Nextdoor Holdings, Inc.

Previous wording

•Average revenue per weekly active user (“ARPU”) was $1.18, a decrease of 4% compared to the three months ended March 31, 2024.

Current wording

•Average revenue per platform weekly active user (“Platform ARPU”) was $2.99, an increase of 2% compared to the three months ended June 30, 2024.

Previous wording

Financial Results as of and for the three months ended March 31, 2025 are as follows:

Current wording

Financial Results as of and for the three and six months ended June 30, 2025 are as follows:

Previous wording

•Revenue for the three months ended March 31, 2025 was $54.2 million, an increase of 2% compared to the three months ended March 31, 2024.

Current wording

•Revenue for the three months ended June 30, 2025 was $65.1 million, an increase of 3% compared to the three months ended June 30, 2024. Revenue for the six months ended June 30, 2025 was $119.3 million, an increase of 2% compared to the six months ended June 30, 2024.

Previous wording

•Total costs and expenses for the three months ended March 31, 2025 were $81.2 million, a decrease of 8% compared to the three months ended March 31, 2024.

Current wording

•Total costs and expenses for the three months ended June 30, 2025 were $85.4 million, a decrease of 24% compared to the three months ended June 30, 2024. Total costs and expenses for the six months ended June 30, 2025 were $166.6 million, a decrease of 17% compared to the six months ended June 30, 2024.

Previous wording

We define a WAU as a Nextdoor user who opens our application, logs on to our website, or engages with an email with monetizable content at least once during a defined 7-day period.1 We calculate average WAUs for a particular period by calculating the count of unique users, on a rolling basis for the past seven days, for each day of that period, and dividing that sum by the number of days in that period. We assess the health of our business by measuring WAUs because we believe that weekly usage best captures the cadence at which we expect a healthy user base to engage with, and derive the most utility from our platform, and by extension their neighborhood. We have also historically presented WAUs by geography because we are more advanced in engagement and monetization in the United States than internationally.

Current wording

We define a Platform WAU as a Nextdoor user who opens our application or logs on to our website at least once during a defined 7-day period. We calculate average Platform WAU for a particular period by calculating the count of unique users, on a rolling basis for the past seven days, for each day of that period, and dividing that sum by the number of days in that period. We assess the health of our business by measuring Platform WAU because we believe that weekly usage best captures the cadence at which we expect a healthy user base to engage with and derive the most utility from our platform, and by extension their neighborhood.

Previous wording

Average Revenue per Weekly Active User (ARPU)

Current wording

Average Revenue per Platform Weekly Active User (Platform ARPU)

Previous wording

We generate revenue primarily from advertising. We measure monetization of our platform through our ARPU metric. We define ARPU as our total revenue in that geography during a period divided by the average of the number of WAUs in that geography during the same period. We have also historically presented ARPU on a U.S. and international basis because we are more advanced in our monetization in the United States than internationally. In future filings, we will continue to present ARPU but the denominator will be based on the average number of Platform WAUs instead of WAUs. Similarly, for the reasons discussed above under “Weekly Active Users (WAU) and Platform WAU”, we will no longer provide a breakout of our key business metrics between the United States and international.

Current wording

We generate revenue primarily from advertising. We measure monetization of our platform through our Platform ARPU metric. We define Platform ARPU as our total revenue during a period divided by the average of the number of Platform WAU during the same period.

Previous wording

We generate substantially all of our revenue from the delivery of advertisements on our platform which includes the delivery of advertising impressions sold on a CPM basis and CPC basis, as well as on a fixed-fee basis. The majority of our revenue is generated in the United States.

Current wording

We generate substantially all of our revenue from the delivery of advertisements on our platform, which includes the delivery of advertising impressions sold on a cost per thousand (“CPM”) basis, a cost per click (“CPC”) basis, and on a subscription basis according to the service period. The majority of our revenue is generated in the United States.

Previous wording

Performance marketing costs related to local business acquisition largely consists of digital advertising and, to a lesser extent, direct mail campaigns. Performance marketing costs related to user acquisition largely consist of digital advertising and, to a lesser extent, the distribution of mailed invitations. Fluctuations in our performance marketing expenses are driven by a variety of factors, including but not limited to: our target geographies, whether we are acquiring users or businesses, assessment of return on investment of marketing spend, strategic priorities, and seasonal factors.

Current wording

performance marketing expenses are driven by a variety of factors, including but not limited to: our target geographies, whether we are acquiring users or businesses, assessment of return on investment of marketing spend, strategic priorities, and seasonal factors.

Previous wording

Comparison of the Three Months Ended March 31, 2025 and 2024

Current wording

Comparison of the Three and Six Months Ended June 30, 2025 and 2024

Previous wording

Revenue increased by $1.0 million, or 2%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was primarily due to increased user engagement, as measured by a 5% increase in Q1 Platform WAUs, which exceeded the increase in advertiser spending.

Current wording

Revenue increased by $1.8 million, or 3%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase was primarily due to increased advertising spending as well as an increase in the number of active users, as measured by a 1% increase in Q2 Platform WAU.

Previous wording

General and administrative expenses decreased by $0.6 million, or 4%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The decrease was primarily due to a $0.7 million decrease in personnel-related costs driven by a decrease in headcount.

Current wording

Cost of revenue increased by $0.4 million, or 4%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase was primarily due to a $0.7 million increase in allocated personnel-related costs, partially offset by a $0.3 million decrease in third-party costs associated with delivering and supporting our advertising product.

Previous wording

Cost of revenue decreased by $0.5 million, or 5%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The decrease was primarily due to a $0.6 million decrease in third-party hosting costs.

Current wording

Cost of revenue decreased by $0.2 million, or 1%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The decrease was primarily due to a $0.8 million decrease in third-party hosting costs and a $0.8 million decrease in third-party costs associated with delivering and supporting our advertising product, partially offset by a $1.2 million increase in allocated personnel-related costs.

Previous wording

Research and development expenses increased by $2.2 million, or 7%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was primarily due to a $2.0 million increase in personnel-related costs driven by an increase in headcount.

Current wording

Research and development expenses increased by $3.5 million, or 11%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase was primarily due to a $3.1 million increase in personnel-related costs driven by an increase in headcount and a $0.6 million increase in professional service fees.

Previous wording

Sales and marketing expenses decreased by $7.8 million, or 26%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The decrease was primarily due to a $4.2 million decrease in personnel-related costs driven by a decrease in headcount, a $1.8 million decrease in performance marketing costs to attract local businesses and a $1.6 million decrease in performance marketing costs for user acquisition.

Current wording

Sales and marketing expenses decreased by $6.1 million, or 20%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The decrease was primarily due to a $4.3 million decrease in personnel-related costs driven by a decrease in headcount, a $1.1 million decrease in performance marketing costs for user acquisition and a $0.7 million decrease in performance marketing costs to attract local businesses.

Previous wording

Interest income decreased by $1.9 million, or 27%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The decrease was driven by lower returns on marketable securities as a result of lower invested balances and lower interest rates.

Current wording

Interest income decreased by $1.6 million, or 26%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The decrease was driven by lower returns on marketable securities as a result of lower invested balances and lower interest rates.

Previous wording

Other income (expense), net increased by $0.4 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was primarily due to the periodic re-measurement of monetary assets and liabilities denominated in non-functional currencies and gains and losses on marketable securities and foreign currency transactions.

Current wording

Other income (expense), net increased by $0.3 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase was primarily due to the periodic re-measurement of monetary assets and liabilities denominated in non-functional currencies and gains and losses on marketable securities and foreign currency transactions.

Previous wording

Provision for income taxes decreased by $0.1 million, or 29%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The decrease was primarily due to a decrease in foreign income tax expenses.

Current wording

Provision for income taxes decreased by less than $0.1 million, or 15%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The decrease was primarily due to a decrease in foreign income tax expenses.

Previous wording

We have generated losses from our operations, as reflected in our accumulated deficit of $886.0 million as of March 31, 2025. We incurred operating losses and cash outflows from operations by supporting the growth of our business. We expect these losses and operating cash outflows to continue for the foreseeable future. We also expect to incur significant research and development, sales and marketing, and general and administrative expenses over the next several years in connection with the continued development and strategic expansion of our business.

Current wording

We have generated losses from our operations, as reflected in our accumulated deficit of $901.4 million as of June 30, 2025. We incurred operating losses and cash outflows from operations by supporting the growth of our business. We expect these losses and operating cash outflows to continue for the foreseeable future. We also expect to incur significant research and development, sales and marketing, and general and administrative expenses over the next several years in connection with the continued development and strategic expansion of our business.

Previous wording

As of March 31, 2025, we had $417.9 million in cash, cash equivalents, and marketable securities. We anticipate satisfying our short-term cash requirements, including meeting our working capital and capital expenditure requirements, with our existing cash, cash equivalents, and marketable securities. In the long term, we may satisfy our cash requirements with cash, cash equivalents, and marketable securities on hand or with proceeds from any future equity or debt financings. Our ability to support our requirements and plans for cash, including working capital and capital expenditure requirements, will depend on many factors, including the rate of our revenue growth, the timing and extent of spending on research and development efforts and other business initiatives, the expansion of sales and marketing activities, the introduction of new and enhanced product offerings and features, the continuing market adoption of our platform, the number of shares repurchased under our share repurchase program (the “Share Repurchase Program”), and our ability to obtain equity or debt financing. Moreover, any instability in the U.S. or international banking systems may impact liquidity both in the short term and long term.

Current wording

As of June 30, 2025, we had $413.3 million in cash, cash equivalents, and marketable securities. We anticipate satisfying our short-term cash requirements, including meeting our working capital and capital expenditure requirements, with our existing cash, cash equivalents, and marketable securities. In the long term, we may satisfy our cash requirements with cash, cash equivalents, and marketable securities on hand or with proceeds from any future equity or debt financings. Our ability to support our requirements and plans for cash, including working capital and capital expenditure requirements, will depend on many factors, including the rate of our revenue growth, the timing and extent of spending on research and development efforts and other business initiatives, the expansion of sales and marketing activities, the introduction of new and enhanced product offerings and features, the continuing market adoption of our platform, the number of shares repurchased under our share repurchase program (the “Share Repurchase Program”), and our ability to obtain equity or debt financing. Moreover, any instability in the U.S. or international banking systems may impact liquidity both in the short term and long term.

Previous wording

On May 31, 2022, our Board of Directors authorized and approved the Share Repurchase Program to repurchase up to $100.0 million in aggregate of our Class A common stock, with the authorization to expire on June 30, 2024. The timing of any repurchases will depend on market conditions and other investment opportunities, and will be made at our discretion. The Share Repurchase Program does not obligate us to repurchase any dollar amount or number of shares, and the program may be extended, modified, suspended, or discontinued at any time. On February 21, 2024, our Board of Directors authorized and approved an increase of $150.0 million to the Share Repurchase Program and extended the expiration date to March 31, 2026. During the three months ended March 31, 2025, we repurchased and retired 4.7 million shares of Class A common stock at an average purchase price of $1.92 per share for an aggregate repurchase price of $9.1 million. As of March 31, 2025, we had $88.2 million available for future share repurchases under the Share Repurchase Program.

Current wording

On May 31, 2022, our Board of Directors authorized and approved the Share Repurchase Program to repurchase up to $100.0 million in aggregate of our Class A common stock, with the authorization to expire on June 30, 2024. The timing of any repurchases will depend on market conditions and other investment opportunities, and will be made at our discretion. The Share Repurchase Program does not obligate us to repurchase any dollar amount or number of shares, and the program may be extended, modified, suspended, or discontinued at any time. On February 21, 2024, our Board of Directors authorized and approved an increase of $150.0 million to the Share Repurchase Program and extended the expiration date to March 31, 2026. During the three and six months ended June 30, 2025, we repurchased and retired 3.7 million and 8.4 million shares of Class A common stock at an average purchase price of $1.46 and $1.72 per share for an aggregate repurchase price of $5.4 million and $14.5 million, respectively. As of June 30, 2025, we had $82.8 million available for future share repurchases under the Share Repurchase Program.

Previous wording

Cash provided by operating activities during the three months ended March 31, 2025 was $0.4 million which resulted from a net loss of $22.0 million, adjusted for non-cash charges of $17.0 million and net cash inflows of $5.3 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $17.1 million of stock-based compensation expense and $0.5 million of depreciation and amortization expense, partially offset by $0.7 million of accretion on investments. The net cash inflows from changes in operating assets and liabilities were primarily due to a $9.8 million decrease in accounts receivable, a $0.8 million increase in accounts payable, and a $0.7 million decrease in operating lease right-of-use assets due to normal amortization. These amounts were partially offset by a $3.6 million increase in prepaid expenses and other assets, a $2.0 million decrease in operating lease liabilities due to lease payments, and a $0.3 million decrease in accrued expenses and other liabilities.

Current wording

Cash provided by operating activities during the six months ended June 30, 2025 was $3.3 million which resulted from a net loss of $37.3 million, adjusted for non-cash charges of $33.7 million and net cash inflows of $6.9 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $34.2 million of stock-based compensation expense and $1.1 million of depreciation and amortization expense, partially offset by $1.4 million of accretion on investments. The net cash inflows from changes in operating assets and liabilities were primarily due to a $4.2 million decrease in accounts receivable, a $3.9 million increase in accounts payable, a $1.4 million decrease in operating lease right-of-use assets due to normal amortization, a $1.0 million decrease in prepaid expenses and other assets, and a $0.5 million increase in accrued expenses and other liabilities. These amounts were partially offset by a $4.1 million decrease in operating lease liabilities due to lease payments.

Previous wording

Cash used in operating activities during the three months ended March 31, 2024 was $13.6 million which resulted from a net loss of $28.3 million, adjusted for non-cash charges of $19.4 million and net cash outflows of $4.7 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $19.5 million of stock-based compensation expense and $1.4 million of depreciation and amortization expense, partially offset by $1.9 million of accretion on investments. The net cash outflows from changes in operating assets and liabilities were primarily due to a $3.1 million decrease in accrued expenses and other liabilities, a $1.7 million increase in prepaid expenses and other assets, and a $1.5 million decrease in operating lease liabilities due to lease payments. These amounts were partially offset by a $1.2 million decrease in operating lease right-of-use assets due to normal amortization, a $0.2 million increase in accounts payable, and a $0.2 million decrease in accounts receivable.

Current wording

Cash used in operating activities during the six months ended June 30, 2024 was $19.0 million which resulted from a net loss of $71.0 million, adjusted for non-cash charges of $58.1 million and net cash outflows of $6.0 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $35.7 million of stock-based compensation expense, $22.8 million of non-cash impairment charges related to lease abandonment, and $2.5 million of depreciation and amortization expense, partially offset by $3.3 million of accretion on investments. The net cash outflows from changes in operating assets and liabilities were primarily due to a $5.3 million decrease in accrued expenses and other liabilities, a $3.0 million decrease in operating lease liabilities due to lease payments, and a $1.9 million increase in accounts receivable. These amounts were partially offset by a $2.4 million decrease in operating lease right-of-use assets due to normal amortization, a $0.9 million increase in accounts payable, and a $0.8 million decrease in prepaid expenses and other assets.

Previous wording

Cash provided by investing activities for the three months ended March 31, 2025 was $21.6 million, which consisted of proceeds from sales of marketable securities of $62.5 million and proceeds from maturities of marketable securities of $38.5 million. This was partially offset by purchases of marketable securities of $79.4 million.

Current wording

Cash provided by investing activities for the six months ended June 30, 2025 was $31.7 million, which consisted of proceeds from maturities of marketable securities of $98.5 million and proceeds from sales of marketable securities of $88.5 million. This was partially offset by purchases of marketable securities of $155.0 million and purchases of property and equipment of $0.3 million.

Previous wording

Cash provided by investing activities for the three months ended March 31, 2024 was $35.9 million, which consisted of proceeds from maturities of marketable securities of $67.3 million and proceeds from sales of marketable securities of $28.8 million. This was partially offset by purchases of marketable securities of $52.6 million and a loan to Opportunity Finance Network of $7.5 million.

Current wording

Cash provided by investing activities for the six months ended June 30, 2024 was $61.4 million, which consisted of proceeds from maturities of marketable securities of $106.1 million and proceeds from sales of marketable securities of $91.2 million. This was partially offset by purchases of marketable securities of $128.3 million and a loan to Opportunity Finance Network of $7.5 million.

Previous wording

Cash used in financing activities for the three months ended March 31, 2025 was $12.8 million, which consisted of repurchases of common stock of $9.1 million and tax withholdings on release of restricted stock units of $6.0 million. This was partially offset by proceeds from the exercise of stock options of $1.6 million and proceeds from the issuance of common stock under the employee stock purchase plan of $0.7 million.

Current wording

Cash used in financing activities for the six months ended June 30, 2025 was $21.2 million, which consisted of repurchases of common stock of $14.5 million and tax withholdings on release of restricted stock units of $9.2 million. This was partially offset by proceeds from the exercise of stock options of $1.8 million and proceeds from the issuance of common stock under the employee stock purchase plan of $0.7 million.

Previous wording

Cash provided by financing activities for the three months ended March 31, 2024 was $12.9 million, which consisted of repurchases of common stock of $9.8 million, prepayment under the Share Repurchase Program of $5.3 million, and tax withholdings on release of restricted stock units of $1.3 million. This was partially offset by proceeds from the exercise of stock options of $2.8 million and proceeds from the issuance of common stock under the employee stock purchase plan of $0.6 million.

Current wording

Cash used in financing activities for the six months ended June 30, 2024 was $49.7 million, which consisted of repurchases of common stock of $53.5 million and tax withholdings on release of restricted stock units of $5.7 million. This was partially offset by proceeds from the exercise of stock options of $8.8 million and proceeds from the issuance of common stock under the employee stock purchase plan of $0.6 million.