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NXDR, Nextdoor Holdings Inc.

Software asset-light UnprofitableNet current asset value

Nextdoor is the essential neighborhood network connecting over 105 million Verified Neighbors 1 to the people, places, and information that matter most in their local communities.

Operating in over 350,000 neighborhoods across 11 countries, Nextdoor fosters trusted, real-world utility through locally relevant content and services, including news, real-time safety alerts, neighbor recommendations, for sale and free listings, and events.

Our platform is powered by unique geospatial technology and a proprietary advertising system that enables businesses of all sizes to reach highly engaged audiences with a local focus.

Latest annual: FY2025 10-K

NXDR · Nextdoor Holdings Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$258M

+4.2% YoY · 16% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $265M 5-yr avg $226M

Gross margin 84% 5-yr avg 83%

Operating margin −22.7% 5-yr avg −54.6%

ROIC −14% 5-yr avg −24%

Owner-earnings margin 3% 5-yr avg −18%

Free cash flow margin 3% 5-yr avg −19%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand. Net current asset value. Current assets alone exceed every liability combined, and the surplus is most of the balance sheet: the shape Graham called a net-net.
What moves the needle: Operating margin has run around −62% through the cycle on a 82% gross margin, the operating line in the red even at its best — so the lever is whether the spending below the gross line can come down enough to clear a profit: revenue growth against the cost curve, and the cash runway until it does. Stock-based pay runs about 25% of sales, a real and recurring claim on owners that the GAAP margin understates. Read this kind of business on retention and the cost of growth. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −24%, above 15% in 0 of 5 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2020–2025

realized figures from each filing · older years to the left

2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
							Income statement
$123M	$192M	$213M	$218M	$247M	$258M	$265M	RevenueRevenue
82%	85%	82%	81%	83%	84%	84%	Gross marginGross mgn
23%	28%	32%	35%	37%	24%	23%	SG&A / revenueSG&A/rev
56%	51%	60%	69%	52%	52%	50%	R&D / revenueR&D/rev
($77M)	($95M)	($144M)	($172M)	($122M)	($72M)	($60M)	Operating incomeOp. inc.
−62.2%	−49.3%	−67.8%	−78.9%	−49.2%	−27.9%	−22.7%	Operating marginOp. mgn
($75M)	($95M)	($138M)	($148M)	($98M)	($54M)	($44M)	Net incomeNet inc.
							Cash flow & returns
($42M)	($51M)	($61M)	($59M)	($20M)	$6M	$7M	Operating cash flowOp. cash
$3M	$4M	$6M	$6M	$4M	$2M	$2M	DepreciationDeprec.
$8M	($8M)	$7M	($302K)	($92K)	($7M)	($14M)	Working capital & otherWC & other
$5M	$9M	$3M	$267K	$404K	$580K	$622K	CapexCapex
4.1%	4.6%	1.5%	0.1%	0.2%	0.2%	0.2%	Capex / revenueCapex/rev
($45M)	($55M)	($64M)	($60M)	($21M)	$6M	$7M	Owner earningsOwner earn.
−36.2%	−28.8%	−29.9%	−27.3%	−8.3%	2.3%	2.5%	Owner earnings marginOE mgn
($47M)	($60M)	($64M)	($60M)	($21M)	$6M	$7M	Free cash flowFCF
−37.8%	−31.3%	−29.9%	−27.3%	−8.3%	2.3%	2.5%	Free cash flow marginFCF mgn
$0	$0	$77M	$0	$76M	$19M	—	BuybacksBuybacks
—	-34%	-20%	-27%	-24%	-15%	-14%	ROICROIC
—	-13%	-23%	-26%	-22%	-13%	-11%	Return on equityROE
—	−13%	−23%	−26%	−22%	−13%	−11%	Retained to equityRetained/eq
							Balance sheet
$84M	$522M	$55M	$60M	$46M	$63M	$56M	Cash & investmentsCash+inv
$22M	$30M	$30M	$26M	$31M	$34M	$33M	ReceivablesReceiv.
$3M	$6M	$5M	$2M	$249K	$2M	$678K	Accounts payablePayables
$18M	$24M	$25M	$24M	$31M	$32M	$32M	Operating working capitalOper. WC
$165M	$762M	$625M	$567M	$467M	$448M	$416M	Current assetsCur. assets
$32M	$34M	$35M	$35M	$28M	$32M	$30M	Current liabilitiesCur. liab.
5.1×	22.7×	18.0×	16.0×	16.7×	14.0×	14.0×	Current ratioCurr. ratio
$1M	$1M	$1M	$1M	$1M	$1M	$1M	GoodwillGoodwill
$218M	$840M	$700M	$655M	$514M	$487M	$453M	Total assetsAssets
($84M)	($522M)	($55M)	($60M)	($46M)	($63M)	($56M)	Net debt / (cash)Net debt
($298M)	$745M	$611M	$559M	$453M	$431M	$401M	Shareholders’ equityEquity
18.3%	24.7%	30.3%	38.0%	29.9%	25.4%	23.8%	Stock comp / revenueSBC/rev
							Per share
90.2M	146M	379M	379M	385M	386M	387M	Shares out (diluted)Shares
$1.37	$1.31	$0.56	$0.58	$0.64	$0.67	$0.69	Revenue / shareRev/sh
$-0.83	$-0.65	$-0.36	$-0.39	$-0.25	$-0.14	$-0.11	EPS (diluted)EPS
$-0.50	$-0.38	$-0.17	$-0.16	$-0.05	$0.02	$0.02	Owner earnings / shareOE/sh
$-0.52	$-0.41	$-0.17	$-0.16	$-0.05	$0.02	$0.02	Free cash flow / shareFCF/sh
$0.06	$0.06	$0.01	$0.00	$0.00	$0.00	$0.00	Cap. spending / shareCapex/sh
$-3.30	$5.09	$1.61	$1.47	$1.18	$1.12	$1.04	Book value / shareBVPS

The diluted share count moved ×1.62 into 2021 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

The diluted share count moved ×2.59 into 2022 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Per-share growththe realized rate an owner's share compounded

	5-yr	5-yr
Revenue / share	−13.4%/yr	−13.4%/yr
Capital spending / share	−51.5%/yr	−51.5%/yr

The record, charted

FY2020–2025

Each measure over its full record; the current point and the worst year marked.

Share count

386Mpeak FY2025

ROIC

−15%low FY2021

Gross margin

84%low FY2023

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$6Mowner earningsvs.($54M)net incomelow FY2022

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned a $54M loss into $6M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	($54M)	($98M)	($148M)	($138M)	($95M)
Depreciation & amortizationnon-cash charge added back	+$2M	+$4M	+$6M	+$6M	+$4M
Stock-based compensationreal costnon-cash, but a real cost	+$65M	+$74M	+$83M	+$64M	+$48M
Working capital & othertiming of cash in and out, other non-cash items	−$7M	−$92K	−$302K	+$7M	−$8M
Cash from operations	$6M	($20M)	($59M)	($61M)	($51M)
Maintenance capital expenditurethe spending needed just to hold position and volume	−$580K	−$404K	−$267K	−$3M	−$4M
Owner earnings	$6M	($21M)	($60M)	($64M)	($55M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	—	—	−$5M
Free cash flow	$6M	($21M)	($60M)	($64M)	($60M)
Owner-earnings marginowner earnings ÷ revenue	2%	-8%	-27%	-30%	-29%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $65M), owner earnings is nearer ($59M).

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? —

No meaningful interest burden

Little or no interest expense reported

What this means
Little or no interest expense reported, the business isn't leaning on lenders to operate.
How heavy is the debt, net of cash? +$63M

Net cash, debt-free

Cash $63M − debt $0

What this means
Cash and short-term investments exceed every dollar of debt by $63M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 26d

Tight

DSO 49 + DIO 0 − DPO 22 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash. (Little or no inventory, a services / asset-light model, so the inventory leg is ~0.)

Is it a good business?

Return on invested capital —

Not enough data

Industry peers: median 4%

What this means
The filing data didn't include the inputs for this check.
Owner-earnings margin 2%

Positive this year, negative across the cycle

latest $6M = operating cash $6M − maintenance capex $580K (positive this year), after an earlier loss stretch (6-yr median -29%)

Industry peers: median 14%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 2% of revenue this year, a -29% median across 6 years. Treating stock comp as the real expense it is (less $65M of SBC) leaves ($59M).
Are earnings backed by cash? $6M

Loss, but cash-generative

Net income ($54M) · cash from operations $6M

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.

How is the cash used?

Where do the earnings go? 321%

Returned more than it generated

Dividends + buybacks $19M ÷ Owner Earnings $6M

What this means
The company returned more than it generated: against $6M of Owner Earnings, $19M (321%) went back to shareholders, $0 dividends, $19M buybacks — the excess came from the balance sheet or borrowing, not the year's operations. But the buybacks barely exceed stock issued to employees ($65M SBC), net of dilution, little was truly returned. Sustained, that pattern draws down cash or adds debt; the net-debt line above shows where it stands.
Investing or harvesting? 0.30×

Harvesting

Capex $580K ÷ depreciation $2M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 1 of 4 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $258M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 14.03×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Earnings stability Miss

A profit every year (6-yr record) · 6 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-0.26/share (latest year $-0.14), the averaged base the calculator's gate runs on, and book value is $1.11/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2020–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 0 of 6

What this means
Lost money in 6 year(s), look at what happened there before trusting the average.
Operating margin −60% → −52% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about −60% early to −52% lately, median −62% — pricing power intact or improving.
Worst year 2023 · −78.9% op. margin

What this means
Operations went underwater in 2023, understand why before trusting the good years.

Does AI threaten the moat?

Elevated contestability

The product is software or information, the very thing capable AI now produces more cheaply, so the moat is more contestable than the record alone implies.

In its own filing A competitive risk, new this year

Its FY2025 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.

“Some open source software may include generative AI software or other software that incorporates or relies on generative AI.”

AI has collapsed the cost of building a capable substitute for the very thing this business sells. When a credible alternative can be assembled for a fraction of the incumbent's price, it is pricing power that erodes first, not revenue tomorrow. The live question is whether the moat survives that, not whether it held in the past. Whether that question is answerable at all is yours to decide, against your own circle of competence.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$416M

Cash & short-term investments$56M
Receivables$33M
Other current assets$327M

Current liabilities$30M

Accounts payable$678K
Other current liabilities$29M

Current ratio14.01×all current assets ÷ what's due · Graham looked for 2×

Quick ratio14.01×stricter: inventory excluded

Cash ratio1.89×strictest: cash alone against what's due

Working capital$386Mthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+13.8%the freshest read on whether the business is still growing

Current ratio, recent quarters15.1× → 14.0×

Deeper floors

Tangible book value$400Mequity stripped of goodwill & intangibles

Net current asset value$365MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$30M$30M of it operating leases

Deferred revenue$8Mcustomer cash collected before delivery; operating float

From the company's latest filing.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	—	$20.1M	$72.3M	($55M)
2022	—	$8.3M	$25.8M	($64M)
2023	—	$2.9M	$3.4M	($60M)
2024	Nirav Tolia	$21.2M	$23.0M	($21M)
2024	Sarah Friar	$430k	−$2.2M	($21M)
2025	Nirav Tolia	$3.3M	$177k	$6M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years. A dash under the name means the filing tags the figure without naming the officer.

Insider ownership8.4%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$65M
The slice of the business handed to employees in shares this year, 25% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Nextdoor Holdings Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2020–2025.

None of the 3 tests turned up a mark; each came back clean. A clean panel says only that these particular ways of being wrong are not written into the record.

Each test came back clean

Is it less profitable than it was?
Did receivables and inventory outpace sales?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Software

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
ZIPZipRecruiter Inc.	$449M	89%	0.3%	10%	14%
GRNDGrindr Inc.	$440M	—	21.4%	22%	26%
DSPViant Technology Inc.	$344M	46%	1.2%	-8%	13%
HSTMHealthStream Inc.	$304M	86%	5.8%	4%	18%
PUBMPubMatic Inc.	$283M	68%	7.5%	8%	25%
NXDRNextdoor Holdings Inc.	$258M	83%	-55.8%	-24%	-28%
AIC3.ai Inc.	$250M	67%	-80.5%	-36%	-37%
WEAVWeave Communications Inc.	$239M	63%	-35.0%	-111%	-10%
Group median	—	68%	0.7%	-2%	13%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Nextdoor Holdings Inc. has delivered.

Today’s price $

Base Normalize · through-cycle (($25M)) Net of stock comp (−$63M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth, delivered—

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $7M on 387M shares outstanding (a weighted basic average, the only count this filer tags); net cash $56M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh NXDR against another business →

The owners of NXDR: the meeting and the votes →

Cite: Owner Scorecard, "Nextdoor Holdings Inc. (NXDR), the owner's record," https://ownerscorecard.com/c/NXDR, data as of 2026-07-09.

Manual order: ← NX its page in the Manual NXPI →

Industry order: ← NTSK the Software chapter NYAX →