Nextdoor (NYSE:NXDR) reported third-quarter revenue and adjusted earnings above its guidance as weekly active users grew for a third consecutive quarter, helped by product changes and the return of previously inactive users.
Revenue rose 14% year over year to $78.8 million, exceeding the company’s forecast of $76 million to $78 million. Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, reached $10.3 million, above its guidance of $6.5 million to $8 million.
Platform weekly active users reached a record 24.5 million, up 7% from the prior quarter and 14% from a year earlier. Chief Executive Officer and Co-Founder Nirav Tolia said those were the fastest sequential and year-over-year growth rates since Nextdoor began reporting the metric.
For the fourth quarter, the company forecast revenue of $78 million to $80 million and adjusted EBITDA of $10 million to $11 million. It expects weekly active users to be flat sequentially, reflecting typical seasonality, but to rise more than 15% year over year.
Returning users drive engagement
Tolia attributed the user growth to the reactivation of Nextdoor’s existing user base, rather than material spending on paid user acquisition. He said improvements to the feed and notifications have helped make the platform more relevant to users.
Weekly contributors—users who post, comment or react—grew 12% sequentially and 27% year over year, outpacing growth in overall weekly active users. Tolia said the increase in contributions creates more content that Nextdoor can use to personalize the experience.
“Our notifications are being opened more versus us just needing to send more emails and more mobile notifications to activate more users,” Tolia said.
Nextdoor plans to simplify posting and test ways for active users to play a larger role in their communities. It also plans to introduce AI-generated catch-up summaries in the main feed for less frequent visitors and let users pause notifications.
Advertising growth and AI plans
Self-serve advertising revenue grew 35% year over year and accounted for approximately 69% of total revenue, compared with 59% a year earlier, Chief Financial Officer Indrajit Ponnambalam said. The channel includes both national advertisers and small and medium-sized businesses.
Revenue rose without an increase in the number of ads shown per user, while average revenue per user, or ARPU, increased 1%. Ponnambalam said rapid user growth had moderated ARPU growth, in part because returning users are initially less active and take time to become more engaged.
Nextdoor is working on dynamic product ads, multi-location ads and early trials of app-install ads. Ponnambalam said their impact would likely be relatively small in the fourth quarter because some are just rolling out or in beta, but he expects them to provide more tools for advertisers in 2027. The company did not provide a financial outlook for next year.
The company also brought its Ask AI feature into search for all U.S. users, allowing them to receive answers drawn from local conversations, recommendations and businesses. Tolia said Nextdoor had not seen a decline in usage associated with the shift toward AI answers and does not depend on Google Search for distribution.
Separately, neighbors cast about 5 million votes for 750,000 local businesses during September’s Faves Awards, Tolia said. Nextdoor is displaying Fave counts on local business ads.
Profitability and cash position
Nextdoor reported a third-quarter GAAP net loss of $0.7 million. Its adjusted EBITDA margin was 13%, with the beat against guidance driven by stronger revenue and the timing of certain expenses, Ponnambalam said.
The company ended the quarter with $382 million in cash, equivalents and marketable securities and no debt. Operating cash flow was $28 million for the first nine months of 2026, a $31 million improvement from the same period a year earlier.
Nextdoor repurchased roughly 3 million shares for about $7 million during the quarter, leaving approximately $93 million available under its $100 million authorization at quarter-end. Ponnambalam said the company plans to continue buying shares opportunistically.
About Nextdoor (NYSE:NXDR)
Nextdoor Holdings, Inc operates Nextdoor, a social networking platform designed to connect people with others in their local communities. The platform enables verified neighbors to share recommendations, local news, safety information, event announcements, alerts, and other community updates.
In addition to its consumer platform, Nextdoor provides tools for local businesses, public agencies, nonprofit organizations, and other community organizations. These users can create business or agency pages, communicate with nearby residents, promote products and services, and distribute relevant information.
