Reddit bets on logged-in users as AI search erodes referrals

Reddit is preparing to put account holders at the center of its service after search-engine referrals weakened, a move that could reduce the number of people who can browse the platform without signing in.

Chief Executive Steve Huffman said the company plans to test a logged-in-only experience in selected markets outside the United States during the fourth quarter. The test is intended to measure the effect before any broader rollout. Reddit has allowed people to browse its discussions without an account for roughly two decades.

Search referrals come under pressure

Search-engine referrals to Reddit fell by more than 1 million on average each week during October, Huffman said, as AI-generated answers increasingly keep users on search pages. He warned that total daily active unique visitors, or DAUq, could decline by a low double-digit percentage in the fourth quarter if the trend worsens.

U.S. DAUq, a measure that includes identifiable users who visit Reddit’s website or open its app, fell 2% to 50.7 million, according to the report. Reddit also faces ongoing disputes over data collection: it has sued Anthropic, Perplexity AI and three scraping companies, alleging that they illegally collected Reddit data. Those claims are allegations, not findings of liability.

Strong quarter, more cautious outlook

Reddit’s official results showed third-quarter revenue of $895 million, up 53% from a year earlier, while DAUq rose 12% year over year to 130.3 million. Advertising revenue reached $847 million. The company forecast fourth-quarter revenue of $1.00 billion to $1.03 billion and adjusted EBITDA of $480 million to $510 million.

Huffman said logged-in users already generate more than 80% of monetization. Reddit intends to improve that experience with more relevant advertising, additional video and stronger personalization, while continuing to license its data under what he called safeguards for users and the business.

What the shift could change

A requirement to sign in could give Reddit more information for personalization and advertising, but it would also place a barrier between search visitors and the discussions they came to read. The company’s planned market tests will provide an early indication of whether improved monetization can offset any loss of casual traffic.

Sources

• Reuters report — Huffman’s sign-in plan, referral decline, user figures, lawsuits and guidance.
• Reddit Q3 2026 results — official revenue, DAUq, advertising and outlook figures.