Airbnb, Inc. stock research
FY2025 Q3
Airbnb (ABNB) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose moderately. Gross margin improved versus the prior quarter but weakened compared to the same quarter a year ago.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose moderately. Gross margin improved versus the prior quarter but weakened compared to the same quarter a year ago.
- Gross profit expanded faster than cost of revenue relative to the prior quarter, driving gross margin improvement. Compared to the same quarter last year, cost of revenue grew more quickly than gross profit, contributing to the lower gross margin.
- Compared to the immediately preceding quarter, gross margin was higher, reflecting a stronger relationship between revenue and gross profit. Compared to the same quarter one year earlier, gross margin was lower, as cost of revenue increased more relative to gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
86.6%
Gross profit
$3.5B
Revenue
$4.1B
Cost of revenue
$549.0M
Quarter-over-quarter change
+4.2 pts
Year-over-year change
-0.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2024 | $2.5B | $2.1B | $427.0M | 82.8% |
| Mar 31, 2025 | $2.3B | $1.8B | $506.0M | 77.7% |
| Jun 30, 2025 | $3.1B | $2.6B | $544.0M | 82.4% |
| Sep 30, 2025 | $4.1B | $3.5B | $549.0M | 86.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+4.2 pts
Year-over-year change
Sep 30, 2024
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit expanded faster than cost of revenue relative to the prior quarter, driving gross margin improvement. Compared to the same quarter last year, cost of revenue grew more quickly than gross profit, contributing to the lower gross margin.
Compared to the immediately preceding quarter, gross margin was higher, reflecting a stronger relationship between revenue and gross profit. Compared to the same quarter one year earlier, gross margin was lower, as cost of revenue increased more relative to gross profit.
Monitor the trend in cost of revenue relative to revenue, as its growth rate has varied between the two comparison periods.