Is Reddit, Inc. (RDDT) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 0.1% / 30% | 9.3% / 30% | 2.2% / 30% | 3.94% / 5% | ✓ HALAL |
| DJIM | 0.1% / 33% | 9.3% / 33% | 2.2% / 33% | 3.94% / 5% | ✓ HALAL |
| MSCI | 0.7% / 33% | 76.5% / 33% | 18.2% / 33% | 3.94% / 5% | ✗ NOT HALAL |
| S&P | 0.1% / 33% | 9.3% / 33% | 2.2% / 33% | 3.94% / 5% | ✓ HALAL |
| FTSE | 0.7% / 33% | 76.5% / 33% | 18.2% / 50% | 3.94% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 91.2% | |
| Operating Margin | 31.9% | |
| Net Margin | 24.1% | |
| Return on Equity (ROE) | 20.9% | |
| Return on Assets (ROA) | 9.9% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $691M |
| Free Cash Flow | $684M |
| Total Debt | $23M |
| Debt-to-Equity | 0.8 |
| Current Ratio | 11.6 |
| Total Assets | $3.2B |
Price & Trading
| Last Close | $127.26 |
| 50-Day MA | $157.47 |
| 200-Day MA | $191.94 |
| Avg Volume | 5.4M |
| Beta | 2.4 |
|
52-Week Range
$79.75
| |
About Reddit, Inc. (RDDT)
Reddit, Inc. operates a digital community in the United States and internationally. The company's platform enables user to engage in conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share laughs, and find belonging. It also organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. Reddit, Inc. was founded in 2005 and is headquartered in San Francisco, California.
Purification Calculator
As a halal stock with 3.94% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Reddit, Inc. (RDDT) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Reddit, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Reddit, Inc.'s debt ratio?
Reddit, Inc.'s debt ratio is 0.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 0.7%.
Does Reddit, Inc. require dividend purification?
Yes, Reddit, Inc. has an impermissible income ratio of 3.94%, which means 3.94% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Reddit, Inc.'s key financial metrics?
Reddit, Inc. has a market capitalization of $23.3B, trailing P/E ratio of 46.5, and revenue of $2.2B. The company maintains a gross margin of 91.2% and a net margin of 24.1%. Return on equity stands at 20.9%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.