Nextdoor Holdings, Inc. (NYSE: NXDR), the essential neighborhood network, announced its financial results for the fourth quarter and full year ended December 31, 2025. The results indicate a steady progression in revenue generation despite some challenges in user engagement metrics.

1. Fourth Quarter Highlights

Nextdoor's performance in the fourth quarter of 2025 showcased a modest increase in revenue and a significant reduction in net loss compared to the previous year:

Revenue: The company reported revenue of $69 million, reflecting a 7% increase year-over-year (YoY) from $65 million in Q4 2024.

Platform Weekly Active Users (WAU): Total Platform WAUs stood at 21.0 million, which represents a 5% decline compared to the same quarter last year.

Net Loss: The net loss narrowed down to $4 million, a considerable improvement from the $12 million loss reported in Q4 2024.

Adjusted EBITDA: The adjusted EBITDA for the quarter was $8 million, up from $3 million in the prior year, demonstrating a 6 percentage point margin improvement.

2. Full Year Overview

For the full year ending December 31, 2025, Nextdoor exhibited a modest growth trajectory:

Annual Revenue: Total revenue reached $258 million, up 4% from $247 million in 2024.

Net Loss: The annual net loss reduced to $54 million, compared to $98 million in the previous year, indicating a strong commitment to improving financial health.

Adjusted EBITDA: The company achieved a positive adjusted EBITDA of $1 million, a notable recovery from the $18 million loss in 2024.

Liquidity Position: As of December 31, 2025, Nextdoor reported cash, cash equivalents, and marketable securities totaling $405 million, providing a solid foundation for future investments and growth.

3. Management Commentary

Nirav Tolia, CEO of Nextdoor, expressed optimism regarding the company's financial performance, stating, "Our Q4 results reflect steady progress and consistent execution across the business." He emphasized achieving record quarterly revenue and reaching positive full-year adjusted EBITDA a year ahead of schedule. Tolia highlighted the company's focus on enhancing user experience and leveraging artificial intelligence to better serve local communities.

Indrajit Ponnambalam, who recently assumed the role of CFO, noted, "I'm excited to report my first quarter as CFO with strong financial performance across the board." Ponnambalam underscored the significance of the 7% revenue growth, the substantial reduction in net loss, and the expanded adjusted EBITDA margin as indicators of the company's disciplined operational strategy.

4. Strategic Outlook

Nextdoor aims to unlock the full potential of its neighborhood graph by aligning content with real-world decisions made by users. Tolia reiterated that the company's value lies not in passive user engagement but in facilitating high-intent interactions that foster community connections. By employing AI technology, Nextdoor seeks to drive deeper user engagement and create sustainable long-term value for its stakeholders.

5. Conclusion

Nextdoor's Q4 and full-year results for 2025 signify a positive turning point as the company navigates its path to profitability. With a robust balance sheet and a commitment to enhancing user experience, Nextdoor appears well-positioned for continued growth in the competitive landscape of social networking.

For additional insights into Nextdoor's financial results and outlook for the first quarter and fiscal year 2026, the company will host a conference call today at 2:00 p.m. PT/5:00 p.m. ET. A live webcast of the earnings call will be available on Nextdoor’s Investor Relations website.

Original press release