Airbnb is warning investors to expect slower growth in the second half of 2025, sending its shares down more than 6% after the news. The company says the softer outlook is largely due to tough comparisons with last year, when a surge in bookings from Asia and Latin America boosted results.
Despite the slowdown ahead, Airbnb saw signs of recovery in U.S. travel during the second quarter, bouncing back from an April dip that affected other travel companies like United Airlines and Wyndham Hotels. Demand for domestic trips in the U.S. picked up steadily through the quarter, helping drive growth.
Even so, the company expects booking growth to cool later this year, particularly in the fourth quarter. Revenue for the upcoming third quarter is projected between $4.02 billion and $4.10 billion, roughly in line with analyst expectations.
In the latest quarter, Airbnb reported $3.10 billion in revenue—beating forecasts—and a profit of $1.03 per share, ahead of Wall Street’s estimate of 93 cents. Nights and services booked through the platform were up 7%, while the total value of bookings rose 11% to $23.5 billion, helped by Easter’s timing and currency-related fees.
Looking ahead, Airbnb plans to keep its revenue-to-booking ratio steady and announced a $6 billion share buyback program, signaling confidence in its long-term performance even as growth slows in the short term.
