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Nextdoor Holdings (NXDR)
NYSE:NXDR
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Nextdoor Holdings (NXDR) AI Stock Analysis

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NXDR

Nextdoor Holdings

(NYSE:NXDR)

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Neutral 46 (OpenAI - 4o)
Rating:46Neutral
Price Target:
$2.00
▲(10.50% Upside)
Nextdoor Holdings faces significant challenges with profitability and cash flow, impacting its financial performance score. The technical analysis indicates bearish momentum, and the valuation suggests the stock is overvalued. Despite positive highlights from the earnings call, such as record revenue and positive adjusted EBITDA, the overall outlook remains cautious due to ongoing operational challenges.
Positive Factors
Revenue Growth
The consistent revenue growth indicates strong demand for Nextdoor's advertising services, enhancing its market position and financial stability.
Self-Serve Revenue Expansion
The growth in self-serve revenue highlights the scalability of Nextdoor's ad platform, potentially leading to more sustainable long-term revenue streams.
Strong Cash Position
A strong cash position with no debt provides Nextdoor with financial flexibility to invest in growth opportunities and weather economic uncertainties.
Negative Factors
Decline in Active Users
A decline in active users could impact engagement and ad revenue, posing a risk to long-term growth if not addressed effectively.
Profitability Challenges
Ongoing profitability challenges, as indicated by net losses, may hinder Nextdoor's ability to reinvest in its platform and compete effectively.
Cash Flow Management
Poor cash flow management limits Nextdoor's ability to fund operations and growth initiatives, potentially affecting long-term financial health.

Nextdoor Holdings (NXDR) vs. SPDR S&P 500 ETF (SPY)

Nextdoor Holdings Business Overview & Revenue Model

Company DescriptionNextdoor Holdings (NXDR) operates as a social networking service designed specifically for neighborhoods. The platform connects neighbors and fosters community engagement by allowing users to share local information, recommendations, and resources. Nextdoor serves various sectors, including real estate, local businesses, and community organizations, facilitating communication and collaboration among residents. Key features of the service include neighborhood-specific news, event postings, and a marketplace for local services and products.
How the Company Makes MoneyNextdoor generates revenue primarily through advertising and partnerships. The company's main revenue streams include local and national advertising, where businesses pay to promote their products and services to targeted neighborhood audiences. Additionally, Nextdoor earns money from sponsored content, which allows brands to engage with community members in a more organic manner. The company has also established partnerships with various organizations and local governments, providing them access to the platform for outreach and community engagement initiatives. These partnerships not only enhance Nextdoor’s service offerings but also contribute to its overall revenue by attracting more advertisers and increasing user engagement.

Nextdoor Holdings Earnings Call Summary

Earnings Call Date:Nov 05, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted record revenue, positive adjusted EBITDA, and significant self-serve revenue growth, indicating strong financial performance and strategic advancements. However, challenges such as a decline in active users and a GAAP net loss reflect areas requiring attention. The sentiment is balanced between positive financial metrics and operational challenges.
Q3-2025 Updates
Positive Updates
Record Quarterly Revenue
Nextdoor achieved its highest quarterly revenue ever, reaching $69 million, up 5% year-over-year, driven by strong demand from self-serve advertisers.
Positive Adjusted EBITDA
Q3 adjusted EBITDA was $4 million, representing a positive 6% margin and an 8-point improvement year-over-year.
Self-Serve Revenue Growth
Self-serve revenue grew 33% year-over-year, comprising 60% of the total revenue, with meaningful gains in higher click-through rates and lower cost per click.
Programmatic Supply Integrations Completed
Nextdoor completed its programmatic supply integrations, enabling deeper collaboration with scaled parties and launched a partnership with Yahoo for off-platform advertising.
Strong Cash Position
The company has $403 million in cash, cash equivalents, and marketable securities, with zero debt.
New Chief Financial Officer
Indrajit Ponnambalam was announced as the new CFO, bringing over two decades of experience in finance and operations.
Negative Updates
Decline in Platform WAU
Platform WAU declined to 21.6 million, driven by an intentional reduction in notifications and email volumes, reflecting a focus on engagement quality.
GAAP Net Loss
Nextdoor reported a GAAP net loss of $13 million in Q3.
Reduced User Acquisition Efforts
The company plans to reduce new user acquisition efforts in Q4 as it focuses on improving the user experience for new users.
Company Guidance
During the call, Nextdoor provided guidance on several key metrics and expectations for future performance. The company reported its highest-ever quarterly revenue of $69 million in Q3 2025, representing a 5% year-over-year increase, driven by strong demand from self-serve advertisers. The self-serve channel grew by 33% year-over-year, accounting for about 60% of total revenue, and advertisers experienced improved click-through rates and lower costs per click. Nextdoor's Q3 adjusted EBITDA was $4 million, indicating a positive 6% margin and an 8-point year-over-year improvement. The company also reported a GAAP net loss of $13 million. Looking ahead, Nextdoor forecasts Q4 2025 revenue between $67 million and $68 million, with an adjusted EBITDA range of $3.5 million to $4.5 million. The company continues to project full-year 2025 revenue growth of 3% to 4% with an approximately $3 million adjusted EBITDA loss, while maintaining its expectation for breakeven adjusted EBITDA in 2026.

Nextdoor Holdings Financial Statement Overview

Summary
Nextdoor Holdings shows strong revenue growth and efficient cost management with a high gross profit margin. However, significant challenges with profitability and cash flow are critical concerns, despite a stable balance sheet with low leverage.
Income Statement
45
Neutral
Nextdoor Holdings shows a strong gross profit margin of 83.33% TTM, indicating efficient cost management relative to revenue. However, the company struggles with profitability, as evidenced by a negative net profit margin of -25.72% TTM and negative EBIT and EBITDA margins. Despite a significant revenue growth rate of 72.5% TTM, the company remains unprofitable, which is a concern.
Balance Sheet
50
Neutral
The company's balance sheet is relatively stable with a low debt-to-equity ratio of 0.085 TTM, suggesting conservative leverage. However, the return on equity is negative at -14.50% TTM, reflecting ongoing losses. The equity ratio is not provided, but the overall financial health appears moderate with potential risks due to continued unprofitability.
Cash Flow
40
Negative
Nextdoor Holdings has a challenging cash flow situation, with a negative free cash flow growth rate of -122.35% TTM. The operating cash flow to net income ratio is low at 0.064 TTM, indicating limited cash generation relative to net losses. The free cash flow to net income ratio is more favorable at 0.70 TTM, but overall cash flow management remains a concern.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue250.11M247.28M218.31M212.76M192.20M123.28M
Gross Profit208.43M205.43M176.70M173.78M163.38M101.70M
EBITDA-82.74M-117.74M-166.51M-138.55M-90.63M-73.59M
Net Income-64.33M-98.06M-147.76M-137.92M-95.33M-75.23M
Balance Sheet
Total Assets490.36M513.95M654.56M699.56M840.09M217.75M
Cash, Cash Equivalents and Short-Term Investments413.35M426.98M531.10M583.30M715.81M136.98M
Total Debt36.65M40.75M66.59M61.60M68.73M39.60M
Total Liabilities60.82M60.47M96.01M88.49M95.10M68.44M
Stockholders Equity429.53M453.49M558.56M611.07M744.99M149.31M
Cash Flow
Free Cash Flow1.48M-20.61M-59.54M-63.66M-60.11M-46.63M
Operating Cash Flow2.10M-20.20M-59.27M-60.50M-51.27M-41.60M
Investing Cash Flow56.68M86.43M66.49M-342.45M-149.52M36.79M
Financing Cash Flow-52.52M-81.03M8.92M-64.35M637.58M6.37M

Nextdoor Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.81
Price Trends
50DMA
2.05
Negative
100DMA
1.92
Negative
200DMA
1.87
Negative
Market Momentum
MACD
-0.06
Positive
RSI
29.18
Positive
STOCH
15.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXDR, the sentiment is Negative. The current price of 1.81 is below the 20-day moving average (MA) of 1.97, below the 50-day MA of 2.05, and below the 200-day MA of 1.87, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 29.18 is Positive, neither overbought nor oversold. The STOCH value of 15.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NXDR.

Nextdoor Holdings Risk Analysis

Nextdoor Holdings disclosed 56 risk factors in its most recent earnings report. Nextdoor Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Nextdoor Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$1.98B14.2020.13%5.37%13.08%
73
Outperform
$886.53M16.9736.81%57.83%293.63%
66
Neutral
$797.38M35.006.18%12.68%133.00%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
59
Neutral
$870.04M64.86%-112.92%
46
Neutral
$700.94M-14.27%9.65%56.50%
46
Neutral
$770.32M-19.11%-4.72%84.11%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NXDR
Nextdoor Holdings
1.72
-0.87
-33.59%
GRPN
Groupon
20.47
9.75
90.90%
YELP
Yelp
32.16
-4.48
-12.23%
EVER
EverQuote
24.99
5.91
30.97%
FVRR
Fiverr International
20.56
-8.98
-30.40%
MAX
MediaAlpha
13.50
1.88
16.18%

Nextdoor Holdings Corporate Events

Nextdoor Holdings Reports Q3 2025 Earnings
Nov 6, 2025

Nextdoor Holdings, Inc. is a technology company based in San Francisco, California, operating as a neighborhood network platform that connects over 100 million verified neighbors, offering services such as local news, safety alerts, and community recommendations.

Business Operations and StrategyExecutive/Board Changes
Nextdoor Holdings Appoints New CFO Indrajit Ponnambalam
Positive
Nov 5, 2025

Nextdoor Holdings announced the appointment of Indrajit Ponnambalam as the new Chief Financial Officer and Treasurer, effective December 1, 2025. Ponnambalam, who has extensive experience in financial leadership roles across various industries, will receive a base salary of $550,000 and equity awards, aligning his incentives with the company’s performance. This strategic appointment is expected to strengthen Nextdoor’s financial operations and support its growth initiatives.

The most recent analyst rating on (NXDR) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Nextdoor Holdings stock, see the NXDR Stock Forecast page.

Nextdoor Holdings’ Earnings Call: Progress Amid Challenges
Aug 13, 2025

Nextdoor Holdings, Inc. recently held its earnings call, revealing a mixed sentiment among stakeholders. The company showcased significant strides in user engagement and financial efficiency, particularly through self-serve revenue growth and positive cash flow. However, challenges such as workforce reduction, a decline in large advertiser sales, and a notable GAAP net loss were also highlighted. The transition of the CFO adds a layer of uncertainty during this transformative phase.

Nextdoor Holdings Reports Q2 2025 Financial Results
Aug 8, 2025

Nextdoor Holdings, Inc. operates as a neighborhood network platform, connecting over 100 million verified neighbors with local news, safety alerts, and community events, while also serving businesses and public agencies in their engagement with local communities.

Business Operations and StrategyExecutive/Board Changes
Nextdoor Holdings Announces Cost Reduction Plan
Neutral
Aug 7, 2025

Nextdoor Holdings announced a cost reduction plan on August 7, 2025, aimed at enhancing focus and efficiency, with expected one-time charges of approximately $5 million and an additional $1 million in stock-based compensation expenses. The plan is anticipated to be largely executed by the end of the third quarter of 2025, with potential implications for workforce adjustments subject to local laws. On August 4, 2025, Matt Anderson resigned as Chief Financial Officer, effective September 1, 2025, with Nirav Tolia stepping in as interim principal financial officer and Antoinette How appointed as Chief Accounting Officer. Anderson will remain as an advisor until a new CFO is appointed or until the end of 2025.

The most recent analyst rating on (NXDR) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Nextdoor Holdings stock, see the NXDR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 06, 2025