Reddit ad revenue jumps 54% as it moves to logged-in browsing.
Reddit's advertising revenue rose 54% to $847m in the third quarter, but the company warned that falling search referrals could cut its daily users by a low-double-digit percentage this quarter. In response, it plans to make logging in the normal way to use Reddit.
Total revenue reached $895m, up 53%, and net income rose 74% to $283m. Other revenue, which includes AI data licensing, grew 35% to $48m. Daily active uniques were flat on the quarter at 130.3m, while US users fell to 50.7m from 53.2m in the second quarter. Revenue per US user still rose 53% to $13.82. Ad growth is slowing, though: it ran at 74% to 75% through late 2025 and early 2026, then 64% in the second quarter and 54% now. Reddit said pricing and impressions both rose, without saying which mattered more.
The warning sits in the shareholder letter. Search referral traffic fell markedly during the quarter and kept falling in October, by more than a million referrals a week on average. The letter does not blame any search engine or AI feature. On the same day, chief executive Steve Huffman said Reddit will move to a primarily logged-in experience, starting with full tests in selected markets outside the US this quarter. Reddit says logged-in and app users already account for more than 80% of its monetisation, and that logged-in users give it more signals for ad targeting. TechCrunch reads the move as a way to protect Reddit's data from AI scraping as well.
What isn't known yet: which markets get the tests, how many logged-out visitors will sign up rather than leave, and whether Reddit will keep reporting the logged-in and logged-out split. It says a logged-out front page and a rebuilt incognito mode will stay.
Outside the US, Reddit is still growing fast. International revenue rose 67% to $176.1m and international daily users grew 24% to 79.6m. Reddit doesn't break out the Gulf, but if non-US markets get the logged-in tests first, advertisers there may see a smaller audience that is easier to target before US buyers do.
Why it matters
AI answers are draining search clicks from Reddit, so advertisers should expect fewer but better-identified users and higher prices per user.
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