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DATE

Wednesday, May 6, 2026 at 5 p.m. ET

CALL PARTICIPANTS

  • Chief Executive Officer — Nirav Tolia
  • Chief Financial Officer — Indrajit Ponnambalam
  • Operator

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TAKEAWAYS

  • Revenue -- $62 million, up 14% year over year, surpassing the prior guidance range of $57 million to $59 million.
  • Platform Weekly Active Users (WAU) -- 22.3 million, a sequential increase from 21 million in Q4, and slightly up from 22 million in Q1 the previous year.
  • Adjusted EBITDA -- Approximately breakeven at negative $200 thousand, a year-over-year improvement of $9 million, and better than the prior guide of negative $4 million to negative $6 million.
  • GAAP Net Loss -- $11 million with a negative 19% margin, a 22-point margin improvement year over year.
  • Revenue Per Employee -- Increased 31% year over year, indicating sustained productivity improvements.
  • Self-Serve Advertising Channel -- Drove 28% revenue growth year over year, now accounting for 68% of total revenue.
  • Share Repurchase Activity -- 17 million shares bought back for $29 million at an average price of $1.69 per share.
  • Cash and Securities -- Ended the quarter with $373 million in cash, cash equivalents, and marketable securities; no debt reported.
  • Authorization of New Share Repurchase Program -- Board approved an additional $100 million buyback program effective through June 2028.
  • Q2 2026 Outlook -- Revenue guidance set at $71 million to $73 million, with adjusted EBITDA targeted between $4 million and $6 million.
  • Full-Year 2026 Outlook Update -- Revenue growth now projected at approximately 10%, with adjusted EBITDA margin expected in the high single-digit percentage range.
  • AI-Driven Product Enhancements -- Implementation of machine learning in areas such as feed personalization, content summarization, and click optimization for international markets.
  • Expansion of Monetization and Verification Initiatives -- Broader adoption of opportunity alerts for local service providers and ongoing expansion of identity verification for users and businesses.
  • Product Engagement Features -- Launched threaded conversations, pinned comments, richer media formats, and introduced down-ranking for self-promotional content.

SUMMARY

Nextdoor Holdings (NXDR 1.81%) reported sequential growth in weekly active users, marking the company’s first positive inflection in this metric for several quarters. Management emphasized a deliberate focus on raising content quality and personalization through machine learning, seeking to activate more of its large verified user base. The self-serve advertising platform continued to deliver strong revenue contribution and international expansion, notably into Canada and the United Kingdom, with new machine learning-based products. Operating leverage improved as cost discipline and higher productivity drove margins closer to breakeven despite the revenue growth. A new share buyback was authorized, and the company updated guidance, forecasting higher annual revenue growth and improved adjusted EBITDA margin. Management described the ongoing rollout of features to foster trusted, verified, and relevant neighborhood interactions as a foundational strategy for long-term monetization and differentiation in an AI-driven content environment.

  • Management highlighted growth in unique content contributors as supporting higher quality and engagement potential within the platform.
  • AI integration will include broader usage of content summarization and user profiling for deeper personalization, with early experiments described as “encouraging.”
  • The company stated that monetization gains are being realized without requiring material acceleration in user growth, emphasizing improvements in intent matching and advertiser outcomes.
  • International ad monetization enhancements, such as click optimization in the U.K, produced meaningful cost-per-click reductions during the beta period.

INDUSTRY GLOSSARY

  • WAU (Weekly Active Users): Number of platform users who engage directly with the app or website at least once per week.
  • eCPM (Effective Cost Per Mille): Average advertising revenue from 1,000 ad impressions, factoring in all types and sources of ad sales.
  • Opportunity Alerts: Nextdoor Holdings' tool that connects neighbors seeking service recommendations with local service providers, supporting direct monetization beyond display advertising.

Full Conference Call Transcript

Nirav Tolia: Thank you, Indrajit, and good afternoon, everyone. I am pleased to report that Q1 was a standout quarter for Nextdoor Holdings, Inc. Platform weekly active users reached an all-time high, revenue grew 14% year over year, and we delivered meaningful improvements in profitability. Here are the highlights. Platform WAU reached 22.3 million, marking our first positive inflection point in several quarters. Revenue was $62 million, up 14% year over year. And adjusted EBITDA was nearly breakeven, a $9 million improvement year over year. These results represent a real step change in the business, and what is especially encouraging is the momentum we built as the quarter progressed.

In our last earnings call, we laid out the five key drivers of our investment thesis. In Q1, we delivered material progress across each of them. Let me walk through that progress focusing on the first three. We start, as always, with our unique core asset: 350 thousand neighborhoods and 10 million verified neighbors, roughly one in three U.S. households. This quarter, we continued to strengthen the integrity of that graph by expanding verification for both neighbors and local businesses. That is what keeps Nextdoor Holdings, Inc. real, and what makes every recommendation, alert, and conversation on the platform meaningful. Next is high-intent engagement, where we are revitalizing the core community experience.

We introduced threaded conversations, pinned comments, and smarter linking. We added richer media in the feed and improved performance through latency and infrastructure work. And for the first time, we began down-ranking self-promotional content. At the same time, Nextdoor Holdings, Inc. continues to show up when it matters most. As we saw again this quarter, engagement increases during severe weather events and moments of local need. During the winter storms, neighbors turned to our platform for real-time updates on road closures, power outages, and which local businesses were still open. This was yet another example of how our product can serve as an essential lifeline for communities. Our third driver is monetization pathways, and Q1 was an important proof point.

We entered the year with a clear thesis: Closing the monetization gap does not require a step change in user growth; it requires better matching of intent to outcomes. And in Q1, we saw that working across multiple surfaces. For example, local service providers are reaching neighbors at the moment they are actively asking for recommendations and are seeing strong engagement and conversion as a result. I will leave it to Indrajit to cover the fourth and fifth drivers, our validated business model and founder’s mentality. As we look towards Q2, we will stay focused on continuing the momentum. Our priorities include improving content relevance, deepening engagement, expanding recommendations, strengthening distribution, and advancing our AI and machine learning capabilities.

Speaking of AI, I would like to close with why I am more confident than ever in Nextdoor Holdings, Inc.'s position in an AI-driven world. As machine-generated content increases, truly verified human content becomes more scarce and more valuable. We have spent 15 years building a network of over 110 million verified neighbors across 350 thousand neighborhoods. That network generates first-party content that is continuously refreshed, rooted in real identity, and grounded in local context. That foundation puts us in a uniquely strong position. AI allows us to unlock significantly more value from that network by making it easier to find relevant information, summarize conversations, and connect neighbors to the people and insights that matter most in their local community.

But what truly differentiates Nextdoor Holdings, Inc. is the connection to the people behind that information. The neighbor who knows the best contractor, the parent a year ahead of you making the same school decision, the local business that others genuinely trust. That is also what powers our recommendations experience. When a neighbor asks for a plumber or a babysitter, they are not just getting a list. They are getting trusted input from people nearby who have actually made that choice. AI can make these connections faster, more relevant, and more accessible, but it cannot replace the trust and context that comes from real neighbors.

And that combination—AI-powered discovery built on a foundation of verified local identity—is what gives us confidence in Nextdoor Holdings, Inc.'s position in the years ahead. With that, I will hand it over to Indrajit to walk through the quarter in more detail and discuss our outlook.

Indrajit Ponnambalam: Thanks, Nirav. As Nirav described, Q1 was a strong quarter that reinforced the progress we are making across the business. Let me walk you through the details. Q1 platform weekly active users, or WAU—which measures users who engage directly on the Nextdoor Holdings, Inc. app or website—was 22.3 million. This represents a meaningful sequential increase from 21 million in Q4, reversing the prior sequential trend and hitting an all-time high for Nextdoor Holdings, Inc. Year over year, platform WAU was up slightly from Q1 2025’s 22 million. This sequential improvement reflects the compounding impact of the product investments we have made the past several quarters: more relevant content, smarter notifications, and an overall better user experience.

As I have said before, platform WAU is a lagging indicator of the product investments we are making. We are encouraged by the sequential improvement, although we continue to expect short-term fluctuations in WAU in the coming quarters. Turning now to revenue. Q1 revenue was $62 million, up 14% year over year. This represents a significant acceleration from Q4’s 7% year over year and finished well ahead of our guidance range of $57 million to $59 million. Q1 is historically our softest quarter for advertising demand, which makes this performance especially encouraging. Revenue growth is broad-based.

Our self-serve channel continues to be a growth engine, growing 28% year over year and now comprising roughly 68% of total revenue, with continued improvement in advertiser performance, revenue yields, and retention. Every major monetization channel contributed to growth this quarter, from small local advertisers to large national brands. Our ad stack improvements, including AI-assisted targeting and optimization and new ad formats, are delivering measurable results for advertisers of all sizes, increasing eCPMs while reducing lower-quality backfill. Outside the U.S., we also expanded self-serve into Canada and brought click optimization to the U.K., our first ML-powered performance product in that market, delivering meaningful CPC reductions in our beta period.

Q1 GAAP net loss was $11 million, or a negative 19% margin, representing 22 points of year-over-year margin improvement. Q1 adjusted EBITDA was near breakeven at negative $200 thousand. This compares to the negative $4 million to negative $6 million we guided to last quarter and represents an approximately $9 million improvement year over year. Even in our seasonally softest quarter, we achieved near-breakeven adjusted EBITDA, a meaningful milestone that underscores the operating leverage in our model. We continue to drive productivity improvements across the organization; revenue per employee increased 31% year over year in Q1, building on the gains we have driven over the past two years. Turning to capital allocation.

During Q1, we repurchased 17 million shares for $29 million at an average price of $1.69 per share. We ended Q1 with $373 million in cash, cash equivalents, and marketable securities, and we continue to have no debt on our balance sheet. Today, we are also announcing that we have authorized a new $100 million share repurchase program effective through June 2028. This gives us the flexibility to act opportunistically while preserving our ability to invest in growth and pursue strategic opportunities.

As Nirav outlined, these financial results reflect drivers four and five of our investment thesis in action: a business model validated through the improved operating leverage in our financial results and a discipline around trade-offs that aligns network health with maximizing long-term shareholder value. Now let me turn to our financial outlook. Given the momentum we are seeing, we are providing guidance for Q2 and updating our full-year 2026 outlook. For Q2 2026, we expect revenue of $71 million to $73 million and adjusted EBITDA of $4 million to $6 million. Based on our strong start to the year, we are raising our full-year expectations.

We now expect to achieve approximately 10% revenue growth for the full year and an adjusted EBITDA margin in the high single-digit range, up from the mid single-digit margin guidance I provided in our last earnings call. This reflects our expected revenue trajectory, continued operating discipline, and expanding leverage we are seeing across the business. We will now open the call for questions. We will structure it in a similar manner to last quarter. We will start by taking live questions from our covering analysts. After that, we will take some questions submitted by our investors. With that, operator, let us open the line for questions.

Operator: Thank you. We will now begin the question-and-answer session. If you would like to ask a question, please press star followed by one on your telephone keypad. Again, to ask a question, please press star 1. As a reminder, if you are using a speakerphone, please remember to pick up your handset before asking a question. We will pause briefly to allow questions to register. Our first question comes from Jason Michael Kreyer with Craig-Hallum. You may now proceed.

Jason Michael Kreyer: Great. Thank you, guys. Nice work. I wanted to start on the platform WAU, and maybe if you can just unpack the turnaround there. I am curious how this strategy evolves to take 110 million users that are on the platform and get more of those into that 20 million WAU and grow the more engaged audience over time.

Nirav Tolia: Thank you for that question. This is really our primary objective at Nextdoor Holdings, Inc., which is making the most of not just our total registered audience of now over 110 million verified users, but also attracting new users. Much of the work that we have done over the last two years has been on repairing the foundation and putting us in a position where we can reduce the things that we know may juice short-term engagement but do not lead to positive NPS over time. You may have seen some things that make WAU go down.

Over time, though, we are confident that we are building a better foundation not just for our existing users, but to enable us to resuscitate the lapsed users—because there is a pretty big gap between 22 million and 110 million registered—and ultimately to attract new users to the platform as well. I will mention that we have not been aggressive about trying to re-market to the lapsed users because we do not believe that the product is in a position yet where we are playing from a position of strength. But I am delighted to say that we are seeing results now that tell us we are headed in the right direction.

That is why WAU trended up, and we feel really good about that.

Jason Michael Kreyer: Can you perhaps just double-click on the platform—not where you want it—but what it takes to get where you want it so you are more aggressive on that WAU growth?

Nirav Tolia: Sure. It is actually pretty simple. We have boiled it down to one very critical user need: when our neighbors come to Nextdoor Holdings, Inc., they want relevant content. If you are in a neighborhood that is not very active, it is hard for us to show you relevant content. If you are in a neighborhood where the discussion is veering off-topic, you are not going to get relevant content. If you are a neighbor who has not visited in a long time and we do not have a very good ML model for you, we cannot show you relevant content because we do not know exactly what you are looking for. Those are all things that we are addressing.

We are up-leveling the quality of content overall so that everyone has an opportunity to see more relevant content, focusing on neighborhoods that have less liquidity so that when those neighbors visit the platform they find great content. We are investing a ton in machine learning and profiling our neighbors in a way that we can personalize the experience and find the content that they are looking for. But it really all comes back to one very simple thing: the more content we have, the better we can be at targeting that content and making it relevant to our users. Most of our efforts are around increasing the quality of content on Nextdoor Holdings, Inc.

We need to increase quantity as well, but we are taking a quality-first view.

Jason Michael Kreyer: That was great. Nirav, one follow-up maybe. You mentioned that momentum had built as the quarter progressed. Can you elaborate on what transpired over the course of the quarter that improved that performance?

Nirav Tolia: I will give you something that we did not talk about in the results that I think is a leading indicator that makes us very optimistic that we are headed in the right direction. It is something that we would not typically report because it is an early thing that then leads to lots of chain reactions on the platform. That metric is we grew the number of unique contributors over this period of time. What that means is we grew the number of people who are adding content to the system on Nextdoor Holdings, Inc. We have a base of really great high-frequency users who create a lot of the content.

In fact, if you look at user-generated content platforms, 1% of the users create 99% of the content; the same is going to be true for Nextdoor Holdings, Inc. But if we can grow that base, then we start to see lots of really positive effects. We were able to grow that contributor base. That resulted in more content, which resulted in more reasons for people to visit Nextdoor Holdings, Inc., more relevant content when they visit Nextdoor Holdings, Inc., and all good things start to happen on the platform.

Over the last two years, we have gone deep to understand the core aspects of the foundation of the system so we can fix root causes versus just deal with a superficial layer on top. WAU, in and of itself, is an output metric; an input metric is how many unique contributors you have.

Operator: Our next question comes from Jamesmichael Sherman-Lewis with Citi. You may now proceed.

Jamesmichael Sherman-Lewis: Hello, Nirav and Indrajit. Good to see the results, and thank you for taking my questions. First, Nirav, revisiting your closing commentary on AI and Nextdoor Holdings, Inc.'s trusted human content, can you talk more broadly about how you see the Nextdoor Holdings, Inc. feed evolving—particularly following the introduction of features like threaded conversations and pinned comments, but also as you onboard more publishers and reduce self-promoted content? What is changing?

Nirav Tolia: That is a great question. I will elaborate a little bit on the closing about AI because I have never been more bullish on the AI future for our industry, and I have also never been more bullish on our opportunity to be a big part of that. I truly believe we are one of the few companies that can use the power of AI—harnessing machines and technology—but combine it with verified human content, data, and profiles to create the best of both: to take the best of technology and the best of humanism and provide the best solution for users as a result. The feed itself will continue to be more personalized.

How do you use AI and machine learning in a feed? You do not want the same experience for every user on Nextdoor Holdings, Inc. Users who really want news should see a lot of news. Users who want a lot of neighborhood conversation should see a lot of neighborhood conversation. The history of Nextdoor Holdings, Inc. has been that everyone in the neighborhood saw exactly the same feed. That is no longer the case, and we see much better outcomes using AI to personalize the feeds. That is number one.

Number two, we will increasingly be experimenting with summarizing the feed by using AI so that you can get the value of reading lots of threads in a smaller, concise nugget. You see this all over the web, and we should be doing this on Nextdoor Holdings, Inc. as well. We need to make sure that we do it in the right way so that contributions and the ability to reply to these threads continue to happen. We are seeing encouraging results in experiments that give us conviction that we can use AI in one of the most powerful ways—to summarize and make more useful existing user-generated content.

The final thing I will say is we are starting to think more deeply about whether there are surfaces other than the feed that can be really valuable on Nextdoor Holdings, Inc., whether that is your messaging inbox.

Jamesmichael Sherman-Lewis: It is very helpful. I appreciate the color. Second question here: on your pillar for multiple monetization pathways, I realize we are very early days here, but things like opportunity alerts or maybe even a subscription offering could be interesting. Is there ultimately a meaningful non-ad revenue opportunity in the future?

Nirav Tolia: I am glad you asked that question because opportunity alerts has definitely been a big bright spot for us. We are increasingly thinking about not just investing in the feed advertising revenue stream—because that is growing, as you see; it is very vibrant, and we are performing for our advertisers—but we do believe that whether it is lead gen or things that we have not even thought of, there are non-ads, non-feed revenue opportunities inside Nextdoor Holdings, Inc. Opportunity alerts is one of the first, and it is something that is very powerful because it has strong product–market fit.

Opportunity alerts work because neighbors come to Nextdoor Holdings, Inc. looking for service providers, and we can go proactively to service providers and tell them that we will connect them or match-make them. It is still early.

Jamesmichael Sherman-Lewis: Thank you. Advertiser growth between large versus small advertisers on the platform?

Indrajit Ponnambalam: Thank you.

Nirav Tolia: Thank you for the question. I will take the first, and then Indrajit will take the second. We have a number of questions that were submitted by our investors, and I am going to come back to this in a little bit more detail.

I will just start by saying that one of the features that our users are really excited about—and I am most excited about—is a feature called Ask, which utilizes AI to take existing content from the 14 or 15 years of conversations that we have between verified human neighbors on our platform and uses that information to proactively answer questions, either on demand in an agentic way or when neighbors come to Nextdoor Holdings, Inc. and post in the feed. I will talk more about that because the question was asked by one of our investors as well, and there is a much more elaborate answer.