Earnings
Airbnb Q3 revenue rises 19% to $4.87bn; board adds $12bn to buyback
The home-rental platform reported a 52% adjusted EBITDA margin and guided fourth-quarter revenue growth of 16% to 18%.
HedgeWeekly News Desk ·
Airbnb reported third-quarter revenue of $4,869 million, up 19% from a year earlier and 16% excluding currency effects, in its shareholder letter filed with the SEC. Net income was $1,890 million, against $1,374 million a year earlier, and diluted earnings per share were $3.16 versus $2.21.
Guests booked 155.0 million nights and seats, up 16%. Gross booking value reached $27.7 billion, up 21% both with and without currency effects. Adjusted EBITDA rose 22% to $2,509 million, a 52% margin compared with 50% a year earlier. Free cash flow was $1,426 million.
For the fourth quarter, Airbnb expects revenue of $3.22 billion to $3.28 billion, growth of 16% to 18%. It expects adjusted EBITDA margin to be down slightly from 28% in the fourth quarter of 2025, partly because of the timing of marketing spend. The company repurchased $0.7 billion of Class A stock in the quarter and authorised up to a further $12 billion, on top of $2.7 billion remaining at September 30.
For investors, the notable point is the capital return: the new authorisation is several times the amount left on the previous programme, and it arrives as technology shares are under heavy pressure this week. Bookings growth of 21% outpaced revenue growth, so watch whether fourth-quarter revenue converts at a similar rate and how quickly the buyback is used.