Nextdoor Reports 3% Revenue Growth to $65.1 Million in Q2 2025

Nextdoor Holdings, Inc. reported its financial results for the second quarter of 2025, revealing a revenue of $65.1 million, a 3% increase from $63.3 million in the same period last year. For the first half of 2025, revenue reached $119.3 million, up 2% from $116.4 million in the first half of 2024. The company attributed this growth primarily to increased advertising spending and a slight rise in active users, with Platform Weekly Active Users (WAU) increasing by 1% to 21.8 million. Despite the revenue growth, Nextdoor recorded a net loss of $15.4 million for the quarter, a significant reduction from the $42.8 million loss reported in Q2 2024.

Total costs and expenses for the second quarter decreased by 24% to $85.4 million, compared to $112.3 million in the prior year. This reduction was driven by a notable decrease in general and administrative expenses, which fell by 61% to $15.8 million, largely due to restructuring costs incurred in the previous year. Research and development expenses increased by 11% to $34.6 million, reflecting higher personnel-related costs associated with an expanded workforce. Sales and marketing expenses also decreased by 20% to $24.3 million, attributed to a reduction in headcount and marketing costs.

Nextdoor's operational metrics showed a slight improvement in user engagement, with the average revenue per Platform WAU rising by 2% to $2.99. The company continues to focus on enhancing its platform and expanding its user base, which now includes over 100 million verified neighbors. The firm also reported cash, cash equivalents, and marketable securities totaling $413.3 million as of June 30, 2025, providing a solid liquidity position to support ongoing operations and strategic initiatives.

In terms of strategic developments, Nextdoor announced a cost reduction plan on August 7, 2025, aimed at aligning its workforce and expenses with business priorities. The company expects to incur one-time charges of approximately $5 million related to this plan, which includes severance payments and other costs. The execution of this plan is anticipated to be largely completed by the end of the third quarter of 2025.

Looking ahead, Nextdoor remains focused on scaling its business and enhancing monetization efforts. The company acknowledges the challenges posed by the current economic environment, including potential impacts from inflation and changes in advertising spending. However, it aims to leverage its strong user base and improve engagement to drive future growth. The management's outlook emphasizes the importance of strategic investments in technology and product development to sustain long-term profitability.