ABNB Travel Services
Airbnb, Inc.
Airbnb is a San Francisco-based online marketplace that connects guests with stays, experiences, and services offered by hosts — over 5 million hosts in more than 220 countries and regions. It earns service fees on bookings rather than owning the properties. In 2025 guests booked 533 million nights and seats worth $91.3 billion (gross booking value), and Airbnb's revenue was $12.2 billion, up 10%. The company has one operating segment; by region, North America was 42% of revenue, Europe, the Middle East and Africa (EMEA) 39%, Latin America 10%, and Asia Pacific 9%.
Last updated
Analysis last edited: October 2, 2026 · Financial data fetched: October 2, 2026 12:01 (SEC EDGAR) · Source 10-K filed: February 12, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
Company profile
- Legal name
- Airbnb, Inc.
- Headquarters
- SAN FRANCISCO, CA
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NASDAQ: ABNB
- Industry
- Travel Services
- CIK
- 1559720
- Website
- https://www.airbnb.com/ ↗
Workforce (as of FY2025 year-end)
Employees
8,200
Source: Form 10-K (FY2025) cover page and business description
02
Earnings calendar
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q3 FY2026
Quarter end: September 2026. In past years, Q3 results were released 32–38 days after quarter end (Nov 6, 2025; Nov 7, 2024; Nov 1, 2023). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 31–44 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q2 FY2026 | Jun 30, 2026 | Aug 6, 2026 (+37 days) | Aug 6, 2026 10-Q (+37 days) |
| Q1 FY2026 | Mar 31, 2026 | May 7, 2026 (+37 days) | May 7, 2026 10-Q (+37 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 12, 2026 (+43 days) | Feb 12, 2026 10-K (+43 days) |
| Q3 FY2025 | Sep 30, 2025 | Nov 6, 2025 (+37 days) | Nov 6, 2025 10-Q (+37 days) |
| Q2 FY2025 | Jun 30, 2025 | Aug 6, 2025 (+37 days) | Aug 6, 2025 10-Q (+37 days) |
| Q1 FY2025 | Mar 31, 2025 | May 1, 2025 (+31 days) | May 1, 2025 10-Q (+31 days) |
| Q4 FY2024 | Dec 31, 2024 | Feb 13, 2025 (+44 days) | Feb 13, 2025 10-K (+44 days) |
| Q3 FY2024 | Sep 30, 2024 | Nov 7, 2024 (+38 days) | Nov 7, 2024 10-Q (+38 days) |
| Q2 FY2024 | Jun 30, 2024 | Aug 6, 2024 (+37 days) | Aug 6, 2024 10-Q (+37 days) |
| Q1 FY2024 | Mar 31, 2024 | May 8, 2024 (+38 days) | May 8, 2024 10-Q (+38 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 13, 2024 (+44 days) | Feb 16, 2024 10-K (+47 days) |
| Q3 FY2023 | Sep 30, 2023 | Nov 1, 2023 (+32 days) | Nov 1, 2023 10-Q (+32 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. Fiscal years are labeled by the calendar year in which they end.
03
Flagship products & services
Marketplace
Stays
Examples: Homes and rooms listed by hosts; HotelTonight
Substantially all of Airbnb's revenue. Average daily rate rose 3% in 2025.
Marketplace
Experiences and services
Examples: Activities led by hosts; services such as those offered through Airbnb Services
Redesigned experiences and new services launched in May 2025; Airbnb earns a host fee on them.
Platform
AirCover and trust tools
Examples: AirCover for Hosts (up to $3M property damage protection and $1M liability coverage), AirCover for guests
Protections that are part of the platform rather than separately priced products.
Offerings are from the FY2025 Form 10-K's Item 1 business description.
04
Recent strategic focus
FY2025 strategy and capital allocation, from the 10-K.
Expanding beyond stays
Airbnb launched services and redesigned experiences in May 2025, along with a redesigned app with unified search and booking, AI-powered personalization, and social features. It says it plans to keep expanding its business beyond travel.
Source: Form 10-K (FY2025) Item 1
Large buybacks
Airbnb repurchased 29.7 million Class A shares for $3.8B in 2025 and approved an additional $6.0B repurchase program in August 2025, leaving $5.6B available at year-end.
Source: Form 10-K (FY2025) MD&A
FY2023 net income inflated by a tax benefit
FY2023 net income of $4.8B included the release of a $2.9B portion of the valuation allowance on deferred tax assets, which is why it is far above FY2024 ($2.6B) and FY2025 ($2.5B).
Source: Form 10-K (FY2023) MD&A
Capex ÷ D&A (FY2025)
1.94x
Well above depreciation — expansion-stage investment
formulacapital expenditures ÷ depreciation & amortization
e.g.$33M ÷ $17M = 1.94x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
19.2%
formularesearch & development expense ÷ revenue × 100
e.g.$2,354M ÷ $12,241M × 100 = 19.2%
Where the money goes, over time
Unit: $M. Capex went from $25M in FY2021 to $33M in FY2025
- Capex
- R&D
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
05
Key figures at a glance
FY2021–FY2025, 5 years.
Revenue (FY2025)
$12.24B
As reported in the 10-K
Revenue CAGR (4 years)
+19.6%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($12,241M ÷ $5,992M) ^ (1÷4) − 1 = 19.6%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
20.8%▲favorable
+13.6pt vs. 4 years ago
formulaoperating income ÷ revenue × 100
e.g.$2,544M ÷ $12,241M × 100 = 20.8%
ROE (FY2025)
30.2%▲favorable
5-year average: 32.3%
As reported in the 10-K
P/B (FY2025 end)
—
formulaP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share)
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
31.2x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($84,570M + $1,999M − $6,560M) ÷ ($2,544M + $17M) = 31.2x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +19.6% a year over 4 years (strong growth)
From $5.99B in FY2021 to $12.24B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Operating margin improved: 7.2% → 20.8%
How much operating profit is left per $100 of revenue. It moved +13.6 points over 4 years — pricing power, cost control, and product mix all show up here.
- ―
Equity ratio is 36.9% (a middling level)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 5 of 5 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 32.3% over 5 years (latest: 30.2%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
06
Business model
A two-sided marketplace: hosts list homes, experiences, and services, and guests search and book them through Airbnb's website and app. Airbnb charges service fees as a percentage of the booking value for stays (only a host fee for experiences and services), collects them at booking, and recognizes the revenue when the guest checks in. As merchant of record it bears all payment processing costs, including chargebacks.
01 what it draws on
Inputs & resources
- Over 5 million hosts and their listings
- A technology platform rebuilt in 2025, hosted in third-party data centers
- About 8,200 employees plus about 13,000 third-party workers handling most community support contacts (as of December 31, 2025)
- Brand and performance marketing ($2.6B of sales and marketing expense in 2025)
02 what it does
Activities
- Search, booking, and AI-powered personalization across stays, experiences, and services
- Payments in guests' and hosts' preferred currencies, with about 20 local payment methods
- Trust and safety: reviews, risk scoring, fraud prevention, and AirCover protection for hosts and guests
- Community support, much of it handled by third-party workers
03 who it serves
Customers
- Guests booking stays, experiences, and services
- Hosts listing their homes, experiences, and services (and co-hosts who help manage them)
04 how money comes in
How it earns
- Service fees on stays, charged as a percentage of booking value
- Host fees on experiences and services (launched in redesigned form in May 2025)
How the business makes money
- Revenue rose 10% to $12.2B in 2025; gross booking value rose 12% to $91.3B and nights and seats booked rose 8% to 533 million.
- Income from operations was flat at $2.5B (21% of revenue, down from 23%) as sales and marketing grew 20% and product development 14%; net income fell 5% to $2.5B, also on lower interest income.
- Substantially all revenue comes from stays; no single city represented more than 2% of revenue (before incentives and refunds) in 2024 or 2025.
- The business is seasonal: revenue is typically highest in the third quarter and lowest in the first, while gross booking value and free cash flow are lowest in the fourth quarter.
07
Where it earns
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
North America — 42% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
North America
5,196 (42%)EMEA
4,729 (39%)Latin America
1,160 (9%)Asia Pacific
1,156 (9%)
Source: Form 10-K (FY2025) — MD&A, revenue by region (based on the location of the host's listing) Regions are based on the location of the host's listing. The 10-K's geographic note also reports United States revenue of $4,814M (39%) and international revenue of $7,427M.
08
Contract structure
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
Every booking is a separate transaction: Airbnb charges a service fee on each booking, collects it when the booking is made, and recognizes it as revenue at check-in. Because fees are collected ahead of stays, bookings made in the first half of the year raise unearned fees and free cash flow, which then fall as check-ins peak in the third quarter.
- Spot / one-off transaction
Service fees on stays
Substantially all of FY2025 revenue
Typical term: A percentage of each booking's value, varying with booking value, duration, geography, and host type
Revenue is recognized at check-in; gross booking value ($91.3B in 2025) is the leading indicator.
- Spot / one-off transaction
Host fees on experiences and services
A small share (not separately disclosed)
Typical term: A host fee per booking
Services and redesigned experiences launched in May 2025.
09
Customers & suppliers
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Airbnb's customers are guests, who pay service fees on bookings, and hosts, who list homes, experiences, and services; Airbnb competes to attract and retain both.
Named by the company
None named. Customers are millions of individual guests and hosts.
What the filings disclose
- No single city represented more than 2% of revenue before incentives and refunds, or more than 1% of active listings, in 2024 or 2025. (Form 10-K (FY2025), MD&A)
- Over 5 million hosts have welcomed over 2.5 billion guest arrivals. (Form 10-K (FY2025), Item 1)
Suppliers
The main outside services Airbnb relies on are third-party data centers that host its platform, payment processing, and third-party workers for community support. The 10-K doesn't name the providers.
Named by the company
None named in the 10-K or the company’s press releases.
What the filings disclose
- Airbnb has a commercial agreement with a data hosting services provider to spend at least $1.7B through 2031. (Form 10-K (FY2025), MD&A)
- About 13,000 third-party workers handled the majority of community support contacts as of December 31, 2025. (Form 10-K (FY2025), Item 1)
- As merchant of record, Airbnb bears all payment processing costs, including merchant fees and chargebacks. (Form 10-K (FY2025), MD&A)
10
Competitors & peers
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Airbnb's 10-K says it competes for both hosts and guests, and names competitors in several categories. It also lists property management companies and guest-services marketplaces without naming them.
Competitors named in the 10-K
Search engines (including travel search)
- Alphabet (Google)site ↗
Peer group the company chose
Primary peer group for 2025 pay decisions, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Chosen for overlap in the executive talent market, scale, Bay Area presence, and business characteristics such as high-growth technology, gig-economy, and marketplace companies.
- Adobesite ↗
- Salesforcesite ↗
- Blocksite ↗
- ServiceNowsite ↗
- Booking Holdingssite ↗
- Shopifysite ↗
- DoorDashsite ↗
- Spotifysite ↗
- Intuitsite ↗
- Ubersite ↗
- Netflixsite ↗
- Zoom Communicationssite ↗
- Pinterestsite ↗
A secondary reference group — Alphabet, Amazon, Apple, Disney, Meta, Microsoft, Nike, and Tesla — was also reviewed but left out of the primary group because of their scale.
Source: Proxy statement (DEF 14A, filed 2026-04-24) — Compensation Discussion and Analysis, peer groupCompany names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
11
Five years of financials
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
| Line item | FY2021In next year’s 10-K | FY2022In next year’s 10-K | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|
| Income statement ($M) | |||||
| Revenue | 5,992 | 8,399 | 9,917 | 11,102 | 12,241 |
| Operating income | 429 | 1,802 | 1,518 | 2,553 | 2,544 |
| Pretax income | -300 | 1,989 | 2,102 | 3,331 | 3,137 |
| Net income (attributable) | -352 | 1,893 | 4,792 | 2,648 | 2,511 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 40.2% | 18.1% | 11.9% | 10.3% |
| Operating margincalcoperating income ÷ revenue × 100 | 7.2% | 21.5% | 15.3% | 23.0% | 20.8% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | -5.9% | 22.5% | 48.3% | 23.9% | 20.5% |
| Balance sheet ($M) | |||||
| Total assets | 13,708 | 16,038 | 20,645 | 20,959 | 22,208 |
| Total equity | 4,775 | 5,560 | 8,165 | 8,412 | 8,199 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 2,000 | 1,987 | 1,991 | 1,995 | 1,999 |
| Equity ratio | 34.8% | 34.7% | 39.5% | 40.1% | 36.9% |
| ROE | -7.4% | 36.6% | 69.8% | 31.9% | 30.2% |
| Cash flow ($M) | |||||
| Operating CF | 2,313 | 3,430 | 3,884 | 4,518 | 4,646 |
| Investing CF | -1,352 | -28 | -1,042 | -616 | -748 |
| Financing CF | 1,308 | -689 | -2,430 | -3,572 | -3,827 |
| Free cash flowcalccash flow from operations − capital expenditures | 2,288 | 3,405 | 3,837 | 4,484 | 4,613 |
| Cash and equivalents | 6,067 | 7,378 | 6,874 | 6,864 | 6,560 |
| Per share & other | |||||
| EPS ($) | -0.57 | 2.79 | 7.24 | 4.11 | 4.03 |
| P/E (x) | — | 30.7 | 18.8 | 32.0 | 33.7 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | — | 28.5 | 55.5 | 31.1 | 31.2 |
Figures without a "calc" tag are as reported in the Form 10-K (five-year selected financial data and the consolidated financial statements), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
12
Is ROIC above WACC?
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
19.5%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$2,544M × (1 − 21%) ÷ $10,303M × 100 = 19.5%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
10.32%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $84.57B ÷ ($84.57B + $2B) = 97.7%
e.g.Debt weight: $2B ÷ ($84.57B + $2B) = 2.3%
e.g.WACC: 10.5% × 97.7% + 4.0% × (1 − 21%) × 2.3% = 10.32%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
WACC 10.32% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4%
- β
- 1.18 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 10.49%
- Cost of debt
- 4.00% (no debt on record, using the risk-free rate)
- Effective tax rate
- 21%
- Capital structure (equity : debt)
- 98% : 2%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 10.32%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The defaults reflect 2026-09.
Initial β: 1.18 (price-derived adjusted beta. Raw β 1.26, R² 0.27, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 1.265 + 0.33 = 1.178
termsβ (beta)
Period 2024-04-05–2026-10-02, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.4.0% + 1.18 × 5.5% = 10.5%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulaP/E × net income ≈ period-end share price × shares outstanding (= market cap)
termsP/E · Net income (attributable to the company) · Market capitalization · Market value of equity
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
13
What the price implies (DCF)
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (FY2025)
4.2%
Perpetual FCF growth: g = r − FCF ÷ EV = 10.3% − 6.1%
Past FCF growth (FY2021–FY2025)
+19.2%
Compound annual rate, 4 years
Past revenue growth (FY2021–FY2025)
+19.6%
Compound annual rate, 4 years
Inputs (FY2025): free cash flow $4.61B (operating CF − capex); enterprise value $75.56B = market cap $84.57B + debt $2B − cash and short-term investments $11.01B; r = WACC of 10.3% using this page’s default assumptions (β 1.18, risk-free 4.0%, market premium 5.5%).
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$75.62B
FCF $4.61B ÷ (10.3% − 4.2%)
Theoretical ÷ actual enterprise value
1.00x
Above 1x: these assumptions value the business above the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 8.3% | 9.3% | 10.3% | 11.3% | 12.3% |
|---|---|---|---|---|---|
| 0% | 0.74x | 0.66x | 0.59x | 0.54x | 0.50x |
| 2% | 0.97x | 0.84x | 0.74x | 0.66x | 0.59x |
| 4% | 1.42x | 1.15x | 0.97x | 0.84x | 0.74x |
| 6% | 2.65x | 1.85x | 1.42x | 1.15x | 0.97x |
| 8% | 20.35x | 4.70x | 2.65x | 1.85x | 1.42x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap and enterprise value use the fiscal year-end price, not today’s.
14
Earnings quality
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.54x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -9.9%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 81%
Most profit comes from core operations.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$4,646M ÷ $2,511M = 1.85x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$2,544M ÷ $3,137M × 100 = 81%
termsOperating income · Income before income taxes (pretax income)
formulaperiod-end receivables ÷ revenue × 365
15
Strengths & weaknesses
Strengths
1. Highly diversified, asset-light demand
Airbnb doesn't own the properties it lists. No single city represented more than 2% of revenue (before incentives and refunds) in 2024 or 2025, and nights and seats booked grew in every region in 2025.
Evidence: Form 10-K (FY2025) MD&A
2. Cash collected before stays, with little capital spending
Operating cash flow was $4.6B in 2025, and purchases of property and equipment were only $33M, so free cash flow was also $4.6B — about 38% of revenue.
Evidence: Form 10-K (FY2025) MD&A, Free Cash Flow reconciliation
3. Faster growth outside North America
In 2025 revenue grew 20% in Latin America, 17% in Asia Pacific, and 14% in EMEA, versus 4% in North America.
Evidence: Form 10-K (FY2025) MD&A, revenue by region
Weaknesses
1. Margins squeezed by spending
Operating margin fell from 23% to 21% in 2025 as sales and marketing rose 20% and product development 14%, against 10% revenue growth.
Evidence: Form 10-K (FY2025) MD&A
2. Slowest growth in its largest region
North America, 42% of revenue, grew 4% in 2025, and its nights and seats booked grew 3%.
Evidence: Form 10-K (FY2025) MD&A, revenue by region
3. Heavy stock-based compensation
Stock-based compensation expense was $1.6B in 2025, about 13% of revenue and more than half of income from operations ($2.5B).
Evidence: Form 10-K (FY2025) MD&A, Adjusted EBITDA reconciliation
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What draws investors to it
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
33.7x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
—
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
—
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
5.5%
(Operating CF − capex) ÷ market cap
1. Asset-light cash generation returned through buybacks
Free cash flow was $4.6B in 2025 (about 38% of revenue) with capital spending of only $33M, and Airbnb spent $3.8B buying back shares. It pays no dividend.
- What has to hold
- Bookings keep growing so that service fees collected ahead of stays keep funding operations and buybacks.
- The other side
- Stock-based compensation was $1.6B in 2025, so part of the buyback offsets dilution rather than shrinking the share count. Free cash flow also benefits from collecting fees before stays happen.
Evidence: Form 10-K (FY2025) MD&A
2. Growth runway outside North America
Latin America (+20%), Asia Pacific (+17%), and EMEA (+14%) revenue all grew much faster than North America (+4%) in 2025, and Airbnb's strategy includes raising awareness in less mature markets with a more localized approach.
- What has to hold
- International demand keeps growing and regulation doesn't cap supply in key cities.
- The other side
- Average daily rates and nights per booking differ by region; Asia Pacific bookings averaged 3.3 nights versus 4.1 in North America, so faster booking growth there may bring in less revenue per booking.
Evidence: Form 10-K (FY2025) Item 1 and MD&A
3. New businesses beyond stays
Services and redesigned experiences launched in May 2025 could add revenue from the same guest base, and Airbnb plans to expand beyond travel.
- What has to hold
- Guests adopt the new offerings at scale.
- The other side
- The 10-K doesn't disclose revenue from experiences and services, and substantially all revenue still comes from stays; 2025 spending growth already pushed operating margin down.
Evidence: Form 10-K (FY2025) Item 1 and MD&A
P/E and FCF yield above use the fiscal year-end share price, not today's price, so they shift as the stock moves. Airbnb pays no dividend.
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Resilience
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
5.5x
$11.01B vs. $2B
Interest coverage (operating income ÷ interest expense)
Not disclosed
Interest expense isn’t reported as a separate line.
Free cash flow ÷ dividends paid
—
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | -15.8% in FY2023 ($1.8B → $1.52B) | Yes, by FY2024 |
Covers only the 5 fiscal years on record (FY2021–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Liquidity
Cash, cash equivalents, and short-term investments totaled $11.0B at FY2025 year-end, against $2.0B of 0% convertible notes due March 15, 2026, which Airbnb says operating cash flow will cover. A $1.0B revolving credit facility was undrawn.
Source: Form 10-K (FY2025), MD&A Liquidity
Demand spread thin
No single city was more than 2% of revenue, and bookings grew in all four regions in 2025.
Source: Form 10-K (FY2025), MD&A · See Customers & suppliers
Past shocks
The 10-K lists health emergencies, natural disasters, wars, and political instability as events that can reduce travel and cause cancellations, and global macroeconomic conditions as a factor in its results.
Source: Form 10-K (FY2025), Item 1A · See Contract structure
Regulatory exposure by city
Local short-term rental rules can remove supply in a city at once, as New York City's 2023 regulations did.
Source: Form 10-K (FY2025), Item 1
Platform dependence
The platform is hosted in third-party data centers under a multi-year commitment of at least $1.7B, and most community support is handled by about 13,000 third-party workers.
Source: Form 10-K (FY2025), Item 1 and MD&A · See Customers & suppliers
Low fixed assets
Purchases of property and equipment were $33M in 2025, against operating cash flow of $4.6B.
Source: Form 10-K (FY2025), MD&A
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Risks (including geopolitical)
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring).
- 1Law & regulation
Short-term rental regulation
- Company disclosure (summarized from the 10-K)
- Airbnb is subject to local, state, and national rules on short-term rentals. The 10-K notes that New York City's 2023 regulations resulted in a de facto ban on short-term rentals, and that other cities have passed onerous restrictions.
- Company’s stated mitigation
- Airbnb says it works with governments on home-sharing rules and will dispute regulations that unreasonably restrict the right to host.
- This site’s assessment
- Impact High / Likelihood High
- 2Law & regulation
Lodging and other non-income taxes
- Company disclosure (summarized from the 10-K)
- The 10-K says certain jurisdictions are aggressively interpreting tax laws to raise revenue from companies such as Airbnb. Non-income tax expense was $894M in 2023 and $305M in 2025, and G&A rose in 2025 partly on non-income taxes and related fees and penalties.
- Company’s stated mitigation
- Not stated in the 10-K.
- This site’s assessment
- Impact Med / Likelihood High
- 3Competition & technology shift
Competition for hosts and guests
- Company disclosure (summarized from the 10-K)
- The 10-K names online travel agencies (Booking Holdings including Booking.com, Expedia Group including Vrbo, Trip.com Group) and internet search engines including Google and AI-powered search among its competitors.
- Company’s stated mitigation
- Not stated in the 10-K.
- This site’s assessment
- Impact Med / Likelihood High
- 4Demand & macro
Travel disruption and the economy
- Company disclosure (summarized from the 10-K)
- The 10-K lists reduced travel and cancellations from health concerns, natural disasters, wars, and political instability, and global macroeconomic conditions, as factors that can make results fluctuate.
- Company’s stated mitigation
- Geographic spread: no single city was more than 2% of revenue.
- This site’s assessment
- Impact High / Likelihood Med
- 5Supply chain
Dependence on third-party data hosting
- Company disclosure (summarized from the 10-K)
- The platform runs in third-party data centers, and Airbnb has committed to spend at least $1.7B with a data hosting services provider through 2031. The provider isn't named.
- Company’s stated mitigation
- Not stated in the 10-K.
- This site’s assessment
- Impact Med / Likelihood Low
- 6FX & interest rates
Currency and interest income
- Company disclosure (summarized from the 10-K)
- About 61% of revenue is from listings outside the United States. Interest income, $705M in 2025, fell 14% on lower interest rates and was a reason net income declined.
- Company’s stated mitigation
- Not stated in the 10-K.
- This site’s assessment
- Impact Med / Likelihood Med
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What to watch going forward
- Whether experiences and services, launched in May 2025, grow into a meaningful share of revenue.
- North America growth, which lagged other regions in 2025.
- Short-term rental regulation in major cities, following New York City's 2023 rules.
- Operating margin, as marketing and product spending grew faster than revenue in 2025.
- Repayment of the $2.0B of 0% convertible notes due March 15, 2026.
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Source documents
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 2, 2026 · Financial data fetched: October 2, 2026 12:01 (SEC EDGAR) · Source 10-K filed: February 12, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Airbnb, Inc.’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.