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Airbnb, Inc. (ABNB)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $2.27B (+6% y/y; +11% ex-FX/calendar), modestly above S&P consensus; diluted EPS $0.24 beat by ~$0.005. Adjusted EBITDA was $417M (18% margin); net income $154M (7% margin), pressured by higher SBC, investment write-downs, and lower interest income .
  • Guidance: Q2 2025 revenue $2.99–$3.05B (+9–11% y/y) with ~2ppt Easter benefit; ADR ~flat y/y; Adjusted EBITDA up y/y but margin flat-to-slightly down. FY 2025 Adjusted EBITDA margin reiterated “at least 34.5%” with $200–$250M investments to launch new businesses (Summer Release May 13) .
  • Mix and geography: Nights grew 8% to 143.1M despite tough comps; strength in Latin America (low-20s growth), APAC (mid-teens), EMEA (mid-single digits), and softer U.S., with shorter lead-time bookings and macro caution noted on the call .
  • Strategic catalysts: App rebuild and AI customer service rollout (50% of U.S. users; 15% fewer escalations) underpin conversion and reliability; Summer Release to expand beyond stays; hotel distribution to fill network gaps—key medium-term narrative drivers .
  • Capital return: $807M repurchases in Q1; TTM FCF $4.36B (39% margin). Cash and equivalents plus short-term investments $11.5B; funds held on behalf of guests $9.2B .

What Went Well and What Went Wrong

What Went Well

  • Nights & Experiences Booked rose 8% to 143.1M; GBV grew 7% to $24.5B (9% ex-FX) despite Leap Day/Easter timing headwinds. App bookings increased 17% y/y to 58% of nights, aiding conversion .
  • Latin America and APAC outperformed; Brazil origin nights +27% y/y; first-time bookers >30%. Japan domestic nights +20%+ post brand campaign, highlighting success of localized product/marketing .
  • Management reaffirmed FY 2025 Adjusted EBITDA margin ≥34.5% while investing in new offerings; Q2 revenue guide calls for 9–11% growth and higher implied take rate due to calendar effects .
  • Quote: “We rebuilt the app from the ground up… now we can innovate faster and offer much more than homes… On May 13, Airbnb will go beyond places to stay.” — Brian Chesky .

What Went Wrong

  • Net income fell to $154M (7% margin) from $264M amid higher SBC, investment write-downs, and lower interest income; Adjusted EBITDA down slightly to $417M vs. $424M prior year .
  • ADR declined 1% reported (up 1% ex-FX); U.S. trends relatively softer with longer-lead bookings weaker—consumers waiting to book summer travel; no broad “trading down” observed .
  • Management flagged marketing expense to grow faster than revenue in Q2 due to Summer Release and growth initiatives, implying near-term margin pressure; full-year margin tailwind from FX is partially hedged and offset by Latin America headwinds .

Financial Results

MetricQ1 2024Q4 2024Q1 2025
Revenue ($USD Billions)$2.142 $2.480 $2.272
Diluted EPS ($USD)$0.41 $0.73 $0.24
Net Income ($USD Millions)$264 $461 $154
Net Income Margin (%)12% 19% 7%
Adjusted EBITDA ($USD Millions)$424 $765 $417
Adjusted EBITDA Margin (%)20% 31% 18%

KPIs

KPIQ1 2024Q4 2024Q1 2025
Nights & Experiences Booked (Millions)132.6 111.0 143.1
Gross Booking Value (GBV) ($USD Billions)$22.9 $17.6 $24.5
Average Daily Rate (ADR) ($USD)$172.88 $158.13 $171.34

Other Operating/Capital Metrics

MetricQ1 2024Q4 2024Q1 2025
Net Cash from Operations ($USD Billions)$1.923 $0.466 $1.789
Free Cash Flow ($USD Billions)$1.909 $0.458 $1.781
TTM Free Cash Flow ($USD Billions)$4.165 $4.484 $4.356
Implied Take Rate (%)—14.1 9.3 (flat y/y)
Share Repurchases ($USD Billions)—$0.838 $0.807

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Billions)Q2 2025N/A$2.99–$3.05 New
Nights & Experiences BookedQ2 2025N/AGrowth to moderate vs Q1 New
ADRQ2 2025N/A~Flat y/y New
Adjusted EBITDAQ2 2025N/AUp y/y; margin flat to down slightly New
Adjusted EBITDA Margin (%)FY 2025≥34.5% ≥34.5% Maintained
Investment in New Businesses ($USD Millions)FY 2025$200–$250 $200–$250 Maintained
Marketing ExpenseQ2 2025N/ATo grow faster than revenue y/y New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
AI/customer serviceAnnounced transformation plans; lowering host cancellations; quality upgrades —AI agent to 50% U.S. users; 15% fewer contacts to human agents; expanding to 100% Accelerating deployment
App strategy & conversionApp nights +18% y/y; 58% share App modernization for new offerings App nights +17% y/y; 58% share Sustained strength
U.S. macro/lead timesLead times normalized by Q3 end Softer U.S. demand; shorter lead times Softer U.S.; short lead times strong, long lead soft; high-income stable Mixed; caution on long-lead
Regional trendsExpansion markets >2x core growth; Japan localization LATAM/APAC leading; Paris Olympics prep LATAM low-20s; APAC mid-teens; EMEA mid-single; North America low-single; Brazil/Japan strong Expansion markets outpacing
ADR/affordabilityQuality focus; removing low-quality listings ADR up modestly; mix shift ADR -1% reported; +1% ex-FX; host tools for price competitiveness FX headwind; pricing flexibility
Regulatory/legal——NYC vs Paris: hotels on platform; optimism for workable solutions Active engagement
Hotels distribution——Leaning into hotels; HotelTonight credits to drive cross-usage Building adjacency
New businesses (Summer Release)Previewed 2025 launches; experiences relaunch Platform rebuilt to support new offerings Launch May 13; investments front-run revenue; multi-year scaling Execution phase

Management Commentary

  • “We had a strong start to 2025… our model is inherently adaptable… we rebuilt the app on a new technology stack… On May 13, Airbnb will go beyond places to stay.” — Brian Chesky .
  • “Revenue was $2.3B, up 6% y/y; excluding FX and calendar, +11%. Adjusted EBITDA $417M (18%). Q2 revenue $2.99–$3.05B; ADR approximately flat y/y; FY 2025 Adjusted EBITDA margin at least 34.5% with $200–$250M of investments.” — Ellie Mertz .
  • “We think hotels are a massive opportunity… bring more great hotels onto Airbnb… distribution channel for hoteliers.” — Brian Chesky .
  • “Driving down prices is often compensated by increased volume… our pricing tools aim to get hosts to the best price to drive more bookings.” — Ellie Mertz .
  • “AI customer service agent… 50% of U.S. users now using the agent… 15% reduction in needing live agents.” — Brian Chesky .

Q&A Highlights

  • U.S. demand: softness concentrated in longer lead times; near-term bookings healthy; higher-income cohort stable; not seeing trading down; inbound-to-U.S. corridor is only ~2–3% of business and guests are choosing different destinations (e.g., Mexico, Brazil, Japan) .
  • ADR/pricing flexibility: hosts have greater flexibility than hotels; tools (compare listings, weekly/monthly discounts, price tips) help competitive pricing; elasticity supports volume when prices adjust .
  • Marketing/margins: ability to flex by market/channel; Q2 marketing to grow faster than revenue; FY margin guidance maintained despite FX shifts and investments .
  • Hotels and adjacency: growing hotel supply via HotelTonight and Airbnb app; cross-credits to drive conversion; broader distribution strategy .
  • Expansion markets: LATAM momentum accelerating; localized product (payments like Pix) and brand campaigns drive first-time bookers; unit economics attractive across ADR ranges .

Estimates Context

MetricQ1 2025 Consensus*Q1 2025 ActualSurprise
Revenue ($USD Billions)$2.261*$2.272 +$0.011B
Primary EPS (GAAP Diluted, $USD)$0.235*$0.24 +$0.005
EBITDA ($USD Billions)$0.363*$0.063*-$0.300B (note: definitional differences vs Adjusted EBITDA $0.417B )
Forward ConsensusQ2 2025 Consensus*FY 2025 Consensus*
Revenue ($USD Billions)$3.030*$12.168*
Primary EPS ($USD)$0.941*$4.136*
EBITDA ($USD Billions)$0.972*$4.272*
# of Revenue Estimates35*40*
# of EPS Estimates29*38*
Target Price (Mean, $USD)$139.25*$139.25*
Consensus Recommendation (Text)—*—*

Values retrieved from S&P Global.
Note: S&P Global “EBITDA” may differ from company-reported “Adjusted EBITDA,” which excludes SBC, taxes, FX/investment impacts, and other items; see non-GAAP reconciliations .

Key Takeaways for Investors

  • Q1 modest beat on revenue/EPS despite ~3ppt calendar and ~2ppt FX headwinds; underlying demand resilient, especially in LATAM and APAC; ADR pressure largely FX-driven .
  • Near-term setup: Q2 revenue guide +9–11% with favorable Easter comp and higher implied take rate; expect flat-to-down margin on higher marketing tied to Summer Release; traders should watch May 13 launch narrative and incremental marketing ROI .
  • U.S. caution: longer-lead bookings soft; monitor re-acceleration as summer approaches; mix shift toward short lead times and higher ADR cohorts could support conversion .
  • Medium-term thesis: app-led conversion, AI-supported service, quality curation (Guest Favorites; removal of low-quality supply) and localized expansion (Brazil/Japan) underpin nights growth and share gains .
  • Pricing elasticity and host tools create room for affordability improvements without sacrificing volume—supports competitive stance vs hotels; hotel distribution will fill network gaps .
  • Strong cash generation funds buybacks; $807M repurchases in Q1; TTM FCF $4.36B (39% margin) provides optionality for investing while returning capital .
  • Watch FX and Latin America dynamics: partial revenue hedging limits tailwinds; LATAM ADRs pressured by FX, but volume strength offsets; margins sensitive to 2H investment timing .

Appendix: Additional Details

  • Non-GAAP definitions and reconciliations for Adjusted EBITDA and FCF are provided in the shareholder letter .
  • Q2 guidance details: ADR ~flat y/y; Nights growth moderates vs Q1; implied take rate higher due to favorable Easter timing; marketing grows faster than revenue; FY Adjusted EBITDA margin ≥34.5% maintained .
  • Corridor commentary: inbound-to-U.S. travel low-single-digit share; Canada-to-U.S. softer in late Q1; Canadians reallocated travel to Mexico/Brazil/Japan/Europe, illustrating platform adaptability .

Citations: 8-K Q1 2025 and Shareholder Letter ; Earnings Call Q1 2025 ; Prior quarters Q4 2024 8-K ; Q2 2024 8-K .