Nextdoor Holdings, Inc.

What they do

Nextdoor operates a neighborhood network across more than 350,000 neighborhoods in 11 countries, connecting users it calls Verified Neighbors through a location-based feed of posts, news, alerts, recommendations, for-sale and free listings, and events. The company generates the majority of revenue from advertising, sold on CPM, CPC, or subscription terms, on a proprietary ad stack with hyperlocal targeting built on first-party data. It also serves businesses through free Business Pages and public agencies that share alerts and community information. The platform is supported by over 4,000 local news publishers and alert partners including Waze, Weather.com, and the U.S. Geological Survey.

Revenue drivers

• Advertising — The majority of revenue comes from advertising services delivered through the Nextdoor Ads Platform, which includes Ads Manager, a native ad server, and measurement and API tools; ads are sold on CPM, CPC, or subscription terms.
• Platform ARPU — Monetization of the user base is measured as total revenue divided by average Platform WAU; Q2 2026 Platform ARPU was $3.26, up 9% from $2.99 a year earlier.
• U.S. concentration — The majority of revenue is generated in the United States, where the company says it reaches 1 in 3 households.
• Local news and alert content — More than 4,000 local news publishers accounted for approximately 7% of total feed volume as of December 31, 2025, supporting engagement that underpins advertising inventory.

Recent performance

Q2 2026 revenue was $74.6 million, up 15% from $65.1 million in Q2 2025, and Platform WAU was 22.9 million, up 5% year over year. Net loss narrowed to $2.1 million from $15.4 million, and Adjusted EBITDA was $9.5 million versus a $2.2 million loss a year earlier, with net loss margin improving to (3)% from (24)%. For the six months ended June 30, 2026, revenue was $136.2 million versus $119.3 million, net loss was $13.5 million versus $37.3 million, and Adjusted EBITDA was $9.3 million versus a $11.4 million loss. Platform ARPU rose 9% to $3.26, and cash, cash equivalents, and marketable securities totaled $378.0 million as of June 30, 2026. Full-year 2025 revenue was $257.6 million with a net loss of $54.2 million and operating cash flow of $6.5 million.

Strategy

In 2025 the company launched the new Nextdoor initiative, described as the first phase of a multi-phase product transformation to make the platform more engaging for neighbors and partners and more valuable to advertisers. The effort expands the feed beyond primarily neighbor-generated content to include timely local information such as news and alerts, using AI and machine learning to surface and personalize content and to improve notification relevance and ad performance. Management continues to invest in the proprietary ad stack and hyperlocal targeting built on first-party data from over 110 million Verified Neighbors. The company also points to disciplined expense management, with total Q2 2026 costs and expenses down 6% year over year, alongside accelerating engagement and revenue growth.

Risks

• Transformation execution — The new Nextdoor initiative remains ongoing, and the company states the changes may not be favorably received by users or advertisers, may not increase engagement or monetization, and may disrupt established usage patterns or alienate existing users.
• Limited operating history at current scale — Nextdoor began operating the platform in 2011 and only began supporting it with advertising in 2016, which the company says makes it difficult to evaluate its current business and future prospects.
• Advertising and macro sensitivity — Revenue is majority advertising-based, exposing results to advertising industry conditions, specific advertiser categories and geographies, and factors the company lists such as inflation, changing interest rates, and a potential recession.
• Profitability not yet assured — The company has a history of net losses, including a $54.2 million net loss in 2025 and $98.1 million in 2024, and states there is no assurance it will achieve and maintain profitability in the future.

Outlook

For Q3 2026, management guided to revenue of $76 million to $78 million and Adjusted EBITDA of $6.5 million to $8 million. For the full year 2026, the company guided to low-teens year-over-year revenue growth and an Adjusted EBITDA margin of approximately 10%, which it describes as raising its prior full-year outlook. Management attributed the raise to accelerating engagement, durable revenue growth, and disciplined expense management. The Q2 release also noted Platform WAU and revenue were quarterly all-time highs and marked a second consecutive quarter of sequential Platform WAU growth.