“We are preparing for Airbnb’s next chapter beyond stays”, announced Airbnb co-founder and CEO Brian Chesky, during the company’s Q1 2025 financial results announcement. On when Airbnb’s “next day” will be known Brian Chesky was clear: “I look forward to sharing more on May 13,” he said.
The first quarter results, however, were strong. Significantly, this quarter visitors to the platform spent almost $25 billion, confirming the enduring preference for the brand, regardless of global circumstances.
The focus of the first quarter was on continuing the long-term growth strategy. The company has invested in recent years in strengthening its core service, with hundreds of upgrades improving the reliability, price transparency and usability of the platform.
At the same time, it has completed the modernisation of its app, creating a new technology base to support its entry into new markets and services.
Airbnb financial results Q1 2025
- Revenue: $2.3 billion, up 6% year over year. The increase would have been 11% if seasonal and currency factors were excluded.
- Net income: $154 million, down from $264 million in 2024, primarily due to increased stock-based compensation expense, investment impairments and lower interest income.
- Adjusted EBITDA: $417 million with an 18% margin, down slightly from last year due to investments in product development.
- Free cash flow: $1.8 billion with 78% margin, versus $1.9 billion in Q1 2024, impacted by lower net income.
- Share repurchases: $807 million in the quarter, reducing the total number of shares from 677 to 660 million.
With strong liquidity ($11.5 billion in cash and investments) and strategic investments in technology and product, Airbnb says it is ready to expand its business beyond tourism, marking a new era for the company.
Recall that in February the platform announced that it plans to invest $200 million to $250 million this year to build these new businesses, with the goal of generating $1 billion in revenue in the future.
