Nextdoor Holdings, Inc.NXDR

Nextdoor Holdings, Inc. Leases Disclosure

10-KFiled Feb 18, 20262 min read
Leases
The Company has entered into various non-cancellable office facility leases in various locations with original lease periods expiring between 2020 and 2029, with its primary office location in San Francisco, California. The Company entered into a lease consisting of multiple floors for its San Francisco headquarters in 2019, with a lease term through 2029. On January 30, 2023, the Company entered into a lease amendment for its headquarters lease. The lease amendment extended the lease term through April 30, 2032, and resulted
in an increase to right-of-use assets and operating lease liabilities. During the second quarter of 2024, the Company determined it was no longer reasonably certain that the optional renewal period would be exercised resulting in a reduction in the lease term and a decrease to its right-of-use assets and operating lease liabilities. In addition, as part of a restructuring plan, the Company decided to vacate and abandon certain floors of its leased headquarters in San Francisco in order to streamline operations and optimize its office space. The Company ceased occupying the floors in June 2024 and, as a result, the Company recorded impairment charges for the related operating lease right-of-use assets, leasehold improvements and furniture and fixtures in the second quarter of 2024. See Note 13 - Restructuring for further details. The Company's lease agreements generally do not contain any material residual value guarantees or material restrictive covenants.
The components of lease costs were as follows (in thousands):
Year Ended December 31,
202520242023
Operating lease cost
$5,354 $7,461 $9,370 
Short-term lease cost
2,186 2,102 1,887 
Variable lease cost
2,940 2,925 2,553 
Total
$10,480 $12,488 $13,810 
Other information related to the Company’s operating leases was as follows (in thousands):
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities: 
Operating cash flows from operating leases
$10,977 $10,657 $10,347 
ROU assets obtained in exchange for new operating lease liabilities
$— $— $9,107 
Remeasurement of operating lease liability and right-of-use asset
$— $(18,915)$— 
The weighted average remaining lease term (years) and discount rate related to operating leases were as follows:
As of December 31,
20252024
Weighted average remaining lease term (years)3.34.3
Weighted average discount rate
6.9 %6.9 %
As of December 31, 2025, future minimum lease payments under operating leases were as follows (in thousands):
2026$10,777 
202710,586 
202810,936 
20293,704 
Total lease payments36,003 
Less: imputed interest(3,752)
Present value of lease liabilities32,251 
Less: current operating lease liabilities
(8,900)
Long-term operating lease liabilities
$23,351 
The table above does not include lease payments that were not fixed at commencement or lease modification.

Historical Timeline

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

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&ECommitmentsNew Standards