Reddit vs Yelp
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KIRAβs take AI analyst
I put Reddit and Yelp side by side, using each oneβs latest annual report. Here is what stands out:
- Reddit is the larger business, with $2.2B of revenue in fiscal 2025 against $1.5B for Yelp, about 1.5 times as much.
- Reddit grew revenue faster (69.4%, against 3.8%).
- Reddit kept more of each dollar of sales as operating profit (20.1% operating margin, against 12.6%).
- Reddit turned more of its sales into free cash flow (31.1% FCF margin, against 22.1%).
- Investors pay more for each dollar of Redditβs earnings: a P/E of 32.2x against 9.6x for Yelp.
Who comes out ahead
Of the 6 measures where higher (or lower) is clearly better, how many each company leads.
RDDT
5/6
Revenue growthOperating marginNet marginFCF marginReturn on equity
Yelp
YELP
1/6
Share count change
Side by side
Best in the row
| Latest fiscal year | RDDT FY25 | YELP FY25 |
|---|---|---|
| Size | ||
| Market cap | $28.0B | $1.1B |
| Revenue | $2.2B | $1.5B |
| Free cash flow | $684M | $324M |
| Net income | $530M | $146M |
| Growth | ||
| Revenue growth | 69.4% | 3.8% |
| 5-year growth | β | 10.9% |
| Share count change | 38.9% | β7.8% |
| Profitability | ||
| Gross margin | 91.2% | β |
| Operating margin | 20.1% | 12.6% |
| Net margin | 24.1% | 9.9% |
| FCF margin | 31.1% | 22.1% |
| Return on capital | 119.1% | β |
| Return on equity | 20.9% | 20.0% |
| Balance sheet | ||
| Net debt | β$2.5B | β |
| Net debt / EBITDA | β5.4x | β |
| Dividends and buybacks | $0.0M | $291M |
| Valuation & quality | ||
| P/E | 32.2x | 9.6x |
| Piotroski F-score | 6 | β |
Ten years
Revenue
FY16
RDDT β
YELP $716M
FY17
RDDT β
YELP $851M
FY18
RDDT β
YELP $943M
FY19
RDDT β
YELP $1.0B
FY20
RDDT β
YELP $873M
FY21
RDDT β
YELP $1.0B
FY22
RDDT $667M
YELP $1.2B
FY23
RDDT $804M
YELP $1.3B
FY24
RDDT $1.3B
YELP $1.4B
FY25
RDDT $2.2B
YELP $1.5B
RDDT
YELP
Operating margin
FY16
RDDT β
YELP β0.3%
FY17
RDDT β
YELP 21.1%
FY18
RDDT β
YELP 2.8%
FY19
RDDT β
YELP 3.5%
FY20
RDDT β
YELP β4.4%
FY21
RDDT β
YELP 3.1%
FY22
RDDT β25.8%
YELP 4.9%
FY23
RDDT β17.4%
YELP 5.9%
FY24
RDDT β43.1%
YELP 10.7%
FY25
RDDT 20.1%
YELP 12.6%
RDDT
YELP
Free cash flow
FY16
RDDT β
YELP $104M
FY17
RDDT β
YELP $137M
FY18
RDDT β
YELP $115M
FY19
RDDT β
YELP $167M
FY20
RDDT β
YELP $145M
FY21
RDDT β
YELP $184M
FY22
RDDT β$100M
YELP $160M
FY23
RDDT β$84.8M
YELP $279M
FY24
RDDT $216M
YELP $248M
FY25
RDDT $684M
YELP $324M
RDDT
YELP
Return on capital
FY16
RDDT β
YELP β
FY17
RDDT β
YELP β
FY18
RDDT β
YELP β
FY19
RDDT β
YELP β
FY20
RDDT β
YELP β
FY21
RDDT β
YELP β
FY22
RDDT β
YELP β
FY23
RDDT β
YELP β
FY24
RDDT β
YELP β
FY25
RDDT 119.1%
YELP β
RDDT
YELP
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.