Nextdoor Holdings, Inc. (NXDR)
SIC breadcrumb: Services > Business Services > SIC 7370 Services-Computer Programming, Data Processing, Etc.
SEC company page: https://www.sec.gov/edgar/browse/?CIK=1846069. Latest filing source: 0001846069-26-000023.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 257,646,000 | USD | 2025 | 2026-02-18 |
| Net income | -54,204,000 | USD | 2025 | 2026-02-18 |
| Assets | 486,803,000 | USD | 2025 | 2026-02-18 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-18. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001846069.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|
| Revenue | 123,284,000 | 192,197,000 | 212,765,000 | 218,309,000 | 247,276,000 | 257,646,000 | |
| Net income | -75,234,000 | -95,325,000 | -137,916,000 | -147,765,000 | -98,063,000 | -54,204,000 | |
| Operating income | -76,651,000 | -94,806,000 | -144,204,000 | -172,284,000 | -121,639,000 | -71,942,000 | |
| Diluted EPS | -0.83 | -0.65 | -0.36 | -0.39 | -0.25 | -0.14 | |
| Operating cash flow | -41,604,000 | -51,268,000 | -60,503,000 | -59,273,000 | -20,202,000 | 6,471,000 | |
| Capital expenditures | 5,023,000 | 8,846,000 | 3,161,000 | 267,000 | 404,000 | 580,000 | |
| Share buybacks | 0.00 | 0.00 | 77,232,000 | 0.00 | 75,530,000 | 18,891,000 | |
| Assets | 217,747,000 | 840,086,000 | 699,562,000 | 654,564,000 | 513,953,000 | 486,803,000 | |
| Liabilities | 68,437,000 | 95,101,000 | 88,494,000 | 96,007,000 | 60,465,000 | 55,520,000 | |
| Stockholders' equity | -257,296,000 | -297,856,000 | 744,985,000 | 611,068,000 | 558,557,000 | 453,488,000 | 431,283,000 |
| Cash and cash equivalents | 83,642,000 | 521,812,000 | 55,236,000 | 60,233,000 | 45,550,000 | 63,341,000 | |
| Free cash flow | -46,627,000 | -60,114,000 | -63,664,000 | -59,540,000 | -20,606,000 | 5,891,000 |
Ratios
| Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|
| Net margin | -61.02% | -49.60% | -64.82% | -67.69% | -39.66% | -21.04% | |
| Operating margin | -62.17% | -49.33% | -67.78% | -78.92% | -49.19% | -27.92% | |
| Return on equity | -12.80% | -22.57% | -26.45% | -21.62% | -12.57% | ||
| Return on assets | -34.55% | -11.35% | -19.71% | -22.57% | -19.08% | -11.13% | |
| Liabilities / equity | 0.13 | 0.14 | 0.17 | 0.13 | 0.13 | ||
| Current ratio | 5.14 | 22.74 | 18.04 | 16.01 | 16.70 | 14.03 |
Financial Charts
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001846069.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q2 | 2022-06-30 | -0.10 | reported discrete quarter | ||
| 2022-Q3 | 2022-09-30 | -0.09 | reported discrete quarter | ||
| 2023-Q1 | 2023-03-31 | -0.09 | reported discrete quarter | ||
| 2023-Q2 | 2023-06-30 | 56,889,000 | -35,403,000 | -0.09 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 56,092,000 | -38,116,000 | -0.10 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 55,557,000 | -40,530,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 53,146,000 | -28,261,000 | -0.07 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 63,292,000 | -42,781,000 | -0.11 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 65,610,000 | -14,898,000 | -0.04 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 65,228,000 | -12,123,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2025-03-31 | 54,176,000 | -21,952,000 | -0.06 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 65,093,000 | -15,362,000 | -0.04 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 68,898,000 | -12,857,000 | -0.03 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 69,479,000 | -4,033,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2026-03-31 | 61,669,000 | -11,417,000 | -0.03 | reported discrete quarter |
Quarterly Charts
Macro Cross-References
- CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- UNRATE - Unemployment Rate
- FEDFUNDS - Federal Funds Effective Rate
- CES0500000003 - Average Hourly Earnings of All Employees, Total Private
- DFEDTARU - Federal Funds Target Range - Upper Limit
- DFEDTARL - Federal Funds Target Range - Lower Limit
- DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
- CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
- CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
- PCEPI - Personal Consumption Expenditures: Chain-type Price Index
- PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- PPIACO - Producer Price Index by Commodity: All Commodities
- T10YIE - 10-Year Breakeven Inflation Rate
- U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- PAYEMS - All Employees, Total Nonfarm
- CIVPART - Labor Force Participation Rate
- EMRATIO - Employment-Population Ratio
- UNEMPLOY - Unemployed
- CE16OV - Employment Level
- ICSA - Initial Claims
- JTSJOL - Job Openings: Total Nonfarm
- JTSQUR - Quits: Total Nonfarm
- GDPC1 - Real Gross Domestic Product
- A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
- INDPRO - Industrial Production: Total Index
- TCU - Capacity Utilization: Total Index
- HOUST - New Privately-Owned Housing Units Started: Total Units
- PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- RSAFS - Advance Retail Sales: Retail Trade
- PCE - Personal Consumption Expenditures
- DSPIC96 - Real Disposable Personal Income
- PSAVERT - Personal Saving Rate
- M2SL - M2
- BOPGSTB - U.S. International Trade in Goods and Services: Balance
- MSPUS - Median Sales Price of Houses Sold for the United States
- HSN1F - New One Family Houses Sold: United States
- RHORUSQ156N - Homeownership Rate in the United States
- TTLCONS - Total Construction Spending: Total Construction in the United States
- RRVRUSQ156N - Rental Vacancy Rate in the United States
- TOTALSL - Total Consumer Credit Owned and Securitized
- REVOLSL - Revolving Consumer Credit Owned and Securitized
- DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
- GDP - Gross Domestic Product
- GPDI - Gross Private Domestic Investment
- GCE - Government Consumption Expenditures and Gross Investment
- PCEC - Personal Consumption Expenditures
- NETEXP - Net Exports of Goods and Services
- GFDEBTN - Federal Debt: Total Public Debt
- GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- FYFSD - Federal Surplus or Deficit
- FGRECPT - Federal Government Current Receipts
- FGEXPND - Federal Government: Current Expenditures
- MANEMP - All Employees, Manufacturing
- USCONS - All Employees, Construction
- USTRADE - All Employees, Retail Trade
- USFIRE - All Employees, Financial Activities
- USGOVT - All Employees, Government
- AWHAETP - Average Weekly Hours of All Employees, Total Private
- DGORDER - Manufacturers' New Orders: Durable Goods
- NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- BUSINV - Total Business Inventories
- EXPGS - Exports of Goods and Services
- IMPGS - Imports of Goods and Services
- IR - Import Price Index (End Use): All Commodities
- PPIFIS - Producer Price Index by Commodity: Final Demand
Latest quarter (10-Q)
Latest 10-Q source: 0001846069-26-000098.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis provides information which our management believes is relevant to an assessment and understanding of our consolidated results of operations and financial condition. The discussion should be read together with our unaudited condensed consolidated financial statements and related notes that are included elsewhere in this Quarterly Report. This discussion may contain forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under “Special Note Regarding Forward-Looking Statements” and “Risk Factors” or in other parts of this Quarterly Report. Overview Nextdoor is the essential neighborhood network connecting over 110 million Verified Neighbors to the people, places, and information that matter most in their local communities. Operating in over 350,000 neighborhoods across 11 countries, Nextdoor fosters trusted, real-world utility through locally relevant content and services, including news, real-time safety alerts, neighbor recommendations, for sale and free listings, and events. This focus on practical local value drives genuine, high-intent local engagement and supports a diverse ecosystem of neighbors and partners seeking to connect with neighbors. Key business metrics for the three months ended March 31, 2026 are as follows: •Platform weekly active users (“Platform WAU”) was 22.3 million, an increase of 1% compared to the three months ended March 31, 2025. •Average revenue per platform weekly active user (“Platform ARPU”) was $2.77, an increase of 12% compared to the three months ended March 31, 2025. Financial Results as of and for the three months ended March 31, 2026 are as follows: •Revenue was $61.7 million, an increase of 14% compared to the three months ended March 31, 2025. •Total costs and expenses were $77.0 million, a decrease of 5% compared to the three months ended March 31, 2025. •Net loss decreased 48% to $11.4 million, compared to $22.0 million for the three months ended March 31, 2025. •Adjusted EBITDA loss was $0.2 million, compared to $9.2 million for the three months ended March 31, 2025. •Cash, cash equivalents, and marketable securities were $373.2 million. See “Non-GAAP Financial Measure” below for more information and for a reconciliation of net loss, the most directly comparable financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), to Adjusted EBITDA. Key Business Metrics In addition to the measures presented in our unaudited condensed consolidated financial statements, we use the following key business metrics to evaluate our business, measure our performance, develop financial forecasts, and make strategic decisions: Platform Weekly Active Users (Platform WAU) We define a Platform WAU as a Nextdoor user who opens our application or logs on to our website at least once during a defined 7-day period. We calculate average Platform WAU for a particular period by calculating the count of unique users, on a rolling basis for the past seven days, for each day of that period, and dividing that sum by the number of days in that period. We assess the health of our business by measuring Platform WAU because we believe that weekly usage best captures the cadence at which we expect a healthy user base to engage with and derive the most utility from our platform, and by extension their neighborhood. Our Platform WAU for the three months ended March 31, 2026 and 2025 was 22.3 million and 22.0 million, respectively, which represents a 1% increase period over period. 20 Table of Contents Quarterly Average Platform Weekly Active Users (in millions) Average Revenue per Platform Weekly Active User (Platform ARPU) We generate revenue primarily from advertising. We measure monetization of our platform through our Platform ARPU metric. We define Platform ARPU as our total revenue during a period divided by the average of the number of Platform WAU during the same period. Our Platform ARPU for the three months ended March 31, 2026 and 2025 was $2.77 and $2.46, respectively. Quarterly Platform ARPU 21 Table of Contents Components of Results of Operations Revenue We generate a majority of our revenue from the delivery of advertising services. We recognize revenue only after transferring control of promised goods or services to the customer. Advertising services are typically sold on a cost per thousand (“CPM”) basis, a cost per click (“CPC”) basis, or on a subscription basis according to the service period. The majority of our revenue is generated in the United States. Cost of Revenue Cost of revenue consists primarily of expenses associated with the delivery of our revenue generating activities, including the third-party costs of hosting our platform and allocated personnel-related costs, which include salaries, benefits, and stock-based compensation for employees engaged in development of our revenue generating products. Cost of revenue also includes third-party costs associated with delivering and supporting our advertising services and credit card transaction fees related to processing customer transactions. Research and Development Research and development expenses consist primarily of personnel-related costs, including salaries, benefits, restructuring costs, and stock-based compensation for our employees engaged in research and development, as well as costs for consultants, contractors and third-party software. In addition, allocated overhead costs, such as facilities, information technology, and depreciation are included in research and development expenses. Sales and Marketing Sales and marketing expenses consist primarily of personnel-related and other costs which include salaries, commissions, benefits, restructuring costs, and stock-based compensation for employees engaged in sales and marketing activities as well as other costs including third-party consulting, public relations, and allocated overhead costs. Sales and marketing expenses also include brand and performance marketing for both user and local business acquisition, and neighbor services, which includes personnel-related costs for our neighbor support team, our outsourced neighbor support function, and verification costs. Performance marketing costs related to local business acquisition largely consists of digital advertising and, to a lesser extent, direct mail campaigns. Performance marketing costs related to user acquisition largely consist of digital advertising. Fluctuations in our performance marketing expenses are driven by a variety of factors, including but not limited to: our target geographies, whether we are acquiring users or businesses, assessment of return on investment of marketing spend, strategic priorities, and seasonal factors. General and Administrative General and administrative expenses consist primarily of personnel-related costs, including salaries, benefits, restructuring costs, and stock-based compensation, for certain executives, finance, legal, information technology, human resources, and other administrative employees. In addition, general and administrative expenses include fees and costs for professional services, including consulting, third-party legal and accounting services, and allocated overhead costs. Interest Income Interest income consists of interest earned on our cash, cash equivalents, and marketable securities. Other Income (Expense), Net Other income (expense), net consists primarily of unrealized gains and losses from the re-measurement of monetary assets and liabilities denominated in non-functional currencies, and gains and losses on marketable securities and foreign currency transactions. Provision for Income Taxes The provision for income taxes consists primarily of income taxes related to foreign and state jurisdictions in which we conduct business. We maintain a full valuation allowance on our U.S. federal and state deferred tax assets as we have concluded that it is more likely than not that the deferred tax assets will not be realized. 22 Table of Contents Results of Operations The results of operations presented below should be reviewed in conjunction with our unaudited condensed consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report. The following table sets forth our unaudited condensed consolidated results of operations for the periods presented. Three Months Ended March 31, (in thousands) 2026 2025 Revenue $ 61,669 $ 54,176 Costs and expenses(1): Cost of revenue 11,048 9,447 Research and development 32,016 33,494 Sales and marketing 19,646 22,112 General and administrative 14,289 16,136 Total costs and expenses 76,999 81,189 Loss from operations (15,330) (27,013) Interest income 4,036 4,982 Other income, net 14 220 Loss before income taxes (11,280) (21,811) Provision for income taxes 137 141 Net loss $ (11,417) $ (21,952) __________________ (1)Includes stock-based compensation expense as follows: Three Months Ended March 31, (in thousands) 2026 2025 Cost of revenue $ 622 $ 745 Research and development 8,363 9,188 Sales and marketing 1,935 2,472 General and administrative 3,842 4,686 Total $ 14,762 $ 17,091 The following table sets forth the components of our unaudited condensed consolidated statements of operations as a percentage of revenue for each of the periods presented: Three Months Ended March 31, (as a percentage of total revenue) 2026 2025 Revenue 100 % 100 % Costs and expenses: Cost of revenue 18 17 Research and development 52 62 Sales and marketing 32 41 General and administrative 23 30 Total costs and expenses 125 150 Loss from operations (25) (50) Interest income 7 9 Other income, net — — Loss before income taxes (18) (40) Provision for income taxes — — Net loss (19) % (41) % 23 Table of Contents Note: Certain figures may not sum due to rounding. Comparison of the Three Months Ended March 31, 2026 and 2025 Revenue Three Months Ended March 31, Change (in thousands, except percentages) 2026 2025 $ % Revenue $ 61,669 $ 54,176 $ 7,493 14 % Revenue increased by $7.5 million, or 14%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was primarily due to increased advertiser spending and an increase in the number of active users, as measured by a 1% increase in Q1 Platform WAU. Cost of revenue Three Months Ended March 31, Change (in thousands, except percentages) 2026 2025 $ % Cost of revenue $ 11,048 $ 9,447 $ 1,601 17 % Cost of revenue increased by $1.6 million, or 17%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was primarily due to a $1.4 million increase in third-party hosting costs. Research and development Three Months Ended March 31, Change (in thousands, except percentages) 2026 2025 $ % Research and development $ 32,016 $ 33,494 $ (1,478) (4) % Research and development expenses decreased by $1.5 million, or 4%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease was primarily due to a $2.2 million decrease in personnel-related costs driven by a decrease in headcount and a $0.4 million decrease in professional service fees, partially offset by a $1.1 million increase in third-party software costs. Sales and marketing Three Months Ended March 31, Change (in thousands, except percentages) 2026 2025 $ % Personnel-related and other $ 14,3 [Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis provides information which our management believes is relevant to an assessment and understanding of our consolidated results of operations and financial condition. The discussion should be read together with our consolidated financial statements and related notes that are included elsewhere in this Annual Report. This discussion may contain forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under “Special Note Regarding Forward-Looking Statements” and “Risk Factors” or in other parts of this Annual Report. Discussions regarding our financial condition and results of operations for the year ended December 31, 2025 compared to the year ended December 31, 2024 are presented below. Discussions regarding our financial condition and results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023 are located in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 27, 2025. Overview Nextdoor is the essential neighborhood network connecting over 105 million Verified Neighbors to the people, places, and information that matter most in their local communities. Operating in over 350,000 neighborhoods across 11 countries, Nextdoor fosters trusted, real-world utility through locally relevant content and services, including news, real-time safety alerts, neighbor recommendations, for sale and free listings, and events. This focus on practical local value drives genuine, high-intent local engagement and supports a diverse ecosystem of neighbors and partners seeking to connect with neighbors. Key business metrics for the three months ended December 31, 2025 are as follows: •Platform weekly active users (“Platform WAU”) was 21.0 million, a decrease of 5% compared to the three months ended December 31, 2024. •Average revenue per platform weekly active user (“Platform ARPU”) was $3.31, an increase of 13% compared to the three months ended December 31, 2024. Financial Results as of and for the year ended December 31, 2025 are as follows: •Revenue was $257.6 million, an increase of 4% compared to 2024. •Total costs and expenses were $329.6 million, a decrease of 11% compared to 2024. •Net loss decreased 45% to $54.2 million in 2025, compared to $98.1 million in 2024. •Adjusted EBITDA was positive $0.6 million in 2025, compared to a loss of $18.2 million in 2024. •Cash, cash equivalents, and marketable securities were $404.8 million. See “Non-GAAP Financial Measure” below for more information and for a reconciliation of net loss, the most directly comparable financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), to Adjusted EBITDA. 47 Table of Contents Restructuring In August 2025, we announced a cost reduction plan intended to right size the business and align the workforce and other expenses with our business priorities. The execution of the cost reduction plan was substantially complete by the end of the third quarter of 2025. The following table summarizes the restructuring charges in the consolidated statements of operations for the year ended December 31, 2025 (in thousands): Severance and Related Charges Stock-Based Compensation Expense Total Research and development $ 2,660 $ 792 $ 3,452 Sales and marketing 1,250 126 1,376 General and administrative 750 51 801 Total $ 4,660 $ 969 $ 5,629 In April 2024, we performed a restructuring intended to refocus the Company for future growth. The plan impacted 38 of our full-time employees. We incurred one-time charges of $2.8 million in connection with the plan, consisting primarily of cash expenditures for severance payments, employee benefits and related costs. The execution of the plan was substantially complete by the end of the second quarter of 2024. In addition, in June 2024 we ceased occupying and abandoned certain floors of our leased headquarters in San Francisco in order to adjust our office space footprint to better align with the needs of our work model. As a result, we recorded impairment charges of $22.8 million for the related operating lease right-of-use assets, leasehold improvements and furniture and fixtures. The following table summarizes the restructuring charges in the consolidated statements of operations for the year ended December 31, 2024 (in thousands). Office Space Reductions (1) Severance and Related Charges Total Research and development $ — $ 250 $ 250 Sales and marketing — 1,956 1,956 General and administrative 22,760 612 23,372 Total $ 22,760 $ 2,818 $ 25,578 (1) Office space reductions are primarily non-cash and include impairment charges related to operating lease right-of-use assets, leasehold improvements and furniture and fixtures. In the fourth quarter of 2023, we announced a cost reduction plan intended to right-size the business and align the workforce and other expenses with our near term revenue expectations and long term business priorities. The cost reduction plan included a reduction of full-time employee headcount by approximately 25%. The execution of the cost reduction plan was substantially complete by the end of the fourth quarter of 2023. The following table summarizes the restructuring charges in the consolidated statements of operations for the year ended December 31, 2023 (in thousands): Severance and Related Charges Stock-Based Compensation Expense Total Research and development $ 5,141 $ 903 $ 6,044 Sales and marketing 2,984 228 3,212 General and administrative 1,763 80 1,843 Total $ 9,888 $ 1,211 $ 11,099 Refer to Note 13 to our consolidated financial statements for further information on our restructuring charges. Key Business Metrics In addition to the measures presented in our consolidated financial statements, we use the following key business metrics to evaluate our business, measure our performance, develop financial forecasts, and make strategic decisions: 48 Table of Contents Platform Weekly Active Users (Platform WAU) We define a Platform WAU as a Nextdoor user who opens our application or logs on to our website at least once during a defined 7-day period. We calculate average Platform WAU for a particular period by calculating the count of unique users, on a rolling basis for the past seven days, for each day of that period, and dividing that sum by the number of days in that period. We assess the health of our business by measuring Platform WAU because we believe that weekly usage best captures the cadence at which we expect a healthy user base to engage with and derive the most utility from our platform, and by extension their neighborhood. Our Platform WAU for the three months ended December 31, 2025 and 2024 was 21.0 million and 22.2 million, respectively, which represents a 5% decrease period over period. Quarterly Average Platform Weekly Active Users (in millions) Average Revenue per Platform Weekly Active User (Platform ARPU) We generate revenue primarily from advertising. We measure monetization of our platform through our Platform ARPU metric. We define Platform ARPU as our total revenue during a period divided by the average of the number of Platform WAU during the same period. Our Platform ARPU for the years ended December 31, 2025 and 2024 was $11.94 and $11.36, respectively. 49 Table of Contents Quarterly Platform ARPU Factors Affecting Our Performance Macroeconomic Conditions. Macroeconomic conditions, whether in the advertising industry in general, among specific types of advertisers or within particular geographies, including but not limited to health epidemics or pandemics, actual or perceived instability in the global banking system, labor shortages, supply chain disruptions, the implementation of tariffs by the United States, China, or other governments, a potential recession, inflation, changing interest rates and fluctuations in foreign currency exchange rates, competition from other platforms and other risks and uncertainties have impacted, and all or some of these factors may continue to impact, advertiser demand, user growth, user engagement, and our business, operations and financial results. See "Risk Factors" and "Special Note Regarding Forward-Looking Statements” for additional details. Growth in and Engagement of Users. We measure growth in, and engagement of, users by tracking Platform WAU. As the size and engagement of our user base grows, we believe the potential to increase our revenue grows. We may face challenges increasing the size and engagement of our user base due to a number of factors including competition, challenges in acquiring and engaging users, or changes in regulations. Growth in Monetization. Monetization trends, which are reflected in our Platform ARPU, are a key factor that affects our revenue and financial results. To increase monetization, we are focused on catering to businesses of all sizes, from small local businesses to large global brands across both self-serve and managed campaigns through our go-to-market approach. This approach combines the scale and efficiency of our proprietary ad stack with the expertise of a dedicated global sales team. We are also focused on increasing our user base and engagement in the United States and internationally, which will increase the opportunities for businesses to advertise on Nextdoor. There are many variables that impact Platform ARPU, including the number of ad impressions shown on our platform and the price per ad, which depends on a number of factors including the engagement of our user base, the number and diversity of our customers, seasonality of advertising spend, our customers’ advertising objectives, advertising performance, the effectiveness of our advertising services, our ability to measure that effectiveness for our customer, and the effect of geographic differences on each of these factors. While we continue to view international monetization as a long-term growth opportunity, our focus is on improving our product experience and aligning our operations to best serve users and advertisers in existing markets, primarily in the United States. Due to our decision to focus our earliest monetization efforts in the United States, we have less experience monetizing international markets and therefore may experience challenges scaling and monetizing these markets. The international advertising market is also less mature than the U.S. digital advertising market. 50 Table of Contents Investment for Growth. We continually invest in technology to enhance our offerings for neighbors, businesses, and public agencies. At the core of our strategy is the use of AI and ML, which powers personalized content distribution and optimizes ad reach and performance. By leveraging our unique data set, we have developed AI-powered features to increase relevance, engagement, and utility for neighbors. We continue investing in our proprietary ad platform to deliver greater advertiser value, reduce advertiser effort, and enable businesses of all sizes to succeed on Nextdoor. Investments in Platform. In 2025, we launched the new Nextdoor initiative, the first phase of a multi‑phase product transformation designed to create more engaging experiences for neighbors and partners and deliver enhanced value for advertisers. This evolution expands the platform beyond primarily neighbor-generated content to a dynamic feed enriched with timely, locally relevant information, including news and alerts, with AI and ML used to help surface and personalize content for neighbors. We have made and expect to continue to make investments in new products or enhancements to our platform. The success of the new Nextdoor initiative, and the return on our investments associated with the new Nextdoor initiative, will depend on the ability of these platform changes to drive additional users and user engagement on our platform and to provide value to advertisers. International Expansion. We continue to assess opportunities to grow our international user base and expand monetization outside of the United States. While we believe that increased international monetization presents an important opportunity for long-term growth, our primary focus remains on improving our product experience and aligning our operations to best serve users and advertisers in our existing markets. We are taking a strategic and measured approach to international expansion, prioritizing investments in markets where we see the strongest potential for sustainable growth. Over time, we believe that international operations can expand meaningfully, and we see opportunities to increase monetization and Platform ARPU in these markets. Our investments in international expansion are targeted and align with our broader strategic priorities. The success of these initiatives will depend on our ability to drive engagement and monetization in international markets. Seasonality. We typically observe seasonal improvements in advertising spend beginning in the second quarter, with those demand trends remaining stable through the fourth quarter. Periods of significant growth and changes in the macroeconomic environment have partially masked these trends in some historical periods. Components of Results of Operations Revenue We generate a majority of our revenue from the delivery of advertising services. We recognize revenue only after transferring control of promised goods or services to the customer. Advertising services are typically sold on a cost per thousand (“CPM”) basis, a cost per click (“CPC”) basis, or on a subscription basis according to the service period. The majority of our revenue is generated in the United States. Cost of Revenue Cost of revenue consists primarily of expenses associated with the delivery of our revenue generating activities, including the third-party cost of hosting our platform and allocated personnel-related costs, which include salaries, benefits, and stock-based compensation for employees engaged in development of our revenue generating products. Cost of revenue also includes third-party costs associated with delivering and supporting our advertising services and credit card transaction fees related to processing customer transactions. Research and Development Research and development expenses consist primarily of personnel-related costs, including salaries, benefits, restructuring costs, and stock-based compensation for our employees engaged in research and development, as well as costs for consultants, contractors and third-party software. In addition, allocated overhead costs, such as facilities, information technology, and depreciation are included in research and development expenses. Sales and Marketing Sales and marketing expenses consist primarily of personnel-related and other costs which include salaries, commissions, benefits, restructuring costs, and stock-based compensation for employees engaged in sales and marketing activities as well as other costs including third-party consulting, public relations, and allocated overhead costs. Sales and marketing expenses also include brand and performance marketing for both user and local business acquisition, and neighbor services, which includes personnel-related costs for our neighbor support team, our outsourced neighbor support function, and verification costs. 51 Table of Contents Performance marketing costs related to local business acquisition largely consists of digital advertising and, to a lesser extent, direct mail campaigns. Performance marketing costs related to user acquisition largely consist of digital advertising. Fluctuations in our performance marketing expenses are driven by a variety of factors, including but not limited to: our target geographies, whether we are acquiring users or businesses, assessment of return on investment of marketing spend, strategic priorities, and seasonal factors. General and Administrative General and administrative expenses consist primarily of personnel-related costs, including salaries, benefits, restructuring costs, and stock-based compensation, for certain executives, finance, legal, information technology, human resources, and other administrative employees. In addition, general and administrative expenses include fees and costs for professional services, including consulting, third-party legal and accounting services, and allocated overhead costs. Interest Income Interest income consists of interest earned on our cash, cash equivalents, and marketable securities. Other Income (Expense), Net Other income (expense), net consists primarily of unrealized gains and losses from the re-measurement of monetary assets and liabilities denominated in non-functional currencies, and gains and losses on marketable securities and foreign currency transactions. Provision for Income Taxes The provision for income taxes consists primarily of income taxes related to foreign and state jurisdictions in which we conduct business. We maintain a full valuation allowance on our U.S. federal and state deferred tax assets as we have concluded that it is more likely than not that the deferred tax assets will not be realized. Results of Operations The results of operations presented below should be reviewed in conjunction with our consolidated financial statements and related notes thereto included elsewhere in this Annual Report. The following table sets forth our consolidated results of operations for the periods presented. Year Ended December 31, (in thousands) 2025 2024 2023 Revenue $ 257,646 $ 247,276 $ 218,309 Costs and expenses(1): Cost of revenue 40,987 41,850 41,613 Research and development 135,205 127,939 149,998 Sales and marketing 91,029 106,977 122,925 General and administrative 62,367 92,149 76,057 Total costs and expenses 329,588 368,915 390,593 Loss from operations (71,942) (121,639) (172,284) Interest income 18,758 24,381 25,780 Other income (expense), net 605 (99) (505) Loss before income taxes (52,579) (97,357) (147,009) Provision for income taxes 1,625 706 756 Net loss $ (54,204) $ (98,063) $ (147,765) __________________ (1)Includes stock-based compensation expense as follows: 52 Table of Contents Year Ended December 31, (in thousands) 2025 2024 2023 Cost of revenue $ 2,836 $ 2,736 $ 3,201 Research and development 36,849 39,037 43,619 Sales and marketing 8,888 9,671 12,548 General and administrative 16,770 22,611 23,657 Total $ 65,343 $ 74,055 $ 83,025 The following table sets forth the components of our consolidated statements of operations as a percentage of revenue for each of the periods presented: Year Ended December 31, (as a percentage of total revenue) 2025 2024 2023 Revenue 100 % 100 % 100 % Costs and expenses: Cost of revenue 16 17 19 Research and development 52 52 69 Sales and marketing 35 43 56 General and administrative 24 37 35 Total costs and expenses 128 149 179 Loss from operations (28) (49) (79) Interest income 7 10 12 Other income (expense), net — — — Loss before income taxes (20) (39) (67) Provision for income taxes 1 — — Net loss (21) % (40) % (68) % Note: Certain figures may not sum due to rounding. Comparison of the Years Ended December 31, 2025 and 2024 Revenue Year Ended December 31, Change (in thousands, except percentages) 2025 2024 $ % Revenue $ 257,646 $ 247,276 $ 10,370 4 % Revenue increased by $10.4 million, or 4%, for the year ended December 31, 2025 compared to the year ended December 31, 2024. The increase was primarily due to increased advertiser spending, partially offset by a decrease in the number of active users, as measured by a 5% decrease in 2025 Platform WAU. Cost of revenue Year Ended December 31, Change (in thousands, except percentages) 2025 2024 $ % Cost of revenue $ 40,987 $ 41,850 $ (863) (2) % Cost of revenue decreased by $0.9 million, or 2%, for the year ended December 31, 2025 compared to the year ended December 31, 2024. The decrease was primarily due to a $1.1 million decrease in third-party costs associated with delivering and supporting our advertising services, a $1.0 million decrease in third-party hosting costs, partially offset by a $0.9 million increase in allocated personnel-related costs, and a $0.7 million increase in merchant processing fees. 53 Table of Contents Research and development Year Ended December 31, Change (in thousands, except percentages) 2025 2024 $ % Research and development $ 135,205 $ 127,939 $ 7,266 6 % Research and development expenses increased by $7.3 million, or 6%, for the year ended December 31, 2025 compared to the year ended December 31, 2024. The increase was primarily due to a $4.8 million increase in personnel-related costs, driven by restructuring costs partially offset by a decrease in average headcount, a $1.5 million increase in third-party software costs, and a $1.3 million increase in professional service fees. Sales and marketing Year Ended December 31, Change (in thousands, except percentages) 2025 2024 $ % Personnel-related and other $ 67,930 $ 77,350 $ (9,420) (12) % Brand and performance marketing 13,143 18,876 (5,733) (30) % Neighbor services 9,956 10,751 (795) (7) % Total sales and marketing $ 91,029 $ 106,977 $ (15,948) (15) % Sales and marketing expenses decreased by $15.9 million, or 15%, for the year ended December 31, 2025 compared to the year ended December 31, 2024. The decrease was primarily due to a $9.4 million decrease in personnel-related costs, inclusive of restructuring costs, which was driven by a decrease in average headcount, a $3.7 million decrease in performance marketing costs for user acquisition, a $2.0 million decrease in performance marketing costs to attract local businesses, and a $0.8 million decrease in neighbor services. General and administrative Year Ended December 31, Change (in thousands, except percentages) 2025 2024 $ % General and administrative $ 62,367 $ 92,149 $ (29,782) (32) % General and administrative expenses decreased by $29.8 million, or 32%, for the year ended December 31, 2025 compared to the year ended December 31, 2024. The decrease was primarily due to $22.8 million of impairment costs related to office space reductions in 2024 and an $8.0 million decrease in personnel-related costs, inclusive of restructuring costs, which was driven by a decrease in average headcount, partially offset by a $2.7 million increase in professional service fees. Interest income Year Ended December 31, Change (in thousands, except percentages) 2025 2024 $ % Interest income $ 18,758 $ 24,381 $ (5,623) (23) % Interest income decreased by $5.6 million, or 23%, for the year ended December 31, 2025 compared to the year ended December 31, 2024. The decrease was primarily driven by lower returns on marketable securities as a result of lower invested balances and lower interest rates. Other income (expense), net Year Ended December 31, Change (in thousands, except percentages) 2025 2024 $ % Other income (expense), net $ 605 $ (99) $ 704 NM 54 Table of Contents Other income (expense), net increased by $0.7 million for the year ended December 31, 2025 compared to the year ended December 31, 2024. The increase was primarily due to the periodic re-measurement of monetary assets and liabilities denominated in non-functional currencies and gains and losses on marketable securities and foreign currency transactions. Provision for income taxes Year Ended December 31, Change (in thousands) 2025 2024 $ % Provision for income taxes $ 1,625 $ 706 $ 919 130 % Provision for income taxes increased by $0.9 million, or 130%, for the year ended December 31, 2025 compared to the year ended December 31, 2024. The increase was primarily due to an increase in foreign income tax expenses. Liquidity and Capital Resources Since inception with the exception of the year ended December 31, 2025, we have generated negative cash flows from operations and have primarily financed our operations from net proceeds received from the sale of equity securities, proceeds from the Business Combination, and payments received from our customers. We currently have no debt outstanding. We have generated losses from our operations, as reflected in our accumulated deficit of $918.3 million as of December 31, 2025. We incurred operating losses and cash outflows from operations by supporting the growth of our business. We expect these losses and operating cash outflows to continue for the foreseeable future. We also expect to incur significant research and development, sales and marketing, and general and administrative expenses over the next several years in connection with the continued development and strategic expansion of our business. As of December 31, 2025, we had $404.8 million in cash, cash equivalents, and marketable securities. We anticipate satisfying our short-term cash requirements, including meeting our working capital and capital expenditure requirements, with our existing cash, cash equivalents, and marketable securities. In the long term, we may satisfy our cash requirements with cash, cash equivalents, and marketable securities on hand or with proceeds from any future equity or debt financings. Our ability to support our requirements and plans for cash, including working capital and capital expenditure requirements, will depend on many factors, including the rate of our revenue growth, the timing and extent of spending on research and development efforts and other business initiatives, the expansion of sales and marketing activities, the introduction of new and enhanced product offerings and features, the continuing market adoption of our platform, the number of shares repurchased under our Share Repurchase Program, and our ability to obtain equity or debt financing. Moreover, any actual or perceived instability in the U.S. or international banking systems may impact liquidity both in the short term and long term. To the extent existing cash, cash equivalents, and marketable securities are insufficient to fund our working capital and capital expenditure requirements, or should we require additional cash for other purposes, we may attempt to raise additional capital through the sale of equity or debt securities. If we raise additional funds through the issuance of equity or debt securities, those securities may have rights, preferences, or privileges senior to the rights of our Class A and Class B common stock, and our stockholders may experience dilution. Any future indebtedness we incur may result in terms that could also be unfavorable to our equity investors. There can be no assurances that we will be able to raise additional capital on terms we deem acceptable, or at all. The inability to raise additional capital as and when required would have an adverse effect, which could be material, on our results of operations, financial condition, and ability to achieve our business objectives. On May 31, 2022, our Board of Directors authorized and approved the Share Repurchase Program to repurchase up to $100.0 million in aggregate of our Class A common stock, with the authorization to expire on June 30, 2024. The timing of any repurchases will depend on market conditions and other investment opportunities, and will be made at our discretion. The Share Repurchase Program does not obligate us to repurchase any dollar amount or number of shares, and the program may be extended, modified, suspended, or discontinued at any time. On February 21, 2024, our Board of Directors authorized and approved an increase of $150.0 million to the Share Repurchase Program and extended the expiration date to March 31, 2026. During the year ended December 31, 2025, we repurchased and retired 10,874,916 shares of our Class A common stock at an average purchase price of $1.73 per share for an aggregate repurchase price of $18.8 million. As of December 31, 2025, we had $78.4 million available for future share repurchases under the Share Repurchase Program. 55 Table of Contents Cash Flows The following table summarizes our cash flows for the periods presented: Year Ended December 31, (in thousands) 2025 2024 2023 Net cash provided by (used in) operating activities $ 6,471 $ (20,202) $ (59,273) Net cash provided by investing activities $ 42,571 $ 86,426 $ 66,490 Net cash provided by (used in) financing activities $ (33,990) $ (81,035) $ 8,916 Operating activities Cash provided by operating activities during the year ended December 31, 2025 was $6.5 million which resulted from a net loss of $54.2 million, adjusted for non-cash charges of $64.8 million and net cash outflows of $4.2 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $65.3 million of stock-based compensation expense, $1.9 million of depreciation and amortization expense, partially offset by $2.3 million of accretion on investments. The net cash outflows from changes in operating assets and liabilities were primarily due to an $8.5 million decrease in operating lease liabilities due to lease payments and a $3.2 million increase in accounts receivable. These amounts were partially offset by a $2.9 million decrease in operating lease right-of-use assets due to normal amortization, a $2.2 million increase in accounts payable, a $1.3 million increase in accrued expenses and other liabilities, and a $1.2 million increase in prepaid expenses and other assets. Cash used in operating activities during the year ended December 31, 2024 was $20.2 million which resulted from a net loss of $98.1 million, adjusted for non-cash charges of $95.9 million and net cash outflows of $18.0 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $74.1 million of stock-based compensation expense, $22.8 million of non-cash impairment charges related to lease abandonment, and $3.9 million of depreciation and amortization expense, partially offset by $5.5 million of accretion on investments. The net cash outflows from changes in operating assets and liabilities were primarily due to a $8.1 million decrease in accrued expenses and other liabilities, a $6.9 million decrease in operating lease liabilities due to lease payments, a $5.1 million increase in accounts receivable, and a $1.6 million decrease in accounts payable. These amounts were partially offset by a $3.7 million decrease in operating lease right-of-use assets due to normal amortization. Investing activities Cash provided by investing activities for the year ended December 31, 2025 was $42.6 million, which consisted of proceeds from maturities of marketable securities of $193.4 million and proceeds from sales of marketable securities of $141.9 million. This was partially offset by purchases of marketable securities of $292.2 million and purchases of property and equipment of $0.6 million. Cash provided by investing activities for the year ended December 31, 2024 was $86.4 million, which consisted of proceeds from maturities of marketable securities of $198.5 million and proceeds from sales of marketable securities of $185.6 million. This was partially offset by purchases of marketable securities of $289.8 million and a loan to Opportunity Finance Network of $7.5 million. Financing activities Cash used in financing activities for the year ended December 31, 2025 was $34.0 million, which consisted of tax withholdings on release of restricted stock units of $19.1 million and repurchases of common stock of $18.9 million, partially offset by proceeds from the issuance of common stock upon exercise of stock options of $2.6 million and proceeds from the issuance of common stock under the employee stock purchase plan of $1.3 million. Cash used in financing activities for the year ended December 31, 2024 was $81.0 million, which consisted of repurchases of common stock of $75.5 million and $19.9 million of tax withholdings from stock-based awards, partially offset by $13.3 million of proceeds from the exercise of stock options and $1.1 million of proceeds from the issuance of common stock under the employee stock purchase plan. Non-GAAP Financial Measure Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure that represents our net loss adjusted for depreciation and amortization, stock-based compensation, net interest income, provision for income taxes, and any restructuring charges or acquisition-related costs. 56 Table of Contents We use Adjusted EBITDA in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our Board of Directors concerning our financial performance. We believe Adjusted EBITDA is also helpful to investors, analysts, and other interested parties because it can assist in providing a more consistent and comparable overview of our operations across our historical financial periods. Adjusted EBITDA has limitations as an analytical tool, however, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including net loss and our other GAAP results. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed to imply that our future results will be unaffected by the types of items excluded from the calculation of Adjusted EBITDA. Adjusted EBITDA is not presented in accordance with GAAP and the use of this term varies from others in our industry. The following is a reconciliation of net loss, the most comparable GAAP measure, to Adjusted EBITDA: Year Ended December 31, (in thousands) 2025 2024 2023 Net loss $ (54,204) $ (98,063) $ (147,765) Depreciation and amortization 1,935 3,898 5,769 Stock-based compensation 65,343 74,055 83,025 Interest income (18,758) (24,381) (25,780) Provision for income taxes 1,625 706 756 Restructuring charges 4,660 25,578 9,888 Adjusted EBITDA $ 601 $ (18,207) $ (74,107) Critical Accounting Policies and Estimates We prepare our consolidated financial statements in accordance with GAAP. Preparing consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures. We evaluate our estimates and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Our actual results could differ from these estimates. The critical accounting policies requiring estimates, assumptions, and judgments that we believe have the most significant impact on our consolidated financial statements are described below. Refer to Note 2 to our consolidated financial statements for further information on our other significant accounting policies. Revenue Recognition We generate a majority of our revenue from the delivery of advertising services. We recognize advertising revenue after satisfying our contractual performance obligation, which, for the majority of our advertising arrangements, is when an advertising impression is displayed to users. None of our arrangements contain minimum impression guarantees. We typically bill advertisers on a monthly basis and our payment terms vary by customer type and location. We have other advertising arrangements which are typically fixed-fee arrangements and revenue is recognized on a straight-line basis over the non-cancellable contractual term of the agreement, generally beginning on the date our service is made available to the customer. In certain advertising arrangements we require payment upfront from our customers. We record deferred revenue when we collect cash from customers in advance of revenue recognition. Leases At the inception of our contracts we determine if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Operating leases consist of real estate leases and are included in operating lease right-of-use assets and operating lease liabilities on our consolidated balance sheets at commencement date based on the present value of remaining fixed lease payments. When the discount rate implicit in the lease cannot be readily determined, we use the applicable incremental borrowing rate at lease commencement in order to discount lease payments to present value for purposes of performing lease classification tests and measuring the lease liability. The incremental borrowing rate is a hypothetical rate based on the rate of interest we would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. 57 Table of Contents Recently Issued Accounting Pronouncements Refer to Note 2 to our consolidated financial statements included elsewhere in this Annual Report for more information regarding recently issued accounting pronouncements.