Why Nextdoor Stock Blew the Roof Off Today

Nextdoor Holdings (NYSE: NXDR) stock soared 19.3% through noon ET Thursday after beating analyst sales forecasts in its Q1 2026 financial report last night.

The company wasn't profitable, but it reported $61.7 million in revenue for the quarter, instead of the $58.6 million analysts had expected.

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Ordinarily, it's not great when a company issues an earnings report that doesn't have any actual earnings to report in it, but investors seem fine with that today. Why? Well, Nextdoor grew its sales 14% year over year, and while it lost $11.4 million for the quarter, that was barely half the $22 million it lost in last year's Q1.

So call it a bad-news, good-news quarter. Nextdoor may not have earned a profit, but at least it lost less money.

And things may be looking up for Nextdoor as its user base grows. Management noted that its 22.3 million weekly active users grew 1% year over year -- and 6% quarter over quarter -- hitting its highest level ever. More users should translate into more revenue for the company, and with any luck, into profits down the road.

The real question for investors is how long they're willing to wait to see that happen? According to analyst forecasts collected by S&P Global Market Intelligence, Nextdoor probably won't reach GAAP profitability before 2030 at the earliest. Free cash flow, on the other hand, is already positive and could pass $22 million next year.

At 32 times next year's FCF, I won't say Nextdoor stock is "cheap" exactly. But like the realtors always say, "it's got potential."

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Nextdoor Stock Blew the Roof Off Today was originally published by The Motley Fool