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Airbnb is betting on experiences and earning more than ever: this is what its financial results reveal

Airbnb beat expectations in the second quarter of 2025 by reporting revenue of $3.1 billion

AIRBNB CANVA

Airbnb exceeded expectations in the second quarter of 2025 by reporting revenue of $3.1 billion, representing a year-over-year growth of 13% (also 13% excluding foreign exchange effects). This improvement was driven by sustained growth in nights booked, a slight increase in the average daily rate (ADR), and the positive impact of the Easter holiday calendar included in the quarter.

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The company also reported a net income of $642 million, a 16% increase compared to the same period last year, representing a net margin of 21%. In terms of operating profitability, adjusted EBITDA reached $1.043 billion, with a 34% margin, primarily driven by higher revenue.

Airbnb maintains strong cash generation capacity. Free cash flow (FCF) for the quarter totaled $1.0 billion, equivalent to a 31% margin, while over the past twelve months it reached $4.3 billion, with a 37% margin.

In addition, the company holds $11.4 billion in cash, equivalents, and liquid assets, along with $11.1 billion held on behalf of customers. This financial strength allowed the company to repurchase shares totaling $1.0 billion in the quarter, and it announced a new buyback program worth an additional $6.0 billion.

What were the travel trends and geographic performance?

During the quarter, Airbnb reported 134.4 million nights and seats booked, reflecting a year-over-year growth of 7%, with a clear boost in markets outside North America. Gross Booking Value (GBV) reached $23.5 billion, an 11% increase year-over-year.

By region, the results were:

  • North America: Low single-digit growth. A 3% increase in ADR was driven by stronger demand for short stays and entire homes. Domestic demand in the United States showed monthly acceleration.
  • EMEA (Europe, Middle East, and Africa): Mid single-digit growth. Germany stood out with double-digit growth in nights booked.
  • Latin America: High double-digit growth, led by Brazil, which saw a 20% rise in new users. However, ADR fell 3% due to foreign exchange effects.
  • Asia Pacific: Mid double-digit growth in nights booked and a 15% increase in new users in Japan, driven by a marketing campaign focused on domestic tourism.

What technological innovations and new products are driving Airbnb’s strategy?

Airbnb continues to diversify beyond its traditional lodging business. In its 2025 summer release, the company introduced:

  • Airbnb Services: Personalized services such as private chefs, stylists, personal trainers, and more.
  • Revamped Airbnb Experiences: Local activities hosted by verified hosts, ranging from motorcycle tours in Paris to art restoration with experts.
  • A new app: Featuring a more intuitive interface, integration of lodging, experiences, and services in one place, and artificial intelligence that recommends personalized activities and services.

These initiatives reflect a strategy to evolve into a comprehensive travel platform, moving toward an “Amazon of tourism” model.

What are Airbnb’s projections for the rest of the year?

While the company sees positive signs in current demand, it acknowledges a challenging macroeconomic environment. In its letter to investors, Airbnb warned of tougher year-over-year comparisons in the second half of the year, which could put pressure on growth rates.

For the third quarter of 2025, the company expects:

  • Revenue between $4.02 and $4.10 billion, with year-over-year growth of 8% to 10%.
  • Adjusted EBITDA above $2.0 billion, although margins may be lower due to investments in new services and policy initiatives.
  • Stable nights booked compared to the second quarter and a slight increase in ADR, driven by foreign exchange.

For the full year 2025, Airbnb anticipates maintaining an adjusted EBITDA margin of at least 34.5%, confirming its commitment to continued profitability while investing approximately $200 million in services and experiences.

How is Airbnb positioning itself against competitors in 2025?

Airbnb has strengthened its global positioning through strategic partnerships with high-profile sporting events such as:

  • Tour de France
  • Lollapalooza
  • Winter Olympic Games in Milan
  • FIFA Club World Cup 2025 and FIFA World Cup 2026

These partnerships boost brand visibility at key international events and support supply growth in priority markets, with a hyperlocal approach aimed at dispersing tourism beyond traditional urban centers.

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