Nextdoor Holdings Inc. Class A Common Stock (NXDR)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business with durable competitive advantages, honest accounting, and a price that offers a margin of safety. Nextdoor is a neighborhood network with a potentially useful local network effect, but the filed numbers do not yet prove a durable moat. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $74.6 million and net loss was $2.1 million, or diluted EPS -$0.01. That is a marked improvement from fiscal Q1 2026, when revenue was $61.7 million and net loss was $11.4 million, and from FY2025, when revenue was $257.6 million and net loss was $54.2 million. Still, the company lost money in each of the last four years, and FairStock's Lynch category is 'none' for exactly that reason. The balance sheet looks sturdy: debt-to-equity is 0.07 and FairStock's Altman Z-Score is 10.19. Free cash flow is positive at $12.3 million trailing twelve months, but the FCF yield is only 1.2% against the $1.0 billion market cap. At the 2026-10-13 close of $2.66, FairStock shows a negative P/E of -33.25, a P/B of 2.49, ROE of -7.24%, and ROCE of -5.36%. That is not a Graham bargain; asset value is not cheap and earnings are absent. Growth is modest: revenue growth of 6.52% and profit growth of 66.73% as FairStock calculates, but profit growth is off a negative base. I would want evidence that neighborhood engagement converts into durable profits before calling this a high-quality compounder. The improving losses and positive cash flow are encouraging, but the margin of safety is thin.

In plain English: Nextdoor runs a neighborhood social network that connects neighbors, local businesses, and public agencies in 11 countries. The business is still losing money, though the losses have gotten smaller lately, and it produces only a little more cash than it spends each year. At $2.66 a share, the price looks full for a company that has not yet shown consistent profits.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer