Nextdoor Q3 Revenue Hits Record as Net Loss Narrows

Nextdoor (NXDR) reported its highest quarterly revenue and Platform Weekly Active Users on record in the third quarter of 2026, while stronger sales and lower operating expenses reduced its GAAP net loss to less than $1 million. The neighborhood network also issued fourth-quarter and full-year outlook ranges that call for continued positive adjusted EBITDA.

Revenue rose 14% year over year to $78.8 million, or approximately $79 million, exceeding the company’s guidance. Nextdoor said growth was broad-based across sales channels, with self-serve revenue increasing 35% and accounting for 69% of quarterly revenue. Platform average revenue per user improved 1% from a year earlier.

Platform WAU reached 24.5 million, up 14% year over year and 7% sequentially. That marked a third consecutive quarter of sequential growth and an all-time high for Nextdoor. The company attributed the sequential increase to ongoing product investment. Platform WAU measures users who open the Nextdoor application or log on to its website at least once during a defined seven-day period.

Loss Narrows as Operating Leverage Improves

Nextdoor recorded a third-quarter GAAP net loss of $659,000, compared with a loss of $12.9 million a year earlier. Net margin improved to negative 1% from negative 19%, an 18-percentage-point change that the company attributed to revenue growth and lower GAAP operating expenses.

The GAAP operating loss narrowed to $4.2 million from $17.2 million. Total costs and expenses declined to $83.0 million from $86.1 million even as revenue increased.

Adjusted EBITDA, a non-GAAP measure, rose to $10.3 million from $4.4 million and exceeded the company’s guidance. Adjusted EBITDA margin reached 13%, compared with 6% in the prior-year quarter. Non-GAAP operating expenses totaled $68.3 million, equal to 87% of revenue, versus $64.4 million and 93% of revenue a year earlier.

Stock-based compensation declined 14% year over year to $14.3 million. It represented 18% of revenue, down six percentage points from 24%. Nextdoor said annualized revenue per full-time employee increased 23% to $678,000, reflecting its focus on productivity.

The company ended September with $381.7 million in cash, cash equivalents and marketable securities. Operating cash flow for the first nine months of 2026 was $28.1 million, compared with a $3.0 million outflow in the same period of 2025. Nextdoor also repurchased about 3 million shares for approximately $7 million during the quarter.

Product and Monetization Priorities

Nextdoor’s near-term product plans center on increasing user contributions and improving access to neighborhood information. Priorities include expanding Faves, its local business recommendation feature; developing Ask from instant answers toward neighbor-powered assistance; and introducing smarter notifications and AI-generated neighborhood summaries.

On monetization, the company plans to develop performance advertising formats for products, multiple locations and app installations. It is also focusing on hyperlocal targeting and measurement through Neighborhood Intelligence, along with faster onboarding, additional lead-generation partners and more products for local businesses.

Fourth-Quarter and Full-Year Outlook

For the fourth quarter of 2026, Nextdoor expects revenue of $78 million to $80 million and adjusted EBITDA of $10 million to $11 million. The outlook assumes Platform WAU will remain flat sequentially because of typical fourth-quarter seasonality.

For the full year, management expects revenue of $293 million to $295 million and adjusted EBITDA of $30 million to $31 million. The company did not provide a reconciliation of its adjusted EBITDA outlook to GAAP net loss, citing uncertainty around items including stock-based compensation.

Nextdoor identified several uncertainties that could affect its outlook, including its ability to scale monetization, retain users and customers, gain market acceptance for new products, and execute strategic initiatives. Other cited risks include competition, macroeconomic and regulatory developments, international expansion, cybersecurity, privacy requirements, and the use of artificial intelligence and machine-learning features on its platform.