Canadian Halal Investor.

NYSE Shariah screener · October 2026

Is Reddit, Inc. (RDDT) Halal?

PASS

Reddit, Inc. · NYSE: RDDT · Telecom

The short answer

Yes - Reddit, Inc. (RDDT) passes this Shariah stock screen on all three gates, with a disclosed measurement caveat at Gate 3. The business is a community-of-communities social platform monetized through advertising (~95% of revenue) and data/API licensing, with no haram segments disclosed in its FY2025 10-K (filed February 6, 2026). Reddit carries zero drawn debt (only an undrawn $500M revolver) - debt / market cap is 0.0% of ~$27.5B ($149.53 latest quote, October 2, 2026). The 10-K discloses 'Interest (income) expense, net' of -$86.7M (i.e. $86.7M net interest income) - about 3.94% of $2,202.5M revenue, below the 5% ceiling; gross interest income is not separately disclosed, but with no drawn debt the net line approximates interest income. Note: third-party coverage is mixed - Musaffa classifies RDDT 'doubtful' (August 2026), Zoya's page shows a 'questionable' assessment, and ShariaPortfolio rates it Shariah Compliant.

Gate 1 — Business activity: PASS

Reddit, Inc. (NYSE: RDDT) operates a community-of-communities social platform organized into subreddits. FY2025 revenue of $2,202.5M came from advertising (Q4 FY2025: $690M of $726M, about 95%) and 'other' revenue including data and API licensing ($36M in Q4). Haram flags checked (factual, from the filings): the FY2025 10-K discloses no gambling, alcohol, adult-content, or interest-based lending segments - the only business is the platform and its advertising and data monetization. Adult content exists only as user-generated communities; Reddit operates no adult-entertainment business line and attributes no revenue segment to it. Gate 1 passes. Facts only.

Gate 2 — Debt and cash: PASS

Per Reddit's FY2025 10-K (year ended December 31, 2025, filed February 6, 2026), the balance sheet shows no debt line items at all - total liabilities of $310.1M are accounts payable, operating leases, accrued expenses, and other noncurrent; Reddit holds only an undrawn $500M revolving credit facility. Against a market cap of about $27.5B ($149.53 latest quote, October 2, 2026), debt / market cap is 0.0%, below the ~33% ceiling. Cash and cash equivalents of $953.6M plus marketable securities of $1,523.2M ($2,476.8M combined) are about 9.0% of market cap. Gate 2 passes. Facts only.

Gate 3 — Non-compliant income: PASS

Reddit's FY2025 10-K discloses 'Interest (income) expense, net' of -$86.7M - i.e. $86.7M of net interest income - against total revenue of $2,202.5M: about 3.94% of revenue, below the 5% ceiling. Measurement caveat: gross interest income is not separately disclosed; with no drawn debt, interest expense is immaterial and the net line approximates interest income - the ratio is reported on that net-line basis. Gate 3 passes with the caveat stated. Facts only.

Key figures used

Frequently asked questions

What does Reddit do?

Reddit, Inc. (NYSE: RDDT) operates a community-of-communities social platform organized into subreddits. FY2025 revenue of $2,202.5M came from advertising (Q4 FY2025: $690M of $726M total revenue, about 95%) and 'other' revenue including data and API licensing ($36M in Q4). The FY2025 10-K discloses no gambling, alcohol, adult-content, or interest-based lending segments - the only business is the platform and its advertising and data monetization. Adult content exists only as user-generated communities; Reddit operates no adult-entertainment business line and attributes no revenue segment to it.

Why does Reddit pass this Shariah stock screen?

Reddit passes all three gates from its own filings, with a disclosed measurement caveat at Gate 3. Gate 1: the business is social-platform advertising and data/API licensing - no haram segments are disclosed in the FY2025 10-K. Gate 2: Reddit carries no drawn debt (an undrawn $500M revolver only) - debt / market cap is 0.0%, below the ~33% ceiling. Gate 3: the 10-K discloses 'Interest (income) expense, net' of -$86.7M, i.e. $86.7M of net interest income, which is about 3.94% of $2,202.5M revenue - below the 5% ceiling. Caveat: gross interest income is not separately disclosed; with no drawn debt, interest expense is immaterial and the net line approximates interest income, but the figure is reported on that net-line basis. Note: third-party coverage is mixed - Musaffa classifies RDDT 'doubtful' (August 2026), Zoya's page shows a 'questionable' assessment, and ShariaPortfolio rates it Shariah Compliant - all reported honestly. This is a factual screen, not a religious ruling - consult a qualified scholar for personal rulings.

What is Reddit's interest-bearing debt ratio?

Per Reddit's FY2025 10-K (year ended December 31, 2025, filed February 6, 2026), the December 31, 2025 balance sheet shows no debt line items at all - total liabilities of $310.1M consist of accounts payable $62.9M, operating leases $23.2M, accrued expenses $201.3M, and other noncurrent $22.7M. Reddit holds only an undrawn $500M revolving credit facility. Against a market cap of about $27.5B ($149.53 latest quote on October 2, 2026), debt / market cap is 0.0% - below the ~33% ceiling. Cash and cash equivalents of $953.6M plus marketable securities of $1,523.2M ($2,476.8M combined) are about 9.0% of market cap. Gate 2 passes.

What is Reddit's non-compliant income ratio?

Reddit's FY2025 10-K does not disclose gross interest income as a separate line; it discloses 'Interest (income) expense, net' of -$86.7M for FY2025 - i.e. $86.7M of net interest income. Against total revenue of $2,202.5M, that is about 3.94% of revenue, below the 5% ceiling. Because Reddit carries no drawn debt, interest expense is immaterial and the disclosed net line approximates interest income - but the measurement is reported on that net-line basis, not a gross disclosed line. Gate 3 passes with this caveat stated.

Do Zoya, Musaffa, or ShariaPortfolio cover Reddit?

Zoya maintains an RDDT page (zoya.finance/stocks/rddt) showing a 'questionable' assessment and noting 'no separate interest income disclosed' - no clean single-line rating could be pinned. Musaffa classifies RDDT as 'doubtful' as of August 2026 (musaffa.com/stock/RDDT). ShariaPortfolio rates Reddit 'Shariah Compliant' - 'passes 3/5 Shariah standards we screen against' (spscreener.mxcorporate.com/stock/rddt-reddit-inc/). All three positions are reported honestly; this page applies the screen directly from Reddit's own SEC filings.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).