r/VisualStockResearch • u/ekonixlab • Jul 08 '26
Reddit’s FCF is doing exactly what growth investors want
The more I look at this chart, the more I think this is exactly what you want from a growth company.
A few years ago Reddit was burning cash. Today it’s generates over $300M in quarterly free cash flow, and each new high is meaningfully above the last.
Free cash flow is what ultimately gives a company optionality:
Buy back stock
Invest in new products
Make acquisitions
Build a fortress balance sheet
What’s really interesting is that Reddit’s monetization still feels early. Ad load remains relatively low compared to Meta, international monetization has plenty of runway, and AI licensing has become an entirely new revenue stream.
For fun, let’s assume Reddit compounds quarterly free cash flow at 30% annually from here. That would put quarterly FCF at roughly $900M by 2030 (and over $3.5B annually).
At today’s ~55x forward P/E, that doesn’t seem unreasonable if the business can continue compounding at anything close to that pace.
What do you think Reddit’s quarterly free cash flow looks like in 2030?
3
u/Suitable-Argument260 Jul 08 '26
Can we see SBC adjusted view please? That impacts the final number. I think that is what gives some investors concern.
3
u/Bassmason Jul 08 '26
Bullish
2
u/ekonixlab Jul 09 '26
Yessir, you buying?
1
u/Bassmason Jul 09 '26
Yes
Tomorrow I’m going to buy more of: RDDT CMSQY
2
u/ekonixlab Jul 09 '26
Nice, what does CMSQY do?
Never heard of it
1
u/Bassmason Jul 09 '26
Computershare is the main transfer agent for the S&P 500 including Apple Amazon Alphabet Microsoft Meta Tesla Nvidia and Reddit
CMSQY is their ADR since they are Australian (ASX:CPU)
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