Despite maintaining robust gross margins above 82%, the company continues to report persistent operating losses, evidenced by a -24.9% operating margin in 2026Q1.
| Sales/Revenue | 265.14M | 257.65M | 247.28M | 218.31M | 212.76M | 192.2M | 123.28M | 82.55M |
| Revenue Growth % | 6.78% | 4.19% | 13.27% | 2.61% | 10.7% | 55.9% | 49.34% | - |
| Cost of Goods Sold | 42.59M | 40.99M | 41.85M | 41.61M | 38.98M | 28.81M | 21.59M | 13.74M |
| COGS % of Revenue | - | 15.91% | 16.92% | 19.06% | 18.32% | 14.99% | 17.51% | 16.64% |
| Gross Profit | 222.55M | 216.66M | 205.43M | 176.7M | 173.78M | 163.38M | 101.7M | 68.81M |
| Gross Margin % | 83.94% | 84.09% | 83.08% | 80.94% | 81.68% | 85.01% | 82.49% | 83.36% |
| Gross Profit Growth % | - | 5.47% | 16.26% | 1.68% | 6.37% | 60.66% | 47.79% | - |
| Operating Expenses | 282.81M | 288.6M | 327.06M | 348.98M | 317.99M | 258.19M | 178.35M | 144.3M |
| OpEx % of Revenue | - | 112.01% | 132.27% | 159.86% | 149.46% | 134.34% | 144.67% | 174.8% |
| Selling, General & Admin | 149.08M | 153.4M | 199.13M | 198.98M | 190.91M | 161.09M | 109.12M | 101.65M |
| SG&A % of Revenue | - | 59.54% | 80.53% | 91.15% | 89.73% | 83.82% | 88.51% | 123.13% |
| Research & Development | 133.73M | 135.21M | 127.94M | 150M | 127.07M | 97.1M | 69.23M | 42.65M |
| R&D % of Revenue | - | 52.48% | 51.74% | 68.71% | 59.72% | 50.52% | 56.16% | 51.66% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -60.26M | -71.94M | -121.64M | -172.28M | -144.2M | -94.81M | -76.65M | -75.48M |
| Operating Margin % | -22.73% | -27.92% | -49.19% | -78.92% | -67.78% | -49.33% | -62.17% | -91.44% |
| Operating Income Growth % | - | 40.86% | 29.4% | -19.47% | -52.1% | -23.69% | -1.54% | - |
| EBITDA | -60.8M | -70.01M | -117.74M | -166.51M | -138.55M | -90.63M | -73.59M | -73.39M |
| EBITDA Margin % | -22.93% | -27.17% | -47.62% | -76.27% | -65.12% | -47.16% | -59.69% | -88.91% |
| EBITDA Growth % | 45.15% | 40.54% | 29.29% | -20.19% | -52.87% | -23.16% | -0.27% | - |
| D&A (Non-Cash Add-back) | -544K | 1.94M | 3.9M | 5.77M | 5.66M | 4.17M | 3.06M | 2.09M |
| EBIT | -60.26M | -71.94M | -97.36M | -172.28M | -144.2M | -94.81M | -76.65M | -75.48M |
| Net Interest Income | 13.78M | 18.76M | 24.38M | 25.78M | 9.3M | 177K | 727K | 2.45M |
| Interest Income | 17.81M | 18.76M | 24.38M | 25.78M | 9.3M | 177K | 727K | 2.45M |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 18.21M | 19.36M | 24.28M | 25.27M | 7.96M | -362K | 1.54M | 2.36M |
| Pretax Income | -42.05M | -52.58M | -97.36M | -147.01M | -136.24M | -95.17M | -75.11M | -73.13M |
| Pretax Margin % | -15.86% | -20.41% | -39.37% | -67.34% | -64.03% | -49.52% | -60.92% | -88.58% |
| Income Tax | 1.62M | 1.63M | 706K | 756K | 1.67M | 157K | 127K | 156K |
| Effective Tax Rate % | -3.86% | -3.09% | -0.73% | -0.51% | -1.23% | -0.16% | -0.17% | -0.21% |
| Net Income | -43.67M | -54.2M | -98.06M | -147.76M | -137.92M | -95.33M | -75.23M | -73.28M |
| Net Margin % | -16.47% | -21.04% | -39.66% | -67.69% | -64.82% | -49.6% | -61.02% | -88.77% |
| Net Income Growth % | 52.41% | 44.73% | 33.64% | -7.14% | -44.68% | -26.7% | -2.67% | - |
| Net Income (Continuing) | -43.67M | -54.2M | -98.06M | -147.76M | -137.92M | -95.33M | -75.23M | -73.28M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.11 | -0.14 | -0.25 | -0.39 | -0.36 | -0.65 | -0.20 | -2.62 |
| EPS Growth % | 52.37% | 44% | 35.9% | -8.33% | 44.62% | -225% | 92.37% | - |
| EPS (Basic) | - | -0.14 | -0.25 | -0.39 | -0.36 | -0.65 | -0.20 | -2.62 |
| Diluted Shares Outstanding | 386.82M | 386.33M | 385.11M | 379.25M | 378.73M | 146.34M | 382.96M | 28.01M |
| Basic Shares Outstanding | 386.82M | 386.33M | 385.11M | 379.25M | 378.73M | 146.34M | 382.96M | 28.01M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Persistent Operating Margin Deficit
As reported in recent financial filings, Nextdoor's revenue growth has decelerated significantly, reaching 13.8% in 2026Q1 after experiencing a period of low single-digit expansion, which suggests that the platform's ability to capture incremental advertising spend in the hyper-local market is currently facing substantial saturation challenges.
The volatility in quarterly revenue growth, ranging from 1.9% to 17.4% over the last ten quarters, indicates a lack of predictable scaling in the core advertising business. This inconsistency suggests that the company may be struggling to convert its verified user base into a reliable, high-growth revenue stream.
Based on the provided income statement data, Nextdoor maintains a robust gross margin profile averaging above 82%, yet this structural advantage is consistently undermined by heavy operating expenses, as evidenced by the persistent negative operating margins that reached -24.9% in the most recent quarter.
While the high gross margin reflects the inherent scalability of a digital platform, the inability to translate this into positive operating income suggests that the cost of acquiring and retaining verified users remains prohibitively high. Investors should monitor whether the company can optimize its cost structure without compromising the platform's unique neighborhood-graph utility.
According to historical income statement trends, the company has failed to demonstrate meaningful operating leverage, as SG&A and R&D expenditures continue to track closely with revenue, preventing the firm from narrowing its operating losses to a level that would suggest a clear path toward sustainable profitability.
The persistent gap between gross profit and operating income indicates that the company's fixed cost base is not scaling efficiently with top-line growth. This suggests that management's current investment strategy in R&D and sales may be yielding diminishing returns in terms of bottom-line impact.
Analysis of the company's financial statements reveals that significant stock-based compensation, which reached as high as $22.3 million in a single quarter, effectively masks the true cash burn of the operations, warranting caution regarding the quality of the reported net income and EPS figures.
The reliance on equity-based incentives to manage cash outflows suggests that the company is prioritizing talent retention over GAAP profitability. Analysts should adjust for these non-cash charges to better understand the underlying cash requirements needed to sustain the business model in the absence of organic profitability.
As indicated by the recent financial data, the company's reliance on a transactional advertising model in a competitive digital landscape may be unsustainable, as the 4.19% revenue growth rate appears insufficient to cover the high fixed costs required to maintain the platform's verified residency model.
Short-term investors may focus on the risk that the company's hyper-local utility is not sufficiently differentiated to withstand competition from larger, more diversified social platforms. The lack of a clear inflection point toward profitability suggests that the current business model may require a fundamental pivot to survive long-term.
Quick answers to the most common questions about buying NXDR stock.
For fiscal year 2025, Nextdoor Holdings, Inc. (NXDR) reported total revenue of $257.6M. This represents a 212.1% increase compared to $82.6M in 2019.
Nextdoor Holdings, Inc. (NXDR) reported a net loss of $54.2M for the fiscal year ending 2025.
Nextdoor Holdings, Inc. (NXDR) reported an operating income of $-71.9M, resulting in an operating profit margin of -27.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Nextdoor Holdings, Inc. (NXDR) generated $216.7M in gross profit for the year, representing a gross profit margin of 84.1%. This demonstrates the company's core pricing power and production efficiency.