Reddit shares fall after fourth-quarter revenue outlook misses estimates

Reddit q4 revenue guidance came in below Wall Street expectations, sending the company’s shares down more than 15% after its third-quarter report, CNBC reported. For investors, the contrast was clear: Reddit exceeded estimates for the quarter that ended, while its outlook for the next one fell short.

Reddit reported third-quarter revenue of $895 million, up 53% from a year earlier, and earnings per share of $1.40. CNBC said analysts surveyed by LSEG had expected $878 million in revenue and $1.35 a share. Earnings per share measures profit allocated to each common share.

The company forecast fourth-quarter revenue of $1 billion to $1.03 billion. That range was below the $1.05 billion Wall Street estimate cited by CNBC. Reddit’s investor-relations site lists its third-quarter results release as dated Oct. 29, 2026.

What will Reddit test for logged-out users?

CEO Steve Huffman told CNBC that Reddit plans to begin testing a registration requirement outside the U.S. during the fourth quarter. The company did not provide a precise launch date, and Huffman said Reddit was still deciding what, if anything, people without an account would be able to view.

The test is not a fully detailed platform-wide change. Huffman described requiring registration as a major shift for a service that has long allowed people to browse without signing in.

Huffman linked the effort in part to declining Google search-referral traffic. He told CNBC that the traffic fell meaningfully during the third quarter and would remain a headwind in the fourth. He characterized Google’s AI-related search changes as a shift in how the search product directs traffic to websites, an assessment attributed to him.

Reddit’s stated focus is on app users, logged-in users and direct traffic. CNBC reported that logged-in users can be more valuable to advertisers because they support more targeted advertising. That does not establish what effect the planned test will have on audience growth or revenue.

How did Reddit’s audience and advertising measures perform?

Reddit said daily active uniques, its measure of daily users, reached 130.3 million in the third quarter, up 12% year over year. That was below the 133.7 million analyst estimate cited by CNBC. U.S. daily active uniques declined 2% to 50.7 million, also below the cited 53.5 million expectation. Reddit’s investor-relations page lists 130 million daily active uniques as of Sept. 30, 2026.

Average revenue per user was $6.87, ahead of the $6.50 analyst expectation cited by CNBC. Other revenue, including data licensing, increased 35% to $48 million. Huffman said Reddit remained in negotiations with Google over a data-licensing agreement and would pursue a deal only if it made sense for Reddit.

This story draws on original reporting from CNBC.