Compare · Internet platforms and advertising
Reddit vs Spotify
Reddit vs Spotify: which one is bigger, grows faster and keeps more of each dollar of revenue?
Reddit: gross margin +59 points
Method and sources
- Revenue growth (1 year): Reddit 69.4% (FY2025), Spotify 9.7% (FY2025)
- Revenue growth (3-year CAGR): Reddit 48.9% (FY2025), Spotify 13.6% (FY2025)
- Operating margin: Reddit 20.1% (FY2025), Spotify 12.8% (FY2025)
- Gross margin: Reddit 91.2% (FY2025), Spotify 32.0% (FY2025)
- Net margin: Reddit 24.1% (FY2025), Spotify 12.9% (FY2025)
- FCF margin: Reddit 31.1% (FY2025), Spotify 16.7% (FY2025)
Latest fiscal year per company: Reddit FY2025, Spotify FY2025. Fiscal years end on different dates, so years are not calendar-aligned.
Reddit reports in USD and Spotify in EUR. Amounts are never converted between currencies, so revenue and free cash flow are shown in each filing currency and their size is not compared; margins, growth and percentages of revenue are ratios within one filing and are comparable.
Why this pair: Consumer internet platforms with ad revenue; reported in EUR and USD, so revenue size is not compared. Peer groups are curated by hand from each company's business as described in its own 10-K/20-F (what it sells, not its SIC code). A company can sit in more than one group. Within a group, a pair is listed when both companies report in the same currency and the larger company's latest fiscal-year revenue is at most 4x the smaller one's; each company keeps its 4 nearest peers by revenue ratio. Companies reporting in different currencies are never size-matched (amounts are not converted); a short list of obvious same-industry pairs across currencies is added by hand, with the reason, as are two direct competitor pairs outside the size rule (AMD vs NVIDIA, Intel vs NVIDIA).
Derived = calculated by Hollsteen from reported SEC values; reported = as tagged in the filing. SEC filings only, no market data.
Side by side: all values with filing links
| Metric | Reddit FY2025 | Spotify FY2025 |
|---|---|---|
| Revenue | $2.2B10-K · Feb 6, 2026 | €17.2B20-F · Feb 10, 2026 |
| Revenue growth (1 year) | 69.4% derived10-K · Feb 6, 2026 | 9.7% derived20-F · Feb 10, 2026 |
| Revenue growth (3-year CAGR) | 48.9% derived10-K · Feb 6, 2026 | 13.6% derived20-F · Feb 10, 2026 |
| Gross margin | 91.2% derived10-K · Feb 6, 2026 | 32.0% derived20-F · Feb 10, 2026 |
| Operating margin | 20.1% derived10-K · Feb 6, 2026 | 12.8% derived20-F · Feb 10, 2026 |
| Net margin | 24.1% derived10-K · Feb 6, 2026 | 12.9% derived20-F · Feb 10, 2026 |
| Free cash flow | $684M derived10-K · Feb 6, 2026 | €2.9B derived20-F · Feb 10, 2026 |
| FCF margin | 31.1% derived10-K · Feb 6, 2026 | 16.7% derived20-F · Feb 10, 2026 |
| R&D as % of revenue | 35.6% derived10-K · Feb 6, 2026 | 8.1% derived20-F · Feb 10, 2026 |
| Stock-based compensation as % of revenue | 15.6% derived10-K · Feb 6, 2026 | 1.4% derived20-F · Feb 10, 2026 |
Definitions: Revenue = Total revenue; Revenue growth (1 year) = Revenue FYt ÷ revenue FYt−1 − 1; Revenue growth (3-year CAGR) = (Revenue FYt ÷ revenue FYt−3)^(1/3) − 1; Gross margin = Gross profit ÷ revenue; Operating margin = Operating income ÷ revenue; Net margin = Net income ÷ revenue; Free cash flow = Operating cash flow − capital expenditures (one formula for all companies); FCF margin = Free cash flow ÷ revenue; R&D as % of revenue = Research and development expense ÷ revenue; Stock-based compensation as % of revenue = Stock-based compensation ÷ revenue.
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