Nextdoor Holdings Inc. Reports Q3 2025 Results: A Mixed Bag of Performance

For the three months ending September 30, 2025, Nextdoor reported 21.6 million Platform Weekly Active Users (WAU), a 3% decrease from the previous year. However, the company saw a positive shift in its Average Revenue per Platform Weekly Active User (ARPU), which increased by 8% to $3.19. This indicates that while the user base may be shrinking, the monetization of each user is improving.

Nextdoor's revenue for Q3 2025 reached $68.9 million, marking a 5% increase compared to the same period in 2024. For the year-to-date, revenue totaled $188.2 million, representing a 3% increase year-over-year. The financial results indicate that despite challenges with user engagement, the company's revenue model remains robust.

Total costs and expenses for the third quarter were $86.1 million, demonstrating a slight decrease of less than 1% from the previous year. Notably, Nextdoor reported a net loss of $12.9 million, an improvement of 14% from the $14.9 million loss recorded in Q3 2024. Year-to-date, the net loss decreased by 42% to $50.2 million. Adjusted EBITDA for the quarter came in at $4.4 million, a positive turnaround from a loss of $1.3 million in the prior year.

Nextdoor generates revenue primarily through advertising, utilizing various pricing models such as cost per thousand (CPM) and cost per click (CPC). The company has focused on optimizing its cost structure, particularly in the cost of revenue, which decreased by 6% to $10.8 million. This reduction is largely attributed to lower third-party hosting costs.

Interestingly, Nextdoor increased its investment in research and development, with expenses rising by 12% to $35.5 million for Q3 2025. This is indicative of the company’s commitment to innovation and enhancing user experience, despite the need for cost management in other areas.

Sales and marketing expenses decreased by 9% to $24.0 million, primarily due to reduced performance marketing costs. General and administrative expenses also saw a decrease of 6% to $15.5 million, reflecting lower personnel-related costs. These reductions are part of Nextdoor’s broader strategy to streamline operations and improve financial performance.

As of September 30, 2025, Nextdoor held $403.3 million in cash, cash equivalents, and marketable securities. However, the company reported negative cash flows from operations, with cash used amounting to $3.0 million for the nine months ending September 30, a significant improvement from $32.0 million in the same period last year.

Nextdoor's Board of Directors approved an increase of $150 million to its existing Share Repurchase Program, which extends until March 31, 2026. During the nine months ending September 30, 2025, the company repurchased 8,409,278 shares at an average price of $1.72 per share, totaling $14.5 million.

Nextdoor's third-quarter results showcase a company at a crossroads. While revenue growth and improved ARPU are encouraging signs, the decline in active users and historical operating losses present ongoing challenges. Management remains focused on investment in research and development while also seeking to optimize costs and improve profitability.

As Nextdoor continues to adapt to the evolving landscape of social networking and community engagement, stakeholders will be watching closely to see how the company addresses user engagement and capitalizes on its monetization strategies in the upcoming quarters.