Airbnb (ABNB) Q3 2025 Results

Airbnb shares surged as high as 5% in after-hours trading Thursday following the release of its third-quarter earnings, which surpassed analysts’ revenue expectations and included an optimistic outlook for the coming quarter. This performance signals continued robust demand for travel and accommodation, particularly through alternative channels like Airbnb.

Here’s a look at the company’s performance against LSEG consensus estimates:

• Earnings per share: $2.21 vs. $2.34 expected
• Revenue: $4.10 billion vs. $4.08 billion expected

The company’s revenue marked a 10% increase compared to the $3.73 billion reported in the same period last year. Net income reached $1.374 billion, or $2.21 per share, a slight increase from $1.368 billion, or $2.13 per share, the previous year. This demonstrates Airbnb’s ability to translate revenue growth into profit, a key metric for investors.

Looking ahead to the fourth quarter, Airbnb anticipates revenue in the range of $2.66 billion to $2.72 billion, slightly above the $2.67 billion consensus estimate compiled by LSEG. This guidance suggests continued momentum heading into the traditionally slower winter months, indicating effective strategies in place to mitigate seasonality.

In their letter to shareholders, Airbnb characterized the quarter as “another strong quarter,” highlighting the introduction of new features such as enhanced maps, updated cancellation policies, and the “reserve now, pay later” option. These user-centric improvements aim to enhance the overall customer experience and attract a wider range of travelers.

“We’re driving continued growth by focusing on four key areas: making our service better, bringing Airbnb to more parts of the world, expanding what we offer, and integrating AI into our app,” the company stated. This strategic focus underscores Airbnb’s commitment to innovation and leveraging technology to further solidify its market position. The AI integration, in particular, suggests potential for personalized recommendations, dynamic pricing optimization, and improved fraud detection, which could provide a significant competitive advantage.

Airbnb reported 133.6 million nights and experiences booked, a 9% increase year-over-year, exceeding StreetAccount’s estimate of 131.75 million. This indicates strong demand for both traditional stays and the company’s growing portfolio of unique experiences, showcasing its ability to cater to diverse traveler preferences.

Gross booking value, a key metric that reflects host earnings, service fees, cleaning fees, and taxes, totaled $22.9 billion in the third quarter, a 14% increase compared to the previous year. This figure exceeded the $21.9 billion expected by analysts polled by StreetAccount, highlighting the platform’s ability to generate significant economic activity for its hosts and supporting the overall health of the Airbnb ecosystem.

Airbnb reported adjusted EBITDA of $2.1 billion, the highest in any quarter to date. This impressive profitability metric underscores the company’s efficient operational model and its ability to effectively manage costs while driving revenue growth. This reflects a move towards maturing business operations, scaling effectively, and carefully managing cost structure.