Will Reddit lose casual readers by forcing users to sign in?

Reddit wants more people to sign in before browsing its content online. The company will test the requirement in select markets outside the US during Q4 2026. There is no schedule yet for the introduction of this strategy to other markets. No information was given by Reddit on what users will see if they stay logged out.

Why Reddit wants you signed in

Reddit’s shareholder letter shows why. Logged-in and app users account for over 80% of monetization and most engagement. Huffman told The Verge that requiring accounts could improve personalization, advertising, and protection against unauthorized scraping.

The app’s incognito mode is also returning. Users won’t have to reveal their real-world identities, only sign in.

But there’s a trade-off. As Madison and Wall’s Luke Stillman told Reuters:

“Requiring users to log in creates another barrier to engagement, particularly for casual users.”

The numbers behind the decision

Reddit continued to have an increase in revenue, although traffic has decreased. In the third quarter, revenues rose 53% reaching $895 million, better than the estimation of analysts of $878.4 million. The average number of daily active unique users worldwide on Reddit was 130.3 million, including 79.6 million users outside the United States. However, the number of daily US users fell by 2% to 50.7 million.

In October, search traffic declined further. The search referrals for Reddit fell by an average of over 1 million every week, with logged-out users suffering the most. If the trend continues, Reddit warned that its daily users may decline by a low double-digit percentage in Q4. This will translate into a low double-digit drop from its current base of about 130 million users. It remains a forecast as of now.

The warning has made investors anxious. The shares of Reddit dropped by 18% during evening trading, according to Reuters.

What the AI search data actually shows

Huffman blamed Google’s AI Mode, saying it doesn’t send visitors to Reddit or other sites. Yet Google says AI Mode had surpassed one billion monthly users by May. More usage doesn’t necessarily mean more outbound clicks.

Pew Research found that Google users clicked a traditional result in 8% of visits with AI summaries, against 15% without them. Just 1% clicked links inside summaries.

Similarweb also found that monthly referrals from generative AI platforms stayed around 240 million–280 million through January 2026, even as monthly AI visits neared 1.5 billion.

Still, the effect on Reddit isn’t entirely negative. An Emory–Washington University study linked AI Overviews to 12% more daily comments in safe-for-work communities. Those gains largely disappeared from opinion and advice discussions after AI Mode arrived. Cryptopolitan flagged the search-referral risk in May 2025.

Licensed data versus lost casual readers

Reddit licenses content to Google and OpenAI while suing companies accused of unauthorized scraping. Google’s 2024 partnership gives it structured access through Reddit’s Data API, although Google says its use of publicly crawlable material is unchanged.

Selected overseas markets face the first tests, even as Reddit’s international daily audience grew 24% year over year. Accounts could improve engagement and ad targeting. But if casual visitors leave, Reddit’s reach could suffer.

Reddit expects $1.00 billion–$1.03 billion in Q4 revenue and $480 million–$510 million in adjusted EBITDA.