Airbnb (ABNB) Q3 2025 earnings summary

Executive summary

• Q3 revenue grew 10% year-over-year to $4.1 billion, at the high end of guidance, driven by increased Nights and Seats Booked and a modest rise in Average Daily Rate.

• Adjusted EBITDA reached $2.1 billion (50% margin), the highest ever for a quarter.

• Gross booking value grew 14% year-over-year to $22.9 billion, with strong U.S. market and new payment options.

• Free Cash Flow for Q3 was $1.3 billion, up from $1.1 billion in Q3 2024.

• Strategic focus on product improvements, international expansion, new offerings (services, experiences, hotels), and AI integration.

Financial highlights

• Net income was $1.4 billion, with EPS of $2.21, up 4% year-over-year.

• Free cash flow for Q3 was $1.3 billion; $4.5 billion over the past 12 months (38% margin).

• $11.7 billion in corporate cash/investments and $7.2 billion in guest funds at quarter end.

• Repurchased $857 million in stock during Q3; $3.5 billion over the past year, reducing share count by 8%.

• Net income impacted by a one-time $213 million tax valuation allowance due to new legislation.

Outlook and guidance

• Q4 revenue expected at $2.66–$2.72 billion, up 7–10% year-over-year.

• Gross booking value for Q4 projected to grow low double digits year-over-year.

• Full-year adjusted EBITDA margin expected at ~35%, up from prior 34.5% floor.

• Management notes potential future impact from macroeconomic and geopolitical factors, including inflation, interest rates, and consumer spending, though no material impact has been observed to date.

• Continued investment in growth initiatives, with more details on 2026 outlook to come.