What Nextdoor Holdings, Inc. told the SEC could break it.

A substantial portion of Nextdoor's network infrastructure is provided by third parties — notably Amazon Web Services — and it also relies on third parties for other technology services including certain AI functions, exercising little control over these providers; any disruption, failure or financial difficulty at AWS or these providers (or a catastrophic event at its San Francisco headquarters, where most employees are based) could make its platform unavailable and harm its business.

“A substantial portion of our network infrastructure is provided by third parties, including AWS. We also rely on third parties for other technology related services, including certain AI functions.”

Nextdoor has generated negative operating cash flows and operating losses, with a $918.3 million accumulated deficit at December 31, 2025, and has financed operations primarily from equity-securities proceeds, its SPAC business combination and customer payments (it has no debt outstanding); continued losses and cash outflows — even as it executes an August 2025 cost-reduction/restructuring plan — mean it depends on maintaining sufficient cash and capital-market access.

“We have generated losses from our operations, as reflected in our accumulated deficit of $918.3 million as of December 31, 2025. We incurred operating losses and cash outflows from operations by supporting the growth of our business.”

Nextdoor generates substantially all of its revenue from advertising on its neighborhood platform, so a reduction or elimination of advertiser spending — driven by macroeconomic weakness, seasonality, elections or other factors — would materially harm results; it is also vulnerable to ad-blocking technologies that may evolve to prevent the display of advertisements on its platform, undermining its sole revenue stream.

“We currently generate substantially all of our revenue from advertising. If advertisers reduce or eliminate their spending with us, our business, operating results, and financial condition would be adversely impacted.”

Nextdoor is subject to extensive and evolving data-privacy and content-platform regulation — U.S. federal/state privacy laws, Canada's PIPEDA, content frameworks like the DMCA, Communications Decency Act (Section 230) and EU Digital Services Act — and to emerging AI legislation affecting its use of large language models and training data; adverse changes or loss of intermediary-liability protections could raise compliance costs and liability and harm its advertising-dependent business.

“We rely on a variety of statutory, regulatory and common-law frameworks and defenses relevant to the content available on our platform, including the Digital Millennium Copyright Act (the “DMCA”), the Communications Decency Act (“CDA”) and the fair-use doctrine in the United States, the Digital Service”