Reddit is considering restricting access to much of its platform to registered users as declining search engine referrals raise concerns about the impact of Google’s artificial intelligence-powered search features.
The social media company plans to test a login-only browsing experience in selected international markets during the fourth quarter of 2026 before deciding whether to introduce the policy more widely.
The proposed change would end nearly two decades of allowing visitors to browse Reddit discussions and communities without creating an account.
Reddit CEO Steve Huffman said search engine referrals to the platform had dropped by more than one million per week on average during October. He blamed the decline partly on Google’s AI search features, which provide direct answers to users and reduce the need to visit original websites.
Speaking during the company’s third-quarter earnings call on Thursday, October 29, Huffman said Google’s crawling activity on Reddit remained strong, but the platform was receiving less traffic from search results.
User Growth Comes Under Pressure
The decline in search referrals is beginning to affect Reddit’s audience growth.
The company reported a 2 per cent drop in its daily active unique visitors in the United States, bringing the figure to 50.7 million. This marks its first annual decline since going public in 2024.
Huffman also warned that Reddit’s global daily active unique visitors, which stood at approximately 130 million, could fall by a low double-digit percentage in the fourth quarter if the trend continues.
Following the announcement, Reddit shares dropped 18 per cent in extended trading.
The company believes encouraging more visitors to sign in could strengthen engagement and protect its advertising business. Huffman noted that logged-in users account for more than 80 per cent of Reddit’s monetisation.
Reddit’s Revenue Remains Strong
Despite the traffic concerns, Reddit reported strong financial performance in the third quarter.
Revenue reached $895 million, representing a 53 per cent increase year-on-year and exceeding analysts’ average estimate of $878.4 million.
Chief Financial Officer Drew Vollero also disclosed that the company had surpassed $3 billion in revenue over the previous 12 months, with an internal target of reaching $5 billion.
For the current quarter, Reddit expects revenue between $1 billion and $1.03 billion.
Growing Tensions Over AI Data Collection
Reddit’s proposed login requirement also comes amid increasing competition and legal disputes over access to online content.
The platform’s extensive collection of user-generated discussions makes it valuable to artificial intelligence companies seeking data to train their models.
Although Reddit has licensing agreements with OpenAI and Google, it has sued Anthropic, Perplexity AI and several data-scraping companies over alleged unauthorised collection of its content.
The company says it will continue licensing its data through commercial agreements that protect its users and business interests.
Reddit’s decision highlights the growing pressure on online platforms as AI-powered search changes how people access information.
While restricting browsing could help protect its traffic, user data and advertising revenue, it could also discourage casual visitors who prefer accessing content without signing in.
The outcome of its international tests will determine whether Reddit can balance these competing interests.
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