Nextdoor (NXDR) investor relations material

Executive summary

• Q4 2025 revenue reached $69 million, up 7% year-over-year, marking the strongest quarter in company history, with full-year revenue at $258 million, a 4% increase year-over-year.

• Achieved positive Adjusted EBITDA for both Q4 ($8 million, 11% margin) and full-year 2025, a year ahead of schedule, reflecting disciplined execution and product improvements.

• Q4 GAAP net loss was $4 million (-6% margin), a 13-point year-over-year improvement, with full-year net loss improving to $54 million from $98 million.

• Platform Weekly Active Users (WAU) for Q4 were 21 million, down 5% year-over-year and 3% sequentially, attributed to prioritizing engagement quality and notification improvements.

• Enhanced product experience with AI-driven personalization, improved recommendations, and more relevant notifications, driving higher engagement and Net Promoter Score.

Financial highlights

• Q4 2025 revenue: $69 million (+7% y/y); full-year 2025 revenue: $258 million (+4% y/y).

• Q4 GAAP net loss: $4 million (-6% margin); full-year net loss: $54 million (-21% margin), both showing significant improvement from prior year.

• Q4 Adjusted EBITDA: $8 million (11% margin), up 6 percentage points year-over-year; full-year Adjusted EBITDA: $1 million, compared to a loss of $18 million last year.

• Revenue per employee increased 26% year-over-year in Q4, reaching $603,000 annualized.

• Cash, cash equivalents, and marketable securities totaled $405 million at year-end.

Outlook and guidance

• Q1 2026 revenue expected between $57 million and $59 million, representing 7% year-over-year growth at midpoint, reflecting normal seasonality.

• Q1 2026 Adjusted EBITDA guidance is -$6 million to -$4 million (-9% margin at midpoint), reflecting normal seasonality and continued focus on engagement quality.

• Full-year 2026 expected to deliver continued revenue growth and mid-single-digit Adjusted EBITDA margins.

• Focus for Q1 2026 on user experience, limiting new user acquisition and not increasing ad load.