Where Could Reddit’s Next Growth Come From

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Reddit (RDDT) stock fell 50.0% over the past year, while the S&P 500 returned 9.9%. The business kept growing. Revenue rose 53% in fiscal Q3 2026 from a year earlier. On the October 29 call, management said Google is not sending people to Reddit the way it used to. Management called Reddit's own plan to make visitors log in a big step. So what is Reddit changing, and is it working yet?

Reddit Wants Visitors In Its App, Logged In

Reddit is moving to a logged-in only experience, meaning people sign in to an account to use it. The company is also pushing visitors from its mobile website into its app. Management said full trials of the logged-in change would begin in select markets outside the U.S. in the fourth quarter of 2026. The app push has room to grow, since only about 13% of eligible mobile-web users see the prompt to switch today.

Early results point the right way. The share of new users who come back in the first week after installing the app is up over 50% from a year earlier. Management credits its work on feeds and app performance. App users brought in by marketing have so far stayed at rates similar to those who arrive on their own, though management called that early.

How Much Of Reddit Is Already Logged In?

Measured by money, most of Reddit already runs through its app or logged-in users. Management said 80% of Reddit's monetization happens within its app and logged-in group. Management also said logged-in and app users make up the vast majority of engagement. Logging in also gives Reddit better information to target ads, management said. That matters for what Reddit can charge. Ad sales rose 54% from a year earlier to $847 million in fiscal Q3 2026. Management said pricing grew faster than the number of ads shown, and that it sees a lot of opportunity in the logged-in shift.

The share price, though, appears to assume much slower growth from here. On November 5, the stock closed 63.8% below its highest close of the past year, set on January 13, 2026. It trades at 18.2 times its last twelve months of earnings, against 22.9 for the S&P 500. Management itself expects revenue growth of 38% to 42% in fiscal Q4 2026, down from 53% in fiscal Q3.

What Could Go Wrong For Reddit's Logged-In Plan?

Reddit may give up visitors to make the logged-in change. Asked on the October 29 call how the trials could affect the flow of new users, management said Reddit will likely be trading reach for engagement. People who log in engage much more deeply, management added.

That trade comes as Reddit is already losing visitors from search. In October, search traffic dropped by more than 1 million referrals a week on average, management said. If that pace continues, management estimates that daily users could fall by a low double-digit percentage in the fourth quarter from a base of 130 million.

Reddit is expected to report its fiscal Q4 2026 results in February 2027. Its count of logged-in daily users, which management will keep reporting by region, is the number to watch.

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