Reddit Tests a Login Wall as Google Search Referrals Slide

Reddit plans to test a logged-in-only experience in selected markets outside the United States during the fourth quarter, responding to a sharp decline in search referrals. The company has not named the test markets or set a timetable for a broader rollout.

Chief Executive Steve Huffman said search referral traffic fell meaningfully in the third quarter and that the decline accelerated late in the period. During October, Reddit received more than one million fewer search referrals per week on average. Management said Google's AI Overviews and AI Mode were not sending meaningful traffic back to the platform even as Google continued crawling Reddit content.

The immediate risk is audience loss. Reddit reported 130.3 million daily active uniques, or DAUq, in the third quarter, up 12% from a year earlier but roughly flat sequentially. U.S. DAUq fell 2% year over year to 50.7 million, while international DAUq rose 24% to 79.6 million. Huffman warned that if current referral trends persist, total DAUq could decline by a low double-digit percentage from the current 130 million base in the fourth quarter.

Reddit is choosing more control over casual reach, betting that its most valuable users will keep the economics intact.

That bet has some financial support. Logged-in DAUq increased 7% from a year earlier to 53.5 million, and management said logged-in and app users account for more than 80% of monetization. Third-quarter revenue rose 53% to $895 million, net income increased 74% to $283 million, and diluted earnings reached $1.40 a share. Adjusted EBITDA rose 70% to $402 million.

The login test could also make large-scale automated scraping harder and strengthen Reddit's position in data-licensing negotiations. The company already licenses content to AI companies, including Google and OpenAI, and has pursued legal action against other data users. Huffman said Reddit remains in active discussions but disclosed no new licensing terms.

The tradeoff is that logged-out visitors are often future members. Search, shared links and curiosity bring people to Reddit before they create an account. A hard login requirement may improve control over data and conversion, but it can also reduce discovery, advertising reach and the flow of new users. Reddit said it expects some logged-out traffic to remain even over the long term.

The fourth quarter will provide the first meaningful test. If logged-in users continue growing while total DAUq stays near current levels, the company will have evidence that it can convert or retain visitors without losing too much reach. A low double-digit decline would show that the loss of search distribution is moving faster than Reddit's product and marketing response.