Free cash flow remains highly volatile, swinging from a -26.9% margin in 2023Q4 to 13.5% in 2025Q4, while aggressive capital allocation through share repurchases like the $38.4 million outflow in 2024Q2 warrants further scrutiny.
| Cash from Operations | 7.35M | 6.47M | -20.2M | -59.27M | -60.5M | -51.27M | -41.6M | -63.96M |
| Operating CF Margin % | - | 2.51% | -8.17% | -27.15% | -28.44% | -26.67% | -33.75% | -77.48% |
| Operating CF Growth % | 425.71% | 132.03% | 65.92% | 2.03% | -18.01% | -23.23% | 34.96% | - |
| Net Income | -43.67M | -54.2M | -98.06M | -147.76M | -137.92M | -95.33M | -75.23M | -73.28M |
| Depreciation & Amortization | 1.75M | 1.94M | 3.9M | 5.77M | 5.66M | 4.17M | 3.06M | 2.09M |
| Stock-Based Compensation | 48.25M | 65.34M | 74.06M | 83.03M | 64.42M | 47.51M | 22.61M | 14.08M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 13.34M | -2.45M | 17.92M | -8.91M | -2.1M | 320K | 530K | -40K |
| Working Capital Changes | -12.32M | -4.15M | -18.02M | 8.61M | 9.44M | -7.95M | 7.43M | -6.81M |
| Change in Receivables | -11.24M | -3.21M | -5.15M | 3.49M | -168K | -8.17M | -3.17M | -5.16M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -439K | 2.22M | -1.65M | -2.64M | -1.58M | 2.76M | 15K | 1.83M |
| Cash from Investing | 43.73M | 42.57M | 86.43M | 66.49M | -342.45M | -149.52M | 36.79M | -73.81M |
| Capital Expenditures | -622K | -580K | -404K | -267K | -3.16M | -8.85M | -5.02M | -517K |
| CapEx % of Revenue | 0.23% | 0.23% | 0.16% | 0.12% | 1.49% | 4.6% | 4.07% | 0.63% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5.18M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | -7.5M | -2.5M | -5M | 0 | 0 | 0 |
| Cash from Financing | -53.07M | -33.99M | -81.03M | 8.92M | -64.35M | 637.58M | 6.37M | 174.57M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -35.43M | -14.93M | -75.53M | 9.19M | -63.65M | 638.44M | 0 | 169.8M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -38.42M | -18.89M | -75.53M | 0 | -77.23M | 0 | 0 | 0 |
| Other Financing | -17.64M | -19.07M | -5.5M | -273K | -695K | -863K | 6.37M | 4.77M |
| Net Change in Cash | -1.27M | 15M | -14.68M | 5M | -466.58M | 437.07M | 759K | 36.8M |
| Free Cash Flow | 6.73M | 5.89M | -20.61M | -59.54M | -63.66M | -60.11M | -46.63M | -64.48M |
| FCF Margin % | 2.54% | 2.29% | -8.33% | -27.27% | -29.92% | -31.28% | -37.82% | -78.11% |
| FCF Growth % | 201.65% | 128.59% | 65.39% | 6.48% | -5.91% | -28.93% | 27.69% | - |
| FCF per Share | 0.02 | 0.02 | -0.05 | -0.16 | -0.17 | -0.41 | -0.12 | -2.30 |
| FCF Conversion (FCF/Net Income) | -0.15x | -0.12x | 0.21x | 0.40x | 0.44x | 0.54x | 0.55x | 0.87x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 1M | 0 | 1.2M | 0 | 30K | 165K |
Persistent Operating Cash Burn
Based on reported financial data, the persistent gap between net losses and operating cash flow suggests that Nextdoor's accrual-based earnings significantly understate the cash-intensive nature of its operations, with OCF/NI ratios frequently fluctuating in ways that indicate limited correlation between accounting profitability and actual cash generation.
The frequent divergence between net income and operating cash flow highlights a reliance on non-cash adjustments to bridge the gap between accounting losses and liquidity. Investors should monitor whether this disconnect stems from aggressive revenue recognition or timing differences in working capital, as it complicates the assessment of the company's underlying cash-generating capability.
As reported in recent quarterly filings, Nextdoor's free cash flow trajectory remains highly erratic, swinging from a -26.9% margin in 2023Q4 to a positive 13.5% in 2025Q4, which underscores the difficulty in achieving a stable, self-sustaining cash flow profile within the current advertising-led business model.
The lack of a consistent positive FCF trend suggests that the company is still in a phase of heavy investment where cash flow is highly sensitive to seasonal ad spend and operational timing. This volatility makes it difficult to forecast a clear path to sustainable cash generation without a fundamental shift in the cost structure.
According to historical cash flow statements, Nextdoor has prioritized share repurchases, such as the $38.4 million outflow in 2024Q2, despite generating significant net losses, which warrants further investigation into the strategic rationale for returning capital while the core business remains in a cash-burning state.
The decision to allocate capital toward buybacks while operating cash flow remains inconsistent appears to prioritize shareholder support over internal reinvestment or balance sheet fortification. This strategy may be viewed as premature given the company's inability to demonstrate a sustained, positive free cash flow trajectory.
Analysis of the cash flow statement reveals that stock-based compensation, which reached $22.3 million in 2023Q4, serves as a critical non-cash add-back that obscures the true economic cost of talent acquisition and retention required to maintain the platform's neighborhood-graph and verified residency model.
By excluding SBC from cash burn metrics, the company presents a more favorable liquidity picture than the underlying operational performance suggests. Investors should treat SBC as a recurring economic expense that dilutes equity holders and effectively subsidizes the operating losses that would otherwise be more apparent in the cash flow statement.
Quick answers to the most common questions about buying NXDR stock.
Nextdoor Holdings, Inc. (NXDR) generated $6.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Nextdoor Holdings, Inc. (NXDR) generated $5.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Nextdoor Holdings, Inc. (NXDR) spent $0.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Nextdoor Holdings, Inc. (NXDR) spent $18.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.