[Management View]
Nextdoor reported $69 million in revenue for Q3 2025, marking a quarterly record. Self-serve revenue grew 33% YoY, comprising about 60% of total revenue. Adjusted EBITDA was $4 million, with a 6% margin. GAAP net loss was $13 million. The company emphasized strategic priorities such as enhancing user-generated content, integrating third-party alerts, and maintaining a high-quality user experience.

[Outlook]
For Q4 2025, Nextdoor expects revenue between $67 million and $68 million and adjusted EBITDA between $3.5 million and $4.5 million. Full-year 2025 revenue growth is anticipated at 3%-4%, with an adjusted EBITDA loss of approximately $3 million. The company reaffirms its expectation of adjusted EBITDA breakeven for 2026.

[Financial Performance]
Revenue for Q3 2025 was $69 million, a 5% YoY increase. Self-serve revenue grew 33% YoY. Adjusted EBITDA was $4 million, a positive 6% margin, representing an eight-point YoY improvement. GAAP net loss was $13 million. Revenue per employee increased 21% YTD.

[Q&A Highlights]
Question 1: We are only about four months out from the launch of the new Nextdoor Holdings, Inc. Can you provide insights into customer engagement metrics, specifically depth of engagement?

Answer: We are excited about the progress. News content is approaching 10% of new feed content. Alerts are essential to our users, and recommendations have the most potential. We have made content more relevant, even amidst reducing notifications and keeping ad load constant. Increasing high-quality content leads to deeper engagement.

Question 2: Can you update us on how you see your user acquisition strategies evolving into 2026?

Answer: We plan to release features that create a better cold start experience for new users. We aim to provide a specialized experience for new users, distinct from long-term members. This approach focuses on long-term value creation rather than short-term metrics.

Question 3: When you talk about adding more content, can you give us a sense of where that comes from?

Answer: We have 4,000 publishers providing news content. We see more upside in integrating third-party alerts but believe the greatest opportunity lies in user-generated content, particularly neighbor recommendations.

Question 4: Can you give an update on the build-out of your programmatic capabilities?

Answer: We have completed the supply-side platform integration and are testing the off-platform deal with Yahoo DSP. Advertisers can now target Nextdoor audiences directly from Yahoo. Programmatic complements direct sold inventory and is additive.

Question 5: Was there an improvement in engagement for the alerts that you were surfacing? Were there any differences in trends for users coming from alerts versus entering the app organically?

Answer: Alerts and notifications we are sending are more effective, as evidenced by revenue growth. Third-party alerts, such as inclement weather and traffic updates, are particularly effective at resurrecting lapsed users. These alerts perform well and help bring users back to the platform.

[Sentiment Analysis]
Analysts showed a positive tone, focusing on strategic initiatives and engagement metrics. Management emphasized long-term growth and quality user experience, reflecting a confident and forward-looking sentiment.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|-------------------------|---------------|---------------|------------|
| Revenue | $69 million | $65.7 million | +5% |
| Self-serve Revenue | $41.4 million | $31.1 million | +33% |
| Adjusted EBITDA | $4 million | -$4 million | +8 points |
| GAAP Net Loss | -$13 million | -$17 million | -$4 million|
| Revenue per Employee | +21% YTD | N/A | N/A |

[Risks and Concerns]
- Intentional reduction in notifications and email volume may impact short-term user engagement metrics.
- Planned pullback in new user acquisition efforts during Q4 could affect growth rates.
- Dependence on third-party content and alerts for user engagement may pose integration challenges.

[Final Takeaway]
Nextdoor's Q3 2025 results highlight record revenue driven by self-serve advertising and strategic content expansion. The company is focused on enhancing user-generated content and integrating third-party alerts to improve engagement. Despite short-term trade-offs, Nextdoor remains committed to long-term growth and quality user experience, with positive adjusted EBITDA expected by 2026. Investors should monitor the impact of reduced notifications and user acquisition efforts on future performance.