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Airbnb’s (ABNB) 3Q25 earnings report showed mixed results with some challenges on profitability as indicated by an EPS miss, but also reflected strong momentum in key growth metrics and a positive outlook for Q4. The company's strong guidance for Q4, particularly the strength in longer lead bookings and U.S. demand, offers comfort that the business retains underlying strength despite macro uncertainties.

• Airbnb missed EPS expectations with reported EPS of $2.21, up 4% yr/yr but impacted by a one-time $213 mln valuation allowance related to tax changes.
• Adjusted EBITDA margin slipped to 50% from 52% a year ago despite adjusted EBITDA reaching a quarterly record of over $2 bln.
• Gross Booking Value (GBV) growth accelerated to 14% yr/yr, up from 11% in Q2, driven primarily by strength in the U.S. market and higher average daily rates (ADR).
• Regionally, Latin America showed robust low-20% growth in nights booked, APAC grew in the mid-teens, and North America and Europe (EMEA) posted mid-single-digit gains. Key U.S. growth was supported by the launch of the Reserve Now, Pay Later payment option.
• Nights and seats booked increased 9% to 133.6 mln, accelerating from 7% growth in Q2, fueled by improvements in the U.S., flexible payment options, and a focus on product enhancements that increased guest engagement and bookings.
• ABNB provided reassuring Q4 guidance with revenue expected in the range of $2.66-$2.72 bln, reflecting 7% to 10% yr/yr growth. GBV is forecasted to grow in the low double digits.
• ABNB is investing heavily in AI integration across its platform to improve customer service, search, and personalization, aiming to differentiate based on a more intelligent and engaging user experience.
• Despite margin pressure this year from investments in new business lines like services and experiences, ABNB expects to maintain strong margins in 2026 as these businesses scale.

Briefing.com Analyst Insight

ABNB’s Q3 results show solid top-line momentum with accelerating growth in GBV and nights and seats booked, driven by product innovation and flexible payment options like Reserve Now, Pay Later. While the company missed EPS expectations and experienced a slight margin decline, these shortfalls largely stem from a one-time tax adjustment and increased investment in new business lines. The company’s international expansion and new offerings in experiences and hotels are starting to show strong early results and contribute to growth. The positive Q4 guidance and strength in longer lead time bookings, particularly in the U.S., provide confidence in ongoing demand.  Overall, the company demonstrated disciplined execution with a constructive outlook, though margin performance should be monitored as new initiatives scale.