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Airbnb: Airbnb's Q3 2025 Earnings: A Strong Performance

Airbnb's third-quarter 2025 revenue increased 10% year-over-year to $4.1 billion, with adjusted EBITDA of $2.1 billion and a 50% EBITDA margin. The company's earnings per share (EPS) came in at $2.21, slightly below estimates of $2.31. Gross booking value grew 14% to $22.9 billion, driven by strong growth in bookings and price, with nights and seats booked up 9%. The company's financial performance was robust, with a significant acceleration in the U.S. from Q2 to Q3, partly due to the launch of its Reserve now Pay Later payment offering.

ABNB

USD 120.32

-0.82%

A-Score: 5.1/10

Publication date: November 6, 2025

Full Report

Author: Analystock.ai

šŸ“‹ Highlights
  • Revenue and Profit Growth: Q3 revenue rose 10% to $4.1B, with adjusted EBITDA at $2.1B (50% margin) and full-year margin guidance of ~35%.
  • Booking Value Expansion: Gross booking value (GMV) grew 14% to $22.9B, driven by 9% increase in nights/seats booked and higher pricing.
  • U.S. Acceleration: U.S. growth accelerated Q2-Q3, boosted by Reserve Now Pay Later, while expansion markets grew at double the core market rate over 12 months.
  • Experiences Segment Potential: Relaunched experiences saw 50% of bookings from non-stay users and 10% from first-time Airbnb users, projected to become material in 3ā€“5 years.
  • Innovation and AI Investments: 65 product enhancements, $200M incremental investments in services, and AI-driven initiatives (e.g., search, customer service) to personalize offerings and improve efficiency.

Growth Drivers

The company is driving growth by focusing on four key areas: making its service better, bringing Airbnb to more parts of the world, expanding what it offers, and integrating AI across its app. It has made 65 major improvements to its service, including introducing Reserve now Pay Later in the U.S., improved maps, and an updated cancellation policy. International expansion is a multiyear strategy, with average nights booked in expansion markets growing at double the rate of core markets over the past 12 months.

Outlook and Guidance

Airbnb expects Q4 revenue of $2.66 billion to $2.72 billion, representing year-over-year growth of 7% to 10%, with GMV growth in the low double digits. The company anticipates full-year adjusted EBITDA margin of approximately 35%. Analysts estimate next year's revenue growth at 9.3%, indicating a continued strong performance.

Valuation

Airbnb's current valuation metrics are as follows: P/E Ratio of 28.07, P/B Ratio of 8.58, P/S Ratio of 6.31, EV/EBITDA of 25.36, and ROE of 32.14%. These metrics suggest that the company's strong financial performance is reflected in its valuation, with a premium price for its growth prospects. The EV/EBITDA ratio of 25.36 indicates that the company's enterprise value is approximately 25 times its EBITDA, which may be considered relatively high.

New Initiatives and Innovation

The company is investing in new initiatives, including its experiences and services segment, which has shown promise, with 50% of bookings coming from people who don't have an Airbnb stay associated with the reservation, and 10% from people who have never booked on Airbnb before. Airbnb is also exploring AI-powered search, which is expected to launch imminently, and is testing integrations with third-party platforms, such as chatbots, on a case-by-case basis.

Airbnb's A-Score