Airbnb delivered Q4 2025 revenue of $2.8B (up 12% YoY), beating estimates of $2.72B, with GAAP net income of $341M ($0.56 EPS) and adjusted EBITDA of $786M. Full-year free cash flow hit $4.6B (38% margin). Shares rose ~2–4% in after-hours trading on strong bookings and upbeat Q1 2026 guidance.
About Airbnb
Airbnb, Inc. (NASDAQ: ABNB) operates the world’s largest online marketplace for short-term stays, experiences, and longer-term rentals, connecting millions of hosts and guests globally. Founded in 2007 (originally as AirBed & Breakfast) and headquartered in San Francisco, California, the company went public in 2020 and has since welcomed over 2 billion guest arrivals across nearly every country.
As of early 2026, Airbnb boasts a market capitalization of approximately $76-80B, with the stock trading at a trailing P/E ratio of about 29-31x and a forward P/E around 28x. The company does not pay a dividend (yield: N/A) and employs roughly 7,300 people worldwide. Airbnb’s platform generated $11.1B in trailing twelve-month revenue, with a net income margin of ~24% and EPS of $4.20, underscoring its high-margin, asset-light model fueled by network effects, AI-driven personalization, and global expansion into new markets like Brazil.
Top Financial Highlights
- Q4 2025 revenue reached $2.8B, up 12% YoY (exceeding high end of guidance), driven by strong demand, product improvements, and pricing optimization.
- Full-year 2025 revenue approximated $11.1B, reflecting consistent double-digit growth amid resilient travel demand and supply diversification.
- Q4 2025 GAAP net income was $341M (down YoY due to $90M one-time non-income tax expense), equating to $0.56 diluted EPS.
- Q4 2025 adjusted EBITDA hit $786M (28% margin), beating guidance and highlighting operational leverage from higher-margin bookings.
- Q4 2025 gross booking value (GBV) surged 16% YoY to $20.4B, the strongest growth quarter in over two years, boosted by 10% rise in nights/seats booked (121.9M) and 6% ADR increase ($168).
- Full-year 2025 free cash flow totaled $4.6B (38% margin), with Q4 contributing $521-529M; the company repurchased $3.8B in shares, reducing diluted share count ~9% since 2022.
- Liquidity position: Ended Q4 with $11B in corporate cash/investments plus $7B in guest funds, providing ample flexibility for buybacks, AI investments, and new initiatives.
- Gross margin: Not explicitly detailed in releases, but implied strength from 28% adjusted EBITDA margin and scalable platform economics.
- Bookings metrics: App nights grew 20% YoY (64% of total); first-time bookers up 8%, with broad strength across regions, age groups, and experiences (50% from non-home guests).
- Q1 2026 guidance: Revenue $2.59-2.63B (14-16% YoY growth, above consensus); adjusted EBITDA margin ~flat YoY; full-year revenue growth “at least low double-digits” (>10.2% est.).
- Shareholder returns: $1B repurchased in Q4 alone, on top of consistent execution; no dividend, prioritizing growth and buybacks.
- International momentum: Brazil emerged as a top market; experiences revenue up >40% YoY from insurance and new offerings.
Beat or Miss?
| Metric | Reported | Difference/Analysis |
| Q4 Revenue | $2.8B | Beat est. $2.72B (+2-2.3%); 12% YoY growth. |
| Q4 GAAP EPS | $0.56 | Missed est. $0.66-0.67 (-15%); hit by $90M tax charge. |
| Q4 Adj. EBITDA | $786M | Beat guidance; 28% margin expansion via product efficiency. |
| GBV | $20.4B | Beat est. $19.4B (+5%); strongest growth in 2+ years. |
What Leadership Is Saying?
“In Q4, we achieved strong results across the board. Revenue climbed 12% year-over-year to $2.8 billion, surpassing the upper range of our guidance… The real driver wasn’t a wave of new supply. It was simplified pricing, a redesigned checkout flow, Reserve Now, Pay Later, and hundreds of small product changes designed to reduce hesitation and increase conversion.” – Brian Chesky, Co-founder and CEO
“Revenue was $2.8 billion, up 12% year-over-year, and exceeded our guidance, driven by the impact of our product updates. In terms of profitability, we generated $786 million of adjusted EBITDA, representing a 28% adjusted EBITDA margin, also exceeding guidance. We continued to generate significant cash in Q4, delivering $529 million of free cash flow.”-David Bernstein, CFO
Historical Performance
| Category | Q4 2025 | Q4 2024 | Change (%) |
| Revenue | $2.8B | $2.5B | +12% |
| GAAP Net Income | $341M | $461M | -26% (tax hit) |
| Adj. EBITDA | $786M | ~$765M | 3% |
Key Competitor
| Category | Q4 2025 Revenue | Q4 2024 Revenue | Change (%) |
| Airbnb | $2.8B | $2.5B | +12% |
| Expedia Group | $3.55B | $3.18B | +11% |
| Tripadvisor | $411M | $411M | 0% |
| Booking Holdings (est.) | ~$5.5B | ~$4.8B | ~+12–15% |
ABNB Balance Sheet and Cash Flow Overview
- As of December 31, 2025, total cash, cash equivalents, short-term investments, and restricted cash stood at USD 11.0 billion, compared with USD 11.68 billion at the end of the previous quarter.
- Funds held on behalf of guests amounted to USD 7.0 billion, reflecting the scale of transaction volume processed on the platform.
- Net cash generated from operating activities reached USD 526 million in Q4 2025, down from USD 1.36 billion in Q3 2025 but up from USD 466 million in the same quarter of the prior year.
- Free cash flow totaled USD 521 million in Q4 2025 and USD 4.61 billion over the trailing twelve months, indicating continued strong cash generation.
- Share repurchases totalled USD 1.1 billion in the fourth quarter. As of year-end 2025, USD 5.6 billion remained available under the authorized buyback program.
1Q26 and Full-Year 2026 Guidance
- For Q1 2026, revenue is projected between USD 2.59 billion and USD 2.63 billion, representing a 14% to 16% year-over-year increase.
- Gross Booking Value is expected to grow in the low teens percentage range, supported by high single-digit growth in Nights and Seats Booked and a moderate rise in Average Daily Rate.
- Adjusted EBITDA for Q1 2026 is expected to remain broadly flat year over year.
- For full-year 2026, revenue growth is anticipated to reach at least the low double digits, supported by continued demand strength and execution of growth initiatives.
- Adjusted EBITDA for 2026 is expected to remain stable compared with the prior year, indicating disciplined cost management alongside expansion efforts.
How the Market Reacted?
Airbnb shares climbed 2-4% in after-hours trading following the earnings report, reflecting investor enthusiasm for the revenue beat, record GBV/nights growth, and Q1 guidance above consensus despite an EPS miss due to one-offs. The positive reaction underscores confidence in Airbnb’s product-led reacceleration (e.g., 20% growth in app bookings) and a 38% full-year FCF margin, amid $3.8B in buybacks.
While short-term sentiment tilts bullish on 2026 outlook (“at least low double-digits” revenue growth), valuation at ~30x P/E tempers gains versus travel peers; long-term bulls eye AI personalization and experiences expansion for sustained 10-15% growth.
