Airbnb, Inc. (NASDAQ: ABNB) is in focus today after posting solid third‑quarter numbers and guiding to a slightly stronger‑than‑expected holiday quarter, helped by international demand and a new “Reserve Now, Pay Later” option that’s pulling bookings forward. Investors are parsing the drivers of growth—especially in Latin America and Asia Pacific—and what they signal for Q4 and 2026. 1
Key takeaways (today)
- Q3 revenue:$4.10B, up ~10% YoY; gross booking value (GBV): $22.9B (+14% YoY). GAAP EPS: $2.21.
- Q4 outlook: revenue $2.66B–$2.72B, a touch above Wall Street’s consensus.
- Growth mix: outsized momentum in Latin America and Asia Pacific; U.S. bookings aided by Reserve Now, Pay Later.
- Profitability:Net income $1.4B (34% margin); Adjusted EBITDA $2.1B (50% margin).
- Nights & Seats Booked:133.6M (+9% YoY).
Sources: company shareholder letter and newsroom; Reuters. 2
What changed in Q3—and why it matters
International demand is doing the heavy lifting. Airbnb highlighted faster growth in expansion markets versus its core geographies. Latin America benefited from interest‑free installment plans in Brazil, and Asia Pacific saw mid‑teens growth with Japan domestic bookings up 27% and first‑time bookers in India up nearly 50%. That geographic mix both diversifies demand and supports longer booking lead times. 2
New payments are pulling demand forward in the U.S. In August, Airbnb launched “Reserve Now, Pay Later” for eligible U.S. stays—$0 upfront at booking—which the company says helped accelerate North America bookings in Q3. Expect broader rollout over time. 3
Profitability stayed strong. Q3 net income was $1.4B (34% margin), while Adjusted EBITDA hit $2.1B (50% margin). Free cash flow for the quarter reached $1.3B, with TTM FCF at $4.5B—useful cushions as Airbnb invests in product, payments, and policy initiatives. Management also noted a $213M valuation allowance related to CAMT credits affecting reported tax items. 4
Guidance and the holiday setup
Airbnb guided Q4 revenue to $2.66B–$2.72B, a shade above the Street midpoint, citing healthy demand and earlier bookings. On the call and in media comments, leadership reiterated that the company’s newer “services” offering (alongside reimagined Experiences) is promising but will take 3–5 years to become material—a realistic pacing that keeps the near‑term story grounded in core stays, payments, and international expansion. 1
Product and platform notes investors should watch
- Payments flexibility: Reserve Now, Pay Later (U.S.) and installment plans in Brazil are expanding the addressable customer set and lengthening booking windows—both supportive of Q4 mix. 3
- AI and app improvements: Airbnb is rolling out smarter AI support, early AI‑powered search, richer maps, and flexible carousels to surface more relevant supply; early data show fewer service issues and more bookings in tests. 4
- Services & Experiences: Since the spring relaunch, services/experiences enjoy 4.93/5 average ratings and are attracting new users; applications from prospective hosts have topped 110,000—signs of a longer‑term flywheel forming beyond stays. 4
The stock today: reaction and read‑through
ABNB shares are active today as investors digest the beat‑and‑raise setup; pre‑market headlines flagged a ~5% pop following the release, while intraday pricing will move with broader tech and travel sentiment. (Live quote above shows the latest print and range.) 5
Peers provide helpful context: Expedia (EXPE) jumped after its own upbeat report, underlining robust travel demand across channels and giving the group a supportive backdrop into year‑end. 6
By the numbers (Q3 2025)
- Revenue:$4.10B (+10% YoY)
- GBV:$22.9B (+14% YoY)
- Nights & Seats Booked:133.6M (+9% YoY)
- GAAP EPS:$2.21
- Net income:$1.4B (34% margin)
- Adjusted EBITDA:$2.1B (50% margin)
- Free Cash Flow:$1.3B; TTM FCF:$4.5B
- Q4 revenue outlook:$2.66B–$2.72B
Sources: shareholder letter; Airbnb newsroom; Reuters. 2
What to watch next
- Holiday cadence and 2026 setup: Do longer booking windows (thanks to payments flexibility) translate into higher realized stays and stable cancellation rates? 2
- International expansion durability: Can LATAM and APAC continue to outgrow core markets as localization (payments, marketing, product fit) deepens? 2
- Services monetization timeline: Management’s 3–5 year horizon suggests investors should focus on engagement and supply growth rather than near‑term revenue contribution. 1
Disclosure: This article is for informational purposes only and does not constitute investment advice.
