Nextdoor Holdings, Inc.

Previous wording

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

Current wording

Key business metrics and financial results as of and for the three months ended June 30, 2026 are as follows:

Previous wording

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

Current wording

•Platform weekly active users (“Platform WAU”) was 22.9 million, an increase of 5% compared to the three months ended June 30, 2025.

Previous 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.

Current wording

•Average revenue per platform weekly active user (“Platform ARPU”) was $3.26, an increase of 9% compared to the three months ended June 30, 2025.

Previous wording

•Total costs and expenses were $77.0 million, a decrease of 5% compared to the three months ended March 31, 2025.

Current wording

•Total costs and expenses were $80.2 million, a decrease of 6% compared to the three months ended June 30, 2025.

Previous wording

•Net loss decreased 48% to $11.4 million, compared to $22.0 million for the three months ended March 31, 2025.

Current wording

•Net loss decreased 86% to $2.1 million, compared to a net loss of $15.4 million for the three months ended June 30, 2025.

Previous wording

•Adjusted EBITDA loss was $0.2 million, compared to $9.2 million for the three months ended March 31, 2025.

Current wording

•Adjusted EBITDA was $9.5 million, compared to a loss of $2.2 million for the three months ended June 30, 2025.

Previous 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.

Current wording

Our Platform WAU for the three months ended June 30, 2026 and 2025 was 22.9 million and 21.8 million, respectively, which represents a 5% increase period over period.

Previous wording

Quarterly Average Platform Weekly Active Users

Current wording

Quarterly Average Platform WAU

Previous wording

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

Current wording

Our Platform ARPU for the three months ended June 30, 2026 and 2025 was $3.26 and $2.99, respectively.

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. 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 costs related to local business acquisition largely consist of digital advertising and, to a lesser extent, direct mail campaigns. Performance marketing costs related to user acquisition largely consist of digital advertising. 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.

Previous wording

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

Current wording

Comparison of the Three and Six Months Ended June 30, 2026 and 2025

Previous 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.

Current wording

Revenue increased by $9.5 million, or 15%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily due to increased advertiser spending and an increase in the number of active users, as measured by a 5% increase in Q2 Platform WAU.

Previous 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.

Current wording

Cost of revenue increased by $0.8 million, or 8%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily due to a $1.3 million increase in third-party hosting costs, partially offset by a $0.4 million decrease in allocated personnel-related costs.

Previous wording

Research and development expenses decreased by $1.5 million, or 4%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease was primarily due to a $2.2 million decrease in personnel-related costs driven by a decrease in headcount and a $0.4 million decrease in professional service fees, partially offset by a $1.1 million increase in third-party software costs.

Current wording

Research and development expenses decreased by $1.6 million, or 5%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The decrease was primarily due to a $2.7 million decrease in personnel-related costs driven by a decrease in headcount and a $0.4 million decrease in professional service fees, partially offset by a $1.5 million increase in third-party software costs.

Previous 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.

Current wording

General and administrative expenses decreased by $2.9 million, or 9%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The decrease was primarily due to a $2.5 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 $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.

Current wording

Interest income decreased by $0.9 million, or 20%, for the three months ended June 30, 2026 compared to the three months ended June 30, 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, 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.

Current wording

Other income, net decreased by $0.4 million, or 99%, for the three months ended June 30, 2026 compared to the three months ended June 30, 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 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.

Current wording

Provision for income taxes increased by less than $0.1 million, or 10%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily due to an increase in foreign income tax expenses.

Previous 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.

Current wording

We have generated losses from our operations, as reflected in our accumulated deficit of $931.8 million as of June 30, 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 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.

Current wording

As of June 30, 2026, we had $378.0 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

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.

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. In April 2026, our Board of Directors authorized and approved a new 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, 2028. During the three months ended June 30, 2026, we did not repurchase or retire any shares of Class A common stock. During the six months ended June 30, 2026, we repurchased and retired 16,992,982 shares of Class A common stock at an average purchase price of $1.69 per share for an aggregate repurchase price of $28.7 million. As of June 30, 2026, we had $100.0 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, 2026 was $9.6 million which resulted from a net loss of $13.5 million, adjusted for non-cash charges of $30.0 million and net cash outflows of $6.8 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $29.6 million of stock-based compensation expense and $0.7 million of depreciation and amortization expense, partially offset by $0.4 million of accretion on investments. The net cash outflows from changes in operating assets and liabilities were primarily due to a $4.6 million decrease in operating lease liabilities due to lease payments, a $3.6 million increase in accounts receivable, a $0.4 million increase in prepaid expenses and other assets, and a $0.3 million decrease in accounts payable. These amounts were partially offset by a $1.5 million decrease in operating lease right-of-use assets due to normal amortization and a $0.5 million increase in accrued expenses and other liabilities.

Previous 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.

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 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.

Current wording

Cash provided by investing activities for the six months ended June 30, 2026 was $25.6 million, which consisted of proceeds from maturities of marketable securities of $78.4 million and proceeds from sales of marketable securities of $69.5 million. This was partially offset by purchases of marketable securities of $122.1 million.

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 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.

Current wording

Cash used in financing activities for the six months ended June 30, 2026 was $35.1 million, which consisted of repurchases of common stock of $28.7 million and tax withholdings on release of restricted stock units of $8.5 million. This was partially offset by proceeds from the issuance of common stock upon exercise of stock options of $1.6 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 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.