4. Net Income (Loss) per Share

We compute net income (loss) per share of Class A and Class B common stock using the two-class method required for multiple classes of common stock and participating securities. Prior to our IPO, our participating securities included Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, Series F, and Series F-1 convertible preferred stock, as the holders of these series of preferred stock were entitled to receive noncumulative dividends subject to certain requirements at an annual rate of 8% of the respective original issue price then in effect in the event that a dividend was paid on common stock.

In connection with our IPO, our Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, and Series F preferred stock converted on a one-to-one basis into 67,917,432 shares of Class B common stock, and our Series F-1 preferred stock converted on a one-to-one basis into 5,104,017 shares of Class A common stock. For the year ended December 31, 2024, these shares were weighted in the denominator of net income (loss) per share for Class A and Class B common stock for the portion of the time outstanding subsequent to our IPO.

The holders of Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, Series F, and Series F-1 convertible preferred stock did not have a contractual obligation to share in our losses. As such, our net loss for the year ended December 31, 2023 was not allocated to these participating securities.

The following table presents the calculation of basic and diluted net income (loss) per share attributable to common stock:


	Year ended December 31,
	2025				2024				2023
	Class A		Class B		Class A		Class B		Class A		Class B
	(in thousands, except share and per share data)
Basic net income (loss) per share attributable to common stockholders:
Numerator:
Net income (loss) attributable to common stockholders	$	376,971	$	152,750	$	(231,631)	$	(252,645)	$	(11,033)	$	(79,791)
Denominator:
Basic weighted-average common shares outstanding	132,637,767		53,745,504		69,580,048		75,892,341		7,183,723		51,954,363
Basic income (loss) per share attributable to common stockholders	$	2.84	$	2.84	$	(3.33)	$	(3.33)	$	(1.54)	$	(1.54)
Diluted net income (loss) per share attributable to common stockholders:
Numerator:
Net income (loss) attributable to common stockholders	$	388,855	$	140,866	$	(231,631)	$	(252,645)	$	(11,033)	$	(79,791)
Denominator:
Basic weighted-average common shares outstanding	132,637,767		53,745,504		69,580,048		75,892,341		7,183,723		51,954,363
Weighted-average effect of dilutive potential common stock	15,724,707		—		—		—		—		—
Shares used in computation of diluted net income (loss) per share attributable to common stockholders	148,362,474		53,745,504		69,580,048		75,892,341		7,183,723		51,954,363
Diluted net income (loss) per share attributable to common stockholders	$	2.62	$	2.62	$	(3.33)	$	(3.33)	$	(1.54)	$	(1.54)

The following outstanding potentially dilutive shares, including stock options that have been exercised prior to vesting, were excluded from the computation of diluted net income (loss) per share attributable to common stock for the periods presented because the impact of including them would have been anti-dilutive.


	Year ended December 31,
	2025		2024		2023
	Class A	Class B	Class A	Class B	Class A	Class B
Stock options	—	—	11,501,771	3,185,767	22,600,876	7,213,522
Unvested RSUs and RSAs	274,742	—	10,746,145	598,102	24,166,383	2,720,150
Preferred shares	—	—	—	—	5,104,017	67,917,432
	274,742	—	22,247,916	3,783,869	51,871,276	77,851,104

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Reddit, Inc. Earnings Per Share Disclosure

About Earnings Per Share Disclosures

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