Goldman Sachs has reaffirmed a Neutral rating on Nextdoor Holdings, keeping its price target at $2.00 following a review of the social network’s fourth-quarter 2025 financial results. The shares are trading at $1.65, which sits beneath the bank’s target and is viewed as modestly undervalued by certain fair-value models.
Revenue in the fourth quarter exceeded prior expectations, driven in part by higher average revenue per user after the company expanded investments in self-serve and programmatic advertising. Those top-line gains were partly offset by headwinds on user growth, with platform weekly active users continuing a sequential decline.
Despite subdued user metrics, Nextdoor reported strong unit economics. The company maintained a gross profit margin of 83.8% for the period, and annual revenue reached $253.4 million. Management described the user base as subject to ongoing fluctuations and signaled that volatility in weekly active users could persist through the medium term.
On the profitability front, fourth-quarter EBITDA results and the outlook for the first quarter and full-year 2026 were characterized as showing strength. Management attributed this to disciplined control over operating expense growth, achieving a balance between near-term operating leverage and continued investment in longer-term platform initiatives.
Capital allocation was a focal point of the company’s disclosures. Leadership outlined a framework prioritizing organic reinvestment in long-term platform work, potential acquisitions and share repurchases. Underpinning this plan, corporate filings and reported data indicate the company has been aggressive with buybacks while preserving a strong cash position and carrying minimal debt. Nextdoor reported a current ratio of 13.4, signaling that liquid assets substantially exceed short-term liabilities.
Product and data enhancements also featured in the company’s update. Nextdoor has integrated real-time earthquake information from the U.S. Geological Survey into its Nextdoor Alerts system, supplementing existing feeds from The Weather Company, Samdesk and PowerOutage.us. The alerts product, originally launched in July 2025, has since added Waze traffic data to broaden its situational-awareness offerings.
Investor interest in the company has shown through activist commentary as well. Eric Jackson, an activist investor with prior success in other technology investments, voiced a bullish assessment of Nextdoor. He described the company as "the most mispriced Agentic-AI platform of the 2020s," pointing to perceived strengths in identity, trust, proximity and AI that he believes are underappreciated by the market.
The company’s combination of disciplined expense management, concentrated capital allocation choices and continued product development informs the current investment view. However, the sequential decline in weekly active users and expectations of ongoing variability in engagement introduce uncertainty into the near-term growth trajectory, even as margins and liquidity metrics appear healthy.
Contextual note: The market price and valuation references above reflect the company’s reported trading level and third-party fair-value outputs at the time of the earnings review.