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Mar 31
Airbnb Q1 2025 Earnings Report
Airbnb reported solid performance with growing bookings and strong cash flow despite a decline in net income.
Key Takeaways
Airbnb delivered $2.3B in revenue and $154M in net income for Q1 2025. Bookings and gross booking value rose year-over-year, and free cash flow remained strong at $1.8B, though net income declined due to higher stock-based compensation and investment write-downs.
Revenue reached $2.3 billion, up 6% from the prior year.
Net income declined to $154 million due to higher compensation expenses and investment losses.
Nights and Experiences Booked hit 143.1 million, a new high for Q1.
Free cash flow remained strong at $1.8 billion, with a margin of 78%.
Airbnb
Airbnb
Airbnb Revenue by Geographic Location
Forward Guidance
Airbnb expects solid Q2 2025 performance, forecasting up to $3.05B in revenue with increased marketing and product investments.
Positive Outlook
- Q2 revenue projected between $2.99B to $3.05B, up 9–11% YoY.
- Continued strong demand in Latin America, the fastest growing region.
- Adjusted EBITDA expected to increase year-over-year.
- ADR anticipated to be flat YoY, stabilizing price dynamics.
- Summer Release and new growth initiatives to support future expansion.
Challenges Ahead
- Marketing expenses to grow faster than revenue in Q2.
- Adjusted EBITDA margin expected to be flat or slightly down.
- Softer demand in the U.S. due to broader economic uncertainty.
- Increased stock-based compensation affecting profitability.
- Expected heavier margin impact from new business launches in H2.