Airbnb Set to Report Q2 Earnings: What's in the Cards for the Stock?

Airbnb ABNB is scheduled to release second-quarter 2025 results on Aug. 6.

ABNB expects second-quarter 2025 revenues between $2.99 billion and $3.05 billion, suggesting a year-over-year increase of 9-11%.

The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $3.04 billion, indicating growth of 10.45% year over year.

The consensus mark for earnings is currently pegged at 93 cents per share, which was revised upward by a penny over the past 30 days. The figure indicates an 8.14% increase from the year-ago quarter’s reported figure.

ABNB has a mixed earnings surprise history. The company’s earnings missed the Zacks Consensus Estimate for earnings in three of the trailing four quarters and beat it once, delivering an average surprise of 3.38%. 

Airbnb, Inc. Price and EPS Surprise

Airbnb, Inc. price-eps-surprise | Airbnb, Inc. Quote

Let us see how things have shaped up for the upcoming announcement.

Factors Likely to Have Influenced ABNB’s Q2 Performance

Airbnb’s second-quarter 2025 results are expected to have benefited from favorable timing of Easter in April this year. As a result, the top line is expected to have benefited from approximately 2 percentage points, which is expected to have resulted in higher take rates in the quarter under review. A year-over-year increase in Nights and Experiences is estimated to have occurred. Latin America, especially, is likely to have contributed to the growth due to high demand. 

However, softness in the United States is expected to have resulted in a flat year-over-year growth in Average Daily Rate. The reason for softness, especially in North America as a market, is broader economic uncertainties, which the company has been experiencing for several quarters. The first quarter resulted in no U.S. market share loss, and this is expected to have persisted in the quarter under review.

Airbnb’s second-quarter results are expected to have benefited from easing foreign exchange headwinds. The weakening of the U.S. dollar, particularly against the euro, is likely to have contributed to a slight forex tailwind. However, the overall impact is expected to have been limited due to ongoing Latin American currency pressures and the company’s existing revenue hedging strategies.

The first quarter benefited from the company’s rollout of new features and updates. Since the launch of Guest Favorites, more than 350 million nights have been booked till May through the listing. This favorable impact is expected to have continued in the second quarter. 

Adjusted EBITDA is anticipated to have increased year over year. However, its margin is expected to have been flat to slightly down year over year. Marketing expenses are likely to have grown faster than revenues in the quarter under review due to Airbnb’s May 13 Summer Release and investments in new growth initiatives. A modest positive impact is expected on revenues due to the Summer Release in the quarter to be reported.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the exact case here.

ABNB currently has an Earnings ESP of +0.27% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are some companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases:

Central Garden & Pet CENT currently has an Earnings ESP of +6.98% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Central Garden & Pet shares have gained 0.3% in the year-to-date (YTD) period. Central Garden & Pet is set to report its third-quarter fiscal 2025 results on Aug. 6.

Accel Entertainment ACEL currently has an Earnings ESP of +22.73% and a Zacks Rank #2.

Accel Entertainment shares have jumped 16.8% YTD. Accel Entertainment is slated to report its second-quarter 2025 results on Aug. 5.

fuboTV FUBO has an Earnings ESP of +7.14% and a Zacks Rank #2 at present.

fuboTV shares have skyrocketed 197.6% YTD. fuboTV is scheduled to report its second-quarter 2025 results on Aug. 8.

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This article originally published on Zacks Investment Research (zacks.com).

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