Reddit to Require Login for Most Users, CEO Says
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Reddit to Require Login for Most Users, CEO Says

Summary

Reddit plans to shift to a primarily logged-in experience, beginning tests in select non-U.S. markets, as it seeks higher engagement and better ad targeting amid declining search traffic.

Reddit announced that it will move toward a mostly logged-in experience, a change outlined by CEO Steve Huffman in a letter to shareholders about the company’s third-quarter results. The shift is intended to improve user engagement, provide more data for ad targeting and help the platform adapt to global regulatory requirements.

"Moving to primarily logged-in will ensure our users have the best Reddit experience possible, and can find the content and communities most relevant to them. It is better for our business because we will have more signals for ads targeting, and being logged-in leads to higher engagement generally," Huffman wrote.

Testing of the login requirement will start in selected non-U.S. markets in the fourth quarter, with the results guiding a potential global rollout. Huffman added that the move aligns Reddit with other major ad-based platforms that have already implemented similar changes.

The company noted a significant drop in search-referral traffic during the third quarter, with weekly referrals falling by more than one million. Huffman warned that if the trend continues, daily active unique users could decline by a low-double-digit percentage in the fourth quarter, despite a 12 % year-over-year increase in overall daily active users to 130 million.

Reddit’s focus will shift toward logged-in and app users, which it considers its most valuable audience. The platform has been gradually tightening access, including requiring login for the legacy site and limiting third-party app access after raising API fees in 2024.

In the quarter, Reddit reported net income of $283 million, a 74 % increase year over year, on revenue of $895 million, up 53 % from the prior year.

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