Airbnb Earnings: Revenue Beats, EPS Misses
Airbnb earnings showed a Q4 revenue beat and strongest GBV growth in years; Q1 guidance topped estimates but EPS lagged, complicating trader positioning.
KEY TAKEAWAYS
- Q4 revenue was $2.78B, up 12.0% YoY; GBV rose 16.0% and nights booked grew 10.0%.
- Diluted EPS was $0.56, short of the $0.65 analyst estimate.
- Q1 2026 revenue guidance of $2.59B-$2.63B implies 14.0%-16.0% YoY growth and beat consensus.
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Airbnb Inc. (ABNB) reported a revenue beat and its strongest Gross Booking Value (GBV) growth in more than two years, the company said in a shareholder letter on Feb. 12, 2026. Despite an earnings-per-share (EPS) shortfall and increased investment spending that pressured near-term profitability, management signaled stronger bookings and raised its above-consensus revenue outlook for the first quarter.
Quarterly Results and Growth Drivers
Airbnb’s fourth-quarter 2025 revenue reached $2.78 billion, up 12.0% year-over-year from $2.48 billion, surpassing estimates near $2.72 billion. Gross Booking Value rose 16.0% to $20.4 billion, marking the company’s strongest GBV growth in over two years. Nights and seats booked totaled 121.9 million, a 10.0% increase and the highest quarterly growth in 2025.
CEO Brian Chesky said, “In Q4, we delivered our strongest GBV growth in more than two years, alongside acceleration in nights and revenue.” Management attributed the results to broad strength across regions and higher average daily rates. Expansion markets outpaced core markets, with nights in India rising about 50%, while Brazil and Japan also showed strong growth. Origin nights in expansion markets increased at roughly twice the pace of core markets.
Diluted EPS was $0.56, below the $0.65 analyst consensus.
Guidance and Investment Initiatives
Airbnb forecast first-quarter 2026 revenue between $2.59 billion and $2.63 billion, implying 14.0% to 16.0% year-over-year growth that includes an estimated three-percentage-point foreign-exchange tailwind. This guidance exceeded the consensus estimate of about $2.53 billion.
The company expects Gross Booking Value growth in the low teens, nights and seats booked to rise in the high single digits, and moderate gains in average daily rates. Adjusted EBITDA margin, a proxy for operating profit, is projected to be roughly flat year-over-year.
Airbnb is scaling its Services and Experiences segment, launched in May 2025, where about half of experiences are independent of stays. It is also running hotel pilots in New York, Los Angeles, Madrid, and San Francisco. These initiatives have increased expenses.
For full-year 2026, management anticipates revenue growth accelerating to at least the low double digits as core demand and new initiatives expand. Adjusted EBITDA margin is expected to remain broadly stable as the company reinvests in marketing, product development, and technology.
