Answer
The press release you quoted does not contain enough information to calculate Nextdoor’s cash‑burn rate (the amount of cash the company is using each month/quarter) or its cash runway (how long the company can keep operating at its current burn rate before it runs out of cash).
Below is a brief explanation of why those figures can’t be derived from the data you provided, and what additional information would be needed to compute them.
1. What the release does tell us
| Metric (Q2 2025) | Value |
|---|---|
| Platform Weekly Active Users (WAU) | 21.8 M (↑ 1% YoY) |
| Revenue | $65 M (↑ 3% YoY) |
| Net loss | $15 M (vs. $43 M a year earlier) |
| Adjusted EBITDA | (loss figure not disclosed in the excerpt) |
These numbers show that the company improved its profitability versus the same quarter a year ago (net loss narrowed from $43 M to $15 M). However, they do not reveal:
- The cash balance (or cash‑and‑cash equivalents) at the beginning or end of the quarter.
- The cash‑flow statement (e.g., cash used in operating activities, investing activities, financing activities).
- Any non‑cash items that affect net loss (e.g., stock‑based compensation, depreciation, amortization) beyond the brief mention of “Adjusted EBITDA loss”.
2. Why cash‑burn rate and runway can’t be calculated from the release
| Required Input | Why it’s missing |
|---|---|
| Cash‑burn rate (e.g., cash used per month or per quarter) | We need the net cash outflow for the period, which is found on the cash‑flow statement (or can be approximated from operating cash flow). The press release only provides net loss, which includes non‑cash expenses and does not equal cash consumption. |
| Cash balance (starting or ending) | The press release does not disclose the amount of cash and cash equivalents the company holds on its balance sheet. |
| Cash runway (months/years of cash left) | Runway = Cash balance ÷ cash‑burn rate. Without either component, the runway cannot be derived. |
3. How you could estimate the figures if the missing data were available
| Step | What you’d need | How you’d compute it |
|---|---|---|
| 1. Determine cash‑burn | • Net cash used in operating activities (from the cash‑flow statement) • Adjust for any cash‑generating financing activities (e.g., debt proceeds, equity issuances) |
Cash‑burn per quarter = Operating cash outflow – financing cash inflow (if you want “net” burn). Cash‑burn per month = Quarterly cash‑burn ÷ 3. |
| 2. Identify cash on hand | • Cash & cash equivalents at period end (balance sheet) • Any short‑term investments that are readily convertible to cash |
This is the “cash pool” the company can draw from. |
| 3. Compute runway | • Cash‑burn rate (monthly) • Cash balance |
Runway (months) = Cash balance ÷ Monthly cash‑burn. If the burn is accelerating or decelerating, you’d need a forward‑looking model that incorporates expected revenue growth, cost trends, and any planned financing. |
Example (hypothetical numbers):
- Cash on hand: $200 M
- Net cash used in Q2 2025: $15 M (same as net loss, assuming minimal non‑cash adjustments)
- Monthly cash‑burn = $15 M ÷ 3 ≈ $5 M
- Runway = $200 M ÷ $5 M ≈ 40 months (≈ 3.3 years).
Important: This example is purely illustrative. The real cash‑burn could be higher or lower depending on the magnitude of non‑cash items (e.g., stock‑based compensation) and any financing activities (e.g., new debt or equity raises) that offset operating cash outflows.
4. What to do next
- Locate the full earnings release (often posted on the company’s investor‑relations website). The complete filing typically includes:
- A statement of cash flows (showing cash used in operating, investing, and financing activities).
- A balance sheet (showing cash and cash equivalents).
- Check the Form 10‑Q for the quarter (if filed). The SEC filing will contain the same cash‑flow and balance‑sheet details.
- If you have access to a financial data platform (e.g., Bloomberg, FactSet, S&P Capital IQ), you can pull the “Cash Burn” metric directly, which is usually calculated as “Net cash used in operating activities” divided by the number of months in the period.
- Contact the company’s investor‑relations team for clarification if the public documents do not break out cash‑burn explicitly.
5. Bottom‑line answer
Based solely on the excerpt you provided, we cannot determine Nextdoor’s cash‑burn rate or its cash runway. The press release only reports net loss and a few operating metrics, but it does not disclose cash‑flow or cash‑balance data needed for those calculations. To answer the question accurately, you’ll need to locate the company’s full earnings statement (including the cash‑flow statement and balance sheet) or a reliable financial‑data source that tracks cash‑burn and runway.