One-glance verdict
Overvalued
$1.84 our estimate vs market $2.60
Wall Street consensus: $3.35 (81.8% higher than our fair-value estimate)
41% above our estimate, beyond the bull case
Fundamentals snapshot
Nextdoor Holdings, Inc.
NXDR · NCM · Communication Services · Internet Content & Information
Current price
$2.60
52-week range
$2.43 - $2.64
Market cap
$1.01B
Balance sheet
Healthy
-3.84x Concerning
Net cash $350.28M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 6.6% last year.
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -7.2% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 3.5% (peer median: 4.0%).
What this company does
Nextdoor Holdings, Inc.
Nextdoor Holdings, Inc. runs an online platform that connects people in their local neighborhoods, allowing them to share news, discuss local topics, and find services and businesses. The money they make likely comes from local businesses advertising on their platform and possibly premium features for users or businesses, which is important because it shows how they plan to make money and grow their service.
How the company got here
Nextdoor was founded in 2008 by four entrepreneurs who saw a need for a dedicated online space for neighborhoods. The platform officially launched in 2011, aiming to be a private social network for local communities. Initially, content was confined to individual neighborhoods, but events like the California fires highlighted the need for broader community communication. The company went public in 2021 through a special purpose acquisition company (SPAC) merger. In March 2024, co-founder Nirav Tolia returned as CEO to lead the company's strategic direction.
What it actually does
Nextdoor operates a social networking platform focused on connecting people within their local neighborhoods. It serves as a digital space where neighbors can share information, discuss local issues, and exchange goods and services. The platform also facilitates connections between residents, local businesses, and public agencies. Nextdoor's core value proposition lies in its verified user base, which aims to create a trusted environment for local news, safety alerts, and recommendations.
Advertising Services
Nextdoor's primary way of making money is through advertising. Businesses pay to reach local customers on the platform, using models like cost per thousand impressions (CPM) or cost per click (CPC). This means companies pay either for every thousand times their ad is shown or for each time someone clicks on their ad. The platform's hyper-local focus makes it attractive to advertisers who want to target consumers in specific geographic areas who are likely to make purchasing decisions.
Local Marketplace
The Local Marketplace is a feature within Nextdoor that allows neighbors to buy, sell, or give away items within their own communities. While this feature facilitates neighbor-to-neighbor transactions, it is not a primary revenue driver for Nextdoor itself. Instead, it contributes to the overall engagement and utility of the platform, which in turn supports the advertising business.
What management is betting on now
Nextdoor's current strategy focuses on building an "active valued community" by enhancing product relevance and fostering deeper engagement among neighbors, businesses, and public services. Management is working to improve the platform's utility and encourage habitual use, aiming to strengthen its position as a trusted local network. The company is also focused on improving advertising performance and maintaining operating discipline. Additionally, Nextdoor has authorized significant share repurchase programs, indicating a strategy to return value to shareholders by buying back its own stock.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-13.16M
FY2024 Q4
$11.67M
FY2025 Q1
$340.00K
FY2025 Q2
$2.64M
FY2025 Q3
$-6.48M
FY2025 Q4
$9.39M
FY2026 Q1
$1.18M
FY2026 Q2
$8.18M
Revenue
$74.55M
Net income
$-2.12M
Diluted EPS
-0.01
Operating cash flow
$8.35M
Free cash flow
$8.18M
Fetching…
Sources
Revenue
$61.67M
Net income
$-11.42M
Diluted EPS
-0.03
Operating cash flow
$1.25M
Free cash flow
$1.18M
Fetching…
Sources
Revenue
$69.48M
Net income
$-4.03M
Diluted EPS
-0.01
Operating cash flow
$9.47M
Free cash flow
$9.39M
Fetching…
Sources
Revenue
$68.90M
Net income
$-12.86M
Diluted EPS
-0.03
Operating cash flow
$-6.32M
Free cash flow
$-6.48M
Fetching…
Sources
Revenue
$65.09M
Net income
$-15.36M
Diluted EPS
-0.04
Operating cash flow
$2.95M
Free cash flow
$2.64M
Fetching…
Sources
Revenue
$54.18M
Net income
$-21.95M
Diluted EPS
-0.06
Operating cash flow
$368.00K
Free cash flow
$340.00K
Fetching…
Sources
Revenue
$65.23M
Net income
$-12.12M
Diluted EPS
-0.03
Operating cash flow
$11.76M
Free cash flow
$11.67M
Fetching…
Sources
Revenue
$65.61M
Net income
$-14.90M
Diluted EPS
-0.04
Operating cash flow
$-12.97M
Free cash flow
$-13.16M
Fetching…
Sources
Is it cheap or expensive?
Fair value $1.84 vs current price $2.60
Wall Street consensus is the average analyst price target: $3.35 (81.8% higher than our fair-value estimate).
Our most-likely fair value is $1.84 a share — about 29.2% below today's price of $2.60, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $350.3M - more cash than debt. Interest coverage -3.8x.
Net debt
$-350.28M
Interest coverage
-3.84x
Nextdoor Holdings, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
NXDR
BASELINE
Nextdoor Holdings, Inc.
Total debt $27.70M Interest coverage -3.84x This is the baseline the peer rows are being compared against.
Total debt $123.30M Interest coverage 13.37x This peer still has a real interest-payment cushion, while NXDR does not.
Total debt $459.82M Interest coverage 5.67x This peer still has a real interest-payment cushion, while NXDR does not.
Total debt $402.74M Interest coverage -9.22x Neither company has much profit cushion over interest right now.
Total debt $77.66M Interest coverage 8.06x This peer still has a real interest-payment cushion, while NXDR does not.
Total debt $112.32B Interest coverage 71.48x This peer still has a real interest-payment cushion, while NXDR does not.
What you should know
The case for and against NXDR
2 Rewards
2 Risks
Rewards
-
Revenue grew 6.6% last year.
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -7.2% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 3.5% (peer median: 4.0%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-71.04x
P/B
2.43x
P/S
3.67x
EV/EBITDA
-17.00x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
84.2%
Operating margin
-7.6%
Net margin
-11.1%
ROE
-7.2%
ROA
-5.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.07x
Current ratio
13.27x
Quick ratio
12.96x
Total debt
$27.70M
Total cash
$377.97M
Growth
How the business has been compounding
Revenue TTM
$274.60M
Revenue 5Y CAGR
7.6%
EPS TTM
-0.08
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$12.76M
Free CF TTM
$5.89M
FCF margin
2.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
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