median. Based on the distribution chart, Reddit ranks #99 out of 497 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, Reddit has a GF Score™ of 42/100, reflecting its overall financial health beyond just this single metric.
How does Reddit's Gross Margin % compare to BIDU and TME?
According to the Interactive Media industry distribution chart, Reddit ranks #99 out of 497 companies for Gross Margin %. This places Reddit in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 62.58. Reddit's value of 91.52% is 46.2% above this benchmark. Historically, Reddit's own Gross Margin % has ranged from 75.96 to 91.37 over the past decade. While the company's 10-year median is 85.62 vs. the industry median of 62.58, Reddit has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Reddit's current Gross Margin % of 91.52% is 46.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Reddit and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reddit's current Gross Margin % is 91.52%, which is near median its own 10-year median of 85.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reddit stock overvalued right now?
Reddit (FRA:6VO) has a current Gross Margin % of 91.52%. The current Gross Margin % is 91.52%, which is near median its 10-year median of 85.62 and 46.2% above the Interactive Media industry median of 62.58. Reddit's overall GF Score™ is 42/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Reddit (FRA:6VO), the current Gross Margin % is 91.52% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
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 primarily through advertising and data licensing agreements.
42GF Score
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