Airbnb Q2 Earnings Preview: Revenue and EPS Expectations

Airbnb is set to release Q2 earnings on August 5th. The consensus EPS estimate is $0.94, up 9.3% YoY, and the revenue estimate is $3.03B, up 10.2% YoY. The company has guided Q2 revenue in the range of $3.04B to $3.08B.

Airbnb, Inc. (ABNB) is set to release its second-quarter 2025 earnings on August 6. The company has guided its Q2 revenue to be between $2.99 billion and $3.05 billion, indicating a year-over-year (YoY) increase of 9-11%. The Zacks Consensus Estimate for second-quarter revenues is $3.04 billion, which represents a 10.45% YoY growth [1].

The consensus mark for earnings is currently pegged at 93 cents per share, a revision upward by a penny over the past 30 days. This figure suggests an 8.14% increase from the year-ago quarter’s reported figure. Airbnb has a mixed earnings surprise history, with earnings missing the Zacks Consensus Estimate in three of the trailing four quarters and beating it once, delivering an average surprise of 3.38% [2].

Factors likely to have influenced ABNB’s Q2 performance include:

1. Favorable Timing: The timing of Easter in April 2025 is expected to have contributed to higher revenues due to an approximate 2 percentage point benefit in the top line. This is expected to have resulted in higher take rates in the quarter under review.

2. Growth in Nights and Experiences: A year-over-year increase in Nights and Experiences is estimated to have occurred, with Latin America being a significant contributor to growth due to high demand.

3. US Market Softness: Despite the overall growth, softness in the United States is expected to have resulted in a flat year-over-year growth in Average Daily Rate. This is attributed to broader economic uncertainties experienced by the company over several quarters.

4. Foreign Exchange Headwinds: Easing foreign exchange headwinds, particularly the weakening of the U.S. dollar against the euro, is expected to have provided a slight forex tailwind. However, the impact is expected to have been limited due to ongoing Latin American currency pressures and Airbnb’s revenue hedging strategies.

5. New Features and Updates: The rollout of new features such as Guest Favorites has continued to positively impact revenues. Since the launch in the first quarter, over 350 million nights have been booked through the listing, and this favorable impact is expected to have continued in the second quarter.

6. Adjusted EBITDA and Marketing Expenses: Adjusted EBITDA is anticipated to have increased year over year, but its margin is expected to have been flat to slightly down year over year. Marketing expenses are likely to have grown faster than revenues due to the company’s May 13 Summer Release and investments in new growth initiatives.

Investors and financial professionals should closely monitor Airbnb’s earnings report on August 6 to assess the company’s performance and the accuracy of the provided guidance. The company’s ability to navigate economic uncertainties and capitalize on growth opportunities will be key factors to watch.

References:

[1] https://uk.finance.yahoo.com/news/airbnb-set-report-q2-earnings-172300955.html
[2] https://www.nasdaq.com/articles/airbnb-set-report-q2-earnings-whats-cards-stock