01—Abstract
Summary
Summary of the 10-Q filed November 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Airbnb, Inc. (ABNB) reported solid financial results for the third quarter and the first nine months of fiscal year 2025, demonstrating continued revenue growth and robust operational performance.
Revenue for the third quarter of 2025 increased by 10% year-over-year to $4.1 billiona, driven by growth in Nights and Seats Booked and a modest increase in Average Daily Rate (ADR). For the first nine months of 2025, revenue also grew by 10% to $9.5 billion. Net income remained strong, with a slight increase to $1.4 billion for the third quarter, although the provision for income taxes saw an increase due to a valuation allowance against deferred tax assets.
The company continues to generate substantial cash flow, with Free Cash Flow reaching $1.3 billionb in the third quarter. Airbnb also actively returned capital to shareholders through its significant share repurchase program, repurchasing $857 million in the third quarter alone. The company appears resilient in the face of macroeconomic uncertainties, with management noting no material impact to date.
02—Key points
Key Highlights
- Revenue grew 10% year-over-year to $4.1 billion for the third quarter of 2025, and 10% for the first nine months to $9.5 billion.
- Net income for Q3 2025 was $1.4 billion, a slight increase from $1.37 billion in Q3 2024.
- Nights and Seats Booked increased by 9% in Q3 2025 and 8% for the first nine months, indicating continued platform engagement.
- Gross Booking Value (GBV) saw a 14% increase in Q3 2025 to $22.9 billion and a 10% increase for the first nine months to $70.9 billion.
- Free Cash Flow remained strong, at $1.3 billion for Q3 2025, demonstrating effective cash generation.
- The company continued its aggressive share repurchase program, buying back $857 million in Q3 2025, with $6.6 billion remaining authorization.
- Operating expenses, particularly in Sales and Marketing and Product Development, saw increases, reflecting continued investment in growth and product initiatives.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Airbnb, Inc. kept $0.34.
- Revenue$4.09B100.0%
- Cost of revenue−$549.0M13.4%
- Gross profit$3.55B86.6%
- Operating costs−$1.92B46.9%
- Operating income$1.63B39.7%
- Interest, other & tax−$251.0M6.1%
- Net income$1.37B33.6%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 6, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $4.09B$3.73B | +9.7% |
| Cost of Revenue | $549.00M$465.00M | +18.1% |
| Gross Profit | $3.55B$3.27B | +8.5% |
| R&D Expenses | $587.00M$524.00M | +12.0% |
| Operating Expenses | $2.47B$2.21B | +11.9% |
| Operating Income | $1.63B$1.52B | +6.6% |
| Net Income | $1.37B$1.37B | +0.4% |
| Shares Outstanding (Basic) | 611.00M631.00M | −3.2% |
| Shares Outstanding (Diluted) | 621.00M642.00M | −3.3% |
05—Questions
Frequently Asked Questions
What is Airbnb's revenue performance for the reported period?
Airbnb reported a 10% increase in revenue for the third quarter of 2025, reaching $4.1 billion. For the first nine months of 2025, revenue also grew by 10% to $9.5 billion. This growth was primarily attributed to an increase in Nights and Seats Booked and a modest rise in Average Daily Rate (ADR).
How is Airbnb managing its profitability and cash flow?
Net income for the third quarter of 2025 was $1.4 billion, a slight increase from the prior year. Despite an increase in the provision for income taxes, the company generated strong Free Cash Flow of $1.3 billion in Q3 2025. This indicates robust operational efficiency and effective management of financial resources.
What is Airbnb's strategy regarding capital allocation and shareholder returns?
Airbnb continues to prioritize returning capital to shareholders. In the third quarter of 2025, the company repurchased $857 million of its Class A common stock. With a total authorization of $12 billion across two programs, Airbnb has $6.6 billion available for future repurchases, signaling a strong commitment to shareholder value enhancement.
Are there any significant macroeconomic or geopolitical risks impacting Airbnb?
The company acknowledges the potential impact of challenging macroeconomic and geopolitical conditions, such as inflation and interest rate fluctuations. However, management stated that these conditions have not had a material impact on the business to date. They continue to monitor these factors, and the future impact remains uncertain.
06—Continue