Nextdoor Reports Fourth Quarter and Full Year 2025 Results
MWN-AI** Summary
Nextdoor Holdings, Inc. (NYSE: NXDR) reported its fourth quarter and full-year results for 2025, showcasing notable financial progress and operational improvements. In Q4, the company achieved a revenue of $69 million, reflecting a 7% increase compared to the same quarter the previous year. Although the Platform Weekly Active Users (WAU) declined by 5% to 21 million, Nextdoor reduced its net loss to $4 million from $12 million in Q4 2024. Notably, the adjusted EBITDA climbed to $8 million, a significant improvement reflecting a 6 percentage point increase in margin year-over-year.
For the full year 2025, Nextdoor's revenue grew 4% to $258 million, and its net loss was reduced to $54 million from the prior year's $98 million. This year marked a milestone for Nextdoor, as it reported its first positive adjusted EBITDA of $1 million, a shift from a $18 million loss in 2024. As of December 31, 2025, the company held $405 million in cash, cash equivalents, and marketable securities, providing a solid foundation for future investments.
CEO Nirav Tolia emphasized the company's commitment to enhancing user experience and leveraging AI technology to align content with user intentions, thereby driving deeper engagement. CFO Indrajit Ponnambalam expressed excitement over the strong financial performance and emphasized the team's discipline that led to this pivotal moment in Nextdoor's financial history.
The company has scheduled a conference call to discuss its results further and outline its outlook for 2026, providing investors with deeper insights into its strategic direction. Investors can refer to Nextdoor's Investor Relations website for additional information.
MWN-AI** Analysis
Nextdoor Holdings, Inc. (NYSE: NXDR) reported a promising Q4 and full-year 2025, demonstrating growth in revenue and a significant reduction in net loss. With Q4 revenue reaching $69 million, a 7% increase year-over-year, Nextdoor exceeded expectations. The full-year revenue of $258 million, up 4% from the previous year, indicates steady growth. Notably, the company recorded positive Adjusted EBITDA for the first time, achieving $1 million.
Despite a 5% decline in weekly active users (WAU) to 21 million, the company showcased improved operational efficiency, reducing the net loss in Q4 to $4 million from $12 million in the prior year. The expansion of Adjusted EBITDA margin by 6 percentage points is a strong indicator of operational discipline. CEO Nirav Tolia's emphasis on focusing the platform on high-intent user interactions, utilizing AI-driven local content, is strategically sound and may increase engagement levels going forward.
From an investment perspective, Nextdoor appears to be on a recovery trajectory. The considerable cash reserves of $405 million provide a robust financial buffer enabling continued investment for growth. With operational improvements and a strategic focus on enhancing user engagement, Nextdoor's financial health may further stabilize.
However, potential investors should remain cautious regarding the slight decline in user metrics. It's essential to monitor how effectively the company can reverse this trend while maintaining revenue growth. Overall, Nextdoor's recent performance exhibits promise, and while it's not without risks, its strategic positioning and financial milestones present an attractive opportunity in the burgeoning hyperlocal social media landscape. Investors might consider entering with a long-term perspective, particularly if user engagement metrics show signs of recovery in upcoming quarters.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
- Q4 revenue of $69 million, +7% year-over-year
- Q4 Platform WAU of 21.0 million, decreased 5% year-over-year
- Q4 GAAP net loss of $4 million; Adjusted EBITDA of $8 million
- Full-year 2025 GAAP net loss of $54 million
- Full-year 2025 Adjusted EBITDA of $1 million; first time positive in company history
Nextdoor Holdings, Inc. (NYSE: NXDR), the essential neighborhood network, today announced results for the fourth quarter and full year ended December 31, 2025.
Nextdoor's highlighted metrics for the fourth quarter ended December 31, 2025 include:
- Revenue of $69 million increased 7% year-over-year.
- Total Platform Weekly Active Users (Platform WAU) of 21.0 million decreased 5% year-over-year.
- Net loss was $4 million, compared to $12 million in the year-ago period.
- Adjusted EBITDA was $8 million, compared to $3 million in the year-ago period, reflecting 6 percentage points of year-over-year margin improvement.
Nextdoor's highlighted metrics for the year ended December 31, 2025 include:
- Revenue of $258 million increased 4% year-over-year.
- Net loss was $54 million, compared to $98 million in the year-ago period.
- Adjusted EBITDA was positive $1 million, compared to a loss of $18 million in the year-ago period.
- Cash, cash equivalents, and marketable securities were $405 million as of December 31, 2025.
“Our Q4 results reflect steady progress and consistent execution across the business,” said Nextdoor CEO Nirav Tolia. “We delivered record quarterly revenue and achieved positive full-year Adjusted EBITDA a year ahead of schedule. We remain focused on improving the core experience for neighbors on Nextdoor.”
"Nextdoor’s neighborhood graph has always been a differentiated asset. Now, we are working to unlock its full potential by aligning our content with the real-world decisions neighbors make every day," said Tolia. "Our value isn't in passive scrolling, but in high-intent moments. By using AI to surface the right local information at the right time, we’re driving the deeper engagement necessary to create durable, long-term value."
"I'm excited to report my first quarter as CFO with strong financial performance across the board," said Nextdoor CFO Indrajit Ponnambalam. "We grew revenue 7% year-over-year in Q4, reduced our net loss by more than half compared to the prior year, and expanded our Adjusted EBITDA margin by 6 percentage points. These results culminated in our first full year of positive Adjusted EBITDA, a milestone that reflects the discipline of our entire team. With $405 million in cash and marketable securities, we have a strong foundation for continued investment and growth."
For more detailed information on our operating and financial results for the fourth quarter and full year ended December 31, 2025, as well as our outlook for the first quarter and fiscal year 2026, please reference our Nextdoor Investor Update posted to our Investor Relations website located at investors.nextdoor.com .
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||||
Revenue | $ | 69,479 | $ | 65,228 | $ | 257,646 | $ | 247,276 | |||||||
Loss from operations | $ | (7,424 | ) | $ | (17,097 | ) | $ | (71,942 | ) | $ | (121,639 | ) | |||
Net loss | $ | (4,033 | ) | $ | (12,123 | ) | $ | (54,204 | ) | $ | (98,063 | ) | |||
Adjusted EBITDA (1) | $ | 7,621 | $ | 3,043 | $ | 601 | $ | (18,207 | ) |
(1) The following is a reconciliation of net loss, the most comparable GAAP measure, to Adjusted EBITDA for the periods presented above:
Three Months Ended December 31, | Year Ended | ||||||||||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||||
Net loss | $ | (4,033 | ) | $ | (12,123 | ) | $ | (54,204 | ) | $ | (98,063 | ) | |||
Depreciation and amortization | 402 | 591 | 1,935 | 3,898 | |||||||||||
Stock-based compensation | 14,545 | 19,874 | 65,343 | 74,055 | |||||||||||
Interest income | (4,378 | ) | (5,322 | ) | (18,758 | ) | (24,381 | ) | |||||||
Provision for income taxes | 1,085 | 23 | 1,625 | 706 | |||||||||||
Restructuring charges | — | — | 4,660 | 25,578 | |||||||||||
Adjusted EBITDA | $ | 7,621 | $ | 3,043 | $ | 601 | $ | (18,207 | ) |
Nextdoor will host a conference call at 2:00 p.m. PT/5:00 p.m. ET today to discuss these results and outlook. A live webcast of our fourth quarter and full year 2025 earnings release call will be available in the Events & Presentations section of Nextdoor’s Investor Relations website located at investors.nextdoor.com . After the live event, the audio recording for the webcast can be accessed on the same website for approximately one year.
Nextdoor uses its Investor Relations website ( investors.nextdoor.com ), its X handle ( x.com/Nextdoor ), its LinkedIn Home Page ( linkedin.com/company/nextdoor-com ), and Nirav Tolia’s LinkedIn posts ( https://www.linkedin.com/in/niravtolia/ ) and X posts ( https://x.com/niravtolia ) as a means of disseminating or providing notification of, among other things, news or announcements regarding its business or financial performance, investor events, press releases, and earnings releases, and as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared in accordance with GAAP, we present certain non-GAAP financial measures, such as Adjusted EBITDA, in this press release. Our use of non-GAAP financial measures has limitations as an analytical tool, and these measures should not be considered in isolation or as a substitute for analysis of financial results as reported under GAAP.
We use non-GAAP financial measures in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including in the preparation of our annual operating budget, as a measure of our core operating results and the effectiveness of our business strategy, and in evaluating our financial performance. Non-GAAP financial measures provide consistency and comparability with past financial performance, facilitate period-to-period comparisons of core operating results, and also facilitate comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. In addition, Adjusted EBITDA is widely used by investors and securities analysts to measure a company's operating performance. We exclude the following items from one or more of our non-GAAP financial measures: stock-based compensation expense (non-cash expense calculated by companies using a variety of valuation methodologies and subjective assumptions), depreciation and amortization (non-cash expense), interest income, provision for income taxes, and, if applicable, restructuring charges or acquisition-related costs.
Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, (1) stock-based compensation expense has recently been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy, (2) although depreciation and amortization expense are non-cash charges, the assets subject to depreciation and amortization may have to be replaced in the future, and our non-GAAP measures do not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements, and (3) Adjusted EBITDA does not reflect: (a) changes in, or cash requirements for, our working capital needs; (b) interest expense, or the cash requirements necessary to service interest or principal payments on our debt, which reduces cash available to us; or (c) tax payments that may represent a reduction in cash available to us. The non-GAAP measures we use may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures.
About Nextdoor
Nextdoor (NYSE: NXDR) is the essential neighborhood network for over 105 million verified neighbors, offering trusted local news, real-time safety alerts, neighbor recommendations, for sale and free listings, and events. Nextdoor connects neighbors to the people, places, and information that matter most in their local communities. In addition, businesses, news publishers, and public agencies use Nextdoor to share important information and engage with neighborhoods at scale. Download the app or join the neighborhood at nextdoor.com . For more information and media assets, visit nextdoor.com/newsroom .
Safe Harbor Statement
This press release contains forward-looking statements regarding our future business expectations, including statements regarding projected financial results. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors, as more fully detailed under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”) on February 18, 2026, and our other SEC filings, which are available on the Investor Relations page of our website at investors.nextdoor.com and on the SEC’s website at www.sec.gov . All forward-looking statements contained herein are based on information available to us as of the date hereof and you should not rely upon forward-looking statements as predictions of future events. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this press release or to conform these statements to actual results or revised expectations, except as required by law. Undue reliance should not be placed on the forward-looking statements in this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260218233855/en/
Investor Relations:
ir@nextdoor.com
or visit investors.nextdoor.com
Media Relations:
Kelsey Grady
press@nextdoor.com
FAQ**
How does Nextdoor Holdings Inc. Class A NXDR plan to leverage its 21 million weekly active users to improve user engagement and revenue in 2026, following a 5% year-over-year decrease in this metric in Q4 2025?
With a $54 million GAAP net loss for 2025, what specific strategies does Nextdoor Holdings Inc. Class A NXDR have in place to reduce net losses further and achieve sustainable profitability?
Considering that Nextdoor Holdings Inc. Class A NXDR achieved its first positive Adjusted EBITDA of $1 million in 2025, what are the key factors contributing to this milestone, and how will it affect future financial performance?
What role will artificial intelligence play in Nextdoor Holdings Inc. Class A NXDR's strategy to enhance local content and user engagement, and how does the company plan to measure the success of these initiatives moving forward?
**MWN-AI FAQ is based on asking OpenAI questions about Nextdoor Holdings Inc. Class A (NYSE: KIND).
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