Airbnb (ABNB) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 6% year-over-year to $2.3 billion, driven by increased Nights and Experiences Booked, reaching 143 million, up 8% year-over-year.

• Net income declined 42% year-over-year to $154 million, mainly due to higher payroll expenses and $37 million in investment impairments.

• Free cash flow for Q1 was $1.8 billion, with $4.4 billion over the past 12 months.

• 6.1 million shares were repurchased for $807 million, with $2.5 billion remaining authorized.

• The business remains resilient and adaptable, with ongoing investments in product improvements and expansion beyond core offerings.

Financial highlights

• Adjusted EBITDA was $417 million (18% margin), down from $424 million (20% margin) in Q1 2024, mainly due to higher product development and marketing costs.

• Gross Booking Value rose 7% year-over-year to $24.5 billion.

• Cost of revenue increased 5% to $506 million, and product development expenses rose 20% to $568 million.

• Free cash flow margin was 39% over the past 12 months.

• $11.5 billion in corporate cash and investments at quarter-end; $9.2 billion in guest funds held.

Outlook and guidance

• Q2 2025 revenue expected between $2.99–$3.05 billion, up 9–11% year-over-year, including a 2-point benefit from Easter timing.

• Nights and experiences booked growth to moderate in Q2; adjusted EBITDA margin to be flat or slightly down versus Q2 2024.

• Full-year adjusted EBITDA margin expected at least 34.5%, with $200–$250 million investment in new businesses impacting H2 margins.

• Ongoing focus on international expansion, especially in Latin America and Asia Pacific, is expected to drive future growth.

• Management notes uncertainty from macroeconomic and geopolitical factors, including inflation, interest rates, and consumer spending, but reports no material impact to date.