Nextdoor NXDR Dives 14.44% Amid EBITDA Losses Scaling Hurdles *Dynamic verb "Dives" emphasizes sharp drop; "EBITDA Losses" and "Scaling Hurdles" clarify causality per report metrics; adheres to 12-word limit with precise percentage and ticker*

Nextdoor Holdings (NXDR) plunged 14.44% in pre-market trading on Dec. 15, 2025, signaling heightened investor caution ahead of the opening bell.

Analysts highlight persistent challenges for the local social network, including a trailing 12-month GAAP operating margin of -34.1% and sluggish weekly active user growth averaging just 6.5%. Recurring EBITDA margin losses and negative free cash flow underscore concerns over expense management and the timeline for investment returns. The stock trades at 4.9x forward price-to-gross profit, reflecting skepticism about its path to profitability.

Market participants are wary of Nextdoor’s ability to scale amid shrinking white space opportunities and capital inefficiencies. The sharp pre-market decline aligns with broader scrutiny of unprofitable tech firms struggling to demonstrate sustainable growth or operational turnaround.

Investor sentiment has been further dampened by weak financial indicators, with analysts questioning whether Nextdoor can achieve breakeven operations within the next 18 months. The company’s operating cash flow has been consistently negative, and its free cash flow remains a liability for now.

Despite these headwinds, some long-term investors argue that the company’s unique local advertising platform could eventually gain traction, especially as digital advertising shifts toward hyperlocal targeting. However, this remains speculative and contingent on major operational improvements.