Reddit (MEX:RDDT) Beneish M-Score: -2.42 (As of Jun. 26, 2026)


MEX:RDDT Reddit Inc MEX:RDDT
39 GF Score
Price MXN2,760.00
! 2 Warning Signs
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What is Reddit Beneish M-Score?

Reddit MEX:RDDT -2.46% 39 Beneish M-Score is -2.42 as of Jun. 26, 2026. GuruFocus rates MEX:RDDT with a GF Score™ of 39/100. The stock has 2 warning signs investors should review. Among 532 Interactive Media companies, Reddit ranks worse than 65.23% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.42 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Reddit's Beneish M-Score or its related term are showing as below:

MEX:RDDT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.81   Med: -2.42   Max: -1.45
Current: -2.42

During the past 6 years, the highest Beneish M-Score of Reddit was -1.45. The lowest was -3.81. And the median was -2.42.


Reddit Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Reddit's Beneish M-Score 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.

Reddit Beneish M-Score Chart

Reddit Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial 0.00 -1.45 -2.60 -3.80 -2.32

Reddit Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.44 -2.29 -2.25 -2.32 -2.42

MEX:RDDT vs BIDU, TME, PINS: Beneish M-Score Comparison

For the Internet Content & Information subindustry, Reddit's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Reddit's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Reddit's Beneish M-Score falls into.


MEX:RDDT
39GF Score
Reddit Inc MEX:RDDT
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Reddit Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Reddit for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.8422+0.528 * 0.9945+0.404 * 0.6436+0.892 * 1.5597+0.115 * 0.8794
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.833+4.679 * -0.07451-0.327 * 0.9461
=-2.59

* 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.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was MXN9,429 Mil.
Revenue was 11963.092 + 13065.062 + 10729.724 + 9407.577 = MXN45,165 Mil.
Gross Profit was 10948.446 + 12007.803 + 9766.489 + 8543.316 = MXN41,266 Mil.
Total Current Assets was MXN61,058 Mil.
Total Assets was MXN62,831 Mil.
Property, Plant and Equipment(Net PPE) was MXN557 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN296 Mil.
Selling, General, & Admin. Expense(SGA) was MXN15,354 Mil.
Total Current Liabilities was MXN4,795 Mil.
Long-Term Debt & Capital Lease Obligation was MXN255 Mil.
Net Income was 3678.328 + 4530.288 + 2983.923 + 1681.391 = MXN12,874 Mil.
Non Operating Income was 411.434 + 413.951 + 404.214 + 398.181 = MXN1,628 Mil.
Cash Flow from Operations was 5630.765 + 4804.047 + 3396.594 + 2096.274 = MXN15,928 Mil.
Total Receivables was MXN7,179 Mil.
Revenue was 8027 + 8920.129 + 6859.136 + 5151.32 = MXN28,958 Mil.
Gross Profit was 7268.226 + 8255.979 + 6177.202 + 4610.858 = MXN26,312 Mil.
Total Current Assets was MXN47,640 Mil.
Total Assets was MXN49,857 Mil.
Property, Plant and Equipment(Net PPE) was MXN716 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN315 Mil.
Selling, General, & Admin. Expense(SGA) was MXN11,818 Mil.
Total Current Liabilities was MXN3,822 Mil.
Long-Term Debt & Capital Lease Obligation was MXN413 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(9429.389 / 45165.455) / (7178.721 / 28957.585)
=0.208774 / 0.247905
=0.8422

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(26312.265 / 28957.585) / (41266.054 / 45165.455)
=0.908648 / 0.913664
=0.9945

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (61057.532 + 556.615) / 62831.03) / (1 - (47640.397 + 716.344) / 49857.124)
=0.019368 / 0.030094
=0.6436

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=45165.455 / 28957.585
=1.5597

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(315.075 / (315.075 + 716.344)) / (296.276 / (296.276 + 556.615))
=0.305477 / 0.347379
=0.8794

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(15354.351 / 45165.455) / (11817.97 / 28957.585)
=0.339958 / 0.408113
=0.833

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((254.586 + 4794.588) / 62831.03) / ((412.724 + 3822.021) / 49857.124)
=0.080361 / 0.084938
=0.9461

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(12873.93 - 1627.78 - 15927.68) / 62831.03
=-0.07451

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Reddit has a M-score of -2.59 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.42 mean?
Reddit (MEX:RDDT) has a Beneish M-Score of -2.42 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Reddit and its competitors. According to the industry distribution chart, Reddit ranks #347 out of 532 companies in the Interactive Media industry, placing it in the top 65.2%.
Is Reddit's Beneish M-Score too high?
Reddit's current Beneish M-Score is -2.42. Based on the distribution chart, Reddit ranks #347 out of 532 companies in the Interactive Media industry, which is below the industry midpoint. Overall, Reddit has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does Reddit's Beneish M-Score compare to BIDU and TME?
According to the Interactive Media industry distribution chart, Reddit ranks #347 out of 532 companies for Beneish M-Score. This places Reddit in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Interactive Media company?
A good Beneish M-Score depends on the Interactive Media industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Reddit and its competitors. Reddit's current Beneish M-Score is -2.42. 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 (MEX:RDDT) has a current Beneish M-Score of -2.42. The current Beneish M-Score is -2.42. Reddit's overall GF Score™ is 39/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Reddit (MEX:RDDT), the current Beneish M-Score is -2.42 as of Jun. 26, 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 Business Description

Address 303 2nd Street, South Tower, 5th Floor, San Francisco, CA, USA, 94107
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.
39GF Score

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Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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