Airbnb Inc - Class A
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.47%.
Did ABNB Beat Earnings? Q3 2025 Results
Airbnb posted a mixed third quarter for fiscal 2025, <a href="https://247wallst.com/investing/2025/11/06/airbnb-shares-jump-on-strong-q3-revenue-but-earnings-miss/">delivering on revenue while falling short</a> on the bottom line. Revenue of $4.09 billion edged past the $4.08 billion consensus by 0.38% and grew 9.7% year-over-year, landing at the high end of guidance. Earnings per share, however, came in at $2.21, missing the $2.32 consensus by 4.75%, weighed down by a $213 million valuation allowance against deferred tax assets tied to Corporate Alternative Minimum Tax credits that pressured net income despite stronger top-line results. On the operational side, Gross Booking Value accelerated to $22.90 billion, up 14% year-over-year, while Nights and Seats Booked reached 133.6 million, growing 9% and exceeding management expectations. Looking ahead, Airbnb guided Q4 revenue of $2.66 billion to $2.72 billion, representing 7% to 10% growth, though it warned that Q4 Adjusted EBITDA could come in flat-to-down slightly as the company channels roughly $200 million into its expanding services and experiences business.
- Reserve Now, Pay Later launch drove acceleration in North America bookings
- App bookings grew 17% year-over-year, reaching 62% of total nights booked vs 58% prior year
- ADR increased 5% year-over-year to $171, benefiting from FX tailwinds and price appreciation
- International expansion markets growing at twice the rate of core markets
- Interest-free installment plans in Brazil drove bookings value share to nearly 50% in Q3
- Active listings grew approximately in-line with Nights and Seats Booked
Forward Guidance & Outlook
For Q4 2025, Airbnb expects revenue of $2.66 billion to $2.72 billion, representing 7% to 10% year-over-year growth with a small FX tailwind. GBV is expected to grow low-double-digits year-over-year with a modest ADR increase from price appreciation and FX. Nights and Seats Booked growth is expected in the mid-single-digit range due to a challenging Q4 2024 comparison. Full-year 2025 Adjusted EBITDA Margin is now expected at approximately 35%, with Q4 Adjusted EBITDA flat-to-down slightly year-over-year due to investments in growth and policy initiatives, including approximately $200 million toward services and experiences. The company sees strength in longer lead time bookings, partly driven by Reserve Now, Pay Later. Starting in 2026, Airbnb expects its long-term effective tax rate to decline to the mid-to-high teens due to the One Big Beautiful Bill Act.
ABNB YoY Financials
Figures from SEC filings and company reports. Not investment advice.