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ABNB Q2 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Drop
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Key Takeaways
Airbnb's Q2 earnings of $1.03 per share beat estimates, with revenues rising 13% to $2.27 billion.
Shares fell 7% as Airbnb warned of tough comps and margin pressure in H2 2025.
Strong booking growth, AI rollouts, and a new $6B buyback highlight Airbnb's strategic initiatives.
Airbnb (ABNB - Free Report) reported second-quarter 2025 adjusted earnings of $1.03 per share, which beat the Zacks Consensus Estimate by 10.75%.
Revenues of $2.272 billion increased 13% year over year, both on a reported and forex-neutral basis, driven by solid growth in nights stayed, a slight increase in Average Daily Rate (ADR), and the timing of Easter. The top line beat the Zacks Consensus Estimate by 2.01%.
However, following the results ABNB shares dropped roughly 7% at the time of writing this article. The company expects to face tough year-over-year comparisons in the third and fourth quarters of 2025, which is likely to negatively impact adjusted EBITDA margin.
Year to date, Airbnb shares have dropped 8.7% underperforming the broader Zacks Consumer Discretionary sector as well as closest peers including TripAdvisor (TRIP - Free Report) , Booking Holdings (BKNG - Free Report) and Expedia Group (EXPE - Free Report) . Over the same timeframe, shares of TripAdvisor and Booking Holdings have appreciated 11.6% and 11.2%, respectively, while Expedia Group fell 0.7%. The broader sector has returned 5.7% year to date.
ABNB’s Q2 Revenue Details
The second-quarter 2025 Gross Booking Value (GBV) was $23.5 billion, up 10.8% year-over-year on a reported basis or 9% excluding the impact of forex. Take rate (defined as revenue divided by GBV) was 13.2%, up slightly year over year compared with 13% in the year-ago quarter. Revenues benefited from the timing of Easter as well as the additional service fee amount Airbnb charged for cross-currency bookings. Cross-currency transactions comprise approximately 20% of the company’s GBV.
Nights and Seats Booked were 134.4 million, up 7% year over year. Excluding North America, which contributes roughly 30% of total Nights and Seats Booked, the metric grew double-digits year over year.
ADR (Gross Booking Value per Night and Experience Booked) was $174.5, up 3% on a year-over-year basis. Excluding forex, ADR grew 1% and was up across all regions due to price appreciation.
Nights booked on the app in the second quarter increased 17% year over year and comprised 59% of total nights booked (up from 55% in the year-ago quarter).
Portfolio Enhancements Drive ABNB’s Growth
Quarterly revenues benefited from improvements across checkout, messaging, merchandising, and more flexible payment options. Strong growth from expansion markets like Japan has been a key catalyst. In the second quarter of 2025, nights booked by Japanese travelers accelerated sequentially, driven by more domestic travel and a 15% year-over-year increase in first-time bookers. Apart from Japan, Airbnb also saw a sequential acceleration in growth of nights booked on an origin basis across Canada and Germany.
Airbnb is expanding its AI-powered customer service agent to 100% of users in the United States, reducing the percentage of hosts and guests who need to contact a human agent by 15%. The company plans to roll out this service to more countries and languages later this year.
ABNB Listings Continues to Grow in Q2
Active listings continued to grow at a healthy rate in the second quarter of 2025, with supply growing slightly above Nights and Seats Booked. The company continues to see growth in both high-density urban and non-urban destinations, with the most growth in those regions with the highest demand: Latin America and Asia Pacific.
Airbnb’s Co-Host Network currently supports more than 100,000 listings, which have had over 10 million nights booked since the launch of the network. Since the launch of its updated quality system in 2023, the company has removed over 500,000 listings, and has seen a reduction in customer service issue rates and credit card chargeback rates. Guest Favorites continues to gain traction with more than 400 million nights booked at Guest Favorite listings since launch.
In the second quarter of 2025, nights booked at listings managed by Superhosts increased 12% year over year.
Airbnb’s Q2 Operating Details
In the second quarter of 2025, total costs and expenses as a percentage of revenues declined 170 bps year over year to 80.2% in the reported quarter. Cost of revenues, operations and support, and general and administrative as a percentage of revenues declined 80 bps, 160 bps and 150 bps, respectively. Product development and sales and marketing expenses increased 80 bps and 150 bps, respectively.
Adjusted EBITDA was $1.04 billion, up 16.7% year over year on a reported basis. The adjusted EBITDA margin was 33.7%, up 120 basis points (bps) year over year.
The second-quarter 2025 operating margin expanded 170 bps year over year to 19.8%.
ABNB’s Balance Sheet & Cash Flow
As of June 30, 2025, cash and cash equivalents, short-term investments, and restricted cash amounted to $11.4 billion compared with $11.49 billion as of March 31. ABNB had $11.1 billion of funds held on behalf of guests.
Net cash provided by operating activities was $1 billion for the second quarter of 2025, down from $1.8 billion reported in the first quarter of 2025 and from $1.9 billion in the year-ago quarter.
Airbnb generated a free cash flow of $1 billion in the second quarter of 2025 and $4.3 billion over the trailing 12 months.
ABNB repurchased shares worth $1 billion in the second quarter of 2025. As of June 30, 2025, the company still has $1.5 billion remaining under repurchase authorization. Airbnb announced a new share repurchase program worth $6 billion.
ABNB Offers Positive Guidance
For the third quarter of 2025, Airbnb expects revenues between $4.02 billion and $4.10 billion, reflecting a year-over-year increase of 8-10%.
Airbnb anticipates ADR to increase modestly on a year-over-year basis, due to favorable forex. The company expects stable year-over-year growth in Nights and Seats Booked for the third quarter of 2025 as compared with the second quarter of 2025.
For the third quarter of 2025, Airbnb expects adjusted EBITDA to increase to more than $2 billion. However, the adjusted EBITDA margin is expected to decline year over year.
The Zacks Consensus Estimate for revenues is pegged at $2.26 billion, indicating 5.61% growth from the figure reported in the year-ago quarter. The consensus mark for earnings is pegged at 25 cents, unchanged over the past 30 days, suggesting a sharp 39.02% year-over-year decline.
For the fourth quarter of 2025, Airbnb expects adjusted EBITDA margin to decline year over year due to higher investments and tough comparisons.
Image: Shutterstock
ABNB Q2 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Drop
Key Takeaways
Airbnb (ABNB - Free Report) reported second-quarter 2025 adjusted earnings of $1.03 per share, which beat the Zacks Consensus Estimate by 10.75%.
Revenues of $2.272 billion increased 13% year over year, both on a reported and forex-neutral basis, driven by solid growth in nights stayed, a slight increase in Average Daily Rate (ADR), and the timing of Easter. The top line beat the Zacks Consensus Estimate by 2.01%.
However, following the results ABNB shares dropped roughly 7% at the time of writing this article. The company expects to face tough year-over-year comparisons in the third and fourth quarters of 2025, which is likely to negatively impact adjusted EBITDA margin.
Year to date, Airbnb shares have dropped 8.7% underperforming the broader Zacks Consumer Discretionary sector as well as closest peers including TripAdvisor (TRIP - Free Report) , Booking Holdings (BKNG - Free Report) and Expedia Group (EXPE - Free Report) . Over the same timeframe, shares of TripAdvisor and Booking Holdings have appreciated 11.6% and 11.2%, respectively, while Expedia Group fell 0.7%. The broader sector has returned 5.7% year to date.
ABNB’s Q2 Revenue Details
The second-quarter 2025 Gross Booking Value (GBV) was $23.5 billion, up 10.8% year-over-year on a reported basis or 9% excluding the impact of forex. Take rate (defined as revenue divided by GBV) was 13.2%, up slightly year over year compared with 13% in the year-ago quarter. Revenues benefited from the timing of Easter as well as the additional service fee amount Airbnb charged for cross-currency bookings. Cross-currency transactions comprise approximately 20% of the company’s GBV.
Airbnb, Inc. Price, Consensus and EPS Surprise
Airbnb, Inc. price-consensus-eps-surprise-chart | Airbnb, Inc. Quote
Nights and Seats Booked were 134.4 million, up 7% year over year. Excluding North America, which contributes roughly 30% of total Nights and Seats Booked, the metric grew double-digits year over year.
ADR (Gross Booking Value per Night and Experience Booked) was $174.5, up 3% on a year-over-year basis. Excluding forex, ADR grew 1% and was up across all regions due to price appreciation.
Nights booked on the app in the second quarter increased 17% year over year and comprised 59% of total nights booked (up from 55% in the year-ago quarter).
Portfolio Enhancements Drive ABNB’s Growth
Quarterly revenues benefited from improvements across checkout, messaging, merchandising, and more flexible payment options. Strong growth from expansion markets like Japan has been a key catalyst. In the second quarter of 2025, nights booked by Japanese travelers accelerated sequentially, driven by more domestic travel and a 15% year-over-year increase in first-time bookers. Apart from Japan, Airbnb also saw a sequential acceleration in growth of nights booked on an origin basis across Canada and Germany.
Airbnb is expanding its AI-powered customer service agent to 100% of users in the United States, reducing the percentage of hosts and guests who need to contact a human agent by 15%. The company plans to roll out this service to more countries and languages later this year.
ABNB Listings Continues to Grow in Q2
Active listings continued to grow at a healthy rate in the second quarter of 2025, with supply growing slightly above Nights and Seats Booked. The company continues to see growth in both high-density urban and non-urban destinations, with the most growth in those regions with the highest demand: Latin America and Asia Pacific.
Airbnb’s Co-Host Network currently supports more than 100,000 listings, which have had over 10 million nights booked since the launch of the network. Since the launch of its updated quality system in 2023, the company has removed over 500,000 listings, and has seen a reduction in customer service issue rates and credit card chargeback rates. Guest Favorites continues to gain traction with more than 400 million nights booked at Guest Favorite listings since launch.
In the second quarter of 2025, nights booked at listings managed by Superhosts increased 12% year over year.
Airbnb’s Q2 Operating Details
In the second quarter of 2025, total costs and expenses as a percentage of revenues declined 170 bps year over year to 80.2% in the reported quarter. Cost of revenues, operations and support, and general and administrative as a percentage of revenues declined 80 bps, 160 bps and 150 bps, respectively. Product development and sales and marketing expenses increased 80 bps and 150 bps, respectively.
Adjusted EBITDA was $1.04 billion, up 16.7% year over year on a reported basis. The adjusted EBITDA margin was 33.7%, up 120 basis points (bps) year over year.
The second-quarter 2025 operating margin expanded 170 bps year over year to 19.8%.
ABNB’s Balance Sheet & Cash Flow
As of June 30, 2025, cash and cash equivalents, short-term investments, and restricted cash amounted to $11.4 billion compared with $11.49 billion as of March 31. ABNB had $11.1 billion of funds held on behalf of guests.
Net cash provided by operating activities was $1 billion for the second quarter of 2025, down from $1.8 billion reported in the first quarter of 2025 and from $1.9 billion in the year-ago quarter.
Airbnb generated a free cash flow of $1 billion in the second quarter of 2025 and $4.3 billion over the trailing 12 months.
ABNB repurchased shares worth $1 billion in the second quarter of 2025. As of June 30, 2025, the company still has $1.5 billion remaining under repurchase authorization. Airbnb announced a new share repurchase program worth $6 billion.
ABNB Offers Positive Guidance
For the third quarter of 2025, Airbnb expects revenues between $4.02 billion and $4.10 billion, reflecting a year-over-year increase of 8-10%.
Airbnb anticipates ADR to increase modestly on a year-over-year basis, due to favorable forex. The company expects stable year-over-year growth in Nights and Seats Booked for the third quarter of 2025 as compared with the second quarter of 2025.
For the third quarter of 2025, Airbnb expects adjusted EBITDA to increase to more than $2 billion. However, the adjusted EBITDA margin is expected to decline year over year.
The Zacks Consensus Estimate for revenues is pegged at $2.26 billion, indicating 5.61% growth from the figure reported in the year-ago quarter. The consensus mark for earnings is pegged at 25 cents, unchanged over the past 30 days, suggesting a sharp 39.02% year-over-year decline.
For the fourth quarter of 2025, Airbnb expects adjusted EBITDA margin to decline year over year due to higher investments and tough comparisons.
For 2025, this Zacks Rank #3 (Hold) company expects an adjusted EBITDA margin of at least 34.5% despite investing roughly $200 million towards services and experiences in 2025. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.