10-QPeriod: Q2 FY2025

Airbnb, Inc. Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 6, 2025For Securities:ABNB

Summary

Airbnb, Inc. reported solid financial performance for the second quarter and first half of 2025, demonstrating continued growth and profitability. Revenue increased by 13% year-over-year for the quarter to $3.1 billion and by 10% for the first half to $5.4 billion, driven by growth in Nights and Seats Booked across all regions, particularly in Latin America and Asia Pacific, alongside a slight increase in Average Daily Rate (ADR). Net income saw a significant increase of 16% for the quarter, reaching $642 million, contributing to a robust first half. While interest income has decreased due to lower interest rates, the company has managed its expenses effectively, with notable increases in product development and sales & marketing costs, largely attributed to headcount growth and recent product launches. The company also continues its capital return program, repurchasing approximately $1.0 billion of its Class A common stock during the quarter, with $1.5 billion remaining under its current repurchase authorization.

Financial Highlights

43 data points
Beta

Revenue

$3.10B

82.4% Gross Margin

Net Income

$642.00M

20.7% Net Margin

Total Assets

$26.99B

Cash & Equivalents

$7.40B

Free Cash Flow

$975.00M

Financial Statements
Beta
Revenue$3.10B
Cost of Revenue$544.00M
Gross Profit$2.55B
R&D Expenses$610.00M
Operating Expenses$2.48B
Operating Income$612.00M
Net Income$642.00M
Shares Outstanding (Basic)615.00M
Shares Outstanding (Diluted)626.00M

Key Highlights

  • 1Revenue grew 13% year-over-year in Q2 2025 to $3.1 billion, and 10% for the first six months to $5.4 billion.
  • 2Net income increased 16% year-over-year in Q2 2025 to $642 million.
  • 3Nights and Seats Booked increased by 7% in Q2 2025, indicating strong platform activity.
  • 4Gross Booking Value (GBV) rose 11% year-over-year in Q2 2025 to $23.4 billion, reflecting increased customer transactions.
  • 5The company repurchased $1.0 billion of Class A common stock in Q2 2025, demonstrating commitment to shareholder returns.
  • 6Product development expenses increased by 18% for the quarter, signaling investment in future growth and innovation.
  • 7Despite a decrease in interest income due to lower rates, overall expense management contributed to net income growth.

Frequently Asked Questions

Airbnb's revenue for the three months ended June 30, 2025, increased by 13% to $3.1 billion compared to the same period in the prior year. This growth was primarily driven by an increase in the number of check-ins (Nights and Seats Booked) and a slight increase in the Average Daily Rate (ADR).

As of June 30, 2025, Airbnb had strong liquidity with cash, cash equivalents, and short-term investments totaling $11.4 billion. The company generated $2.8 billion in net cash provided by operating activities for the first six months of 2025, indicating healthy cash flow from its core operations.

Yes, Airbnb continues its capital return program. During the three months ended June 30, 2025, the company repurchased 8.1 million shares of Class A common stock for $1.0 billion. As of June 30, 2025, there was $1.5 billion available under its share repurchase program.

Airbnb faces ongoing legal and tax matters, including lodging tax obligations and other non-income tax disputes. While the company has accrued for certain probable and estimable liabilities, there are also reasonably possible exposures for which estimates are made, such as transactional taxes and withholding taxes. The company also notes a proposed fine from the Spanish Ministry of Consumer Affairs and ongoing litigation with the IRS regarding intellectual property valuation, though it believes its current reserves are adequate and the outcomes will not have a material adverse effect on its overall financial condition.