RedditFRA:6VO -5.56%42 Net Margin % is 30.75% as of Mar. 2026. GuruFocus rates FRA:6VO with a GF Score™ of 42/100. The stock has 2 warning signs investors should review. Among 553 Interactive Media companies, Reddit ranks better than 89.69% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Reddit's Net Income for the
three
months ended in Mar. 2026 was €176 Mil. Reddit's Revenue for the
three
months ended in Mar. 2026 was €574 Mil. Therefore, Reddit's net margin for the quarter that ended in Mar. 2026 was 30.75%.
The historical rank and industry rank for Reddit's Net Margin % or its related term are showing as below:
FRA:6VO'
s Net Margin % Range Over the Past 10 Years
Min: -37.25 Med: -24.82 Max: 28.6
Current: 28.6
FRA:6VO's Net Margin % is ranked better than 89.69% of 553
companies
in the Interactive Media industry
Industry Median: 1.65
vs FRA:6VO: 28.60
Reddit (FRA:6VO) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Reddit Net Margin % Related Terms
Reddit Net Margin % Historical Data
* Premium members only.
The historical data trend for Reddit's Net 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: Net Margin % Comparison
For the Internet Content & Information subindustry, Reddit's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Reddit's Net Margin % distribution charts can be found below:
* The bar in red indicates where Reddit's Net 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.
Reddit (FRA:6VO) has a Net Margin % of 30.75% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Reddit and its competitors. According to the industry distribution chart, Reddit ranks #57 out of 553 companies in the Interactive Media industry, placing it in the top 10.3%.
Is Reddit's Net Margin % too high?
Reddit's current Net Margin % is 30.75%. The Interactive Media industry median Net Margin % is 1.65. Reddit's value of 30.75% is 1763.6% above this industry median. Based on the distribution chart, Reddit ranks #57 out of 553 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 Net Margin % compare to BIDU and TME?
According to the Interactive Media industry distribution chart, Reddit ranks #57 out of 553 companies for Net Margin %. This places Reddit in the top 10% of its industry — outperforming the majority of peers. The industry median Net Margin % is 1.65. Reddit's value of 30.75% is 1763.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for an Interactive Media company?
The median Net Margin % among Interactive Media companies is 1.65, based on 553 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Reddit's current Net Margin % of 30.75% is 1763.6% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Reddit and its competitors. For the Interactive Media industry, the median Net Margin % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reddit's current Net Margin % is 30.75%. 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 Net Margin % of 30.75%. The current Net Margin % is 30.75% and 1763.6% above the Interactive Media industry median of 1.65. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Reddit (FRA:6VO), the current Net Margin % is 30.75% 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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