Airbnb (ABNB) Q3 2025 Financial Results Summary
Airbnb released its Q3 2025 financial results on November 6, 2025. This quarter continued to showcase the company’s strong performance and strategic growth initiatives. Below is a summary of key financial metrics and business highlights from the report.
Key Financial Metrics
- Revenue: $4.1 billion, up 10% year-over-year (Y/Y), with the same growth rate when adjusted for foreign exchange (ex-FX).
- Net Income: $1.4 billion, with a net income margin of 34%, stable compared to Q3 2024.
- Adjusted EBITDA: $2.1 billion, representing a 50% margin, a 5% increase from the previous year.
- Free Cash Flow (FCF): $1.3 billion, with a FCF margin of 33%, reflecting a 33% Y/Y growth.
- Trailing Twelve Month (TTM) FCF: $4.5 billion, with a TTM FCF margin of 38%.
Key Business Metrics
- Gross Booking Value (GBV): $22.9 billion, which is up 14% Y/Y (or 12% ex-FX).
- Nights and Seats Booked: 133.6 million, an increase of 9% Y/Y.
Growth Drivers
- Product Enhancements:
- Introduction of features such as “Reserve Now, Pay Later,” which allows guests to book stays with $0 upfront, has contributed to the increase in Nights and Seats Booked.
- Updated cancellation policies enabling easier management for both guests and hosts, which resulted in increased bookings and reduced customer service issues.
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Improved maps and flexible carousels to enhance the discovery of listings, making it easier for guests to find suitable accommodations.
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Global Expansion:
- Continued international expansion efforts, with notably strong growth rates in Japan (20%) and India (nearly 50%) for first-time bookers year-over-year.
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Significant growth in Nights Booked in Latin America, particularly in Brazil, where the share of installment payment options more than doubled.
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AI Integration:
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Development of AI features like smarter customer support responses and AI-powered search capabilities aimed at improving user experiences.
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Operational Improvements:
- Ongoing focus on enhancing service quality through better host support.
- The company has removed over 550,000 listings as part of its quality control measures, resulting in a reduction in customer service issues.
Fiscal Outlook
- Q4 2025 Revenue Expectations: Projected revenue between $2.66 billion and $2.72 billion, indicating Y/Y growth of 7% to 10%, with a favorable foreign exchange impact anticipated.
- Q4 GBV and Nights Booked:
- Expecting GBV growth in the low-double-digit range.
- Anticipating mid-single-digit growth for Nights and Seats Booked in Q4 due to challenging comparisons from Q4 2024.
- Full-Year Adjusted EBITDA: Expected to deliver an Adjusted EBITDA Margin of approximately 35%.
Shareholder Returns
- During Q3 2025, Airbnb repurchased $857 million of Class A common stock as part of its share repurchase program, aimed at managing dilution and returning value to shareholders.
Conclusion
Airbnb continues to leverage its platform through innovative features, geographic expansion, and operational enhancements, aimed at sustaining growth in a competitive market. The positive financial performance and strategic initiatives align well towards its long-term vision of enhancing travel experiences while maintaining a strong balance sheet.
| September 30, 2024 | September 30, 2025 | |
|---|---|---|
| Revenue | $3,732 | $4,095 |
| Costs and expenses: | ||
| Cost of revenue | $465 | $549 |
| Operations and support | $369 | $365 |
| Product development | $524 | $587 |
| Sales and marketing | $514 | $639 |
| General and administrative | $335 | $330 |
| Total costs and expenses | $2,207 | $2,470 |
| Income from operations | $1,525 | $1,625 |
| Interest income | $207 | $180 |
| Other income (expense), net | $3 | $(13) |
| Income before income taxes | $1,735 | $1,792 |
| Provision for income taxes | $367 | $418 |
| Net income | $1,368 | $1,374 |
| Net income per share attributable to Class A and Class B common stockholders: | ||
| Basic | $2.17 | $2.25 |
| Diluted | $2.13 | $2.21 |
| Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders: | ||
| Basic | 631 | 611 |
| Diluted | 642 | 621 |
| (1) Includes stock-based compensation expense as follows (in millions): | ||
| Operations and support | $22 | $22 |
| Product development | $230 | $254 |
| Sales and marketing | $43 | $54 |
| General and administrative | $67 | $69 |
| Stock-based compensation expense | $362 | $399 |
| December 31, 2024 | September 30, 2025 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $6,864 | $7,528 |
| Short-term investments | $3,747 | $4,156 |
| Funds receivable and amounts held on behalf of customers | $5,931 | $7,209 |
| Prepaids and other current assets | $638 | $645 |
| Total current assets | $17,180 | $19,538 |
| Deferred income tax assets | $2,439 | $2,146 |
| Goodwill and intangible assets, net | $777 | $773 |
| Other assets, noncurrent | $563 | $607 |
| Total assets | $20,959 | $23,064 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities: | ||
| Accrued expenses, accounts payables, and other current liabilities | $2,614 | $3,012 |
| Funds payable and amounts payable to customers | $5,931 | $7,209 |
| Current portion of long-term debt | – | $1,998 |
| Unearned fees | $1,616 | $1,820 |
| Total current liabilities | $10,161 | $14,039 |
| Long-term debt | $1,995 | – |
| Other liabilities, noncurrent | $391 | $415 |
| Total liabilities | $12,547 | $14,454 |
| Stockholders’ equity: | ||
| Common stock | – | – |
| Additional paid-in capital | $12,602 | $13,437 |
| Accumulated other comprehensive income (loss) | $35 | $(79) |
| Accumulated deficit | $(4,225) | $(4,748) |
| Total stockholders’ equity | $8,412 | $8,610 |
| Total liabilities and stockholders’ equity | $20,959 | $23,064 |
