Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Airbnb delivered 10.3% revenue growth to $12.2B in FY2025, but net income declined 5.2% to $2.5B as surging R&D investment and higher costs compressed margins, while the company eliminated all long-term debt and returned $3.8B to shareholders via buybacks.
Revenue
$12.24B
+10.26% YoY
Operating Income
$2.54B
-0.35% YoY
Source: SEC XBRL
Airbnb (ABNB) reported FY2025 revenue of $12.24B, up 10.3% year over year. Operating margin was 20.8%, down 2.2 points from 23.0% a year earlier. Operating cash flow was $4.65B, up 2.8% year over year.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.37 | 1.28 | Beat +7.3% |
| Mar 2026 | 0.26 | 0.30 | Miss -11.9% |
| Dec 2025This filing | 0.56 | 0.67 | Miss -16.4% |
| Sep 2025 | 2.21 | 2.39 | Miss -7.5% |
Reported EPS of $0.56 versus the $0.67 analyst consensus — a -16.4% miss for Dec 2025.
Compiled by AI from this SEC filing
Revenue grew 10.3% year-over-year to $12.24B in FY2025 (from $11.10B in FY2024), reflecting continued demand for short-term rentals and Airbnb's expanding global host and guest base. Cost of revenue rose 11.1% to $2.09B, slightly outpacing revenue growth, indicating modest pressure on gross economics.
Source: 10-K Income Statement
R&D expenses jumped 14.5% year-over-year to $2.35B in FY2025, the fastest-growing cost line on the income statement. This investment drove operating income essentially flat at $2.54B (down 0.4% YoY), compressing operating margin by approximately 220 basis points to 20.8% from 23.0%.
Source: 10-K Income Statement & Key Ratios
Net income fell 5.2% to $2.51B in FY2025 from $2.65B in FY2024, with net margin at 20.5%. The decline reflects higher operating costs, increased R&D spend, and potentially unfavorable below-the-line items, even as the top line expanded robustly.
Source: 10-K Income Statement
Airbnb fully retired its $1.995B in long-term debt during FY2025, ending the year with zero long-term debt. This significantly de-risks the balance sheet and reduces interest expense going forward, though current liabilities surged 34.3% to $13.65B, largely reflecting guest payment obligations and accrued liabilities.
Source: 10-K Balance Sheet
Operating cash flow grew 2.8% to $4.65B, supporting $3.79B in share repurchases (up 10.5% YoY) and net financing outflows of $3.83B. The company's capital-light model continues to generate strong cash conversion, with operating cash flow well exceeding reported net income.
Source: 10-K Cash Flow Statement
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
As a platform operating in hundreds of jurisdictions, Airbnb faces ongoing risk of local governments imposing short-term rental restrictions, registration requirements, or outright bans. Regulatory actions in major cities (e.g., New York, Barcelona) can materially reduce supply and bookings in high-value markets. This risk is company-specific given Airbnb's unique position as the dominant short-term rental marketplace.
Source: 10-K Risk Factors (inferred from business model and financial data)
R&D expenses grew 14.5% to $2.35B in FY2025, outpacing revenue growth of 10.3% and contributing to operating margin compression. If new product initiatives (e.g., Experiences, AI features) do not generate commensurate revenue, continued heavy R&D investment could further erode profitability. This is a company-specific risk tied to Airbnb's strategic pivot toward platform diversification.
Source: 10-K Income Statement
Current liabilities surged 34.3% to $13.65B in FY2025, significantly outpacing the 9.4% growth in current assets ($18.80B), resulting in a current ratio of only 1.38. A large portion of current liabilities reflects funds payable to hosts and guest payments held in trust, which are operationally necessary but create concentration risk if booking volumes decline suddenly.
Source: 10-K Balance Sheet & Key Ratios
Despite strong cash generation, stockholders' equity declined 2.5% to $8.20B as $3.79B in share repurchases exceeded retained earnings additions. The debt-to-equity ratio stands at 1.71x, and continued aggressive buybacks without proportional earnings growth could further weaken the equity base over time.
Source: 10-K Balance Sheet & Cash Flow Statement
Airbnb's business model depends entirely on trust between hosts and guests; any high-profile safety incidents, fraud, or property damage events can damage brand reputation and reduce platform participation. Unlike hotels, Airbnb does not control the physical product, making quality consistency a persistent challenge. Reputational damage could disproportionately impact booking volumes and pricing power.
Source: 10-K (inferred from business model characteristics)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 12.24 $B | 11.10 $B | +10.26% |
Cost of Revenue $B | 2.09 $B | 1.88 $B | +11.08% |
Operating Income $B | 2.54 $B | 2.55 $B | -0.35% |
Net Income $B | 2.51 $B | 2.65 $B | -5.19% |
R&D Expense $B | 2.35 $B | 2.06 $B | +14.49% |
Answers draw on this SEC filing and the data on this page
Airbnb delivered strong Q2 FY2026 results with 17% revenue growth and a 27% net income increase, underpinned by higher booking volumes and operating leverage, but rising marketing spend and debt costs warrant monitoring.
Airbnb delivered strong Q1 FY2026 revenue growth of 17.9% to $2.68B, with operating income more than doubling YoY to $86M, though net income grew only modestly to $160M amid elevated R&D spending and increased investing outflows.
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