Airbnb Inc (NASDAQ:ABNB) stock fell 7.98% (As on August 7, 11:23:26 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY25. Though the company issued a soft outlook for the second half of the year, even as the company maintained that tourism trends were strong. Net income increased 16% to $642 million in Q2 2025, up from $555 million in Q2 2024 primarily due to higher revenue. Adjusted EBITDA increased 17% to $1.0 billion in Q2 2025, up from $894 million in Q2 2024 primarily due to higher revenue. Net cash provided by operating activities of $1.0 billion in Q2 2025 was slightly lower compared to $1.1 billion in Q2 2024 due to changes in operating assets and liabilities. The TTM FCF was $4.3 billion, representing a TTM FCF Margin of 37%.

ABNB in the second quarter of FY25 has reported the adjusted earnings per share of $1.03, beating the analysts’ estimates for the adjusted earnings per share of 93 cents. The company had reported the adjusted revenue of $3.1 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $3.03 billion. This is primarily driven by solid growth in nights stayed, a slight increase in Average Daily Rate (“ADR”), and the timing of Easter.

Additionally, as of June 30, 2025, the company had $11.4 billion of cash and cash equivalents, short-term investments, and restricted cash, as well as $11.1 billion of funds held on behalf of guests. The strong cash flow enabled the company to repurchase $1.0 billion of the Class A common stock in Q2 2025. As of June 30, 2025, the company had the authorization to purchase up to $1.5 billion of the Class A common stock under the current share repurchase plan and today, the company announced a new share repurchase program with authorization to purchase up to an additional $6 billion of the Class A common stock.

Airbnb’s third-quarter revenue outlook of $4.02 billion to $4.10 billion came in slightly below analysts’ estimates of $4.05 billion, according to Reuters/LSEG. In Q3 2025, the company expects year-over-year growth of Nights and Seats Booked to be relatively stable compared to Q2 2025. In Q3 2025, the company expects Adjusted EBITDA to increase to over $2.0 billion. However, the company anticipates that Adjusted EBITDA Margin during Q3 2025 will be lower than in Q3 2024, primarily due to investments in new growth and policy initiatives.