Nextdoor Holdings (NXDR) AI Stock Analysis

• Market Cap: $894.57M
• Dividend Yield: N/A
• Average Volume (3M): 2.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: 9.65%
• EPS Growth: 56.50%
• Country: US
• Employees: 546
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -0.04
• Shares Outstanding: 239,445,140
• 10 Day Avg. Volume: 1,692,685
• 30 Day Avg. Volume: 2,228,876
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.29
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 1.24
• Enterprise Value/Ebitda: -3.13
• 1Y Price Target: $2.70
• Price Target Upside: 16.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 54 Neutral
• Price Target: $2.00 ▼(-13.42% Downside)

Nextdoor Holdings' overall stock score is driven primarily by its financial performance, which highlights strong revenue growth but significant profitability and cash flow challenges. Technical analysis indicates positive momentum, providing some optimism. Valuation remains a concern due to negative earnings and lack of dividends. The earnings call adds a balanced view with both positive developments and ongoing challenges.

Positive Factors

Revenue Growth

The significant growth in self-serve revenue indicates strong market demand and operational efficiency, enhancing long-term revenue stability.

Cash Flow Management

Consistent positive cash flow reflects improved financial discipline and operational efficiency, crucial for sustaining business operations.

Product Innovation

Innovative product features enhance user engagement and advertiser value, strengthening competitive positioning in the social networking space.

Negative Factors

Profitability Challenges

Ongoing profitability challenges with significant net losses can hinder investment in growth initiatives and affect long-term viability.

Leadership Changes

Frequent leadership changes can disrupt strategic continuity and affect stakeholder confidence, potentially impacting long-term strategic execution.

Large Advertiser Sales Decline

Declining large advertiser sales indicate challenges in maintaining key revenue streams, which could affect overall revenue growth and market position.

Nextdoor Holdings Business Overview & Revenue Model

Company Description

Nextdoor 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 Money

Nextdoor 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 Financial Statement Overview

Summary

Nextdoor Holdings shows potential with revenue growth but faces challenges in profitability and cash flow. The strong equity base and low leverage are positives, but operational losses and negative free cash flow are concerns.

Income Statement

Nextdoor Holdings has shown consistent revenue growth, with a 16.7% increase from 2023 to 2024. However, profitability remains a challenge with negative net profit margins and EBIT margins. The TTM indicates a slight improvement in EBITDA margin, but net income is still negative, highlighting ongoing operational challenges.

Balance Sheet

The company maintains a strong equity position with a high equity ratio of 88.1% in TTM. The debt-to-equity ratio is low, suggesting prudent leverage. However, declining stockholders' equity due to continuous losses is a concern that needs addressing for future stability.

Cash Flow

The cash flow statements indicate negative free cash flow, though there is an improvement in operating cash flow in TTM. There is a need for better cash management to achieve positive free cash flow and sustain operations without additional financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	250.11M	247.28M	218.31M	212.76M	192.20M	123.28M
Gross Profit	208.43M	205.43M	176.70M	173.78M	163.38M	101.70M
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 Assets	490.36M	513.95M	654.56M	699.56M	840.09M	217.75M
Cash, Cash Equivalents and Short-Term Investments	413.35M	426.98M	531.10M	583.30M	715.81M	136.98M
Total Debt	36.65M	40.75M	66.59M	61.60M	68.73M	39.60M
Total Liabilities	60.82M	60.47M	96.01M	88.49M	95.10M	515.60M
Stockholders Equity	429.53M	453.49M	558.56M	611.07M	744.99M	-297.86M
Cash Flow
Free Cash Flow	1.48M	-20.61M	-59.54M	-63.66M	-60.11M	-46.63M
Operating Cash Flow	2.10M	-20.20M	-59.27M	-60.50M	-51.27M	-41.60M
Investing Cash Flow	56.68M	86.43M	66.49M	-342.45M	-149.52M	36.79M
Financing Cash Flow	-52.52M	-81.03M	8.92M	-64.35M	637.58M	6.37M

Nextdoor Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXDR, the sentiment is Positive. The current price of 2.31 is above the 20-day moving average (MA) of 2.09, above the 50-day MA of 1.95, and above the 200-day MA of 1.94, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 70.35 is Negative, neither overbought nor oversold. The STOCH value of 88.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NXDR.

Nextdoor Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRA	75 Outperform	1.68B	23.40	8.43%	4.15%	29.62%	-19.65%
EVER	74 Outperform	931.08M	20.54	27.34%	―	92.91%	0.00%
YELP	72 Outperform	2.01B	14.40	19.98%	―	5.37%	13.08%
GETY	55 Neutral	858.66M	-7.40	-19.35%	―	4.43%	-399.14%
NXDR	54 Neutral	$894.57M	―	-14.27%	―	9.65%	56.50%
TTGT	47 Neutral	481.12M	―	-7.43%	―	0.00%	0.00%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Nextdoor Holdings Corporate Events

Nextdoor Holdings Announces Cost Reduction Plan

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.