Airbnb’s Q2 performance, despite surpassing Wall Street’s revenue and profit expectations, was met with a negative market reaction. Management attributed the quarter’s growth to accelerated bookings, progress in international markets, and the rollout of new services and experiences. CEO Brian Chesky highlighted, “Nights booked in Airbnb accelerated from April to July,” and pointed to upgrades in the core platform, increased efficiency in customer service via AI, and expanding partnerships with global events as meaningful drivers. The company’s efforts to diversify beyond its core U.S. market and double down on product innovation were central themes discussed.
Is now the time to buy ABNB? Find out in our full research report (it’s free).
Airbnb (ABNB) Q2 CY2025 Highlights:
- Revenue: $3.10 billion vs analyst estimates of $3.03 billion (12.7% year-on-year growth, 2.1% beat)
- Adjusted EPS: $1.03 vs analyst estimates of $0.94 (9.5% beat)
- Adjusted EBITDA: $1.04 billion vs analyst estimates of $971.2 million (33.7% margin, 7.4% beat)
- Revenue Guidance for Q3 CY2025 is $4.06 billion at the midpoint, roughly in line with what analysts were expecting
- EBITDA guidance for Q3 CY2025 is $2 billion at the midpoint, in line with analyst expectations
- Operating Margin: 19.8%, up from 18.1% in the same quarter last year
- Nights and Experiences Booked: 134.4 million, up 9.3 million year on year
- Market Capitalization: $74.45 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Airbnb’s Q2 Earnings Call
- Mark Mahaney (Evercore ISI) asked about the attach rate for Experiences. CEO Brian Chesky said the attach rate should rise as product awareness and integration improve, but did not provide a specific target or timeline.
- Richard Clarke (Bernstein) pressed for details on expected headwinds from large events like the Paris Olympics. CFO Ellie Mertz explained that event-driven supply boosts are strategic, but tougher year-over-year comparisons could cause temporary growth deceleration.
- Eric Sheridan (Goldman Sachs) questioned marketing intensity for new segments. Chesky responded that overall spend will remain stable, with greater emphasis on bundled brand campaigns and a shift toward social media.
- Jed Kelly (Oppenheimer) asked about potential acquisitions to accelerate growth. Chesky said Airbnb remains open to M&A, especially now that its tech platform has been rebuilt, but will weigh integration costs carefully.
- Colin Sebastian (Baird) probed the impact of the new app design on user behavior. Chesky noted a marked increase in homepage engagement and trip itinerary usage, which should aid cross-selling and conversion.
Catalysts in Upcoming Quarters
Looking ahead, our analyst team will be watching (1) traction and monetization from the newly launched services and experiences verticals, (2) continued growth in international expansion markets such as Japan and Brazil, and (3) Airbnb’s ability to drive supply growth in mature markets like the U.S. and Europe. Effective integration of AI into customer service and the pace of marketing strategy evolution will also be key markers of progress.
Airbnb currently trades at $121.45, down from $130.77 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
The Best Stocks for High-Quality Investors
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
