Nextdoor (NXDR)
Market Price (1/22/2026): $2.005 | Market Cap: $776.5 MilSector: Communication Services | Industry: Interactive Media & Services
Nextdoor (NXDR)
Market Price (1/22/2026): $2.005Market Cap: $776.5 MilSector: Communication ServicesIndustry: Interactive Media & Services
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -49% | Weak multi-year price returns2Y Excs Rtn is -50%, 3Y Excs Rtn is -77% | Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -82 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -32% |
| Megatrend and thematic driversMegatrends include Hyperlocal Social & Economic Networks. Themes include Neighborhood Social Networking, Local Online Marketplaces, and Local Business Engagement. | Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 86x | |
| Significant share based compensationSBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 28% | ||
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -12% | ||
| Key risksNXDR key risks include [1] persistent unprofitability and challenges monetizing its hyperlocal ad model, Show more. |
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -49% |
| Megatrend and thematic driversMegatrends include Hyperlocal Social & Economic Networks. Themes include Neighborhood Social Networking, Local Online Marketplaces, and Local Business Engagement. |
| Weak multi-year price returns2Y Excs Rtn is -50%, 3Y Excs Rtn is -77% |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -82 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -32% |
| Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 86x |
| Significant share based compensationSBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 28% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -12% |
| Key risksNXDR key risks include [1] persistent unprofitability and challenges monetizing its hyperlocal ad model, Show more. |
Why The Stock Moved
Qualitative Assessment
AI Analysis | Feedback
1. Q3 2025 GAAP Net Loss Despite Revenue Beat. Nextdoor reported record Q3 2025 revenue of $69 million, exceeding analyst forecasts. However, the company also disclosed a GAAP net loss of $13 million for the quarter. This continued unprofitability, despite revenue growth, led to the stock falling nearly 5% to $1.81 on November 5, 2025, the day the earnings were released.
2. Persistent Unprofitability Projections. Analysts maintained a cautious outlook on Nextdoor's profitability, expecting the company to remain unprofitable through at least 2027. Despite strategic investments in product development, including the "NEXT initiative" and AI-driven features, these efforts were seen as prioritizing user engagement over immediate positive profit margins, contributing to a challenging short-term narrative for investors.
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Stock Movement Drivers
Fundamental Drivers
The -0.5% change in NXDR stock from 10/31/2025 to 1/21/2026 was primarily driven by a -1.2% change in the company's Shares Outstanding (Mil).| 10312025 | 1212026 | Change | |
|---|---|---|---|
| Stock Price ($) | 1.95 | 1.94 | -0.5% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 250 | 253 | 1.3% |
| P/S Multiple | 3.0 | 3.0 | -0.6% |
| Shares Outstanding (Mil) | 383 | 387 | -1.2% |
| Cumulative Contribution | -0.5% |
Market Drivers
10/31/2025 to 1/21/2026| Return | Correlation | |
|---|---|---|
| NXDR | -0.5% | |
| Market (SPY) | 0.5% | 36.9% |
| Sector (XLC) | -0.2% | 33.1% |
Fundamental Drivers
The 10.9% change in NXDR stock from 7/31/2025 to 1/21/2026 was primarily driven by a 9.5% change in the company's P/S Multiple.| 7312025 | 1212026 | Change | |
|---|---|---|---|
| Stock Price ($) | 1.75 | 1.94 | 10.9% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 248 | 253 | 2.0% |
| P/S Multiple | 2.7 | 3.0 | 9.5% |
| Shares Outstanding (Mil) | 384 | 387 | -0.8% |
| Cumulative Contribution | 10.9% |
Market Drivers
7/31/2025 to 1/21/2026| Return | Correlation | |
|---|---|---|
| NXDR | 10.9% | |
| Market (SPY) | 8.7% | 33.9% |
| Sector (XLC) | 7.1% | 28.4% |
Fundamental Drivers
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Market Drivers
1/31/2025 to 1/21/2026| Return | Correlation | |
|---|---|---|
| NXDR | ||
| Market (SPY) | 14.9% | 33.0% |
| Sector (XLC) | 13.0% | 27.0% |
Fundamental Drivers
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Market Drivers
1/31/2023 to 1/21/2026| Return | Correlation | |
|---|---|---|
| NXDR | ||
| Market (SPY) | 74.9% | 33.0% |
| Sector (XLC) | 114.3% | 27.0% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| NXDR Return | - | - | - | - | 2% | -11% | -9% |
| Peers Return | 36% | -57% | 60% | -6% | -20% | -8% | -35% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | -1% | 81% |
Monthly Win Rates [3] | |||||||
| NXDR Win Rate | - | - | - | - | 50% | 0% | |
| Peers Win Rate | 55% | 30% | 65% | 43% | 43% | 0% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 0% | |
Max Drawdowns [4] | |||||||
| NXDR Max Drawdown | - | - | - | - | -23% | -11% | |
| Peers Max Drawdown | -18% | -62% | -11% | -24% | -45% | -8% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -1% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: YELP, ANGI, META, THRY, IAC.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 1/21/2026 (YTD)
How Low Can It Go
NXDR has limited trading history. Below is the Communication Services sector ETF (XLC) in its place.
| Event | XLC | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -47.2% | -25.4% |
| % Gain to Breakeven | 89.5% | 34.1% |
| Time to Breakeven | 602 days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -30.1% | -33.9% |
| % Gain to Breakeven | 43.2% | 51.3% |
| Time to Breakeven | 112 days | 148 days |
| 2018 Correction | ||
| % Loss | -24.8% | -19.8% |
| % Gain to Breakeven | 32.9% | 24.7% |
| Time to Breakeven | 326 days | 120 days |
Compare to YELP, ANGI, META, THRY, IAC
In The Past
The Communication Services Select Sector SPDR Fund's stock fell -47.2% during the 2022 Inflation Shock from a high on 9/1/2021. A -47.2% loss requires a 89.5% gain to breakeven.
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AI Analysis | Feedback
Here are 1-3 brief analogies for Nextdoor (NXDR):
- Facebook for neighborhoods: It's a social network specifically designed for local communities to connect.
- Reddit for local communities: It functions like a forum where neighbors can discuss local issues and share information.
- Craigslist for your neighborhood: Users can post items for sale, give away, or find local services within a very localized area.
AI Analysis | Feedback
```html- Neighborhood Social Network Platform: A localized social media platform designed for residents to connect with their neighbors, share information, and foster community within defined geographical neighborhoods.
- Local Advertising and Promotion Services: Provides businesses, public services, and brands with tools to create targeted advertisements and promotions to reach residents within specific neighborhoods.
- Public Agency Communication Tools: Offers government and public safety agencies a direct channel to communicate important alerts, news, and information to residents in their service areas.
AI Analysis | Feedback
Major Customers of Nextdoor (NXDR)
Nextdoor (NXDR) primarily sells advertising services to other companies, rather than directly to individuals for its core social networking platform. Its revenue is generated by businesses paying to reach its engaged user base within specific neighborhoods.
The major categories of companies that are customers of Nextdoor include:
- Local Businesses: Small and medium-sized enterprises (SMEs) that offer products or services within specific neighborhoods or local communities. This includes a wide range of businesses such as restaurants, home service providers (e.g., plumbers, electricians, landscapers), local retail shops, and professional services (e.g., real estate agents, local accountants).
- National and Regional Brands: Larger corporations and brands that utilize Nextdoor's platform for hyper-targeted advertising campaigns to reach specific demographics and geographic areas. These can include companies in sectors like retail, automotive, telecommunications, financial services, and consumer packaged goods looking to localize their marketing efforts.
- Real Estate Professionals and Companies: A significant segment of Nextdoor's advertisers includes real estate agents, brokers, and related businesses (e.g., mortgage lenders, home staging services) who use the platform to connect with potential clients, market properties, and establish themselves as local experts within specific neighborhoods.
AI Analysis | Feedback
Nirav Tolia, Chief Executive Officer, President, and Chairperson of the Board of Directors
Nirav Tolia is a Co-Founder of Nextdoor and currently serves as its CEO, President, and Chairperson of the Board of Directors. Prior to co-founding Nextdoor in 2008, he was an Entrepreneur-in-Residence at Benchmark Capital. He also co-founded and served as CEO of Epinions.com and was the Chief Operating Officer of Shopping.com. Epinions.com was acquired by Shopping.com, which was subsequently acquired by eBay. Tolia is also a co-founding director of the William S. Spears Institute for Entrepreneurial Leadership at SMU's Cox School of Business.
Matt Anderson, Chief Financial Officer
Matt Anderson is the Chief Financial Officer at Nextdoor, having joined the company in July 2019 as the Head of Finance and Strategy. He was appointed CFO in November 2023. His background includes senior finance roles at Block, Inc. (formerly Square) and experience at the private equity firm GI Partners. Anderson also has an investment banking background, having worked at Barclays and Lehman Brothers. It has been announced that Indrajit Ponnambalam will become the CFO effective December 1, 2025.
Michael Kiernan, Chief Revenue Officer
Michael Kiernan is Nextdoor's Chief Revenue Officer, responsible for overseeing the company's global revenue function, including sales, client services, and operations. He has nearly 20 years of experience as a go-to-market executive, driving growth and transformations across various technology organizations. Prior to Nextdoor, Kiernan held GTM leadership roles at companies such as X (formerly known as Twitter) and Yahoo!, and helped lead venture-backed startups like Turn and BrightRoll to successful exits. He joined Nextdoor in 2018 and was appointed CRO in January 2025, after serving as interim CRO.
Sophia Contreras Schwartz, General Counsel
Sophia Contreras Schwartz serves as Nextdoor's General Counsel, overseeing all legal functions, including product, regulatory compliance, commercial operations, intellectual property, litigation, employment, and corporate matters. She joined Nextdoor as Deputy General Counsel in 2018 and was elevated to General Counsel in May 2024. Before her tenure at Nextdoor, she was a partner at Donahue Fitzgerald LLP, specializing in corporate transactions and intellectual property law. Her work was instrumental during Nextdoor's fundraising efforts in 2019 and its transition to a public entity via a SPAC merger in 2021.
Craig Lisowski, President of Products
Craig Lisowski is Nextdoor's President of Products, bringing over two decades of extensive experience in engineering, data analytics, business development, and IT. Before joining Nextdoor, he was the Head of Business Platform Engineering at Block, Inc. (formerly Square), where he managed large-scale data systems and led multiple engineering functions. His career also includes senior roles at Silicon Graphics, VeriSign, and Oracle. Lisowski was appointed President of Products in August 2025.
AI Analysis | Feedback
The public company Nextdoor (NXDR) faces several key risks to its business model and future prospects:
- Inability to Achieve and Sustain Profitability and Monetization Challenges: Nextdoor has consistently reported net losses, negative GAAP operating margins, and negative free cash flow. There is significant investor skepticism regarding the company's ability to effectively scale its hyperlocal advertising model profitably. Concerns also exist about its high cash burn rate and the potential need for dilutive fundraising if growth proves expensive or advertising demand weakens. Analysts note that adjusted EBITDA guidance often ignores substantial recurring stock-based compensation, masking true profitability.
- Stagnant User Growth and Engagement Issues: The company has demonstrated weak growth in weekly active users, averaging a modest 6.5% annually. Historically, Nextdoor has struggled with low daily active usage compared to registered users, as well as challenges related to content quality and moderation, which can deter advertisers. Furthermore, building a product that genuinely connects diverse neighborhoods with varying needs remains a constant challenge.
- Content Moderation Failures and Damage to Trust/Brand Reputation: Nextdoor has faced significant and persistent criticism for issues related to content moderation, including accusations of racial profiling. This has led to a reputation as a "snitch app" or the "Karen problem," which can foster animosity and division rather than community cohesion. Instances of unmoderated profanity and spam have also been reported, further eroding user trust and potentially impacting engagement and brand perception.
AI Analysis | Feedback
nullAI Analysis | Feedback
Nextdoor (NXDR) operates a private social network for neighborhoods, connecting residents with each other, local businesses, and public agencies. The company's primary revenue stream is advertising.
The total addressable market (TAM) for digital advertising in the U.S. has been identified as a significant opportunity. In 2022, the U.S. digital advertising market, excluding business-to-business (B2B) spending, which is not addressable by Nextdoor, was estimated at $234 billion, with projections for 2026 reaching $322 billion. Globally, the digital advertising market is an even larger opportunity, though specific figures adjusted to Nextdoor's 11 operating countries were not provided.
Nextdoor's operations span 11 countries, including the United States, United Kingdom, Canada, Australia, Netherlands, France, Spain, Italy, Germany, Sweden, and Denmark. The U.S. market is a key focus for the company, where it has achieved penetration in approximately one-third of all U.S. households.
AI Analysis | Feedback
Nextdoor (NXDR) is focused on several key initiatives expected to drive its future revenue growth over the next 2-3 years. These strategies revolve around platform innovation, monetization improvements, and enhanced user engagement. Here are 3-5 expected drivers of future revenue growth for Nextdoor: * Launch and Optimization of the "NEXT" Platform: Nextdoor is undergoing a complete product transformation with the launch of its "NEXT" platform, anticipated by mid-2025. This initiative is designed to create a materially better user experience and unlock sustainable long-term growth. The company is prioritizing delivering a more intuitive and valuable product for users and advertisers, which is expected to lead to better monetization opportunities. While this strategic shift may impact short-term revenue, the aim is to drive long-term value by re-engaging users with richer local content, timely alerts, and community-powered recommendations. * Enhancements and Expansion of the Nextdoor Ads Platform: Improvements to the Nextdoor Ads Platform are consistently cited as a significant revenue driver. This includes the strong performance and continued growth of the self-serve advertising segment, which has accounted for a substantial portion of total revenue. The company is also focusing on optimizing advertiser performance through features like click optimization, which has led to a reduction in cost per click. Furthermore, Nextdoor has completed programmatic supply integrations to enable deeper collaboration with scaled partners, expanding its advertising reach and efficiency. New ad formats and deeper AI integration are also anticipated to enhance the platform's advertising capabilities. * Increased User Engagement and Organic User Acquisition: While Nextdoor has intentionally made trade-offs in short-term user acquisition efforts to prioritize engagement quality, the strategy is to drive long-term, sustainable growth through a revitalized user base. The company aims to attract and engage users with relevant local content, and has seen strong organic user acquisition, particularly among younger demographics (18-34 years old) in the U.S. Optimizing for increased engagement and better monetization, especially with the new platform, is expected to pave the way for a more active user base in the coming years. Expanding the content ecosystem through partnerships with local publishers and integrating real-time local alert systems also aims to improve platform value and attractiveness, fostering deeper user interaction. * Reinventing the Recommendations Ecosystem: Nextdoor has plans to reinvent its recommendations ecosystem. By leveraging neighbor recommendations for business trust and visibility, this initiative aims to enhance the value proposition for local businesses and, in turn, create new avenues for revenue generation through increased advertising and partnerships.AI Analysis | Feedback
Share Repurchases
- Nextdoor's Board of Directors approved a share repurchase program authorizing the purchase of up to $100 million of its Class A common stock through June 30, 2024.
- In the second quarter of 2025, Nextdoor repurchased 3.7 million shares.
Share Issuance
- Nextdoor Holdings had a net total equity issued of approximately $628 million in 2021, likely associated with its public listing via a SPAC.
- The number of shares outstanding increased by 33.99% in 2022 and 3.02% in 2023.
Capital Expenditures
- Capital expenditures were $1 million in 2024, $1 million in 2023, and $6 million in 2022.
- Targeted investment in product remains the top capital allocation priority, focusing on platform transformation, user experience (UX) updates, and AI-driven features.
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons for Nextdoor
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 20.54 |
| Mkt Cap | 1.3 |
| Rev LTM | 1,262 |
| Op Inc LTM | 75 |
| FCF LTM | 63 |
| FCF 3Y Avg | 98 |
| CFO LTM | 125 |
| CFO 3Y Avg | 158 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 6.0% |
| Rev Chg 3Y Avg | -1.3% |
| Rev Chg Q | -0.9% |
| QoQ Delta Rev Chg LTM | -0.2% |
| Op Mgn LTM | 4.1% |
| Op Mgn 3Y Avg | 4.5% |
| QoQ Delta Op Mgn LTM | 0.0% |
| CFO/Rev LTM | 10.8% |
| CFO/Rev 3Y Avg | 11.4% |
| FCF/Rev LTM | 6.1% |
| FCF/Rev 3Y Avg | 7.3% |
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 11/5/2025 | -2.9% | -0.6% | 8.1% |
| 8/7/2025 | 13.7% | 2.7% | 9.8% |
| SUMMARY STATS | |||
| # Positive | 1 | 1 | 2 |
| # Negative | 1 | 1 | 0 |
| Median Positive | 13.7% | 2.7% | 9.0% |
| Median Negative | -2.9% | -0.6% | |
| Max Positive | 13.7% | 2.7% | 9.8% |
| Max Negative | -2.9% | -0.6% | |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2025 | 11/05/2025 | 10-Q (09/30/2025) |
| 06/30/2025 | 08/07/2025 | 10-Q (06/30/2025) |
| 03/31/2025 | 05/07/2025 | 10-Q (03/31/2025) |
| 12/31/2024 | 02/27/2025 | 10-K (12/31/2024) |
| 09/30/2024 | 11/06/2024 | 10-Q (09/30/2024) |
| 06/30/2024 | 08/07/2024 | 10-Q (06/30/2024) |
| 03/31/2024 | 05/07/2024 | 10-Q (03/31/2024) |
| 12/31/2023 | 02/27/2024 | 10-K (12/31/2023) |
| 09/30/2023 | 11/07/2023 | 10-Q (09/30/2023) |
| 06/30/2023 | 08/08/2023 | 10-Q (06/30/2023) |
| 03/31/2023 | 05/09/2023 | 10-Q (03/31/2023) |
| 12/31/2022 | 02/28/2023 | 10-K (12/31/2022) |
| 09/30/2022 | 11/08/2022 | 10-Q (09/30/2022) |
| 06/30/2022 | 08/09/2022 | 10-Q (06/30/2022) |
| 03/31/2022 | 05/10/2022 | 10-Q (03/31/2022) |
| 12/31/2021 | 03/15/2022 | 10-K (12/31/2021) |
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Schwartz, Sophia | General Counsel and Secretary | Direct | Sell | 1062026 | 2.07 | 12,522 | 25,974 | 522,041 | Form |
| 2 | Schwartz, Sophia | General Counsel and Secretary | Direct | Sell | 12172025 | 2.17 | 40,000 | 86,976 | 574,461 | Form |
| 3 | Lisowski, Craig | President of Products | Direct | Sell | 12122025 | 2.52 | 30,000 | 75,600 | 3,396,010 | Form |
| 4 | How, Antoinette | Chief Accounting Officer | Direct | Sell | 12122025 | 2.63 | 31,894 | 83,894 | 33,385 | Form |
| 5 | Schwartz, Sophia | General Counsel and Secretary | Direct | Sell | 11052025 | 1.92 | 40,000 | 76,860 | 584,507 | Form |
External Quote Links
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| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
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