Nextdoor Holdings, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance

• Revenue for the three months ended September 30, 2026, was $79 million, representing a 14% year-over-year increase compared to $68.9 million in the prior year period.
• Net loss narrowed to less than $1 million for the quarter, a significant improvement from a net loss of $13 million in the year-ago period.
• Adjusted EBITDA was $10 million for the quarter, up from $4 million in the prior year, reflecting a 7 percentage point year-over-year margin improvement.
• Net loss margin improved to less than 1% from 19% year-over-year.
• Adjusted EBITDA margin reached 13% for the quarter, up from 6% in the prior year.
• For the nine months ended September 30, 2026, revenue was $215 million, up from $188 million in the prior year.
• Operating cash flow for the year-to-date period was $28 million.
• Cash, cash equivalents, and marketable securities totaled $382 million as of September 30, 2026.

Guidance and Future Outlook

• Full-year 2026 revenue growth is expected to remain in line with the low-teens range previously provided.
• Fourth Quarter 2026 revenue guidance is set between $78 million and $80 million.
• Fourth Quarter 2026 Adjusted EBITDA guidance is set between $10 million and $11 million.
• Full Year 2026 revenue guidance is $293 million to $295 million.
• Full Year 2026 Adjusted EBITDA guidance is $30 million to $31 million.
• Management stated they are carrying Q3 momentum into the fourth quarter and beyond.

Business Segments and Product Lines

• Platform Weekly Active Users (WAU) reached 24.5 million, a 14% year-over-year increase.
• Platform WAU grew for the third consecutive quarter sequentially.
• The company highlighted hundreds of product improvements compounding on one another to drive growth.
• Nextdoor continues to serve over 110 million verified neighbors.

Market and Competitive Landscape

• Management noted a market trend where the internet is increasingly becoming "synthetic," creating scarcity for real people verified to real places.
• The company positions its verified neighbor network as a key differentiator in this landscape.

Risks and Challenges

• Forward-looking statements regarding financial results are subject to uncertainty, particularly regarding stock-based compensation expense, which depends on the future fair market value of common stock.
• Actual GAAP financial results may differ materially from non-GAAP Adjusted EBITDA outlooks due to the inability to reasonably predict stock-based compensation and other factors.
• Adjusted EBITDA does not reflect cash requirements for working capital, debt service, or tax payments.
• Specific risk factors are detailed in the Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.

Management Commentary and Tone

• CEO Nirav Tolia described Q3 as a "record quarter" and the "strongest proof yet that our transformation is well underway."
• CFO Indrajit Ponnambalam characterized the quarter as a "strong quarter of steady progress" with Adjusted EBITDA exceeding guidance.
• Management expressed confidence in the business's ability to continue investing while opportunistically returning capital to shareholders.

Other Key Points

• The company is executing a share buyback program, enabled by $28 million in operating cash flow year-to-date.
• A conference call to discuss results and outlook was held on November 5, 2026, at 5:30 a.m. PT / 8:30 a.m. ET.
• Adjusted EBITDA outlook is not reconciled to GAAP net loss due to the uncertainty of stock-based compensation and other non-controllable factors.
• Non-GAAP measures exclude stock-based compensation, depreciation, amortization, interest income, income taxes, and restructuring charges.