Net loss improved to $13 million from $15 million a year earlier, and adjusted EBITDA went from a loss of $1 million to a profit of $4 million, a significant step for a company still working toward steady profitability. Nextdoor also ended the quarter with about $403 million in cash, cash equivalents and marketable securities, giving it time and flexibility to keep investing while the market decides whether this rally can be sustained.

Nextdoor has launched AI-powered ad optimizations and new video ad formats within Nextdoor Advertising Manager, designed to help brands get better campaign results and reach their more than 100 million high-intent users in 345,000 neighborhoods with more relevant and engaging creative. The AI ​​piece aims to make the most of Nextdoor’s hyperlocal targeting by making it easier for advertisers to adjust campaigns, improve performance, and feel confident putting more ad dollars into the platform when results start to improve.

Additionally, Nextdoor is testing locally tailored ads that reflect where people live and what matters to them nearby, which matches the sense of community that sets it apart from larger, mainstream social networks. This same idea of ​​”neighborhood intelligence” also appears in its partnership with Waze, which brings real-time traffic and road alerts to Nextdoor Alerts.

By turning Waze data into actionable updates that people can react to and talk about, such as accidents, road closures or local delays, Nextdoor adds another reason for neighbors to check the app more often and use it as part of their daily local awareness.

Earnings estimates for the current quarter ending December 2025 indicate a loss of $0.03 per share. For the full year, Wall Street is looking for a loss of $0.16 in 2025 versus last year’s $0.20, which would point to a 20.00% year-over-year improvement.

This expectation frames the debate around the $4 target. The $4 Street price target tied to the bull case comes from Craig-Hallum analyst Jason Kreyer, who initiated coverage with a “Buy” rating and set that $4 target for January 2025. Basically, it’s the higher end of what analysts think the stock could do if Nextdoor performs well and sentiment remains favorable. On the more cautious side, Citigroup analyst James Michael Sherman-Lewis stuck with a “Neutral” rating on Nov. 10, but cut his price target to $2.20 from $2.40, down 8.33%, citing near-term challenges tied to profitability and operating leverage.

Moving away, the analyst’s broader view is still accurate. The seven analysts polled by bar chart rate the stock as a consensus “Hold,” with only one giving NXDR a “Strong Buy” and the rest saying “Hold” or “Moderate Sell.” The average target price is $2.34, although the stock is trading around $2.20. That puts the stock roughly 6% below the Street’s average target.

Reaching $4 before the end of 2025 seems possible, but not the most likely base case. It will likely require rallying energy around Eric Jackson’s endorsement to stay hot and keep buyers paying ahead of profits. With the stock already trading just below the average analyst target, the setup is essentially “sentiment versus fundamentals,” and that’s a difficult mix to trust for a clean, repeatable move. Stocks will most likely taper and cool, unless another catalyst reignites the momentum; still, if the meme-style offer returns, $4 is within striking distance.

As of the date of publication, Ebube Jones had no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com