Nextdoor Holdings, Inc.

Previous wording

Nextdoor is the essential neighborhood network for over 100 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 neighbors at scale.

Current wording

Nextdoor is the essential neighborhood network connecting over 110 million Verified Neighbors to the people, places, and information that matter most in their local communities. Operating in over 350,000 neighborhoods across 11 countries, Nextdoor fosters trusted, real-world utility through locally relevant content and services, including news, real-time safety alerts, neighbor recommendations, for sale and free listings, and events. This focus on practical local value drives genuine, high-intent local engagement and supports a diverse ecosystem of neighbors and partners seeking to connect with neighbors.

Previous wording

•Platform Weekly Active Users (“Platform WAU”) was 21.6 million, a decrease of 3% compared to the three months ended September 30, 2024.

Current wording

•Platform weekly active users (“Platform WAU”) was 22.3 million, an increase of 1% compared to the three months ended March 31, 2025.

Previous wording

•Average revenue per platform weekly active user (“Platform ARPU”) was $3.19, an increase of 8% compared to the three months ended September 30, 2024.

Current wording

•Average revenue per platform weekly active user (“Platform ARPU”) was $2.77, an increase of 12% compared to the three months ended March 31, 2025.

Previous wording

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

Current wording

Financial Results as of and for the three months ended March 31, 2026 are as follows:

Previous wording

Our Platform WAU for the three months ended September 30, 2025 and 2024 were 21.6 million and 22.3 million, respectively, representing a decrease of 3% period over period.

Current wording

Our Platform WAU for the three months ended March 31, 2026 and 2025 was 22.3 million and 22.0 million, respectively, which represents a 1% increase period over period.

Previous wording

Our Platform ARPU for the three months ended September 30, 2025 and 2024 was $3.19 and $2.95, respectively.

Current wording

Our Platform ARPU for the three months ended March 31, 2026 and 2025 was $2.77 and $2.46, respectively.

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 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.

Current wording

We generate a majority of our revenue from the delivery of advertising services. We recognize revenue only after transferring control of promised goods or services to the customer. Advertising services are typically sold on a cost per thousand (“CPM”) basis, a cost per click (“CPC”) basis, or on a subscription basis according to the service period. The majority of our revenue is generated in the United States.

Previous wording

Cost of revenue consists primarily of expenses associated with the delivery of our revenue generating activities, including the third-party cost of hosting our platform and allocated personnel-related costs, which include salaries, benefits, and stock-based compensation for employees engaged in development of our revenue generating products. Cost of revenue also includes third-party costs associated with delivering and supporting our advertising products and credit card transaction fees related to processing customer transactions.

Current wording

Cost of revenue consists primarily of expenses associated with the delivery of our revenue generating activities, including the third-party costs of hosting our platform and allocated personnel-related costs, which include salaries, benefits, and stock-based compensation for employees engaged in development of our revenue generating products. Cost of revenue also includes third-party costs associated with delivering and supporting our advertising services and credit card transaction fees related to processing customer transactions.

Previous wording

Sales and marketing expenses consist of personnel-related and other costs which include salaries, commissions, benefits, restructuring costs, and stock-based compensation for employees engaged in sales and marketing activities as well as other costs including third-party consulting, public relations, allocated overhead costs, and amortization of acquired intangible assets. Sales and marketing expenses also include brand and performance marketing for both user and local business acquisition, and neighbor services, which includes personnel-related costs for our neighbor support team, our outsourced neighbor support function, and verification costs.

Current wording

Sales and marketing expenses consist primarily of personnel-related and other costs which include salaries, commissions, benefits, restructuring costs, and stock-based compensation for employees engaged in sales and marketing activities as well as other costs including third-party consulting, public relations, and allocated overhead costs. Sales and marketing expenses also include brand and performance marketing for both user and local business acquisition, and neighbor services, which includes personnel-related costs for our neighbor support team, our outsourced neighbor support function, and verification costs.

Previous wording

Comparison of the Three and Nine Months Ended September 30, 2025 and 2024

Current wording

Comparison of the Three Months Ended March 31, 2026 and 2025

Previous wording

Revenue increased by $3.3 million, or 5%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was primarily due to increased advertising spending, partially offset by a decrease in the number of active users, as measured by a 3% decrease in Q3 Platform WAU.

Current wording

Revenue increased by $7.5 million, or 14%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was primarily due to increased advertiser spending and an increase in the number of active users, as measured by a 1% increase in Q1 Platform WAU.

Previous wording

Cost of revenue decreased by $0.7 million, or 6%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The decrease was primarily due to a $0.6 million decrease in third-party hosting costs.

Current wording

Cost of revenue increased by $1.6 million, or 17%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was primarily due to a $1.4 million increase in third-party hosting costs.

Previous wording

Cost of revenue decreased by $0.9 million, or 3%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The decrease was primarily due to a $1.5 million decrease in third-party hosting costs and a $1.0 million decrease in third-party costs associated with delivering and supporting our advertising product, partially offset by a $1.1 million increase in allocated personnel-related costs and a $0.6 million increase in merchant processing fees.

Current wording

General and administrative expenses decreased by $1.8 million, or 11%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease was primarily due to a $1.5 million decrease in personnel-related costs driven by a decrease in headcount and a $0.3 million decrease in professional service fees.

Previous wording

Interest income decreased by $1.2 million, or 20%, for the three months ended September 30, 2025 compared to the three months ended September 30, 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 $0.9 million, or 19%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. 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 decreased by $0.4 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The decrease 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, net decreased by $0.2 million, or 94%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease 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 less than $0.1 million, or 22%, for the three months ended September 30, 2025 compared to the three months ended September 30, 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 3%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease was primarily due to a decrease in foreign income tax expenses.

Previous wording

Since inception, we have generated negative cash flows from operations and have primarily financed our operations from net proceeds received from the sale of equity securities, proceeds from the Business Combination, and payments received from our customers. We currently have no debt outstanding.

Current wording

We have historically generated negative cash flows from operations until recent periods, and have primarily financed our operations from net proceeds received from the sale of equity securities, proceeds from our business combination with Khosla Ventures Acquisition Co. II, and payments received from our customers. We currently have no debt outstanding.

Previous wording

We have generated losses from our operations, as reflected in our accumulated deficit of $914.3 million as of September 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.

Current wording

We have generated losses from our operations, as reflected in our accumulated deficit of $929.7 million as of March 31, 2026. These losses are attributable to investments made in supporting the growth of our business, and we expect them 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 September 30, 2025, we had $403.3 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.

Current wording

As of March 31, 2026, we had $373.2 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, any repurchase of shares we may make from time to time, and our ability to obtain equity or debt financing. Moreover, any actual or perceived 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. We did not repurchase any shares of our Class A common stock during the three months ended September 30, 2025. During the nine months ended September 30, 2025, we repurchased and retired 8,409,278 shares of our Class A common stock at an average purchase price of $1.72 per share for an aggregate repurchase price of $14.5 million. As of September 30, 2025, we had $82.8 million available for future share repurchases under the Share Repurchase Program.

Current wording

In May 2022, our Board of Directors authorized and approved a 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 depended on market conditions and other investment opportunities, and repurchases were made at our discretion. This share repurchase program did not obligate us to repurchase any dollar amount or number of shares, and the program could be extended, modified, suspended, or discontinued at any time. In February 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, 2026, we repurchased and retired 16,992,982 shares of our Class A common stock at an average purchase price of $1.69 per share for an aggregate repurchase price of $28.7 million. This share repurchase program expired on March 31, 2026.

Previous wording

Cash used in operating activities during the nine months ended September 30, 2025 was $3.0 million which resulted from a net loss of $50.2 million, adjusted for non-cash charges of $50.8 million and net cash outflows of $3.7 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $50.8 million of stock-based compensation expense and $1.5 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 $6.3 million decrease in operating lease liabilities due to lease payments, a $2.7 million increase in prepaid expenses and other assets, and a $1.9 million increase in accounts receivable. These amounts were partially offset by a $4.1 million increase in accounts payable and a $2.1 million decrease in operating lease right-of-use assets due to normal amortization, and a $1.0 million increase in accrued expenses and other liabilities.

Current wording

Cash provided by operating activities during the three months ended March 31, 2026 was $1.2 million which resulted from a net loss of $11.4 million, adjusted for non-cash charges of $15.5 million and net cash outflows of $2.9 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $14.8 million of stock-based compensation expense and $0.4 million of depreciation and amortization expense, partially offset by $0.2 million of accretion on investments. The net cash outflows from changes in operating assets and liabilities were primarily due to a $2.3 million decrease in operating lease liabilities due to lease payments, a $1.9 million decrease in accounts payable, a $0.9 million increase in prepaid expenses and other assets, and a $0.4 million decrease in accrued expenses and other liabilities. These amounts were partially offset by a $1.8 million decrease in accounts receivable and a $0.8 million decrease in operating lease right-of-use assets due to normal amortization.

Previous wording

Cash used in operating activities during the nine months ended September 30, 2024 was $32.0 million which resulted from a net loss of $85.9 million, adjusted for non-cash charges of $76.2 million and net cash outflows of $22.2 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $54.2 million of stock-based compensation expense, $22.8 million of non-cash impairment charges related to lease abandonment, and $3.3 million of depreciation and amortization expense, partially offset by $4.9 million of accretion on investments. The net cash outflows from changes in operating assets and liabilities were primarily due to an $8.9 million decrease in accrued expenses and other liabilities, a $6.4 million increase in prepaid expenses and other assets, a $4.9 million decrease in operating lease liabilities due to lease payments, a $3.4 million increase in accounts receivable, and a $1.7 million decrease in accounts payable. These amounts were partially offset by a $3.1 million decrease in operating lease right-of-use assets due to normal amortization.

Current 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.

Previous wording

Cash provided by investing activities for the nine months ended September 30, 2025 was $36.0 million, which consisted of proceeds from maturities of marketable securities of $151.6 million and proceeds from sales of marketable securities of $105.3 million. This was partially offset by purchases of marketable securities of $220.4 million and purchases of property and equipment of $0.5 million.

Current wording

Cash provided by investing activities for the three months ended March 31, 2026 was $22.7 million, which consisted of proceeds from maturities of marketable securities of $45.0 million and proceeds from sales of marketable securities of $35.7 million. This was partially offset by purchases of marketable securities of $57.9 million.

Previous wording

Cash provided by investing activities for the nine months ended September 30, 2024 was $93.4 million, which consisted of proceeds from maturities of marketable securities of $158.4 million and proceeds from sales of marketable securities of $138.4 million. This was partially offset by purchases of marketable securities of $195.6 million and a loan to Opportunity Finance Network of $7.5 million.

Current 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.

Previous wording

Cash used in financing activities for the nine months ended September 30, 2025 was $25.2 million, which consisted of repurchases of common stock of $14.5 million and tax withholdings on release of restricted stock units of $14.2 million. This was partially offset by proceeds from the issuance of common stock upon exercise of stock options of $2.3 million and proceeds from the issuance of common stock under the employee stock purchase plan of $1.3 million.

Current wording

Cash used in financing activities for the three months ended March 31, 2026 was $31.9 million, which consisted of repurchases of common stock of $28.7 million and tax withholdings on release of restricted stock units of $4.8 million. This was partially offset by proceeds from the issuance of common stock upon exercise of stock options of $1.1 million and proceeds from the issuance of common stock under the employee stock purchase plan of $0.4 million.

Previous wording

Cash used in financing activities for the nine months ended September 30, 2024 was $72.1 million, which consisted of repurchases of common stock of $73.3 million and tax withholdings on release of restricted stock units of $11.4 million. This was partially offset by proceeds from the exercise of stock options of $11.5 million and proceeds from the issuance of common stock under the employee stock purchase plan of $1.1 million.

Current 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.