Airbnb Inc (NASDAQ:ABNB) stock fell 2.10% (As on November 7, 11:22:45 AM UTC-4, Source: Google Finance) after the company reported third-quarter earnings that missed analyst estimates as investments in growth weighed on margins, but the company delivered better-than-expected current-quarter guidance amid a pick up in travel demand and longer-term bookings. The miss comes as adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, margin in Q3 2025 fell to 50%, from 52% in Q3 2024. Gross booking value, or GBV, increased 14% year-over-year, while nights and seats booked rose by 9%. Nights and Seats Booked grew double-digits year-over-year in Q3 2025 when excluding North America, which contributed approximately 30% of total Nights and Seats Booked.

Moreover, in North America, the company saw mid-single digit growth of Nights and Seats Booked during Q3 2025 compared to Q3 2024, representing a sequential acceleration, driven by strong domestic travel and trips with longer lead times. In EMEA, the company saw mid-single digit growth in Nights and Seats Booked during Q3 2025 compared to Q3 2024. During Q3 2025, the company faced a slightly unfavorable year-over-year comparison within the region due to the Paris Summer Olympic and Paralympic Games in 2024. In Latin America, the company saw low-20s growth in Nights and Seats Booked during Q3 2025 compared to Q3 2024

ABNB in the third quarter of FY25 has reported the adjusted earnings per share of $2.21, missing the analysts’ estimates for the adjusted earnings per share of $2.31. The company had reported the adjusted revenue growth of 10 percent to $4.1 billion in the third quarter of FY25, beating the analysts’ estimates for revenue of $4.08 billion.

Looking ahead to Q4, the company expects to generate revenue of $2.66B to $2.72B, representing year-over-year growth of 7% to 10%, beating analyst estimates of $2.67B. Q4 GBV is expected to grow low-double digits year-over-year. In Q4 2025, ABNB expects year-over-year growth of Nights and Seats Booked in the mid-single-digit range due to the challenging Q4 2024 comparison. The company expect Adjusted EBITDA in Q4 2025 to be flatto-down slightly on a year-over-year basis and for Adjusted EBITDA Margin to decline over the same time period, primarily driven by investments in new growth and policy initiatives.

Consistent with the prior update, this includes investing approximately $200 million towards services and experiences in 2025.

For the full-year 2025, the company now expects to deliver an Adjusted EBITDA margin of approximately 35%, up from a prior estimate of at least 34.5%.