Slides
Page 1
Nextdoor Investor Update Q2 2026 Nextdoor
Page 2
Nirav Tolia CEO
Page 3
Colin Bourland Head of Investor Relations & Corporate Development
Page 4
** Certain statements in this Investor Update may be considered “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “project,” “target,” “plan,” or “potentially” or the negatives of these terms or variations of them or similar terminology. These statements include, but are not limited to, statements regarding our future performance and our market opportunity, including expected financial results for the third quarter of 2026 and full-year 2026, trends and expectations regarding our business and operating results, including the implementation and potential impact of our new Nextdoor initiative, our expectations on Platform WAU growth, our business strategy and plans, and our objectives and future operations. Forward-looking statements are based upon various estimates and assumptions, as well as information known to us as of the date of this Investor Update, and are subject to risks and uncertainties. Accordingly, actual results could differ materially due to a variety of factors, including: our ability to scale our business and monetization efforts; our ability to expand business operations abroad; our limited operating history; risks associated with managing our growth; our ability to achieve and maintain profitability in the future; the effects of the highly competitive market in which we operate; the impact of macroeconomic conditions on our business, including the impact of significant political, trade and regulatory developments; our ability to attract new and retain existing customers and users, or renew and expand our relationships with them; our ability to anticipate and satisfy customer preferences; market acceptance of our platform; our ability to successfully develop and timely introduce new products and services; risks associated with the use of AI and ML-driven features in our platform; our ability to achieve our objectives of strategic and operational initiatives; cybersecurity risks to our various systems and software; the impact of privacy and data security laws and other applicable laws and regulations; and other general market, political, economic, and business conditions. Additional risks and uncertainties that could affect our financial results and business are more fully described in our Quarterly Report on Form 10-Q for the period ended June 30, 2026, filed 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. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this Investor Update 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 Investor Update. This Investor Update includes certain non-GAAP financial measures (including on a forward-looking basis). These non-GAAP measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to their nearest GAAP equivalent or any other performance measures derived in accordance with GAAP. A reconciliation of the non-GAAP financial measures used in this Investor Update to their nearest GAAP equivalent is included in the Appendix to this Investor Update. Nextdoor believes that these non-GAAP measures of financial results (including on a forward-looking basis) provide useful supplemental information to investors about Nextdoor. Nextdoor’s management uses forward-looking non-GAAP measures to evaluate Nextdoor’s projected financials and operating performance. However, there are a number of limitations related to the use of these non-GAAP measures and their nearest GAAP equivalents, including that they exclude significant expenses that are required by GAAP to be recorded in Nextdoor’s financial measures. In addition, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore, Nextdoor’s non-GAAP measures may not be directly comparable to similarly titled measures of other companies. Additionally, to the extent that forward-looking non-GAAP financial measures are provided, they are presented on a non-GAAP basis without reconciliations of such forward-looking non-GAAP measures due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. Disclaimer
Page 5
Nirav Tolia CEO
Page 6
Q2'26 Performance Update Q2'26 Results Notes Users 22.9M Platform WAU +5% y/y Revenue $75M +15% y/y Profitability ($2M) Net Loss; (3%) margin, +21 ppt y/y $10M Adj. EBITDA; 13% margin, +16 ppt y/y Metrics for the quarter ended 6/30/2026. Some figures may not tie due to rounding. A reconciliation of non-GAAP metrics used in this Investor Update to their most comparable GAAP measures is provided in the Appendix at the end of this Investor Update.
Page 7
How We’re Driving Engagement
Page 8
Q2 Highlights Improved Video Events Hub Refresh Posting Nudge
Page 9
Second Half Priorities Faves Ask
Page 10
Indrajit Ponnambalam CFO
Page 11
Platform Weekly Active Users (WAU) Some figures may not tie due to rounding. Platform WAU reflects users who open our application or log on to our website at least once during a defined 7-day period. Platform WAU is our primary user metric It includes users who engage directly on the Nextdoor app or website 22.9 million Platform WAU reflects an all-time high for Nextdoor Sequential Platform WAU growth reflects impact of ongoing product investment 21.8 21.6 21.0 22.3 22.9 1% (3%) (5%) 1% 5% Platform WAU (M) % Y/Y Change Q2'25 Q3'25 Q4'25 Q1'26 Q2'26
Page 12
Revenue Some figures may not tie due to rounding. Strongest quarterly revenue in company history Q2 revenue was $75M, +15% year-over-year, reflecting broad-based growth across channels Self-serve channel revenue grew 32% year-over-year in Q2 and represents 67% of revenue in Q2 ARPU improved by 9% year-over-year in Q2 $65 $69 $69 $62 $75 3% 5% 7% 14% 15% Revenue ($M) % Y/Y Change Q2'25 Q3'25 Q4'25 Q1'26 Q2'26
Page 13
Net Income (Loss) Some figures may not tie due to rounding. Operating leverage improved year-over-year Net loss and margin were ($2M) and (3%), respectively Net margin improved by 21 ppt year-over-year Margin improvement was driven by stronger revenue and lower year-over-year GAAP operating expenses ($15) ($13) ($4) ($11) ($2) (24%) (19%) (6%) (19%) (3%) Net Income/(Loss) ($M) % Margin Q2'25 Q3'25 Q4'25 Q1'26 Q2'26
Page 14
Adjusted EBITDA Some figures may not tie due to rounding. A reconciliation of non-GAAP metrics used in this presentation to their most comparable GAAP measures is provided in the Appendix at the end of this presentation. Margin gains reflect ongoing discipline and better execution Adjusted EBITDA was $10M, representing a 13% margin Adjusted EBITDA margin improved by 16 ppt year-over- year Revenue growth and disciplined cost management continue to drive our year-over-year improvement ($2) $4 $8 ($0) $10 (3%) 6% 11% 0% 13% Adj. EBITDA ($M) % Margin Q2'25 Q3'25 Q4'25 Q1'26 Q2'26
Page 15
Productivity and Capital Allocation 1. Annualized revenue / FTE = Quarterly revenue x 4 / average # of full-time employees in quarter. Some figures may not tie due to rounding. Annualized Revenue / FTE ($K)1 Productivity remains a key priority Revenue / FTE improved 29% year-over-year in Q2 Strong balance sheet a key differentiator: $378M in cash, cash equivalents, and marketable securities at Q2-end Generated $10M in cash flow from operations for the six months ended June 30, 2026 $465 $482 $624 52% 4% 29% Annualized Revenue / FTE ($K)% Y/Y Change Q2'24 Q2'25 Q2'26
Page 16
Financial Outlook Some figures may not tie due to rounding. Outlook as of 8/4/2026. Third Quarter Full Year Additional details Revenue $76M - $78M Low Teens Year-Over- Year Growth Outlook assumes Platform WAU will continue to increase sequentially during the back-half of the year Adjusted EBITDA $6.5M - $8M Approximately 10% Margin
Page 17
investors.nextdoor.com Questions
Page 18
Appendix
Page 19
19 Condensed Consolidated Balance Sheets in thousands, except per share data Some figures may not tie due to rounding. June 30, December 31, 2026 2025 Assets Current assets: Cash and cash equivalents $ 63,551 $ 63,341 Marketable securities 314,422 341,429 Accounts receivable, net of allowance of $517 and $491 as of June 30, 2026 and December 31, 2025, respectively 37,974 34,385 Prepaid expenses and other current assets 9,739 9,084 Total current assets 425,686 448,239 Restricted cash, non-current 8,156 8,379 Property and equipment, net 1,282 1,639 Operating lease right-of-use assets 10,039 11,575 Goodwill 1,211 1,211 Other assets 15,490 15,760 Total assets $ 461,864 $ 486,803 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 2,266 $ 2,498 Operating lease liabilities, current 8,842 8,900 Accrued expenses and other current liabilities 20,982 20,550 Total current liabilities 32,090 31,948 Operating lease liabilities, non-current 18,854 23,351 Other liabilities, non-current 294 221 Total liabilities 51,238 55,520 Stockholders’ equity: Class A common stock, $0.0001 par value; 2,500,000 shares authorized, 255,064 and 262,446 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 26 26 Class B common stock, $0.0001 par value; 500,000 shares authorized, 127,492 and 127,681 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 13 13 Additional paid-in capital 1,342,480 1,347,968 Accumulated other comprehensive income (loss) (67) 1,563 Accumulated deficit (931,826) (918,287) Total stockholders’ equity 410,626 431,283 Total liabilities and stockholders’ equity $ 461,864 $ 486,803
Page 20
20 Condensed Consolidated Statements of Operations in thousands, except per share data Some figures may not tie due to rounding. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue $ 74,554 $ 65,093 $ 136,223 $ 119,269 Costs and expenses: Cost of revenue 11,475 10,643 22,523 20,090 Research and development 32,985 34,622 65,001 68,116 Sales and marketing 21,054 24,334 40,700 46,446 General and administrative 14,706 15,770 28,995 31,906 Total costs and expenses 80,220 85,369 157,219 166,558 Loss from operations (5,666) (20,276) (20,996) (47,289) Interest income 3,834 4,774 7,870 9,756 Other income, net 4 408 18 628 Loss before income taxes (1,828) (15,094) (13,108) (36,905) Provision for income taxes 294 268 431 409 Net loss $ (2,122) $ (15,362) $ (13,539) $ (37,314) Net loss per share attributable to Class A and Class B common stockholders, basic and diluted $ (0.01) $ (0.04) $ (0.04) $ (0.10) Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted 381,056 382,709 383,923 383,517
Page 21
21 Condensed Consolidated Statements of Cash Flows in thousands Some figures may not tie due to rounding. Six Months Ended June 30, 2026 2025 Cash flows from operating activities Net loss $ (13,539) $ (37,314) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 685 1,058 Stock-based compensation 29,635 34,198 Accretion of investments (440) (1,378) Other 91 (175) Changes in operating assets and liabilities: Accounts receivable, net (3,615) 4,236 Prepaid expenses and other assets (426) 1,008 Operating lease right-of-use assets 1,536 1,404 Accounts payable (277) 3,892 Operating lease liabilities (4,555) (4,093) Accrued expenses and other liabilities 505 478 Net cash provided by operating activities 9,600 3,314 Cash flows from investing activities Purchases of property and equipment (243) (337) Purchases of marketable securities (122,088) (155,010) Sales of marketable securities 69,455 88,484 Maturities of marketable securities 78,438 98,516 Net cash provided by investing activities 25,562 31,653 Cash flows from financing activities Proceeds from issuance of common stock upon exercise of stock options 1,588 1,759 Proceeds from issuance of common stock under employee stock purchase plan 418 713 Tax withholdings on restricted stock units (8,470) (9,175) Repurchase of common stock (28,659) (14,528) Net cash used in financing activities (35,123) (21,231) Effect of exchange rate changes on cash and cash equivalents (52) (28) Net increase (decrease) in cash, cash equivalents, and restricted cash (13) 13,708 Cash, cash equivalents, and restricted cash at beginning of period 71,720 56,721 Cash, cash equivalents, and restricted cash at end of period $ 71,707 $ 70,429
Page 22
Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared in accordance with GAAP, we present non-GAAP cost of revenue, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, non-GAAP total operating expenses, adjusted EBITDA and adjusted EBITDA margin in this shareholder letter. 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 these 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. These 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 and 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 (if any), or the cash requirements necessary to service interest or principal payments on debt (if any), 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. A reconciliation of these non-GAAP measures has been provided on the following page. 22
Page 23
23 Adjusted EBITDA Reconciliation in thousands Some figures may not tie due to rounding. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net loss $ (2,122) $ (15,362) $ (13,539) $ (37,314) Depreciation and amortization 329 514 685 1,058 Stock-based compensation 14,873 17,107 29,635 34,198 Interest income (3,834) (4,774) (7,870) (9,756) Provision for income taxes 294 268 431 409 Adjusted EBITDA $ 9,540 $ (2,247) $ 9,342 $ (11,405) Net loss % Margin (3%) (24%) (10%) (31%) Adjusted EBITDA % Margin 13% (3%) 7% (10%)
Page 24
24 investors.nextdoor.com · ir@nextdoor.com