Airbnb Q2 Earnings Exceed Estimates, But Wall Street Flags Tougher Comps and Travel Headwinds

Airbnb reported Q2 revenue of $3.1bn, up 13% YoY, and a profit of $1.03 per share, beating estimates. However, the company warned of a deceleration in growth in H2. Wall Street analysts maintained neutral ratings, citing softening US travel demand and tougher comps ahead.

Airbnb (ABNB) reported its Q2 2025 financial results, showcasing robust revenue growth and profitability despite global economic uncertainty. The company's revenue reached $3.1 billion, marking a 13% year-over-year (YoY) increase, which exceeded Wall Street's estimates [1]. The company's net income per share of $1.03 also surpassed analysts' expectations by 9.5% [2].

Airbnb's CEO, Brian Chesky, highlighted the company's progress in executing its multi-year strategy, including improvements to its core service, acceleration of global market growth, and the launch of new offerings such as Airbnb Services and reimagined Airbnb Experiences [1]. These initiatives drove significant growth, with nights booked accelerating from April to July.

Key financial highlights include:
- Revenue Growth: The company's revenue grew 13% YoY, driven by solid growth in nights stayed, a slight increase in Average Daily Rate (ADR), and the timing of Easter [1].
- Net Income: Net income increased 16% YoY to $642 million, representing a 21% net income margin [1].
- Adjusted EBITDA: Adjusted EBITDA grew 17% YoY to $1.0 billion, representing a 34% Adjusted EBITDA Margin [1].
- Free Cash Flow: Free Cash Flow was $1.0 billion, representing a FCF Margin of 31% [1].
- Share Repurchases: The company repurchased $1.0 billion of its Class A common stock in Q2 2025, reducing its fully diluted share count from 673 million to 652 million [1].

Looking ahead, Airbnb expects revenue of $4.06 billion and EBITDA of $2 billion for the next quarter, in line with analyst expectations [2]. However, the company warned of a deceleration in growth in the second half of the year (H2), citing softening US travel demand and tougher comparisons [2].

Wall Street analysts maintained neutral ratings, acknowledging Airbnb's strong performance but expressing caution due to the economic uncertainty and the company's reliance on US travel demand [2].

References:
1. [1] https://news.airbnb.com/airbnb-q2-2025-financial-results/
2. [2] https://www.tradingview.com/news/stockstory:2f1af6706094b:0-airbnb-nasdaq-abnb-surprises-with-q2-sales-but-stock-drops/