Nextdoor Q2 Earnings Call Highlights

Nextdoor exceeded Q2 guidance: Revenue rose 15% year over year to $75 million, adjusted EBITDA reached $10 million, and weekly active users increased 5% to a record 22.9 million. Self-serve advertising revenue grew 32% and represented about 67% of total revenue, driven by better advertiser performance, pricing and customer spending rather than increased ad volume. Nextdoor expects low-teens revenue growth and an adjusted EBITDA margin of approximately 10% for full-year 2026, supported by continued user growth, product investments and a strong debt-free balance sheet with $378 million in cash and marketable securities.

Nextdoor NYSE: KIND reported second-quarter results that exceeded its guidance, with revenue rising 15% year over year and weekly active users reaching a record level as the company continued to emphasize product improvements, user-generated content and advertising efficiency. Chief Executive Officer Nirav Tolia described the period as a “landmark quarter” and said the company delivered its strongest financial performance to date. Platform weekly active users, or WAU, reached 22.9 million, up 5% from a year earlier and higher sequentially for a second consecutive quarter.

Revenue totaled $75 million, above the company’s prior outlook of $71 million to $73 million. Adjusted EBITDA was $10 million, representing a 13% margin and an approximately $12 million year-over-year improvement. GAAP net loss was $2 million, or a negative 3% margin.

Tolia said Nextdoor’s recent progress reflected the cumulative effect of numerous product changes rather than a single feature or marketing initiative. The company has focused on making its platform more useful and relevant through feed-ranking improvements, expanded video features, a rebuilt events experience, more targeted notifications and verified accounts for local journalists. The company also worked to increase participation from users, including by prompting active commenters to create their first posts and improving post insights so users can see the reach of their contributions. Tolia said contributors reached a multiyear high during the quarter, while unique posters, post volume and comments increased. “The future of Nextdoor isn't just built by getting more people to consume content,” Tolia said. “It's built by getting more neighbors to create it.” During the call, Tolia and Chief Financial Officer Indrajit Ponnambalam characterized WAU growth as organic and durable. Ponnambalam said two consecutive quarters of sequential WAU growth provided greater confidence that the trend reflects the impact of product investments, though he noted the company was not yet prepared to quantify the expected pace of future increases. Management said its outlook for further WAU growth in the second half does not depend on a significant increase in brand or performance marketing. Instead, the company plans to continue prioritizing product improvements, retention and net promoter score gains before materially stepping up marketing investments.

Nextdoor said revenue growth was broad-based, led by its self-serve advertising channel. Self-serve revenue increased 32% year over year, accelerating from 28% growth in the first quarter, and represented roughly 67% of total revenue. Ponnambalam said revenue gains did not come from a higher advertising load. Instead, he attributed the performance to improvements in advertiser results and revenue yields. He added that ARPU growth during the second quarter was primarily driven by pricing rather than impressions. The company’s U.S. dire...