analyticsVertical SaaS
Data as of Q1 2026
Summary Verdict
RDDT: 5—ALRM: 0wins
Rule of 40
98.8RDDT
18.7ALRM
check_circleRDDT leads
Revenue Growth
64.6%RDDT
8.0%ALRM
check_circleRDDT leads
Gross Margin
91%RDDT
66%ALRM
check_circleRDDT leads
FCF Margin
34.2%RDDT
10.7%ALRM
check_circleRDDT leads
Operating Margin
18.4%RDDT
12.8%ALRM
check_circleRDDT leads
NRR
—RDDT
—ALRM
Metric
Rule of 40Efficiency score
RDDT
98.8check_circle
ALRM
18.7
Revenue GrowthYoY
RDDT
64.6%check_circle
ALRM
8.0%
Gross Margin% of revenue
RDDT
91%check_circle
ALRM
66%
FCF MarginFree cash flow
RDDT
34.2%check_circle
ALRM
10.7%
Operating MarginGAAP
RDDT
18.4%check_circle
ALRM
12.8%
NRRNet retention
RDDT
N/A
ALRM
N/A
EV / RevenueValuation multiple
RDDT
15.3x
ALRM
1.1xcheck_circle
Market CapUSD
RDDT
$33.4Bcheck_circle
ALRM
$2.2B
ARR GrowthYoY
RDDT
N/A
ALRM
N/A
CAC PaybackMonths to recover
RDDT
N/A
ALRM
N/A
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insights
Analysis
As of Q1 2026, Reddit, Inc. trades at 15.3x EV/Revenue versus Alarm.com Holdings, Inc. at 1.1x. On the Rule of 40, Reddit, Inc. scores 98.8 compared to Alarm.com Holdings, Inc.'s 18.7, placing Reddit, Inc. ahead in operating efficiency. Gross margins stand at Reddit, Inc. 91% vs Alarm.com Holdings, Inc. 66%.
Sector Context
Both companies operate in the Vertical SaaS sector. The median columns above show where each company stands relative to their peers.