Nextdoor Holdings, Inc. 2026 Q2 Earnings Call

Good morning, everyone, and welcome to Nextdoor's Q2 2026 earnings call. We appreciate everyone joining us today. I'm Nirav Tolia, Co-founder, Chief Executive Officer, President, and Chairperson of the Board. Joining me today is Indrajit Ponnambalam, Chief Financial Officer. I'd also like to take a moment to introduce Colin Borland, our new Head of Investor Relations and Corporate Development. Colin has a strong background across finance, IR, and corporate development. He'll be leading our investor engagement efforts going forward. We're really excited to have him with us.

Thank you, Nirav. I'm excited to be here. I appreciate the warm welcome. Hello, everyone. During this call, we may make statements related to our business that are forward-looking statements under federal securities law. These statements are not guarantees of future performance. They are subject to a variety of risks and uncertainties. Our actual results could differ materially from expectations reflected in any forward-looking statements. For a discussion of the material risks and other important factors that could affect our actual results, please refer to our SEC filings available on the SEC's website, the investor relations section of our website, as well as the risks and other important factors discussed in today's earnings release. Additionally, non-GAAP financial measures will be discussed on today's conference call.

A reconciliation of these measures to their most directly comparable GAAP financial measures can be found in the Q2 2026 Nextdoor investor update posted on the investor relations section of our website today. Now I'll turn it back to Nirav.

Thanks, Colin. Q2 was a landmark quarter for Nextdoor, with the strongest financial performance in our company's history. Platform WAU reached an all-time high. Revenue exceeded the high end of our guidance, and we delivered record adjusted EBITDA. Platform WAU grew to 22.9 million, increasing both sequentially and year-over-year for the second consecutive quarter. Revenue grew 15% to $75 million, and adjusted EBITDA reached $10 million, a 13% margin and a $12 million improvement over last year. These are strong results, but what encourages me even more than the numbers is how we achieved them. For the past two years, we've talked about rebuilding Nextdoor for long-term, sustainable growth. We haven't been looking for shortcuts or one breakthrough feature. Instead, we focused on steadily improving the product quarter after quarter, making it more useful, more relevant, and ultimately more valuable for neighbors.

This quarter, we're beginning to see those improvements compound. The long-term success of Nextdoor depends on the health of our community, and healthy communities are built by people contributing. Every time a neighbor asks a question, answers one, shares a recommendation, posts an update, or helps someone nearby, they make Nextdoor more valuable for everyone else. More contributors create more content. More content creates more relevance. More relevance gives neighbors more reasons to come back. When they come back, even more neighbors contribute. That's the flywheel we're building. Our job is to make it stronger every quarter. That's exactly what we focused on in Q2. Let me take you through some of the highlights, starting with how we make sure neighbors see content that feels relevant the moment they open Nextdoor. We continued improving our feed ranking systems so neighbors see the most engaging, useful, and relevant content.

We continued improving video throughout the platform, giving both neighbors and advertisers richer ways to communicate. We rebuilt our events experience, making it easier for neighbors to discover what's happening nearby. We continue to use AI to improve the quality of our notifications, driving more engagement. We also launched local journalist accounts, giving trusted local reporters a verified presence on Nextdoor and bringing higher-quality local news directly into neighborhood conversations. Those may sound like separate product improvements, but they're not. They're all solving the same problem. When neighbors open Nextdoor, we want them to immediately find something that's useful, local, and worth engaging with. Showing neighbors better content is only half the equation. The other half is helping more neighbors create it because the most valuable content on Nextdoor comes from neighbors helping neighbors. We focused on making it easier, faster, and more rewarding to contribute.

We added simple prompts that invite active commenters to share their first post, resulting in more neighbors posting for the first time. We improved post insights, giving neighbors visibility into the real reach and impact of what they share because people contribute more when they can see that it matters. The result, contributors reached a multiyear high in Q2. Unique posters grew. Post volume increased. Comments were up across the board. That's the flywheel in action. The future of Nextdoor isn't just built by getting more people to consume content. It's built by getting more neighbors to create it. That's exactly the direction we're heading. As we look toward the second half, I want to take a moment to explain how our thinking has evolved because I think it's an important story.

When I returned as CEO, we began rebuilding Nextdoor around three core experiences, news, alerts, and recommendations, and that work was essential. News and alerts helped restore utility to the platform. They gave neighbors more reasons to come back and reconnected us with what made Nextdoor valuable in the first place. Recommendations revealed something even more important. That is that what makes Nextdoor truly essential isn't the third-party content we surface. It's the content neighbors create for each other. That is because Nextdoor is valuable because of the people behind it. A neighbor two streets away who recommends a plumber or answers a question with nothing to gain but helping someone else to make a better decision. That kind of content cannot be manufactured or aggregated or scraped from somewhere else. It can only be earned. Over the past year, that insight has sharpened our strategy.

The platforms that endure aren't just places where people post things. They're intentionally crafted ecosystems designed to make contribution easy, rewarding, and self-reinforcing, where the value compounds as more neighbors participate. As we look ahead, we're laser-focused on building more of these systems. The two I'll call out today that are already delivering results are Faves and Ask. Faves is built around a simple insight. The most trustworthy recommendation isn't the one with the most stars. It's the one from a verified neighbor who lives nearby. Every day on Nextdoor, neighbors ask who has the best plumber, the best pediatrician, the best pizza, or the best landscaper. Faves turns these conversations into a living, trusted local guide, continuously updated by the community for the community.

This fall, we'll bring back our annual Fave Awards campaign with an all-new in-product experience where neighbors vote for their favorite local businesses across 20 categories. Another reason to participate, contribute, and strengthen the communities they live in. The next feature, Ask, takes this further. Once you have trusted recommendations, the natural question becomes how do you help neighbors find them instantly? Ask uses AI to understand what a neighbor needs and surface the most relevant answer, whether that's a conversation, a trusted local business, or another neighbor who's been through the same thing. What makes Ask unique isn't that it uses AI, but what's behind it. An archive of nearly 15 years of trusted, verified, neighborhood-level conversations that no one else has. AI simply makes that knowledge dramatically easier to discover, and the system compounds.

When a question hasn't been answered yet, Ask can surface answers from that same archive, keeping the conversation alive until other neighbors weigh in. That's how we think about AI at Nextdoor. Not as a replacement for community, but as a way to make years of community wisdom accessible in real-time. When you take a step back, Faves and Ask are two expressions of the same fundamental advantage. A verified community of neighbors who trust each other and help each other. Content no algorithm or AI model can replicate on its own. We've made meaningful progress over the past two years, but what's changed most isn't simply the product. It's that we've rediscovered what made Nextdoor special in the first place. If we keep investing in that, we'll build stronger communities. Stronger communities create better content. Better content drives deeper engagement. Deeper engagement creates a stronger business.

Everything else follows from there. With that, I'll turn it over to Indrajit to walk through our financial results and our outlook in more detail.

Thanks, Nirav. As Nirav described, Q2 was another strong quarter that reinforced the progress we are making across the business. Let's walk through the details. Q2 platform WAU was $22.9 million, up 5% year-over-year and up sequentially for the second quarter in a row. Yet another all-time high for Nextdoor. When we reported Q1 results, we had just seen the first sequential inflection in several quarters. With two consecutive quarters of sequential growth, I'm now more confident that what we're seeing reflects the durable impact of the product investments we've made, not a one-time effect. As I've noted before, platform WAU is a lagging indicator, which makes two consecutive quarters of improvement particularly encouraging. Turning now to revenue. Q2 revenue was $75 million, up 15% year-over-year, finishing above our guidance range of $71 million-$73 million. Revenue growth was broad-based. Our self-serve channel remains the primary growth engine, growing 32% year-over-year, an acceleration from the 28% we reported last quarter.