Airbnb (ABNB) Stock Rises on Revenue Beat Despite Earnings Miss

TLDR

• Airbnb (ABNB) stock rose 2% after hours Thursday following Q4 revenue beat of $2.78 billion versus $2.72 billion expected, though EPS missed at 56 cents versus 66 cents expected
• Q4 revenue increased 12% year-over-year but net income dropped to $341 million from $461 million due to $90 million in non-income tax charges and investments in new growth initiatives
• The company guided Q1 revenue between $2.59 billion and $2.63 billion, beating analyst expectations of $2.53 billion
• Airbnb reported 121.9 million nights and seats booked in Q4, up 10% year-over-year and above the 117.6 million StreetAccount estimate
• Gross booking value jumped 16% to $20.4 billion, surpassing the $19.4 billion analyst forecast, while the company expects full-year revenue growth of at least low double digits

Airbnb stock climbed roughly 2% in after-hours trading Thursday after reporting fourth-quarter results that topped revenue expectations but fell short on earnings.

The vacation rental platform posted revenue of $2.78 billion for the quarter ended December 31. That figure beat analyst estimates of $2.72 billion compiled by LSEG.

However, earnings per share came in at 56 cents, missing the 66 cent consensus. Net income dropped to $341 million from $461 million in the same quarter last year.

Airbnb, Inc., ABNB

The earnings decline stemmed from two main factors. The company took a $90 million charge related to non-income tax matters. Airbnb also ramped up spending on new growth and policy initiatives.

Total costs and expenses jumped 22% compared to the prior year period. The company is pouring money into its Experiences product and expanding into new geographic markets.

Strong Booking Metrics Drive Revenue Growth

Revenue growth of 12% year-over-year was fueled by increased nights stayed and a moderate bump in average daily rates. Airbnb has now beaten Wall Street revenue expectations in 20 of the past 21 quarters, according to FactSet.

Nights and seats booked reached 121.9 million in the fourth quarter. That represented a 10% increase from the year-ago period and topped the StreetAccount estimate of 117.6 million.

Gross booking value, which includes host earnings, service fees, cleaning fees and taxes, totaled $20.4 billion. The 16% year-over-year jump exceeded analyst forecasts of $19.4 billion.

North America showed the slowest booking growth among geographic regions. Latin America posted the fastest growth, followed by Asia Pacific and the Europe, Middle East and Africa region.

Optimistic Outlook for 2026

For the first quarter of 2026, Airbnb expects revenue between $2.59 billion and $2.63 billion. Analysts had projected $2.53 billion for the period.

The company guided for full-year revenue growth of at least low double digits. Wall Street consensus stands at 10.2% growth for 2026.

Airbnb reported adjusted EBITDA of $786 million during the fourth quarter. The company said it finished 2025 with strong momentum that reflects the strength of its core business model.

At the start of 2025, Airbnb announced plans to invest up to $250 million in launching and scaling new businesses throughout the year. The company has started partnering with boutique hotels in select cities and aims to bring more hotels onto its platform.

Last month, Airbnb hired Ahmad Al-Dahle as its new chief technology officer. Al-Dahle previously served as head of generative artificial intelligence at Meta. He replaced Ari Balogh, who stepped down in December after more than seven years with the company.

Airbnb said its Q4 results reflect the strength of its core business connecting hosts who rent out their homes with travelers seeking accommodations.

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