Airbnb Inc. (NASDAQ: ABNB) announced its third-quarter 2025 financial results, revealing record revenue of $4.1 billion, a 10% increase year over year, driven by sustained global travel demand and operational efficiencies. Net income grew 4% to $1.4 billion, with earnings per share (EPS) of $2.21, though this slightly missed analyst estimates of $2.31. Adjusted EBITDA reached a record $2.1 billion, reflecting a 50% margin, the highest in the company's history for a single quarter.
Gross booking value surged 14% to $22.9 billion, exceeding Wall Street projections, supported by a 9% increase in nights and seats booked. International markets, particularly in Latin America and Asia Pacific, grew at twice the rate of core regions like the U.S. and UK, with Brazil benefiting from an interest-free payment plan and Japan seeing a 27% rise in domestic bookings. India reported a 50% increase in first-time users, highlighting Airbnb's targeted expansion efforts.
In the U.S., the Reserve Now, Pay Later feature contributed to growth, with 70% of eligible users opting in, though it led to a slight uptick in cancellations. The company also introduced new AI features and a services portfolio, though CEO Brian Chesky noted it may take three to five years for these initiatives to mature. Challenges included a $213 million one-time valuation allowance impacting net income and signs of plateauing in some mature markets.
Airbnb repurchased $857 million in stock during Q3, with total buybacks of $3.5 billion over the past year, and ended the quarter with $11.7 billion in cash and investments. For Q4 2025, revenue is projected between $2.66 billion and $2.72 billion, implying 7%–10% growth year over year, above Wall Street estimates. The stock rose 5% in after-hours trading to approximately $126.70, reflecting investor optimism despite an 8.28% year-to-date decline.
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