Reddit earnings exceeded analyst estimates in the third quarter of 2026, but its fourth-quarter revenue forecast fell short of expectations. Shares dropped more than 15% after the results were released on October 29, as the company also outlined plans to test login requirements amid declining search-referral traffic.

Key Takeaways

  • Third-quarter revenue rose 53% year over year to $895 million, and diluted earnings were $1.40 per share.
  • Reddit forecast fourth-quarter revenue of $1 billion to $1.03 billion, below the $1.05 billion analyst estimate.
  • The company plans to begin testing login requirements outside the United States in the fourth quarter.

Reddit earnings and fourth-quarter outlook

In its third-quarter results, Reddit reported revenue of $895 million and net income of $283 million. Revenue exceeded the $878 million expected by analysts surveyed by LSEG, while diluted earnings per share of $1.40 topped the $1.35 estimate.

Revenue growth of 53% marked a slowdown from a run of eight consecutive quarters in which growth exceeded 60%. Advertising accounted for $847 million of third-quarter revenue. Other revenue, including data licensing, rose 35% year over year to $48 million.

For the fourth quarter, Reddit forecast revenue of $1 billion to $1.03 billion and adjusted EBITDA of $480 million to $510 million. The revenue range is management guidance rather than a completed result and was below the $1.05 billion analysts expected.

User growth and search traffic

Global daily active uniques rose 12% from a year earlier to 130.3 million, below analyst estimates of 133.7 million. In the United States, the measure fell 2% to 50.7 million, also short of expectations.

CEO Steve Huffman said search-referral traffic from Google declined meaningfully during the quarter as Google shifted toward AI mode and AI overviews. He expects the trend to continue in the fourth quarter.

Huffman said Reddit is focusing on app and logged-in users, who are generally more active and valuable to advertisers than logged-out visitors. The company said logged-in and app daily active uniques grew from the preceding quarter in both the United States and the rest of the world.

Login tests and licensing talks

Reddit plans to require users to create accounts to access the platform, but has not set a timetable for a broader implementation. Tests are due to begin outside the United States in the fourth quarter, and the company is still determining what logged-out visitors will be able to see.

Huffman also said Reddit remains in negotiations with Google over its data-licensing agreement. Google and OpenAI are Reddit’s two largest data-licensing partners.

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