Financial Data and Key Metrics Changes - In Q2, users, revenue, and profitability each improved year over year, with revenue growth driven by momentum in the self-serve channel [16][22] - Q2 revenue was $65 million, up 3% year over year, while self-serve revenue grew 27% year over year and accounted for nearly 60% of total revenue [22][24] - Q2 GAAP net loss was $15 million, representing a negative 24% margin, while adjusted EBITDA loss was $2 million, reflecting a six percentage point year over year improvement [26][28] Business Line Data and Key Metrics Changes - The self-serve channel has become a key contributor to growth, improving advertiser performance, revenue yields, and advertiser retention [16][22] - The new product features, including local news, real-time alerts, and the FAVES AI assistant, aim to increase daily utility for users and create richer surfaces for advertisers [11][12][14] Market Data and Key Metrics Changes - Local news now accounts for roughly 5% of overall feed content, reaching 77% of U.S. cities, with over half of users engaging with this content [8][47] - The alert feature is expected to grow as real-time events occur, enhancing user engagement during critical situations [48][50] Company Strategy and Development Direction - The company is undergoing a transformation focused on product excellence, operational discipline, and community engagement, aiming to become the essential neighborhood network [5][18] - A restructuring plan was announced to improve focus and efficiency, including a workforce reduction to reset the cost structure and aim for adjusted EBITDA breakeven in 2026 [18][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the transformation strategy, emphasizing the importance of user experience and the potential for long-term value creation [64][65] - The company expects modest year-over-year revenue growth for the full year 2025, with a path to quarterly adjusted EBITDA breakeven in Q4 [29][30] Other Important Information - The company ended the quarter with $413 million in cash and no debt, indicating a strong balance sheet [27] - A leadership change was announced, with Craig Lisowski appointed as President of Products and Matt Anderson stepping down as CFO [19][20] Q&A Session Summary Question: Can you quantify the changes made to ad loads and the strategy for turning them back on? - Management indicated that the focus is on optimizing user experience first rather than increasing ad load, with excitement about experimenting with new ad formats [35][36] Question: What feedback have you received from advertisers regarding the new platform? - Management noted that CMOs expressed a desire for a better user experience, which aligns with the company's focus, and they plan to work closely with advertisers to define new ad formats [40][42] Question: What are the evolving use cases for the Nextdoor app and which surfaces are users spending the most time on? - Management highlighted that local news and alerts are gaining traction, with significant user engagement, while alerts will grow organically based on real-time events [47][48] Question: How are budget conversations with large advertisers evolving? - Management reported meaningful quarter-over-quarter improvements and expects ongoing gradual benefits from programmatic partnerships and click optimization for larger advertisers [52][54]

Core Points - Gray Media and Graham Media Group's joint fundraiser, Together for Texas, has raised over $1,104,000 for communities affected by flooding in Central Texas and the Hill Country [1] - The campaign was launched in response to the flooding on July 4, with Gray stations in 113 markets and Graham Media Group's KSAT and KPRC encouraging donations for The Salvation Army's relief efforts [1][2] - Donations are being used to provide essential supplies such as food, water, and emotional support, as well as recovery needs like clean-up supplies and assistance for small businesses [3][4] Company Overview - Gray Media, Inc. is the largest owner of local television stations in the U.S., reaching approximately 37% of U.S. television households across 113 markets [6] - The company operates 78 markets with top-rated television stations and has the largest Telemundo Affiliate group with 44 markets [6] - Graham Media Group consists of seven local media outlets and offers a range of digital media tools and advertising solutions, operating in multiple states [7]