Reddit blames Google's AI search for traffic drop, plans login tests
Reddit said Google search traffic fell "meaningfully" last quarter as Google shifts to AI answers, and it will begin testing required logins outside the U.S. Its stock fell more than 15% after hours despite 53% revenue growth.
AI-assisted · US Brief desk · Sources listed below
What happened
Reddit plans to test requiring people to log in to use the site, starting in the fourth quarter outside the United States, after CEO Steve Huffman said search traffic from Google went "down meaningfully in this quarter" because of Google's "shift to AI mode and AI overviews," CNBC reported. Those Google features answer questions directly on the search page with AI-written summaries, so fewer people click through to sites like Reddit.
The numbers: Revenue rose 53% from a year earlier to $895 million, and net income was $283 million, the company said. But daily active users in the U.S. fell 2% to 50.7 million, below analysts' forecast of 53.5 million, and worldwide daily users of 130.3 million trailed estimates, CNBC reported. Reddit forecast fourth-quarter revenue of $1 billion to $1.03 billion, below Wall Street's $1.05 billion estimate. Shares dropped more than 15% after hours.
Huffman told CNBC that past Google algorithm changes would "kind of come and go," but AI represents "a fundamental shift in how the Google product works, from being a traffic driver to whatever's going on now." He said Reddit has not decided what logged-out visitors will still be able to see and gave no date for a wider rollout. Logged-in and app users are worth more to Reddit because they are more active and easier to target with ads, which make up most of its revenue.
Why it matters
An earlier Google update that surfaced posts from online forums helped Reddit grow, CNBC noted. If even Reddit is losing search visitors to AI answers, smaller sites that depend on Google are likely feeling it too, and closing off logged-out access would make Reddit's posts harder to read without an account.
What’s next
Details of the login test, Reddit's renewed licensing deal with Google, and fourth-quarter results in early 2027.
More context
Google's side: In an August 2025 blog post, Google said "total organic click volume from Google Search to websites has been relatively stable year-over-year" and that it was sending slightly more "quality clicks," while acknowledging that shifting user habits mean "decreased traffic to some sites and increased traffic to others." Google is also one of Reddit's two biggest data-licensing customers, with OpenAI; Huffman said Reddit is "in negotiations" with Google and will "only do a deal that makes sense for Reddit." Reddit's "other" revenue, which includes data licensing, rose 35% to $48 million.
Weak spot (Reddit's argument): Google traffic is not the only possible cause of slower U.S. growth, and Reddit's own release says its logged-in and app users grew from the prior quarter. Weak spot (Google's position): Google's claim of stable total clicks is an average across the web and does not address how much traffic any single site like Reddit is losing.
3 listed sources
References listed by US Brief; a source count is not a verification score.
Editorial sourcing notes
Sourcing: Reddit's Q3 2026 earnings release and CNBC's interview with CEO Steve Huffman, Oct. 29, 2026; Google's own August 2025 blog post for its position on search clicks. The reports reviewed did not include a new Google response. Photos are file images (2017 and 2018).
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