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Nextdoor Holdings (NXDR)
NYSE:NXDR
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Nextdoor Holdings
(NYSE:NXDR)
Rating:54Neutral
Price Target:
$2.00
▼(-0.50% Downside)
Positive Factors
Platform Redesign
Nextdoor launched its platform redesign to create a more hyperlocal, utility-centric platform, grounded in its News, Alerts, and Recommendations vision.
User Engagement
The new UI/UX could drive greater weekly active users and session growth longer-term, backed by its organic user acquisition strategy.
Negative Factors
Advertiser Challenges
Nextdoor's endemic large advertiser challenges persisted and likely remains a headwind until a programmatic partnership is integrated.
Platform Performance
KIND trails peers in measurability, ROAS, and performance capabilities, which are crucial during periods of macro uncertainty.
Revenue Growth
KIND's 1Q:25 revenue growth decelerated to 2%, driven by certain large advertisers reducing ad spend on the platform along with overall macro uncertainty.
Nextdoor Holdings (NXDR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$793.88M
Dividend YieldN/A
Average Volume (3M)2.64M
Price to Earnings (P/E)―
Beta (1Y)1.58
Revenue Growth9.65%
EPS Growth56.50%
CountryUS
Employees546
SectorCommunication Services
Sector Strength89
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.04
Shares Outstanding239,445,140
10 Day Avg. Volume2,185,777
30 Day Avg. Volume2,637,583
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.33
Enterprise Value/Revenue1.03
Enterprise Value/Gross Profit1.24
Enterprise Value/Ebitda-3.13
Forecast
1Y Price Target
$2.20Price Target Upside9.45% Upside
Rating ConsensusHold
Number of Analyst Covering6
Nextdoor Holdings Business Overview & Revenue Model
Company DescriptionNextdoor Holdings (KIND) is a platform focused on connecting neighbors and fostering community engagement. Operating primarily in the social networking sector, Nextdoor provides a neighborhood-centric social media platform where users can share information, recommendations, and updates about local events, services, and issues. The company's core service is a free-to-use app and website that facilitate communication and interaction among residents within specific geographic areas.
How the Company Makes MoneyNextdoor Holdings generates revenue primarily through advertising. The platform offers local businesses, brands, and service providers the opportunity to reach targeted audiences within specific neighborhoods, making its advertising solutions appealing to those seeking geographically-focused marketing. Advertisers can create sponsored posts, display ads, and other promotional content to engage with users in specific locations. Additionally, the company may also explore partnerships with businesses and organizations that align with its community-focused mission, though detailed information about such partnerships is not publicly specified.
Nextdoor Holdings Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
Nextdoor's earnings call highlighted significant progress in user engagement and self-serve revenue growth, alongside strategic product launches and positive cash flow. However, challenges such as GAAP net loss, workforce reduction, and a decline in large advertiser sales remain. The sentiment is balanced between optimism for future growth and caution due to current challenges.Q2-2025 Updates
Positive Updates
Improved Net Promoter Score
NPS improved more over the past six months than in any previous period, indicating strong user sentiment and potential long-term business health.
Revenue Growth in Self-Serve Channel
Self-serve revenue grew 27% year-over-year and accounted for nearly 60% of total revenue, showing strong momentum and efficiency.
Positive Operating Cash Flow
Generated positive operating cash flow for the third consecutive quarter, reflecting continued efficiency efforts.
Launch of the New Nextdoor
The new Nextdoor includes features like local news, real-time alerts, and AI-powered Faves, aiming to enhance user engagement and advertiser value.
Programmatic Partnerships
Completed integration with supply-side platforms and on track to enable demand-side platform integration, expanding advertiser reach and inventory purchase options.
Negative Updates
GAAP Net Loss
Q2 GAAP net loss was $15 million, resulting in a negative 24% margin.
Restructuring and Workforce Reduction
Announced a restructuring plan that includes workforce reduction to accelerate focus and efficiency, aiming for adjusted EBITDA breakeven in 2026.
Decline in Large Advertiser Sales
Large advertiser sales improved quarter-over-quarter but continued to be down year-over-year, indicating ongoing challenges in this segment.
Limited Ad Impression Growth
Change related to the new Nextdoor and continued experimentation will continue to limit ad impression growth in the coming quarter.
Company Guidance
During the Nextdoor Second Quarter 2025 Earnings Conference Call, the company provided guidance focused on enhancing user experience and driving long-term value creation. Key metrics highlighted include a 3% year-over-year increase in Q2 revenue to $65 million, with self-serve revenue growing 27% year-over-year, accounting for nearly 60% of total revenue. The company's Q2 platform WAU reached 21.8 million, a 1% increase year-over-year. Financially, Q2 saw a GAAP net loss of $15 million with a negative 24% margin, while adjusted EBITDA loss was $2 million with a negative 3% margin, reflecting a 6 percentage point improvement. The company also reported positive operating cash flow for the third consecutive quarter and ended the period with $413 million in cash and equivalents. Looking forward, Nextdoor expects Q3 2025 revenue to be approximately $66 million with an adjusted EBITDA loss of $5 million, excluding restructuring expenses, and aims for full-year adjusted EBITDA breakeven by fiscal year 2026. The transformation strategy also includes a restructuring plan expected to reduce annual GAAP operating expenses by about $30 million.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.45
Neutral
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.55
Neutral
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.40
Negative
| 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
Positive
2.01
Price Trends
1.82
Positive
1.66
Positive
1.97
Positive
Market Momentum
0.07
Negative
55.46
Neutral
58.71
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 2.01 is above the 20-day moving average (MA) of 1.95, above the 50-day MA of 1.82, and above the 200-day MA of 1.97, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 55.46 is Neutral, neither overbought nor oversold. The STOCH value of 58.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.45B | 20.21 | 8.57% | 4.86% | 29.62% | -19.65% | |
71 Outperform | $848.92M | 18.74 | 34.34% | ― | 92.91% | ― | |
70 Outperform | $1.99B | 14.31 | 20.13% | ― | 5.37% | 13.08% | |
60 Neutral | $44.01B | 4.13 | -12.81% | 4.14% | 1.86% | -42.71% | |
56 Neutral | $763.25M | 19.73 | -18.24% | ― | 4.43% | -399.14% | |
54 Neutral | $793.88M | ― | -14.27% | ― | 9.65% | 56.50% | |
47 Neutral | $421.79M | ― | -5.28% | ― | ― | ― |
* Communication Services Sector Average
Performance Comparison
NXDR
Nextdoor Holdings
2.01
-0.34
-14.47%
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EVER
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23.26
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4.73%
OPRA
Opera
16.05
2.36
17.24%
GETY
Getty Images Holdings
1.77
-1.76
-49.86%
TTGT
TechTarget, Inc.
5.64
-18.83
-76.95%
Nextdoor Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
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.
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.