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Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 8:30 a.m. ET Chief Executive Officer, President and Chairperson of the Board - Nirav Tolia Chief Financial Officer - Indrajit Ponnambalam Head of Investor Relations and Corporate Development - Colin Bourland Need a quote from a Motley Fool analyst? Email [email protected] Leah LaRue: Good morning. My name is Leah, and I will be your conference operator today. At this time, I would like to welcome everyone to Nextdoor's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I will now hand the conference over to Nirav Tolia, Chief Executive Officer. Nirav, you may now begin. Nirav Tolia: Good morning, everyone, and welcome to Nextdoor's Q2 2026 Earnings Call. We appreciate everyone joining us today. I'm Nirav Tolia, Co-Founder, Chief Executive Officer, President and Chairperson of the Board. Joining me today is Indrajit Ponnambalam, Chief Financial Officer. I'd also like to take a moment to introduce Colin Bourland, our new Head of Investor Relations and Corporate Development. Colin has a strong background across finance, IR and corporate development, and he'll be leading our investor engagement efforts going forward. We're really excited to have him with us. Colin Bourland: Thank you, Nirav. I'm excited to be here, and I appreciate the warm welcome. Hello, everyone. During this call, we may make statements related to our business that are forward-looking statements under federal securities law. These statements are not guarantees of future performance. They are subject to a variety of risks and uncertainties. Our actual results could differ materially from expectations reflected in any forward-looking statements. For a discussion of the material risks and other important factors that could affect our actual results, please refer to our SEC filings available on the SEC's website, the Investor Relations section of our website as well as the risks and other important factors discussed in today's earnings release. Additionally, non-GAAP financial measures will be discussed on today's conference call. A reconciliation of these measures to their most directly comparable GAAP financial measures can be found in the Q2 2026 Nextdoor investor update posted on the Investor Relations section of our website today. And now I'll turn it back to Nirav. Nirav Tolia: Thanks, Colin. Q2 was a landmark quarter for Nextdoor with the strongest financial performance in our company's history. Platform WAU reached an all-time high. Revenue exceeded the high end of our guidance, and we delivered record adjusted EBITDA. Platform WAU grew to 22.9 million, increasing both sequentially and year-over-year for the second consecutive quarter. Revenue grew 15% to $75 million, and adjusted EBITDA reached $10 million, a 13% margin and a $12 million improvement over last year. These are strong results, but what encourages me even more than the numbers is how we achieved them. For the past 2 years, we've talked about rebuilding Nextdoor for long-term sustainable growth. We haven't been looking for shortcuts or one breakthrough feature. Instead, we focused on steadily improving the product quarter after quarter, making it more useful, more relevant and ultimately more valuable for neighbors. This quarter, we're beginning to see those improvements compound. The long-term success of Nextdoor depends on the health of our community and healthy communities are built by people contributing. Every time a neighbor asks a question, answers one, shares a recommendation, posts an update or help someone nearby, they make Nextdoor more valuable for everyone else. More contributors create more content, more content creates more relevance and more relevance gives neighbors more reasons to come back. When they come back, even more neighbors contribute. That's the flywheel we're building. Our job is to make it stronger every quarter, and that's exactly what we focused on in Q2. Let me take you through some of the highlights, starting with how we make sure neighbors see content that feels relevant the moment they open Nextdoor. We continued improving our feed ranking systems so neighbors see the most engaging, useful and relevant content. We continued improving video throughout the platform, giving both neighbors and advertisers richer ways to communicate. We rebuilt our events experience, making it easier for neighbors to discover what's happening nearby. And we continue to use AI to improve the quality of our notifications, driving more engagement. We also launched local journalist accounts, giving trusted local reporters a verified presence on Nextdoor and bringing higher-quality local news directly into neighborhood conversations. Now those may sound like separate product improvements, but they're not. They're all solving the same problem. When neighbors open Nextdoor, we want them to immediately find something that's useful, local and worth engaging with. But showing neighbors better content is only half the equation. The other half is helping more neighbors create it because the most valuable content on Nextdoor comes from neighbors helping neighbors. So we focused on making it easier, faster and more rewarding to contribute. We added simple prompts that invite active commenters to share their first post, resulting in more neighbors posting for the first time. And we improved post insights, giving neighbors visibility into the real reach and impact of what they share because people contribute more when they can see that it matters. The result, contributors reached a multiyear high in Q2. Unique posters grew. Post volume increased. Comments were up across the board. That's the flywheel in action. The future of Nextdoor isn't just built by getting more people to consume content. It's built by getting more neighbors to create it, and that's exactly the direction we're heading. As we look toward the second half, I want to take a moment to explain how our thinking has evolved because I think it's an important story. When I returned as CEO, we began rebuilding Nextdoor around 3 core experiences: news, alerts and recommendations. And that work was essential. News and alerts helped restore utility to the platform. They gave neighbors more reasons to come back and reconnected us with what made Nextdoor valuable in the first place. But recommendations revealed something even more important. And that is that what makes Nextdoor truly essential isn't the third-party content we surface. It's the content neighbors create for each other. And that is because Nextdoor is valuable because of the people behind it. A neighbor 2 streets away who recommends a plumber or answers a question with nothing to gain but helping someone else to make a better decision. That kind of content cannot be manufactured or aggregated or scraped from somewhere else. It can only be earned. And over the past year, that insight has sharpened our strategy. The platforms that endure aren't just places where people post things. They're intentionally crafted ecosystems designed to make contribution easy, rewarding and self-reinforcing, where the value compounds as more neighbors participate. As we look ahead, we're laser-focused on building more of these systems. The two I'll call out today that are already delivering results are Faves and Ask. Faves is built around a simple insight. The most trustworthy recommendation isn't the one with the most stars. It's the one from a verified neighbor who lives nearby. Every day on Nextdoor, neighbors ask who has the best plumber, the best pediatrician, the best pizza or the best landscaper. Faves turns these conversations into a living, trusted local guide, continuously updated by the community for the community. This fall, we'll bring back our annual Faves Award campaign with an all-new in-product experience where neighbors vote for their favorite local businesses across 20 categories, another reason to participate, contribute and strengthen the communities they live in. The next feature, Ask takes this further. Once you have trusted recommendations, the natural question becomes, how do you help neighbors find them instantly? Ask uses AI to understand what a neighbor needs and surface the most relevant answer, whether that's a conversation, a trusted local business or another neighbor who's been through the same thing. What makes Ask unique isn't that it uses AI, but what's behind it, an archive of nearly 15 years of trusted, verified neighborhood-level conversations that no one else has. AI simply makes that knowledge dramatically easier to discover and the system compounds. When a question hasn't been answered yet, Ask can surface answers from that same archive, keeping the conversation alive until other neighbors weigh in. That's how we think about AI at Nextdoor, not as a replacement for community, but as a way to make years of community wisdom accessible in real time. When you take a step back, Faves and Ask are 2 expressions of the same fundamental advantage, a verified community of neighbors who trust each other and help each other. Content no algorithm or AI model can replicate on its own. We've made meaningful progress over the past 2 years, but what's changed most isn't simply the product. It's that we've rediscovered what made Nextdoor special in the first place. And if we keep investing in that, we'll build stronger communities. Stronger communities create better content. Better content drives deeper engagement. Deeper engagement creates a stronger business and everything else follows from there. With that, I'll turn it over to Indrajit to walk through our financial results and our outlook in more detail. Indrajit Ponnambalam: Thanks, Nirav. As Nirav described, Q2 was another strong quarter that reinforced the progress we are making across the business. Let's walk through the details. Q2 Platform WAU was 22.9 million, up 5% year-over-year and up sequentially for the second quarter in a row, yet another all-time high for Nextdoor. When we reported Q1 results, we had just seen the first sequential inflection in several quarters. With 2 consecutive quarters of sequential growth, I'm now more confident that what we're seeing reflects the durable impact of the product investments we've made, not a onetime effect. As I've noted before, Platform WAU is a lagging indicator, which makes 2 consecutive quarters of improvement particularly encouraging. Turning now to revenue. Q2 revenue was $75 million, up 15% year-over-year, finishing above our guidance range of $71 million to $73 million. Revenue growth was broad-based. Our self-serve channel remains the primary growth engine, growing 32% year-over-year, an acceleration from the 28% we reported last quarter, and it now comprises roughly 67% of total revenue with continued improvement in advertiser performance and revenue yields. Our growth was achieved without an increase in ad load, reinforcing that our revenue gains are coming from a healthier, more efficient ad product, not from increasing ad density on the platform. Our U.S. direct sales team had a strong quarter. Growth was driven by deeper investment from existing customers with average revenue per customer up double digits year-over-year. Financial Services, Tech and Telco were standout verticals. And our video ad product continues to gain traction, a signal that advertisers are leaning into richer formats on the platform. On lead generation, one of our newer products, Opportunity Alerts, which helps local service providers connect with neighbors who are expressing real-time needs is showing encouraging traction at the intersection of neighbor intent and local business demand. It's still early, but the trajectory gives us confidence that we are on the right path to closing the gap between the intent that exists on Nextdoor and the monetization that should follow. Turning now to profitability. Q2 GAAP net loss was $2 million or negative 3% margin, representing 21 points of year-over-year margin improvement. Q2 adjusted EBITDA was $10 million or 13% adjusted EBITDA margin. This compares to the $4 million to $6 million range we guided to last quarter and represents an approximately $12 million improvement year-over-year. Our beat versus guidance is driven primarily by revenue outperformance and continued disciplined cost management. We continue to drive productivity improvements across the organization. Annualized revenue per employee increased 29% year-over-year in Q2, building on the gains we've driven over the past 2 years. We ended Q2 with $378 million in cash, cash equivalents and marketable securities, and we continue to have no debt on our balance sheet. Through the first 6 months of 2026, we generated $9.6 million of cash flow from operations, a meaningful increase from the $3.3 million we generated during the same time period in 2025. Now let me turn to our financial outlook for the remainder of the year. For Q3 2026, we expect revenue of $76 million to $78 million and adjusted EBITDA of $6.5 million to $8 million. For full year 2026, we are raising our outlook for both revenue and adjusted EBITDA based on the positive momentum and outperformance we've seen year-to-date. We now expect to achieve low teens revenue growth for the full year and an adjusted EBITDA margin of approximately 10%. Underlying this outlook is our expectation that Platform WAU will continue to increase sequentially during the back half of the year. Now let's turn to some Q&A, which we will structure in a similar manner as to the last 2 quarters. We'll start by taking live questions from our covering analysts. After that, we'll take some questions submitted by our investors. With that, operator, let's open the line for questions. Operator: [Operator Instructions] Your first question comes from the line of Jason Kreyer with Craig-Hallum. Jason Kreyer: All right. Great to see the WAU kicking in 2 quarters in a row. It seems like that's coming earlier than expected. Can you just talk about what contributed to that? Is this just organic with just more utilization on the platform? Or do you have some deliberate strategies that you're deploying that's being seen as effective to grow the user base? Nirav Tolia: All right. Thank you for the question. And yes, we are very encouraged by the fact that now this is the second quarter where we've seen that WAU tick up. The strategy in general is to build a better product and to do so through lots of small improvements versus relying on one big bang that may or may not work out. I talked about in my opening remarks, some of the improvements that we made. And if you take those improvements and you continue to add them together, the compounding effect is the overall platform grows. I mentioned in particular that we are now investing very deeply in rebuilding the core foundation of our community. And that comes down to user-generated content and how we're fueling contributor growth. And so that's a particular high point for us. But I would describe the progress as across the board, organic and durable. And so we're very encouraged by what we see. And while we can't point to one particular thing, we think that's actually a strength because you want to build a system where all of the improvements come together into something that then looks pretty significant. And that's what we hope we're building towards. Jason Kreyer: Got it. One follow-up. So you brought a lot of AI functionality into the platform over the last year. Can you just talk about how the benefits accrue to Nextdoor, where you see that in the KPIs, whether that's engagement or monetization or somewhere else in the numbers that we can't see? Nirav Tolia: Well, look, we continue to believe that AI is the biggest transformation in our industry since we've been not just with Nextdoor, but really since the beginning of the Internet boom. And so it's something that's going to be inescapable for all businesses. We do think that AI, as we've talked about, can assist us both making our company more efficient, but also in making the product experience and the advertiser experience better. And so whether that's on the product side, and I mentioned Ask in my early comments, and how we use AI to summarize and to better present our content or whether that's on the monetization side, where we're using AI and machine learning to create a better opportunity for advertisers to show the best ad at the best time to the best candidate, we will continue to lean into the technology. And it's rapidly moving from something specific and a kind of vertical initiative, AI, into something that we think about more horizontally that's going to be utilized in all parts of our business and really all parts of our company. And so we do believe that we are well positioned in a world where consumers are starting to turn more towards agentic experiences than general search and things like that. And so we think not only our embrace of AI, but the trend of consumers seeking AI, those are both things that we can take advantage of. Operator: Your next question comes from the line of Eric Sheridan with Goldman Sachs. Alexander Vegliante: This is Alex on for Eric. If you think about some of the growth drivers of core ads monetization going forward, richer formats through video, more down funnel ads, increasing auction density. What are some of the 1 or 2 growth drivers that you see as having the longest runway? And what are some of the investments that you think you guys need to still make going forward to capitalize on that? Nirav Tolia: I'll start, and then I'll see if Indrajit wants to add something to it. The big thing that I will say is we continue to see more demand for our ad products regardless of the amount of inventory we have. And so as we grow engagement, we think our core display advertising opportunity gets larger and larger. In terms of the specifics, yes, you mentioned video and you mentioned self-service. I mean, Indrajit, you can probably add some color. But I think the main point that I wanted to make was advertisers want to use Nextdoor because of the intent that our users express every single day. And so as we grow engagement on the platform, that display opportunity, just the basic display opportunity still has a lot of headroom and the ceiling is really, really high. Indrajit Ponnambalam: Yes. I would agree with Nirav. And I would just add, we think we have a lot of room to continue to make optimizations. We've made a bunch of steps over the last year, which you can see with our revenue per user metric improving, but pretty broad-based. We think the more engagement our users have on the platform, the more information we have on them, which is also valuable for our advertisers as well. So there's a compounding benefit of user engagement, which will help us on the monetization side. So I would say across the board, we have plenty of headroom yet to go across a bunch of different ad surfaces and ad formats. Operator: Your next question comes from the line of Ryan Powell with B. Riley Securities. Ryan James Powell: This is Ryan on for Naved. So first question is with Platform WAU up 5% year-over-year despite the 9% pullback in brand and performance marketing in the second quarter. Could you talk about your updated timing for retargeting lapsed Platform WAU? And then if guidance for sequential WAU growth in second half assumes any step-up in brand and performance marketing spend? And then I have a follow-up. Nirav Tolia: Go ahead, Indrajit, you can start. Indrajit Ponnambalam: I think you probably have heard my tone change a little bit on Platform WAU, where the last couple of quarters, we said we expected it to grow over time, but there might be some short-term fluctuations. And so now we're feeling a little bit more confident based on our results year-to-date. And so we're sort of giving some forward-looking guidance on the fact that we continue -- that we expect that growth to continue the back half of the year. So that's sort of an important shift I wanted to note. We're not quite ready to quantify exactly how much that increase will be because we're still working hard to do a whole bunch of things to the product to make that a durable long-term growth, but we do think it's going to grow. It is not related to any specific or significant marketing investments. So that will take more time. I think as we continue to see retention of our users improve on the platform, as we see improving NPS on the platform, I think those will be key indicators for us on when we might step more on the marketing investment front, but we don't see that as a significant driver of growth for the rest of this year at least. Ryan James Powell: Understood. And then on ARPU growth, could you discuss the contribution from pricing versus impressions? Indrajit Ponnambalam: For Q2, I would say it was primarily pricing. Operator: There are no further questions at this time. I will now turn the call back to Indrajit Ponnambalam. Indrajit Ponnambalam: Thank you, operator. As I mentioned earlier, we're now pleased to answer some questions that investors have submitted to us in advance. So I'll pose a question and then either Nirav or I will answer. So first question is, I keep reading about how AI search summaries are cutting into traffic for sites that benefit from search optimization. Does Nextdoor depend much on search traffic to bring in new users? Or does growth come from somewhere else? Nirav Tolia: All right. I'll take this one, Indrajit. It's a great question. And the short answer is we've never depended on search traffic, and that's by design. Unlike most platforms, Nextdoor was never built for the open web. Our content is only accessible to verified neighbors within our private network. So Google can't index it, and that means that SEO has never been a part of how we grow. Instead, what we've built is a self-fueled distribution engine, direct traffic from neighbors who find Nextdoor useful, notifications that surface relevant local content directly and virality through neighbor invitations and word of mouth. And so this is an organic growth mechanic that's not reliant on any outside traffic source. And that's the part that I find genuinely exciting. We're not just insulated from this AI search disruption. We may be a big beneficiary because we believe people will continue to migrate away from general search and towards direct trusted agentic destinations. And that's what Nextdoor is, and we think we're very well positioned for that world. Indrajit Ponnambalam: Great. Second question, as a shareholder, when do you think Nextdoor could be profitable on a straightforward GAAP basis, not just adjusted EBITDA? So why don't I take this one? GAAP net income profitability is a priority for us. It's not just an eventual outcome. Just to level set, we've already delivered positive adjusted EBITDA and positive cash flow from operations for full year 2025. And we guided today to approximately 10% adjusted EBITDA margin in 2026. And you just heard me point out that our Q2 results reflected 16 points of year-over-year improvement in adjusted EBITDA margin. So we are making real progress on the profitability front. Our team looks at net income profitability closely every quarter. For us, the gap between adjusted EBITDA and net income is primarily related to stock-based compensation. So as you guys can see in our financial results, SBC as a percent of revenue has been shrinking consistently over the last few years as we scale revenue and gain operating leverage, which is bringing us closer and closer to positive net income. So we're not going to commit to a specific time period today, but GAAP net income profitability is definitely where we're driving the business, and we're closing that distance each quarter. All right. Third and final question. Beyond core display advertising, what do you see as the next major monetization lever? And how large could it become? Nirav Tolia: I'll take this one, Indrajit, and this will build a little bit on the question that Alex from Goldman Sachs asked earlier. So first, let me just reiterate, we think there's real runway within advertising itself. Display is obviously one format, but we're still early on video. We're still scaling self-service. And there are ad products and formats that we haven't fully built yet. Remember that the self-serve channel alone grew 28% year-over-year in Q1. So even within advertising, we're not anywhere near a ceiling. We do see an additional large opportunity, and that is local lead generation. Recall that from the very beginning of Nextdoor, one of our prime use cases has been when a neighbor asks who has the best plumber or recommends a landscaper or searches for a local business, all of that conversation around service providers. And that's verified trust-based intent from someone whose identity and address we know embedded in a community that already has a relationship with that business. We are increasingly monetizing this intent in products like search, opportunity alerts and even in Faves. And while we're not ready to size it today, we do see a very large opportunity ahead, and that excites us. Indrajit Ponnambalam: All right. Thank you, Nirav. With that, I'm going to turn it over to Nirav for some closing remarks. Nirav Tolia: Thank you, Indrajit, and thank you all for joining us today. Before we wrap up, I just want to leave you with one thought. Over the past 2 years, we've talked a lot about rebuilding Nextdoor. And this quarter, I think we saw the results of that work. Platform WAU reached another all-time high. Revenue grew 15%. Adjusted EBITDA improved by $12 million over last year. Those numbers do matter. But what gives me the most confidence isn't any single metric. It's that they're all moving together. We're finally seeing the cumulative benefit of hundreds of product improvements working together. We're seeing healthier communities creating better content. We're seeing better content driving deeper engagement, and that deeper engagement is creating a stronger business. That was always the strategy. And over the past 2 years, we've rediscovered it for Nextdoor. As AI changes how people find information, we believe that what becomes increasingly valuable isn't just information, it's trusted information created by real people, real people that are helping one another solve real problems, and that's what we've been building for nearly 15 years. And I still think that we're just getting started. So thank you for joining us today, and we look forward to updating you in the months and quarters ahead. Operator: This concludes today's call. Thank you for attending. You may now disconnect. 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Interested in Nextdoor Holdings, Inc.? Here are five stocks we like better. Nextdoor exceeded Q2 guidance: Revenue rose 15% year over year to $75 million, adjusted EBITDA reached $10 million, and weekly active users increased 5% to a record 22.9 million. Advertising momentum strengthened: Self-serve advertising revenue grew 32% and represented about 67% of total revenue, driven by better advertiser performance, pricing and customer spending rather than increased ad volume. The outlook was raised: Nextdoor expects low-teens revenue growth and an adjusted EBITDA margin of approximately 10% for full-year 2026, supported by continued user growth, product investments and a strong debt-free balance sheet with $378 million in cash and marketable securities. Nextdoor (NYSE:KIND) reported second-quarter results that exceeded its guidance, with revenue rising 15% year over year and weekly active users reaching a record level as the company continued to emphasize product improvements, user-generated content and advertising efficiency. Chief Executive Officer Nirav Tolia described the period as a “landmark quarter” and said the company delivered its strongest financial performance to date. Platform weekly active users, or WAU, reached 22.9 million, up 5% from a year earlier and higher sequentially for a second consecutive quarter. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Revenue totaled $75 million, above the company’s prior outlook of $71 million to $73 million. Adjusted EBITDA was $10 million, representing a 13% margin and an approximately $12 million year-over-year improvement. GAAP net loss was $2 million, or a negative 3% margin. Tolia said Nextdoor’s recent progress reflected the cumulative effect of numerous product changes rather than a single feature or marketing initiative. The company has focused on making its platform more useful and relevant through feed-ranking improvements, expanded video features, a rebuilt events experience, more targeted notifications and verified accounts for local journalists. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High The company also worked to increase participation from users, including by prompting active commenters to create their first posts and improving post insights so users can see the reach of their contributions. Tolia said contributors reached a multiyear high during the quarter, while unique posters, post volume and comments increased. “The future of Nextdoor isn't just built by getting more people to consume content,” Tolia said. “It's built by getting more neighbors to create it.” → No Hangover: Revisiting Microsoft One Week After Earnings During the call, Tolia and Chief Financial Officer Indrajit Ponnambalam characterized WAU growth as organic and durable. Ponnambalam said two consecutive quarters of sequential WAU growth provided greater confidence that the trend reflects the impact of product investments, though he noted the company was not yet prepared to quantify the expected pace of future increases. Management said its outlook for further WAU growth in the second half does not depend on a significant increase in brand or performance marketing. Instead, the company plans to continue prioritizing product improvements, retention and net promoter score gains before materially stepping up marketing investments. Nextdoor said revenue growth was broad-based, led by its self-serve advertising channel. Self-serve revenue increased 32% year over year, accelerating from 28% growth in the first quarter, and represented roughly 67% of total revenue. Ponnambalam said revenue gains did not come from a higher advertising load. Instead, he attributed the performance to improvements in advertiser results and revenue yields. He added that ARPU growth during the second quarter was primarily driven by pricing rather than impressions. The company’s U.S. direct-sales business also posted a strong quarter, driven by deeper spending from existing customers. Average revenue per customer increased by double digits year over year, with financial services, technology and telecommunications identified as standout verticals. Video advertising continued to gain traction, according to management. Management said it sees further opportunity across core display advertising, video, self-service tools and additional advertising formats. Tolia said advertisers are drawn to the local intent expressed by users on the platform, such as when neighbors seek recommendations for service providers. Nextdoor is also developing local lead-generation opportunities. Its Opportunity Alerts product is designed to help local service providers connect with users expressing real-time needs. Tolia said the company also sees potential to monetize recommendation-related intent through search, Opportunity Alerts and its Faves product, though management did not provide a market-size estimate. The company highlighted two initiatives it believes can encourage more community participation: Faves and Ask. Faves is designed to organize neighbor recommendations into a local guide, and Nextdoor plans to relaunch its annual Fave Awards campaign this fall with an in-app voting experience across 20 business categories. Ask uses artificial intelligence to interpret a user’s request and surface relevant content from Nextdoor’s archive of neighborhood conversations, including discussions, local businesses and recommendations from other users. Tolia said the company views AI as a tool to make community knowledge more discoverable rather than as a replacement for user contributions. Management also said AI and machine learning are being used to improve advertising by helping place relevant ads at appropriate times. Tolia said AI is becoming a broader capability across the company, with potential applications in product development, advertising and operational efficiency. Addressing the potential impact of AI-driven search on online traffic, Tolia said Nextdoor has not relied on search engine optimization or search traffic for user growth because its content is limited to verified users within its private network. He said the company instead relies on direct traffic, notifications, neighbor invitations and word of mouth. For the third quarter, Nextdoor forecast revenue of $76 million to $78 million and adjusted EBITDA of $6.5 million to $8 million. For full-year 2026, the company raised its outlook and now expects low-teens revenue growth and an adjusted EBITDA margin of approximately 10%. Ponnambalam said the outlook assumes platform WAU will continue increasing sequentially in the second half of the year. The company ended the quarter with $378 million in cash equivalents and marketable securities and no debt. Cash flow from operations was $9.6 million through the first six months of 2026, compared with $3.3 million in the same period of 2025. On GAAP profitability, Ponnambalam said it remains a priority but declined to offer a specific timeline. He said the main difference between adjusted EBITDA and net income is stock-based compensation, which has declined as a percentage of revenue over recent years. Nextdoor, Inc (NYSE: KIND) operates a hyperlocal social networking platform that enables neighbors to connect, share information and foster community engagement. Through its website and mobile applications, Nextdoor offers features such as neighborhood newsfeeds, classified listings, recommendations, event planning tools and safety alerts. The company’s platform is designed to bridge the gap between digital communication and real-world community building by facilitating dialogue on topics ranging from local services and business referrals to public safety and community events. Nextdoor generates revenue primarily through advertising and paid business services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Nextdoor Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record financial performance driven by a compounding effect of incremental product improvements rather than a single breakthrough feature. Shifted strategic focus toward fueling 'contributor growth,' recognizing that neighbor-created content is the platform's most essential and irreplaceable asset. Strengthened the engagement flywheel where increased contributions lead to higher relevance, driving neighbors to return and contribute further. Improved feed ranking systems and notification quality using AI to ensure neighbors immediately find useful, local, and engaging content upon opening the app. Launched local journalist accounts to integrate trusted, high-quality local news into neighborhood conversations, enhancing platform utility. Attributed revenue outperformance to a healthier, more efficient ad product and broad-based growth across self-serve and direct sales channels without increasing ad load. Maintained disciplined cost management and productivity gains, resulting in a 29% year-over-year increase in annualized revenue per employee. Raised full-year 2026 guidance to low teens revenue growth and approximately 10% adjusted EBITDA margin based on year-to-date momentum. Expects Platform WAU to continue increasing sequentially through the second half of the year, driven by durable product investments rather than marketing spend. Positioning AI (specifically the 'Ask' feature) to make 15 years of archived, verified neighborhood wisdom instantly discoverable for users. Anticipates a shift in consumer behavior toward 'agentic' destinations, viewing Nextdoor's private, verified network as a beneficiary of AI search disruption. Focusing on 'local lead generation' as a major future monetization lever by closing the gap between neighbor intent and local business demand. Platform WAU reached an all-time high of 22.9 million, marking the second consecutive quarter of sequential and year-over-year growth. Self-serve revenue now comprises approximately 67% of total revenue, growing 32% year-over-year as the primary growth engine. Reported a $12 million year-over-year improvement in adjusted EBITDA, reaching a 13% margin for the quarter. Maintained a strong balance sheet with $378 million in cash and equivalents and zero debt. Management attributed growth to the compounding effect of many small product improvements rather than a single strategy. The focus has specifically shifted to rebuilding the core foundation of the community by fueling user-generated content and contributor growth. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that Nextdoor does not depend on search traffic or SEO because content is behind a private, verified network. They believe the platform will benefit as users migrate from general search toward trusted, direct 'agentic' destinations. The gap between adjusted EBITDA and GAAP net income is primarily stock-based compensation (SBC). SBC as a percentage of revenue is shrinking as the company scales, though management declined to provide a specific timeline for GAAP profitability. Identified 'local lead generation' (e.g., Opportunity Alerts) as a significant opportunity to monetize neighbor intent for services like plumbing or landscaping. Noted that video ad formats and the self-service channel still have substantial headroom for growth. Management confirmed that ARPU growth in Q2 was primarily driven by pricing improvements rather than impression volume.

Delivered Q2 Results Ahead of GuidanceDrove Second Consecutive Quarter of Sequential Platform WAU GrowthAchieved Quarterly All-Time-High Platform WAU and RevenueRaises Full-Year 2026 Guidance SAN FRANCISCO, August 04, 2026--(BUSINESS WIRE)--Nextdoor Holdings, Inc. (NYSE: NXDR), the essential neighborhood network, today announced results for the second quarter ended June 30, 2026. Nextdoor's highlighted metrics for the second quarter ended June 30, 2026 include: Revenue of $75 million increased 15% year-over-year. Total Platform Weekly Active Users (Platform WAU) of 22.9 million increased 5% year-over-year. Net loss was $2 million, compared to a net loss of $15 million in the year-ago period. Adjusted EBITDA was $10 million, compared to a loss of $2 million in the year-ago period, reflecting 16 percentage points of year-over-year margin improvement. Cash, cash equivalents, and marketable securities were $378 million as of June 30, 2026. "Q2 was a landmark quarter for Nextdoor, with record Platform WAU and the strongest financial performance in our company’s history," said Nextdoor CEO and Co-Founder Nirav Tolia. "Nextdoor is at its best when neighbors help neighbors, and this quarter we saw that translate into more contributions, better content, deeper engagement, and meaningful operating leverage." "We're very pleased to report strong results this quarter, with 15% year over-year-revenue growth and significant outperformance in Adjusted EBITDA," said Nextdoor CFO Indrajit Ponnambalam. "The revenue growth this quarter reflects broad-based wins across channels, while Adjusted EBITDA of $10 million exceeded our guidance range and marked approximately $12 million of year-over-year improvement. The combination of accelerating engagement, durable revenue growth, and disciplined expense management gives us the confidence to raise our full-year outlook." For more detailed information on our operating and financial results for the second quarter ended June 30, 2026, please reference our Nextdoor Investor Update posted to our Investor Relations website located at investors.nextdoor.com. Financial Results Nextdoor will host a conference call at 5:30 a.m. PT/8:30 a.m. ET on August 5, 2026 to discuss these results and outlook. A live webcast of our second quarter 2026 earnings release call will be available in the Events & Presentations section of Nextdoor’s Investor Relations website located at investors.nextdoor.com. After the live event, the audio recording for the webcast can be accessed on the same website for approximately one year. Nextdoor uses its Investor Relations website (investors.nextdoor.com), its X handle (x.com/Nextdoor), its LinkedIn Home Page (linkedin.com/company/nextdoor-com), and Nirav Tolia’s LinkedIn posts (https://www.linkedin.com/in/niravtolia/) and X posts (https://x.com/niravtolia) as a means of disseminating or providing notification of, among other things, news or announcements regarding its business or financial performance, investor events, press releases, and earnings releases, and as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared in accordance with GAAP, we present certain non-GAAP financial measures, such as Adjusted EBITDA, in this press release. Our use of non-GAAP financial measures has limitations as an analytical tool, and these measures should not be considered in isolation or as a substitute for analysis of financial results as reported under GAAP. We use non-GAAP financial measures in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including in the preparation of our annual operating budget, as a measure of our core operating results and the effectiveness of our business strategy, and in evaluating our financial performance. Non-GAAP financial measures provide consistency and comparability with past financial performance, facilitate period-to-period comparisons of core operating results, and also facilitate comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. In addition, Adjusted EBITDA is widely used by investors and securities analysts to measure a company's operating performance. We exclude the following items from one or more of our non-GAAP financial measures: stock-based compensation expense (non-cash expense calculated by companies using a variety of valuation methodologies and subjective assumptions), depreciation and amortization (non-cash expense), interest income, provision for income taxes, and, if applicable, restructuring charges or acquisition-related costs. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, (1) stock-based compensation expense has recently been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy, (2) although depreciation and amortization expense are non-cash charges, the assets subject to depreciation and amortization may have to be replaced in the future, and our non-GAAP measures do not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements, and (3) Adjusted EBITDA does not reflect: (a) changes in, or cash requirements for, our working capital needs; (b) interest expense, or the cash requirements necessary to service interest or principal payments on our debt, which reduces cash available to us; or (c) tax payments that may represent a reduction in cash available to us. The non-GAAP measures we use may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures. About Nextdoor Nextdoor (NYSE: NXDR) is the essential neighborhood network for over 110 million verified neighbors, offering trusted local news, real-time safety alerts, neighbor recommendations, for sale and free listings, and events. Nextdoor connects neighbors to the people, places, and information that matter most in their local communities. In addition, businesses, news publishers, and public agencies use Nextdoor to share important information and engage with neighborhoods at scale. Download the app or join the neighborhood at nextdoor.com. For more information and media assets, visit nextdoor.com/newsroom. Safe Harbor Statement This press release contains forward-looking statements regarding our future business expectations, including statements regarding projected financial results. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors, as more fully detailed under the caption "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, filed with the Securities and Exchange Commission ("SEC") on August 4, 2026, and our other SEC filings, which are available on the Investor Relations page of our website at investors.nextdoor.com and on the SEC’s website at www.sec.gov. All forward-looking statements contained herein are based on information available to us as of the date hereof and you should not rely upon forward-looking statements as predictions of future events. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this press release or to conform these statements to actual results or revised expectations, except as required by law. Undue reliance should not be placed on the forward-looking statements in this press release. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804499358/en/ Contacts Investor Relations:Colin [email protected] or visit investors.nextdoor.com Media Relations:Kelsey [email protected]

Q1 Revenue of $62 million, +14% year-over-year Q1 Platform WAU of 22.3 million, +1% year-over-year, +6% quarter-over-quarter Q1 GAAP net loss of $11 million; Adjusted EBITDA loss of $0.2 million Share repurchase program authorized for up to $100 million through June 2028 SAN FRANCISCO, May 06, 2026--(BUSINESS WIRE)--Nextdoor Holdings, Inc. (NYSE: NXDR), the essential neighborhood network, today announced results for the first quarter ended March 31, 2026. Nextdoor's highlighted metrics for the first quarter ended March 31, 2026 include: Revenue of $62 million increased 14% year-over-year. Total Platform Weekly Active Users (Platform WAU) of 22.3 million increased 1% year-over-year. Net loss was $11 million, compared to $22 million in the year-ago period. Adjusted EBITDA loss was $0.2 million, compared to a loss of $9 million in the year-ago period, reflecting 17 percentage points of year-over-year margin improvement. Cash, cash equivalents, and marketable securities were $373 million as of March 31, 2026. "As AI scales and synthetic content floods the internet, verified human connection becomes the scarce resource. Fifteen years of building a trusted local graph consisting of over 110 million real neighbors is not something that can be replicated or replaced," said Nextdoor CEO and Co-Founder Nirav Tolia. "We believe that the platforms that win will not be the ones with the most compute — they will be the ones with the strongest human signal. We believe that we are uniquely positioned to deliver that signal at scale." "Q1 was a standout quarter, with Platform WAU at an all-time high, 14% year-over-year revenue growth, and significant improvements on our path to profitability," said Nextdoor CFO Indrajit Ponnambalam. "Revenue of $62 million represented a significant acceleration in year-over-year growth from Q4 2025 levels, while Adjusted EBITDA improved $9 million year-over-year to nearly breakeven in our seasonally softest quarter. Accelerating revenue growth alongside meaningful profitability improvement gives us increased confidence that our business model is working." In addition, Nextdoor's Board of Directors authorized a share repurchase program of up to $100 million of Nextdoor’s common stock through June 2028, reflecting the Board's confidence in Nextdoor's long-term value. For more detailed information on our operating and financial results for the first quarter ended March 31, 2026, as well as our outlook for the second quarter and fiscal year 2026, please reference our Nextdoor Investor Update posted to our Investor Relations website located at investors.nextdoor.com. Nextdoor will host a conference call at 2:00 p.m. PT/5:00 p.m. ET today to discuss these results and outlook. A live webcast of our first quarter 2026 earnings release call will be available in the Events & Presentations section of Nextdoor’s Investor Relations website located at investors.nextdoor.com. After the live event, the audio recording for the webcast can be accessed on the same website for approximately one year. Nextdoor uses its Investor Relations website (investors.nextdoor.com), its X handle (x.com/Nextdoor), its LinkedIn Home Page (linkedin.com/company/nextdoor-com), and Nirav Tolia’s LinkedIn posts (https://www.linkedin.com/in/niravtolia/) and X posts (https://x.com/niravtolia) as a means of disseminating or providing notification of, among other things, news or announcements regarding its business or financial performance, investor events, press releases, and earnings releases, and as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared in accordance with GAAP, we present certain non-GAAP financial measures, such as Adjusted EBITDA, in this press release. Our use of non-GAAP financial measures has limitations as an analytical tool, and these measures should not be considered in isolation or as a substitute for analysis of financial results as reported under GAAP. We use non-GAAP financial measures in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including in the preparation of our annual operating budget, as a measure of our core operating results and the effectiveness of our business strategy, and in evaluating our financial performance. Non-GAAP financial measures provide consistency and comparability with past financial performance, facilitate period-to-period comparisons of core operating results, and also facilitate comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. In addition, Adjusted EBITDA is widely used by investors and securities analysts to measure a company's operating performance. We exclude the following items from one or more of our non-GAAP financial measures: stock-based compensation expense (non-cash expense calculated by companies using a variety of valuation methodologies and subjective assumptions), depreciation and amortization (non-cash expense), interest income, provision for income taxes, and, if applicable, restructuring charges or acquisition-related costs. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, (1) stock-based compensation expense has recently been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy, (2) although depreciation and amortization expense are non-cash charges, the assets subject to depreciation and amortization may have to be replaced in the future, and our non-GAAP measures do not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements, and (3) Adjusted EBITDA does not reflect: (a) changes in, or cash requirements for, our working capital needs; (b) interest expense, or the cash requirements necessary to service interest or principal payments on our debt, which reduces cash available to us; or (c) tax payments that may represent a reduction in cash available to us. The non-GAAP measures we use may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures. About Nextdoor Nextdoor (NYSE: NXDR) is the essential neighborhood network for over 110 million verified neighbors, offering trusted local news, real-time safety alerts, neighbor recommendations, for sale and free listings, and events. Nextdoor connects neighbors to the people, places, and information that matter most in their local communities. In addition, businesses, news publishers, and public agencies use Nextdoor to share important information and engage with neighborhoods at scale. Download the app or join the neighborhood at nextdoor.com. For more information and media assets, visit nextdoor.com/newsroom. Safe Harbor Statement This press release contains forward-looking statements regarding our future business expectations, including statements regarding projected financial results. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors, as more fully detailed under the caption "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed with the Securities and Exchange Commission ("SEC") on May 6, 2026, and our other SEC filings, which are available on the Investor Relations page of our website at investors.nextdoor.com and on the SEC’s website at www.sec.gov. All forward-looking statements contained herein are based on information available to us as of the date hereof and you should not rely upon forward-looking statements as predictions of future events. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this press release or to conform these statements to actual results or revised expectations, except as required by law. Undue reliance should not be placed on the forward-looking statements in this press release. View source version on businesswire.com: https://www.businesswire.com/news/home/20260506362637/en/ Contacts Investor Relations: [email protected] or visit investors.nextdoor.com Media Relations: Kelsey Grady [email protected]

Achieved a positive inflection point in Platform WAU to an all-time high of 22.3 million, driven by compounding product investments in content relevance and smarter notifications. Revenue growth of 14% year-over-year was fueled by a 28% increase in the self-serve channel, which now represents approximately 68% of total revenue. Management attributes the engagement turnaround to 'repairing the foundation' by down-ranking self-promotional content and improving feed latency. Strategic focus shifted toward increasing the number of unique contributors, viewing this as the primary input metric that drives the 'output' of user growth. The verified address-based graph of 110 million neighbors is positioned as a unique moat against synthetic AI content, providing a foundation of trusted, real-world identity. Monetization improvements were driven by better matching of user intent to outcomes, particularly through local service providers reaching neighbors during active recommendation requests. Operating leverage improved significantly, with revenue per employee increasing 31% year-over-year, leading to near-breakeven adjusted EBITDA in a seasonally soft quarter. Raised full-year 2026 guidance to approximately 10% revenue growth and high-single-digit adjusted EBITDA margins, with the margin outlook increasing from previous mid-single-digit expectations. Future product strategy focuses on 'Ask,' an AI-powered feature that summarizes 14 years of proprietary conversation data to provide asynchronous neighbor-to-neighbor answers. Management expects short-term fluctuations in WAU to continue as they prioritize long-term NPS and content quality over aggressive remarketing to lapsed users. The company expanded self-serve into Canada and introduced click optimization to the U.K., where a successful beta period delivered meaningful CPC reductions. Capital allocation strategy includes a new $100 million share repurchase program through June 2028 to act opportunistically while maintaining flexibility for strategic investments. Management acknowledged that while small business spend is growing, churn in the SMB segment remains higher than desired and is a key area of focus. The platform continues to see engagement spikes during severe weather events, highlighting its role as a community lifeline but also a dependency on external local crises for peak activity. A shift in feed logic now prioritizes personalized experiences over the legacy model where every neighbor saw the same content, utilizing machine learning to categorize user interests. The company maintains a debt-free balance sheet with $373 million in cash and marketable securities as of the end of Q1. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is focusing on content relevance and 'liquidity' in inactive neighborhoods before aggressively remarketing to the 110 million registered users. Nirav Tolia noted that the product must be in a 'position of strength' regarding content quality before resuscitating lapsed users. AI is being used to summarize long conversation threads and provide 'agentic' answers via the 'Ask' feature directly within the feed. The goal is to combine synthetic AI efficiency with proprietary, verified human content that cannot be replicated by open-internet models. Opportunity Alerts for local service providers are showing strong product-market fit and high retention, representing a shift toward intent-based lead generation. While currently focused on ad revenue, management is exploring non-feed revenue streams including lead gen and potential subscription offerings. Profitability will be primarily revenue-led as incremental growth flows to the bottom line at an attractive rate due to existing operating leverage. The company is already free cash flow positive on a trailing 12-month basis and will use AI to further optimize internal workflows. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Image source: The Motley Fool. Wednesday, May 6, 2026 at 5 p.m. ET Chief Executive Officer — Nirav Tolia Chief Financial Officer — Indrajit Ponnambalam Operator Need a quote from a Motley Fool analyst? Email [email protected] Nirav Tolia: Thank you, Indrajit, and good afternoon, everyone. I am pleased to report that Q1 was a standout quarter for Nextdoor Holdings, Inc. Platform weekly active users reached an all-time high, revenue grew 14% year over year, and we delivered meaningful improvements in profitability. Here are the highlights. Platform WAU reached 22.3 million, marking our first positive inflection point in several quarters. Revenue was $62 million, up 14% year over year. And adjusted EBITDA was nearly breakeven, a $9 million improvement year over year. These results represent a real step change in the business, and what is especially encouraging is the momentum we built as the quarter progressed. In our last earnings call, we laid out the five key drivers of our investment thesis. In Q1, we delivered material progress across each of them. Let me walk through that progress focusing on the first three. We start, as always, with our unique core asset: 350 thousand neighborhoods and 10 million verified neighbors, roughly one in three U.S. households. This quarter, we continued to strengthen the integrity of that graph by expanding verification for both neighbors and local businesses. That is what keeps Nextdoor Holdings, Inc. real, and what makes every recommendation, alert, and conversation on the platform meaningful. Next is high-intent engagement, where we are revitalizing the core community experience. We introduced threaded conversations, pinned comments, and smarter linking. We added richer media in the feed and improved performance through latency and infrastructure work. And for the first time, we began down-ranking self-promotional content. At the same time, Nextdoor Holdings, Inc. continues to show up when it matters most. As we saw again this quarter, engagement increases during severe weather events and moments of local need. During the winter storms, neighbors turned to our platform for real-time updates on road closures, power outages, and which local businesses were still open. This was yet another example of how our product can serve as an essential lifeline for communities. Our third driver is monetization pathways, and Q1 was an important proof point. We entered the year with a clear thesis: Closing the monetization gap does not require a step change in user growth; it requires better matching of intent to outcomes. And in Q1, we saw that working across multiple surfaces. For example, local service providers are reaching neighbors at the moment they are actively asking for recommendations and are seeing strong engagement and conversion as a result. I will leave it to Indrajit to cover the fourth and fifth drivers, our validated business model and founder’s mentality. As we look towards Q2, we will stay focused on continuing the momentum. Our priorities include improving content relevance, deepening engagement, expanding recommendations, strengthening distribution, and advancing our AI and machine learning capabilities. Speaking of AI, I would like to close with why I am more confident than ever in Nextdoor Holdings, Inc.'s position in an AI-driven world. As machine-generated content increases, truly verified human content becomes more scarce and more valuable. We have spent 15 years building a network of over 110 million verified neighbors across 350 thousand neighborhoods. That network generates first-party content that is continuously refreshed, rooted in real identity, and grounded in local context. That foundation puts us in a uniquely strong position. AI allows us to unlock significantly more value from that network by making it easier to find relevant information, summarize conversations, and connect neighbors to the people and insights that matter most in their local community. But what truly differentiates Nextdoor Holdings, Inc. is the connection to the people behind that information. The neighbor who knows the best contractor, the parent a year ahead of you making the same school decision, the local business that others genuinely trust. That is also what powers our recommendations experience. When a neighbor asks for a plumber or a babysitter, they are not just getting a list. They are getting trusted input from people nearby who have actually made that choice. AI can make these connections faster, more relevant, and more accessible, but it cannot replace the trust and context that comes from real neighbors. And that combination—AI-powered discovery built on a foundation of verified local identity—is what gives us confidence in Nextdoor Holdings, Inc.'s position in the years ahead. With that, I will hand it over to Indrajit to walk through the quarter in more detail and discuss our outlook. Indrajit Ponnambalam: Thanks, Nirav. As Nirav described, Q1 was a strong quarter that reinforced the progress we are making across the business. Let me walk you through the details. Q1 platform weekly active users, or WAU—which measures users who engage directly on the Nextdoor Holdings, Inc. app or website—was 22.3 million. This represents a meaningful sequential increase from 21 million in Q4, reversing the prior sequential trend and hitting an all-time high for Nextdoor Holdings, Inc. Year over year, platform WAU was up slightly from Q1 2025’s 22 million. This sequential improvement reflects the compounding impact of the product investments we have made the past several quarters: more relevant content, smarter notifications, and an overall better user experience. As I have said before, platform WAU is a lagging indicator of the product investments we are making. We are encouraged by the sequential improvement, although we continue to expect short-term fluctuations in WAU in the coming quarters. Turning now to revenue. Q1 revenue was $62 million, up 14% year over year. This represents a significant acceleration from Q4’s 7% year over year and finished well ahead of our guidance range of $57 million to $59 million. Q1 is historically our softest quarter for advertising demand, which makes this performance especially encouraging. Revenue growth is broad-based. Our self-serve channel continues to be a growth engine, growing 28% year over year and now comprising roughly 68% of total revenue, with continued improvement in advertiser performance, revenue yields, and retention. Every major monetization channel contributed to growth this quarter, from small local advertisers to large national brands. Our ad stack improvements, including AI-assisted targeting and optimization and new ad formats, are delivering measurable results for advertisers of all sizes, increasing eCPMs while reducing lower-quality backfill. Outside the U.S., we also expanded self-serve into Canada and brought click optimization to the U.K., our first ML-powered performance product in that market, delivering meaningful CPC reductions in our beta period. Q1 GAAP net loss was $11 million, or a negative 19% margin, representing 22 points of year-over-year margin improvement. Q1 adjusted EBITDA was near breakeven at negative $200 thousand. This compares to the negative $4 million to negative $6 million we guided to last quarter and represents an approximately $9 million improvement year over year. Even in our seasonally softest quarter, we achieved near-breakeven adjusted EBITDA, a meaningful milestone that underscores the operating leverage in our model. We continue to drive productivity improvements across the organization; revenue per employee increased 31% year over year in Q1, building on the gains we have driven over the past two years. Turning to capital allocation. During Q1, we repurchased 17 million shares for $29 million at an average price of $1.69 per share. We ended Q1 with $373 million in cash, cash equivalents, and marketable securities, and we continue to have no debt on our balance sheet. Today, we are also announcing that we have authorized a new $100 million share repurchase program effective through June 2028. This gives us the flexibility to act opportunistically while preserving our ability to invest in growth and pursue strategic opportunities. As Nirav outlined, these financial results reflect drivers four and five of our investment thesis in action: a business model validated through the improved operating leverage in our financial results and a discipline around trade-offs that aligns network health with maximizing long-term shareholder value. Now let me turn to our financial outlook. Given the momentum we are seeing, we are providing guidance for Q2 and updating our full-year 2026 outlook. For Q2 2026, we expect revenue of $71 million to $73 million and adjusted EBITDA of $4 million to $6 million. Based on our strong start to the year, we are raising our full-year expectations. We now expect to achieve approximately 10% revenue growth for the full year and an adjusted EBITDA margin in the high single-digit range, up from the mid single-digit margin guidance I provided in our last earnings call. This reflects our expected revenue trajectory, continued operating discipline, and expanding leverage we are seeing across the business. We will now open the call for questions. We will structure it in a similar manner to last quarter. We will start by taking live questions from our covering analysts. After that, we will take some questions submitted by our investors. With that, operator, let us open the line for questions. Operator: Thank you. We will now begin the question-and-answer session. If you would like to ask a question, please press star followed by one on your telephone keypad. Again, to ask a question, please press star 1. As a reminder, if you are using a speakerphone, please remember to pick up your handset before asking a question. We will pause briefly to allow questions to register. Our first question comes from Jason Michael Kreyer with Craig-Hallum. You may now proceed. Jason Michael Kreyer: Great. Thank you, guys. Nice work. I wanted to start on the platform WAU, and maybe if you can just unpack the turnaround there. I am curious how this strategy evolves to take 110 million users that are on the platform and get more of those into that 20 million WAU and grow the more engaged audience over time. Nirav Tolia: Thank you for that question. This is really our primary objective at Nextdoor Holdings, Inc., which is making the most of not just our total registered audience of now over 110 million verified users, but also attracting new users. Much of the work that we have done over the last two years has been on repairing the foundation and putting us in a position where we can reduce the things that we know may juice short-term engagement but do not lead to positive NPS over time. You may have seen some things that make WAU go down. Over time, though, we are confident that we are building a better foundation not just for our existing users, but to enable us to resuscitate the lapsed users—because there is a pretty big gap between 22 million and 110 million registered—and ultimately to attract new users to the platform as well. I will mention that we have not been aggressive about trying to re-market to the lapsed users because we do not believe that the product is in a position yet where we are playing from a position of strength. But I am delighted to say that we are seeing results now that tell us we are headed in the right direction. That is why WAU trended up, and we feel really good about that. Jason Michael Kreyer: Can you perhaps just double-click on the platform—not where you want it—but what it takes to get where you want it so you are more aggressive on that WAU growth? Nirav Tolia: Sure. It is actually pretty simple. We have boiled it down to one very critical user need: when our neighbors come to Nextdoor Holdings, Inc., they want relevant content. If you are in a neighborhood that is not very active, it is hard for us to show you relevant content. If you are in a neighborhood where the discussion is veering off-topic, you are not going to get relevant content. If you are a neighbor who has not visited in a long time and we do not have a very good ML model for you, we cannot show you relevant content because we do not know exactly what you are looking for. Those are all things that we are addressing. We are up-leveling the quality of content overall so that everyone has an opportunity to see more relevant content, focusing on neighborhoods that have less liquidity so that when those neighbors visit the platform they find great content. We are investing a ton in machine learning and profiling our neighbors in a way that we can personalize the experience and find the content that they are looking for. But it really all comes back to one very simple thing: the more content we have, the better we can be at targeting that content and making it relevant to our users. Most of our efforts are around increasing the quality of content on Nextdoor Holdings, Inc. We need to increase quantity as well, but we are taking a quality-first view. Jason Michael Kreyer: That was great. Nirav, one follow-up maybe. You mentioned that momentum had built as the quarter progressed. Can you elaborate on what transpired over the course of the quarter that improved that performance? Nirav Tolia: I will give you something that we did not talk about in the results that I think is a leading indicator that makes us very optimistic that we are headed in the right direction. It is something that we would not typically report because it is an early thing that then leads to lots of chain reactions on the platform. That metric is we grew the number of unique contributors over this period of time. What that means is we grew the number of people who are adding content to the system on Nextdoor Holdings, Inc. We have a base of really great high-frequency users who create a lot of the content. In fact, if you look at user-generated content platforms, 1% of the users create 99% of the content; the same is going to be true for Nextdoor Holdings, Inc. But if we can grow that base, then we start to see lots of really positive effects. We were able to grow that contributor base. That resulted in more content, which resulted in more reasons for people to visit Nextdoor Holdings, Inc., more relevant content when they visit Nextdoor Holdings, Inc., and all good things start to happen on the platform. Over the last two years, we have gone deep to understand the core aspects of the foundation of the system so we can fix root causes versus just deal with a superficial layer on top. WAU, in and of itself, is an output metric; an input metric is how many unique contributors you have. Operator: Our next question comes from Jamesmichael Sherman-Lewis with Citi. You may now proceed. Jamesmichael Sherman-Lewis: Hello, Nirav and Indrajit. Good to see the results, and thank you for taking my questions. First, Nirav, revisiting your closing commentary on AI and Nextdoor Holdings, Inc.'s trusted human content, can you talk more broadly about how you see the Nextdoor Holdings, Inc. feed evolving—particularly following the introduction of features like threaded conversations and pinned comments, but also as you onboard more publishers and reduce self-promoted content? What is changing? Nirav Tolia: That is a great question. I will elaborate a little bit on the closing about AI because I have never been more bullish on the AI future for our industry, and I have also never been more bullish on our opportunity to be a big part of that. I truly believe we are one of the few companies that can use the power of AI—harnessing machines and technology—but combine it with verified human content, data, and profiles to create the best of both: to take the best of technology and the best of humanism and provide the best solution for users as a result. The feed itself will continue to be more personalized. How do you use AI and machine learning in a feed? You do not want the same experience for every user on Nextdoor Holdings, Inc. Users who really want news should see a lot of news. Users who want a lot of neighborhood conversation should see a lot of neighborhood conversation. The history of Nextdoor Holdings, Inc. has been that everyone in the neighborhood saw exactly the same feed. That is no longer the case, and we see much better outcomes using AI to personalize the feeds. That is number one. Number two, we will increasingly be experimenting with summarizing the feed by using AI so that you can get the value of reading lots of threads in a smaller, concise nugget. You see this all over the web, and we should be doing this on Nextdoor Holdings, Inc. as well. We need to make sure that we do it in the right way so that contributions and the ability to reply to these threads continue to happen. We are seeing encouraging results in experiments that give us conviction that we can use AI in one of the most powerful ways—to summarize and make more useful existing user-generated content. The final thing I will say is we are starting to think more deeply about whether there are surfaces other than the feed that can be really valuable on Nextdoor Holdings, Inc., whether that is your messaging inbox. Jamesmichael Sherman-Lewis: It is very helpful. I appreciate the color. Second question here: on your pillar for multiple monetization pathways, I realize we are very early days here, but things like opportunity alerts or maybe even a subscription offering could be interesting. Is there ultimately a meaningful non-ad revenue opportunity in the future? Nirav Tolia: I am glad you asked that question because opportunity alerts has definitely been a big bright spot for us. We are increasingly thinking about not just investing in the feed advertising revenue stream—because that is growing, as you see; it is very vibrant, and we are performing for our advertisers—but we do believe that whether it is lead gen or things that we have not even thought of, there are non-ads, non-feed revenue opportunities inside Nextdoor Holdings, Inc. Opportunity alerts is one of the first, and it is something that is very powerful because it has strong product–market fit. Opportunity alerts work because neighbors come to Nextdoor Holdings, Inc. looking for service providers, and we can go proactively to service providers and tell them that we will connect them or match-make them. It is still early. Jamesmichael Sherman-Lewis: Thank you. Advertiser growth between large versus small advertisers on the platform? Indrajit Ponnambalam: Thank you. Nirav Tolia: Thank you for the question. I will take the first, and then Indrajit will take the second. We have a number of questions that were submitted by our investors, and I am going to come back to this in a little bit more detail. I will just start by saying that one of the features that our users are really excited about—and I am most excited about—is a feature called Ask, which utilizes AI to take existing content from the 14 or 15 years of conversations that we have between verified human neighbors on our platform and uses that information to proactively answer questions, either on demand in an agentic way or when neighbors come to Nextdoor Holdings, Inc. and post in the feed. I will talk more about that because the question was asked by one of our investors as well, and there is a much more elaborate answer. Before you buy stock in Nextdoor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nextdoor wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Nextdoor (NXDR) Q1 2026 Earnings Transcript was originally published by The Motley Fool