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Jun 30, 2025
Nextdoor Q2 2025 Earnings Report
Estimated Revenue:$60.4M
+2.3% YoY
Estimated EPS:-$0.05
+26.7% YoY
Key Takeaways
Nextdoor delivered a strong second quarter in 2025, with revenue increasing 3% year-over-year to $65 million and Platform Weekly Active Users (WAU) growing 1% to 21.8 million. The company significantly reduced its net loss to $15 million from $43 million in the prior year and improved its Adjusted EBITDA loss to $2 million from $6 million, demonstrating a 6 percentage point margin improvement. Nextdoor also announced a restructuring plan to reduce annualized operating expenses by approximately $30 million, aiming for quarterly adjusted EBITDA breakeven in Q4 2025 and full-year adjusted EBITDA breakeven in FY 2026.
Revenue for Q2 2025 reached $65 million, marking a 3% increase year-over-year.
Platform Weekly Active Users (WAU) grew to 21.8 million, up 1% compared to the same period last year.
Net loss significantly improved to $15 million from $43 million in Q2 2024, and Adjusted EBITDA loss narrowed to $2 million from $6 million.
The company initiated a restructuring plan, including workforce reduction, projected to save approximately $30 million in annualized operating expenses.
Forward Guidance
Nextdoor expects to achieve quarterly adjusted EBITDA breakeven in Q4 2025 and full-year adjusted EBITDA breakeven in FY 2026, supported by a restructuring plan to reduce operating expenses.
Positive Outlook
- Expects to achieve quarterly adjusted EBITDA breakeven in Q4 2025.
- Anticipates full-year adjusted EBITDA breakeven in FY 2026.
- Restructuring plan to reduce annualized operating expenses by approximately $30 million.
- The new Nextdoor platform, launched in mid-July, is expected to serve as a strong foundation for future user engagement and monetization growth.
- Positive operating cash flow for the third straight quarter.
Challenges Ahead
- Matthew Anderson is resigning from his position as Chief Financial Officer, effective September 1, 2025.
- The company is initiating a comprehensive search for a new Chief Financial Officer.
- The restructuring plan includes a reduction in workforce, which may impact employee morale.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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