Airbnb Q4 Earnings Miss Estimates, Revenues Rise Y/Y, Shares Up

Airbnb ABNB reported fourth-quarter 2025 adjusted earnings of 56 cents per share, which lagged the Zacks Consensus Estimate by 14.89%. The company reported adjusted earnings of 73 cents per share in the year-ago quarter.

Revenues of $2.78 billion increased 12% year over year on a reported basis and 11% on a forex-neutral basis, driven by solid growth in nights stayed and a slight increase in Average Daily Rate (ADR). The top line beat the Zacks Consensus Estimate by 2.01%.

Following the results, ABNB shares were up roughly 3.98% at the time of writing this article.

ABNB’s Q4 Revenue Details

The fourth quarter of 2025 Gross Booking Value (GBV) was $20.4 billion, up 16% year over year on a reported basis or 13% excluding the impact of forex. The take rate (defined as revenue divided by GBV) of 13.6% decreased year over year compared with 14.1% in the year-ago quarter. For 2025, revenues from guest travel insurance, which is available in 12 of ABNB’s largest countries, increased more than 40% year over year.

Airbnb, Inc. Price, Consensus and EPS Surprise

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

Nights and Seats Booked were 121.9 million, up 9.8% year over year. This growth was observed across all regions, with Latin America growing in the high teens, Asia Pacific in the mid-teens, EMEA in the high single digits and North America in the mid-single digits.

ADR (Gross Booking Value per Night and Experience Booked) was $168, up 6% on a year-over-year basis. Excluding forex, ADR grew 3% year over year and increased across all regions due to price appreciation.

Nights booked on the app in the fourth quarter increased 20% year over year and comprised 64% of total nights booked (up from 60% in the year-ago quarter). The company also reported year-over-year growth of first-time bookers, which accelerated to 8% in the fourth quarter of 2025, driven by strong results across all age cohorts.

Airbnb’s Q4 Operating Details

In the fourth quarter of 2025, total costs and expenses as a percentage of revenues increased 770 basis points (bps) year over year to 90.3% in the reported quarter. Cost of revenues increased 30 bps year over year. Product development declined 50 bps while sales and marketing expenses increased 300 bps. Operations and support, and general and administrative, as a percentage of revenues, increased 10 bps and 480 bps, respectively. 

Adjusted EBITDA was $786 million, up 2.7% year over year on a reported basis. The adjusted EBITDA margin was 28.3%, down 260 bps year over year.

The fourth quarter of 2025 operating margin contracted 770 bps year over year to 9.7%.

ABNB’s Balance Sheet & Cash Flow

As of Dec. 31, 2025, cash and cash equivalents, short-term investments, and restricted cash amounted to $11 billion compared with $11.68 billion as of Sept. 30, 2025. ABNB had $7 billion of funds held on behalf of guests.

Net cash provided by operating activities was $526 million in the fourth quarter of 2025, down from $1.36 billion reported in the third quarter of 2025 but up from $466 million in the year-ago quarter.

Airbnb generated a free cash flow of $521 million in the fourth quarter of 2025 and $4.61 billion over the trailing 12 months.

ABNB repurchased shares worth $1.1 billion in the fourth quarter of 2025. As of Dec. 31, 2025, the company has $5.6 billion remaining under repurchase authorization.

ABNB Offers 1Q26 Guidance

For the first quarter of 2026, Airbnb expects revenues between $2.59 billion and $2.63 billion, reflecting a year-over-year increase of 14-16%. Gross booking value (GBV) is expected to grow low teens year over year.

For the first quarter of 2026, Airbnb expects GBV to grow in the low teens year over year, driven by high single-digit growth in Nights and Seats Booked and a moderate increase in ADR (Average Daily Rate).

For the first quarter of 2026, Airbnb expects adjusted EBITDA to be approximately flat on a year-over-year basis.

For 2026, year-over-year revenue growth is expected to accelerate to at least low double digits, driven by sustained strength in the core business, healthy demand and execution of key growth initiatives.

For 2026, Airbnb expects adjusted EBITDA to be stable on a year-over-year basis.

ABNB’s Zacks Rank & Other Stocks to Consider

Airbnb currently has a Zacks Rank #2 (Buy). 

Some other top-ranked stocks in the broader Zacks Computer and Technology sector include Analog Devices ADI, Applied Optoelectronics AAOI, and MKS MKSI. While MKSI sports a Zacks Rank #1 (Strong Buy), Analog Devices and Applied Optoelectronics carry a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

Analog Devices’ shares have gained 58.2% in the past 12-month period. Analog Devices is scheduled to release first-quarter 2026 results on Feb. 18, 2026. 

Applied Optoelectronics shares have returned 62.7% in the past 12-month period. Applied Optoelectronics is set to report fourth-quarter 2025 results on Feb. 26. 

MKS shares have surged 143.7% in the past 12-month period. MKS is set to report its fourth-quarter 2025 results on Feb. 17, 2026.

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

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