Nextdoor Q3 2026 Earnings: Revenue Rises 14% as Loss Narrows

Nextdoor (Nasdaq: NXDR) reported Q3 2026 revenue of $78.8 million, up 14% from $68.9 million a year earlier, while GAAP net loss narrowed to $0.7 million from $12.9 million. Platform weekly active users rose 14% to 24.5 million, and adjusted EBITDA increased to $10.3 million from $4.4 million, lifting its margin by seven percentage points to 13%.

Core Earnings Data

For the three months ended September 30, 2026, Nextdoor reduced its operating loss by $13.0 million while continuing to expand revenue. Alongside the top-line increase, stock-based compensation declined to $14.3 million from $16.6 million, and the company recorded no restructuring charges compared with $4.7 million a year earlier.

The improvement was also visible on a non-GAAP basis, with adjusted EBITDA more than doubling and its margin expanding to 13%.

Platform WAU and Revenue Both Grew 14%

Platform weekly active users reached 24.5 million, increasing 14% year over year and marking a third consecutive quarter of sequential growth. Revenue rose at the same year-over-year rate, meaning the top line kept pace with active-user expansion on the headline measures.

The release did not disclose revenue per user, advertising volume, pricing, or geographic performance. As a result, it is not possible to determine how much of the revenue increase came from audience growth versus changes in monetization.

Stock-Based Compensation Kept Operations in the Red, While Interest Income Cushioned the Net Loss

Nextdoor’s $10.3 million of adjusted EBITDA contrasted with a $4.2 million GAAP operating loss. Stock-based compensation was the largest reconciling item at $14.3 million, exceeding adjusted EBITDA and remaining a material recurring expense despite declining from the prior year.

The company earned $3.8 million of interest income during the quarter, which helped reduce the operating loss to a net loss of less than $1 million. This means the near-breakeven bottom line reflected both improved operations and income generated outside the core business.

Cash Flow and Balance Sheet

Nextdoor generated $28 million of operating cash flow during the first nine months of 2026. This is a year-to-date figure rather than Q3 cash flow, and the release did not provide free cash flow or capital expenditure data.

Cash, cash equivalents, and marketable securities totaled $382 million as of September 30. Management said this liquidity allows the company to continue investing while repurchasing shares opportunistically, although no quarterly repurchase amount was disclosed.

Guidance

Nextdoor expects Q4 revenue and adjusted EBITDA to remain close to their Q3 levels. At the midpoint, Q4 revenue guidance of $79 million is approximately level with Q3 revenue of $78.8 million, while the adjusted EBITDA midpoint of $10.5 million is slightly above the Q3 result.

Management said the full-year revenue outlook remains consistent with the low-teens growth range provided in the prior quarter. Nextdoor did not reconcile its adjusted EBITDA outlook to GAAP net loss because future stock-based compensation and other items cannot be reasonably predicted.

Recent Insider Transactions

The supplied six-month data shows 3,544,921 shares purchased across 31 transactions and 704,780 shares sold across 15 transactions, resulting in net purchases of 2,840,141 shares. However, the latest transactions with stated terms included four direct sales with a combined reported value of about $328,789 and one derivative-security conversion.

These transactions do not by themselves establish insiders’ views on Nextdoor’s outlook. Several other October 15 filings lacked a stated transaction type or amount and are therefore omitted.

Risks Investors Should Watch

• Limited sequential revenue growth: The midpoint of Q4 guidance is approximately flat with Q3, making continued year-over-year growth dependent on maintaining user activity and monetization.
• GAAP profitability remains unfinished: Nextdoor still reported an operating loss, and the near-breakeven net result benefited from $3.8 million of interest income.
• Stock-based compensation remains material: At $14.3 million, it was larger than quarterly adjusted EBITDA and creates a substantial difference between GAAP and non-GAAP results.
• Cash-conversion visibility is limited: The company disclosed $28 million of nine-month operating cash flow but did not provide quarterly operating cash flow, free cash flow, or capital expenditures.

Summary

Nextdoor’s Q3 2026 results combined matching 14% growth in revenue and platform WAU with a sharply narrower GAAP loss and a higher adjusted EBITDA margin. The next points to monitor are whether user growth continues, whether revenue can reaccelerate from the roughly flat sequential Q4 outlook, and whether Nextdoor can reduce stock-based compensation and its operating loss while sustaining positive cash generation.