Nextdoor Holdings (NXDR) AI Stock Analysis

• Market Cap: $874.40M
• Dividend Yield: N/A
• Average Volume (3M): 8.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• Revenue Growth: 6.65%
• EPS Growth: 50.32%
• Country: US
• Employees: 546
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -0.03
• Shares Outstanding: 244,464,140
• 10 Day Avg. Volume: 19,291,774
• 30 Day Avg. Volume: 8,133,444
• PEG Ratio: 0.26
• Price to Book (P/B): 2.01
• Price to Sales (P/S): 3.69
• P/FCF Ratio: -44.29
• Enterprise Value/Market Cap: 0.50
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 2.07
• Enterprise Value/Ebitda: -5.88
• 1Y Price Target: $2.20
• Price Target Upside: -1.35% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.16
• Revenue Forecast (FY): $255.71M

• Rating: 58 Neutral
• Price Target: $2.50 ▲(12.11% Upside)

Nextdoor Holdings' stock score is driven by strong technical indicators and positive earnings call highlights, such as record revenue and improved EBITDA. However, profitability challenges and a negative valuation score due to ongoing losses weigh down the overall score.

Positive Factors

Revenue Growth

The record revenue growth indicates strong demand and effective monetization strategies, enhancing long-term business sustainability.

Self-Serve Revenue Expansion

The growth in self-serve revenue highlights a scalable business model that can drive future revenue increases and improve margins.

Strong Cash Position

A strong cash position with no debt provides financial flexibility to invest in growth opportunities and weather economic downturns.

Negative Factors

Decline in Active Users

A decline in active users could impact engagement and advertising revenue, challenging long-term growth prospects.

GAAP Net Loss

Ongoing net losses reflect profitability challenges, which may hinder investment in growth and innovation over time.

Reduced User Acquisition Efforts

Scaling back user acquisition could slow growth in user base, affecting future revenue potential and market expansion.

Nextdoor Holdings Business Overview & Revenue Model

Company Description

Nextdoor Holdings, Inc. operates as a holding company, which engages in the provision of a social network site connecting with neighborhood and businesses. The company was founded by Nirav Tolia in 2008 and is headquartered in San Francisco, CA.

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 improvement in revenue and cash flow, with a strong gross profit margin and low leverage. However, profitability issues persist, with negative net income and return on equity.

Income Statement

Nextdoor Holdings has shown a slight improvement in revenue with a TTM growth rate of 1.32%. However, the company continues to face challenges with profitability, as indicated by a negative net profit margin of -25.72% and negative EBIT and EBITDA margins. The gross profit margin remains strong at 83.33%, suggesting efficient cost management at the gross level, but overall profitability is hindered by high operating expenses.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.085, indicating conservative leverage. However, the return on equity is negative at -14.50%, highlighting ongoing profitability issues. The equity ratio is not explicitly calculated, but the company maintains a solid equity base relative to its assets.

Cash Flow

Cash flow metrics show significant improvement, with a free cash flow growth rate of 451.99% TTM, indicating better cash management. The operating cash flow to net income ratio is low at 0.064, but the free cash flow to net income ratio is healthier at 0.705, suggesting improved cash conversion despite ongoing net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	253.40M	247.28M	218.31M	212.76M	192.20M	123.28M
Gross Profit	212.41M	205.43M	176.70M	173.78M	163.38M	101.70M
EBITDA	-74.99M	-93.46M	-166.51M	-138.55M	-90.63M	-73.59M
Net Income	-62.29M	-98.06M	-147.76M	-137.92M	-95.33M	-75.23M
Balance Sheet
Total Assets	488.95M	513.95M	654.56M	699.56M	840.09M	217.75M
Cash, Cash Equivalents and Short-Term Investments	403.32M	426.98M	531.10M	583.30M	715.81M	136.98M
Total Debt	34.47M	40.75M	66.59M	61.60M	68.73M	39.60M
Total Liabilities	59.26M	60.47M	96.01M	88.49M	95.10M	515.60M
Stockholders Equity	429.69M	453.49M	558.56M	611.07M	744.99M	-297.86M
Cash Flow
Free Cash Flow	8.16M	-20.61M	-59.54M	-63.66M	-60.11M	-46.63M
Operating Cash Flow	8.76M	-20.20M	-59.27M	-60.50M	-51.27M	-41.60M
Investing Cash Flow	28.99M	86.43M	66.49M	-342.45M	-149.52M	36.79M
Financing Cash Flow	-34.12M	-81.03M	8.92M	-64.35M	637.58M	6.37M

Nextdoor Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2.23 is above the 20-day moving average (MA) of 1.93, above the 50-day MA of 1.91, and above the 200-day MA of 1.78, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 57.42 is Neutral, neither overbought nor oversold. The STOCH value of 26.54 is Neutral, 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
EVER	77 Outperform	$979.44M	19.04	36.81%	―	57.83%	293.63%
YELP	70 Outperform	$1.88B	13.51	20.37%	―	5.35%	33.74%
FVRR	63 Neutral	$752.77M	34.83	6.18%	―	12.68%	133.00%
MAX	61 Neutral	$843.98M	-599.54	―	―	64.86%	-112.92%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NXDR	58 Neutral	$874.40M	-13.75	-14.07%	―	6.65%	50.32%
GRPN	41 Neutral	$646.78M	-4.55	―	―	-0.76%	-635.75%

Nextdoor Holdings Corporate Events

Nextdoor Holdings Appoints New CFO Indrajit Ponnambalam

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.