Airbnb reported its Q1 2025 financial results today, revealing a 6.1% year-over-year increase in revenue to $2.27 billion, slightly surpassing analyst expectations of $2.26 billion. However, net income declined to $154 million, or $0.24 per share, down from $264 million, or $0.41 per share, in the same quarter last year, aligning with Wall Street estimates. The decrease in earnings was attributed to higher stock-based compensation expenses, write-downs of certain investments, and lower interest income.
Airbnb’s revenue distribution remains geographically diverse: North America accounted for 50.1% of revenue, Europe/Middle East/Africa (EMEA) contributed 34.8%, Latin America 7.7%, and Asia Pacific 7.4%. Latin America emerged as the fastest-growing region, driven by strong Easter travel demand. Conversely, the U.S. market exhibited softer demand, particularly among less-wealthy travelers, due to broader economic uncertainties.
Looking ahead, Airbnb forecasts Q2 2025 revenue between $2.99 billion and $3.05 billion, slightly below analyst expectations of $3.03 billion. The company anticipates a moderation in year-over-year growth for nights and experiences booked compared to the prior quarter. Despite this, Airbnb maintains its full-year adjusted EBITDA margin guidance of at least 34.5%, reflecting confidence in its cost discipline.
Year-to-date, Airbnb’s stock has declined 5.6%, underperforming the S&P 500’s 4.7% loss. Following the earnings release, shares fell over 3% in after-hours trading, influenced by the company’s cautious outlook and indications of softer U.S. travel demand.
CEO Brian Chesky emphasized the resilience and adaptability of Airbnb’s business model, stating, “Our strong Q1 results show how resilient and adaptable our model is—no matter what’s happening in the world, people continue to choose Airbnb.” He also highlighted the company’s focus on long-term growth and innovation, preparing for Airbnb’s next chapter, which includes expanding beyond accommodations.
The stock should get to the $100 range in the next few days
