Nextdoor Holdings, Inc.NXDR

Nextdoor Holdings, Inc. Fair Value Disclosure

10-KFiled Feb 18, 20262 min read
Fair Value Measurements
The Company’s financial assets and liabilities measured at fair value on a recurring basis are classified by level within the fair value hierarchy. There were no financial assets or liabilities measured using Level 3 inputs as of December 31, 2025 and 2024. The following tables present information about the Company’s financial assets that are measured at fair value on a recurring basis (in thousands):
As of December 31, 2025
 Level 1Level 2Total
Cash equivalents:   
Money market funds$29,023 $— $29,023 
Total cash equivalents29,023 — 29,023 
Marketable securities:
Certificates of deposit— 905 905 
Commercial paper— 1,863 1,863 
Corporate bonds— 287,586 287,586 
U.S. Treasury securities— 6,756 6,756 
Asset-backed securities— 44,319 44,319 
Total marketable securities— 341,429 341,429 
Total cash equivalents and marketable securities
$29,023 $341,429 $370,452 
As of December 31, 2024
Level 1Level 2Total
Cash equivalents:   
Money market funds$17,198 $— $17,198 
Corporate bonds— 1,994 1,994 
Total cash equivalents17,198 1,994 19,192 
Marketable securities:
Certificates of deposit— 3,632 3,632 
Commercial paper— 12,770 12,770 
Corporate bonds— 284,865 284,865 
U.S. Treasury securities— 42,382 42,382 
Asset-backed securities— 37,780 37,780 
Total marketable securities— 381,429 381,429 
Total cash equivalents and marketable securities
$17,198 $383,423 $400,621 
The Company classifies its cash equivalents and marketable securities within Level 1 or Level 2 because it determines their fair values using quoted market prices or alternative pricing sources and models utilizing market observable inputs. There were no transfers between levels of the fair value hierarchy during the years ended December 31, 2025 and 2024.

Assets and Liabilities Measured at Fair Value on a Recurring Basis
The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable, and accounts payable approximate fair value due to their short-term maturities and are excluded from the fair value table above.
Financial Instruments, Assets, and Liabilities Not Recorded at Fair Value
Opportunity Finance Network Loan Agreement
On June 2022, the Company entered into a credit agreement with Opportunity Finance Network (“OFN”) to lend up to an aggregate of $15.0 million, unsecured, over the course of 24 months. As of December 31, 2025, the note receivable from OFN totaled $15.0 million and is recorded under other assets on the consolidated balance sheets.
The following tables present the fair value hierarchy of assets not recorded at fair value (in thousands):
As of December 31, 2025
Carrying AmountLevel 1Level 2 Level 3Fair Value
Assets
Note receivable$15,000 $— $— $14,181 $14,181 
As of December 31, 2024
Carrying AmountLevel 1Level 2 Level 3Fair Value
Assets
Note receivable$15,000 $— $— $14,076 $14,076 
As of December 31, 2025 and 2024, there were no other financial instruments or liabilities that were not recorded at fair value.

Historical Timeline

Fiscal YearFiled
2025Feb 18, 2026Showing above
2024Feb 27, 2025

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

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