The following discussion and analysis provides information which our management believes is relevant to an assessment and understanding of our consolidated results of operations and financial condition. The discussion should be read together with our unaudited condensed consolidated financial statements and related notes that are included elsewhere in this Quarterly Report. This discussion may contain forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under “Special Note Regarding Forward-Looking Statements” and “Risk Factors” or in other parts of this Quarterly Report. Overview Nextdoor is the essential neighborhood network connecting over 110 million Verified Neighbors 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. This focus on practical local value drives genuine, high-intent local engagement and supports a diverse ecosystem of neighbors and partners seeking to connect with neighbors. Key business metrics and financial results as of and for the three months ended June 30, 2026 are as follows: •Platform weekly active users (“Platform WAU”) was 22.9 million, an increase of 5% compared to the three months ended June 30, 2025. •Average revenue per platform weekly active user (“Platform ARPU”) was $3.26, an increase of 9% compared to the three months ended June 30, 2025. •Revenue was $74.6 million, an increase of 15% compared to the three months ended June 30, 2025. •Total costs and expenses were $80.2 million, a decrease of 6% compared to the three months ended June 30, 2025. •Net loss decreased 86% to $2.1 million, compared to a net loss of $15.4 million for the three months ended June 30, 2025. •Adjusted EBITDA was $9.5 million, compared to a loss of $2.2 million for the three months ended June 30, 2025. •Cash, cash equivalents, and marketable securities were $378.0 million as of June 30, 2026. See “Non-GAAP Financial Measure” below for more information and for a reconciliation of net loss, the most directly comparable financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), to Adjusted EBITDA. Key Business Metrics In addition to the measures presented in our unaudited condensed consolidated financial statements, we use the following key business metrics to evaluate our business, measure our performance, develop financial forecasts, and make strategic decisions: Platform Weekly Active Users (Platform WAU) We define a Platform WAU as a Nextdoor user who opens our application or logs on to our website at least once during a defined 7-day period. We calculate average Platform WAU for a particular period by calculating the count of unique users, on a rolling basis for the past seven days, for each day of that period, and dividing that sum by the number of days in that period. We assess the health of our business by measuring Platform WAU because we believe that weekly usage best captures the cadence at which we expect a healthy user base to engage with and derive the most utility from our platform, and by extension their neighborhood. Our Platform WAU for the three months ended June 30, 2026 and 2025 was 22.9 million and 21.8 million, respectively, which represents a 5% increase period over period. 21 Table of Contents Quarterly Average Platform WAU (in millions) Average Revenue per Platform Weekly Active User (Platform ARPU) We generate revenue primarily from advertising. We measure monetization of our platform through our Platform ARPU metric. We define Platform ARPU as our total revenue during a period divided by the average of the number of Platform WAU during the same period. Our Platform ARPU for the three months ended June 30, 2026 and 2025 was $3.26 and $2.99, respectively. Quarterly Platform ARPU 22 Table of Contents Components of Results of Operations Revenue We generate a majority of our revenue from the delivery of advertising services. We recognize revenue only after transferring control of promised goods or services to the customer. Advertising services are typically sold on a cost per thousand (“CPM”) basis, a cost per click (“CPC”) basis, or on a subscription basis according to the service period. The majority of our revenue is generated in the United States. Cost of Revenue Cost of revenue consists primarily of expenses associated with the delivery of our revenue generating activities, including the third-party costs of hosting our platform and allocated personnel-related costs, which include salaries, benefits, and stock-based compensation for employees engaged in development of our revenue generating products. Cost of revenue also includes third-party costs associated with delivering and supporting our advertising services and credit card transaction fees related to processing customer transactions. Research and Development Research and development expenses consist primarily of personnel-related costs, including salaries, benefits, restructuring costs, and stock-based compensation for our employees engaged in research and development, as well as costs for consultants, contractors and third-party software. In addition, allocated overhead costs, such as facilities, information technology, and depreciation are included in research and development expenses. Sales and Marketing Sales and marketing expenses consist primarily of personnel-related and other costs which include salaries, commissions, benefits, restructuring costs, and stock-based compensation for employees engaged in sales and marketing activities as well as other costs including third-party consulting, public relations, and allocated overhead costs. Sales and marketing expenses also include brand and performance marketing for both user and local business acquisition, and neighbor services, which includes personnel-related costs for our neighbor support team, our outsourced neighbor support function, and verification costs. Performance marketing costs related to local business acquisition largely consist of digital advertising and, to a lesser extent, direct mail campaigns. Performance marketing costs related to user acquisition largely consist of digital advertising. Fluctuations in our performance marketing expenses are driven by a variety of factors, including but not limited to: our target geographies, whether we are acquiring users or businesses, assessment of return on investment of marketing spend, strategic priorities, and seasonal factors. General and Administrative General and administrative expenses consist primarily of personnel-related costs, including salaries, benefits, restructuring costs, and stock-based compensation, for certain executives, finance, legal, information technology, human resources, and other administrative employees. In addition, general and administrative expenses include fees and costs for professional services, including consulting, third-party legal and accounting services, and allocated overhead costs. Interest Income Interest income consists of interest earned on our cash, cash equivalents, and marketable securities. Other Income (Expense), Net Other income (expense), net consists primarily of unrealized gains and losses from the re-measurement of monetary assets and liabilities denominated in non-functional currencies, and gains and losses on marketable securities and foreign currency transactions. Provision for Income Taxes The provision for income taxes consists primarily of income taxes related to foreign and state jurisdictions in which we conduct business. We maintain a full valuation allowance on our U.S. federal and state deferred tax assets as we have concluded that it is more likely than not that the deferred tax assets will not be realized. 23 Table of Contents Results of Operations The results of operations presented below should be reviewed in conjunction with our unaudited condensed consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report. The following table sets forth our unaudited condensed consolidated results of operations for the periods presented. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Revenue $ 74,554 $ 65,093 $ 136,223 $ 119,269 Costs and expenses(1): Cost of revenue 11,475 10,643 22,523 20,090 Research and development 32,985 34,622 65,001 68,116 Sales and marketing 21,054 24,334 40,700 46,446 General and administrative 14,706 15,770 28,995 31,906 Total costs and expenses 80,220 85,369 157,219 166,558 Loss from operations (5,666) (20,276) (20,996) (47,289) Interest income 3,834 4,774 7,870 9,756 Other income, net 4 408 18 628 Loss before income taxes (1,828) (15,094) (13,108) (36,905) Provision for income taxes 294 268 431 409 Net loss $ (2,122) $ (15,362) $ (13,539) $ (37,314) __________________ (1)Includes stock-based compensation expense as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Cost of revenue $ 555 $ 739 $ 1,177 $ 1,484 Research and development 8,039 9,676 16,402 18,864 Sales and marketing 2,028 2,223 3,963 4,695 General and administrative 4,251 4,469 8,093 9,155 Total $ 14,873 $ 17,107 $ 29,635 $ 34,198 The following table sets forth the components of our unaudited condensed consolidated statements of operations as a percentage of revenue for each of the periods presented: Three Months Ended June 30, Six Months Ended June 30, (as a percentage of total revenue) 2026 2025 2026 2025 Revenue 100 % 100 % 100 % 100 % Costs and expenses: Cost of revenue 15 16 17 17 Research and development 44 53 48 57 Sales and marketing 28 37 30 39 General and administrative 20 24 21 27 Total costs and expenses 108 131 115 140 Loss from operations (8) (31) (15) (40) Interest income 5 7 6 8 Other income, net — 1 — 1 Loss before income taxes (2) (23) (10) (31) Provision for income taxes — — — — Net loss (3) % (24) % (10) % (31) % 24 Table of Contents Note: Certain figures may not sum due to rounding. Comparison of the Three and Six Months Ended June 30, 2026 and 2025 Revenue Three Months Ended June 30, Change Six Months Ended June 30, Change (in thousands, except percentages) 2026 2025 $ % 2026 2025 $ % Revenue $ 74,554 $ 65,093 $ 9,461 15 % $ 136,223 $ 119,269 $ 16,954 14 % Revenue increased by $9.5 million, or 15%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily due to increased advertiser spending and an increase in the number of active users, as measured by a 5% increase in Q2 Platform WAU. Revenue increased by $17.0 million, or 14%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was primarily due to increased advertiser spending and an increase in the number of active users, as measured by a 5% increase in Q2 Platform WAU. Cost of revenue Three Months Ended June 30, Change Six Months Ended June 30, Change (in thousands, except percentages) 2026 2025 $ % 2026 2025 $ % Cost of revenue $ 11,475 $ 10,643 $ 832 8 % $ 22,523 $ 20,090 $ 2,433 12 % Cost of revenue increased by $0.8 million, or 8%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily due to a $1.3 million increase in third-party hosting costs, partially offset by a $0.4 million decrease in allocated personnel-related costs. Cost of revenue increased by $2.4 million, or 12%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was primarily due to a $2.7 million increase in third-party hosting costs and a $0.4 million increase in third-party costs associated with delivering and supporting our advertising services, partially offset by a $0.7 million decrease in allocated personnel-related costs. Research and development Three Months Ended June 30, Change Six Months Ended June 30, Change (in thousands, except percentages) 2026 2025 $ % 2026 2025 $ % Research and development $ 32,985 $ 34,622 $ (1,637) (5) % $ 65,001 $ 68,116 $ (3,115) (5) % Research and development expenses decreased by $1.6 million, or 5%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The decrease was primarily due to a $2.7 million decrease in personnel-related costs driven by a decrease in headcount and a $0.4 million decrease in professional service fees, partially offset by a $1.5 million increase in third-party software costs. Research and development expenses decreased by $3.1 million, or 5%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The decrease was primarily due to a $4.9 million decrease in personnel-related costs driven by a decrease in headcount and a $0.8 million decrease in professional service fees, partially offset by a $2.6 million increase in third-party software costs. 25 Table of Contents Sales and marketing Three Months Ended June 30, Change Six Months Ended June 30, Change (in thousands, except percentages) 2026 2025 $ % 2026 2025 $ % Personnel-related and other $ 15,394 $ 18,195 $ (2,801) (15) % $ 29,783 $ 34,926 $ (5,143) (15) % Brand and performance marketing 3,322 3,658 (336) (9) % 6,243 6,404 (161) (3) % Neighbor services 2,338 2,481 (143) (6) % 4,674 5,116 (442) (9) % Total sales and marketing $ 21,054 $ 24,334 $ (3,280) (13) % $ 40,700 $ 46,446 $ (5,746) (12) % Sales and marketing expenses decreased by $3.3 million, or 13%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The decrease was primarily due to a $2.8 million decrease in personnel-related costs driven by a decrease in headcount. Sales and marketing expenses decreased by $5.7 million, or 12%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The decrease was primarily due to a $5.1 million decrease in personnel-related costs driven by a decrease in headcount. General and administrative Three Months Ended June 30, Change Six Months Ended June 30, Change (in thousands, except percentages) 2026 2025 $ % 2026 2025 $ % General and administrative $ 14,706 $ 15,770 $ (1,064) (7) % $ 28,995 $ 31,906 $ (2,911) (9) % General and administrative expenses decreased by $1.1 million, or 7%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The decrease was primarily due to a $1.0 million decrease in personnel-related costs driven by a decrease in headcount. General and administrative expenses decreased by $2.9 million, or 9%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The decrease was primarily due to a $2.5 million decrease in personnel-related costs driven by a decrease in headcount and a $0.3 million decrease in professional service fees. Interest income Three Months Ended June 30, Change Six Months Ended June 30, Change (in thousands, except percentages) 2026 2025 $ % 2026 2025 $ % Interest income $ 3,834 $ 4,774 $ (940) (20) % $ 7,870 $ 9,756 $ (1,886) (19) % Interest income decreased by $0.9 million, or 20%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The decrease was driven by lower returns on marketable securities as a result of lower invested balances and lower interest rates. Interest income decreased by $1.9 million, or 19%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The decrease was driven by lower returns on marketable securities as a result of lower invested balances and lower interest rates. Other income, net Three Months Ended June 30, Change Six Months Ended June 30, Change (in thousands, except percentages) 2026 2025 $ % 2026 2025 $ % Other income, net $ 4 $ 408 $ (404) (99) % $ 18 $ 628 $ (610) (97) % 26 Table of Contents Other income, net decreased by $0.4 million, or 99%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The decrease was primarily due to the periodic re-measurement of monetary assets and liabilities denominated in non-functional currencies and gains and losses on marketable securities and foreign currency transactions. Other income, net decreased by $0.6 million, or 97%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The decrease was primarily due to the periodic re-measurement of monetary assets and liabilities denominated in non-functional currencies and gains and losses on marketable securities and foreign currency transactions. Provision for income taxes Three Months Ended June 30, Change Six Months Ended June 30, Change (in thousands, except percentages) 2026 2025 $ % 2026 2025 $ % Provision for income taxes $ 294 $ 268 $ 26 10 % $ 431 $ 409 $ 22 5 % Provision for income taxes increased by less than $0.1 million, or 10%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily due to an increase in foreign income tax expenses. Provision for income taxes increased by less than $0.1 million, or 5%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was primarily due to an increase in foreign income tax expenses. Liquidity and Capital Resources We have historically generated negative cash flows from operations until recent periods, and have primarily financed our operations from net proceeds received from the sale of equity securities, proceeds from our business combination with Khosla Ventures Acquisition Co. II, and payments received from our customers. We currently have no debt outstanding. We have generated losses from our operations, as reflected in our accumulated deficit of $931.8 million as of June 30, 2026. These losses are attributable to investments made in supporting the growth of our business, and we expect them to continue for the foreseeable future. We also expect to incur significant research and development, sales and marketing, and general and administrative expenses over the next several years in connection with the continued development and strategic expansion of our business. As of June 30, 2026, we had $378.0 million in cash, cash equivalents, and marketable securities. We anticipate satisfying our short-term cash requirements, including meeting our working capital and capital expenditure requirements, with our existing cash, cash equivalents, and marketable securities. In the long term, we may satisfy our cash requirements with cash, cash equivalents, and marketable securities on hand or with proceeds from any future equity or debt financings. Our ability to support our requirements and plans for cash, including working capital and capital expenditure requirements, will depend on many factors, including the rate of our revenue growth, the timing and extent of spending on research and development efforts and other business initiatives, the expansion of sales and marketing activities, the introduction of new and enhanced product offerings and features, the continuing market adoption of our platform, any repurchase of shares we may make from time to time, and our ability to obtain equity or debt financing. Moreover, any actual or perceived instability in the U.S. or international banking systems may impact liquidity both in the short term and long term. To the extent existing cash, cash equivalents, and marketable securities are insufficient to fund our working capital and capital expenditure requirements, or should we require additional cash for other purposes, we may attempt to raise additional capital through the sale of equity or debt securities. If we raise additional funds through the issuance of equity or debt securities, those securities may have rights, preferences, or privileges senior to the rights of our Class A and Class B common stock, and our stockholders may experience dilution. Any future indebtedness we incur may result in terms that could also be unfavorable to our equity investors. There can be no assurances that we will be able to raise additional capital on terms we deem acceptable, or at all. The inability to raise additional capital as and when required would have an adverse effect, which could be material, on our results of operations, financial condition, and ability to achieve our business objectives. In May 2022, our Board of Directors authorized and approved a share repurchase program to repurchase up to $100.0 million in aggregate of our Class A common stock, with the authorization to expire on June 30, 2024. The timing of any repurchases depended on market conditions and other investment opportunities, and repurchases were made at our discretion. This share repurchase program did not obligate us to repurchase any dollar amount or number of shares, and the program could be extended, modified, suspended, or discontinued at any time. In February 2024, our Board of Directors authorized and approved an increase of $150.0 million to the share repurchase program and extended the expiration date to March 31, 2026. In April 2026, our Board of Directors authorized and approved a new share repurchase program to repurchase up to $100.0 million in aggregate of our Class A common stock, with the 27 Table of Contents authorization to expire on June 30, 2028. During the three months ended June 30, 2026, we did not repurchase or retire any shares of Class A common stock. During the six months ended June 30, 2026, we repurchased and retired 16,992,982 shares of Class A common stock at an average purchase price of $1.69 per share for an aggregate repurchase price of $28.7 million. As of June 30, 2026, we had $100.0 million available for future share repurchases under the share repurchase program. For more information regarding our commitments related to executed leases that have not yet commenced, refer to Note 6, Leases, to our unaudited condensed consolidated financial statements in this Quarterly Report. Cash Flows The following table summarizes our cash flows for the periods presented: Six Months Ended June 30, (in thousands) 2026 2025 Net cash provided by operating activities $ 9,600 $ 3,314 Net cash provided by investing activities $ 25,562 $ 31,653 Net cash used in financing activities $ (35,123) $ (21,231) Operating activities Cash provided by operating activities during the six months ended June 30, 2026 was $9.6 million which resulted from a net loss of $13.5 million, adjusted for non-cash charges of $30.0 million and net cash outflows of $6.8 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $29.6 million of stock-based compensation expense and $0.7 million of depreciation and amortization expense, partially offset by $0.4 million of accretion on investments. The net cash outflows from changes in operating assets and liabilities were primarily due to a $4.6 million decrease in operating lease liabilities due to lease payments, a $3.6 million increase in accounts receivable, a $0.4 million increase in prepaid expenses and other assets, and a $0.3 million decrease in accounts payable. These amounts were partially offset by a $1.5 million decrease in operating lease right-of-use assets due to normal amortization and a $0.5 million increase in accrued expenses and other liabilities. Cash provided by operating activities during the six months ended June 30, 2025 was $3.3 million which resulted from a net loss of $37.3 million, adjusted for non-cash charges of $33.7 million and net cash inflows of $6.9 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $34.2 million of stock-based compensation expense and $1.1 million of depreciation and amortization expense, partially offset by $1.4 million of accretion on investments. The net cash inflows from changes in operating assets and liabilities were primarily due to a $4.2 million decrease in accounts receivable, a $3.9 million increase in accounts payable, a $1.4 million decrease in operating lease right-of-use assets due to normal amortization, a $1.0 million decrease in prepaid expenses and other assets, and a $0.5 million increase in accrued expenses and other liabilities. These amounts were partially offset by a $4.1 million decrease in operating lease liabilities due to lease payments. Investing activities Cash provided by investing activities for the six months ended June 30, 2026 was $25.6 million, which consisted of proceeds from maturities of marketable securities of $78.4 million and proceeds from sales of marketable securities of $69.5 million. This was partially offset by purchases of marketable securities of $122.1 million. Cash provided by investing activities for the six months ended June 30, 2025 was $31.7 million, which consisted of proceeds from maturities of marketable securities of $98.5 million and proceeds from sales of marketable securities of $88.5 million. This was partially offset by purchases of marketable securities of $155.0 million and purchases of property and equipment of $0.3 million. Financing activities Cash used in financing activities for the six months ended June 30, 2026 was $35.1 million, which consisted of repurchases of common stock of $28.7 million and tax withholdings on release of restricted stock units of $8.5 million. This was partially offset by proceeds from the issuance of common stock upon exercise of stock options of $1.6 million and proceeds from the issuance of common stock under the employee stock purchase plan of $0.4 million. Cash used in financing activities for the six months ended June 30, 2025 was $21.2 million, which consisted of repurchases of common stock of $14.5 million and tax withholdings on release of restricted stock units of $9.2 million. This was partially offset by proceeds from the exercise of stock options of $1.8 million and proceeds from the issuance of common stock under the employee stock purchase plan of $0.7 million. 28 Table of Contents Non-GAAP Financial Measure Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure that represents our net loss adjusted for depreciation and amortization, stock-based compensation, net interest income, provision for income taxes, and any restructuring charges or acquisition-related costs. We use Adjusted EBITDA in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our Board of Directors concerning our financial performance. We believe Adjusted EBITDA is also helpful to investors, analysts, and other interested parties because it can assist in providing a more consistent and comparable overview of our operations across our historical financial periods. Adjusted EBITDA has limitations as an analytical tool, however, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including net loss and our other GAAP results. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed to imply that our future results will be unaffected by the types of items excluded from the calculation of Adjusted EBITDA. Adjusted EBITDA is not presented in accordance with GAAP and the use of this term varies from others in our industry. The following is a reconciliation of net loss, the most comparable GAAP measure, to Adjusted EBITDA: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Net loss $ (2,122) $ (15,362) $ (13,539) $ (37,314) Depreciation and amortization 329 514 685 1,058 Stock-based compensation 14,873 17,107 29,635 34,198 Interest income (3,834) (4,774) (7,870) (9,756) Provision for income taxes 294 268 431 409 Adjusted EBITDA $ 9,540 $ (2,247) $ 9,342 $ (11,405) Critical Accounting Policies and Estimates We prepare our condensed consolidated financial statements in accordance with GAAP. Preparing condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures. We evaluate our estimates and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Our actual results could differ from these estimates. There have been no material changes to our critical accounting policies requiring estimates, assumptions, and judgments as compared to the critical accounting policies and estimates as described in our Annual Report on Form 10-K for the year ended December 31, 2025. Recently Issued Accounting Pronouncements Refer to Note 2 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report for more information regarding recently issued accounting pronouncements.