Airbnb, Inc. stock research
FY2025 Q4
Airbnb (ABNB) Gross Margin — Quarter Ended Dec 31, 2025
Revenue for the quarter was lower than the immediately preceding quarter but higher than the same quarter one year earlier. Cost of revenue decreased sequentially, while gross profit and gross margin weakened compared to the prior quarter but were stable relative to the year-ago period.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue for the quarter was lower than the immediately preceding quarter but higher than the same quarter one year earlier. Cost of revenue decreased sequentially, while gross profit and gross margin weakened compared to the prior quarter but were stable relative to the year-ago period.
- Gross margin for the current quarter was lower than the immediately prior quarter, primarily because gross profit declined more relative to the decrease in revenue. Compared to the same quarter last year, gross margin was essentially stable.
- Revenue was lower versus the preceding quarter, while cost of revenue fell at a slower pace, causing gross profit to weaken and gross margin to contract. Against the same quarter one year earlier, revenue was higher and cost of revenue rose proportionally, resulting in a similar gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
82.5%
Gross profit
$2.3B
Revenue
$2.8B
Cost of revenue
$487.0M
Quarter-over-quarter change
-4.1 pts
Year-over-year change
-0.3 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $2.8B | $2.3B | $487.0M | 82.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-4.1 pts
Year-over-year change
Dec 31, 2024
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin for the current quarter was lower than the immediately prior quarter, primarily because gross profit declined more relative to the decrease in revenue. Compared to the same quarter last year, gross margin was essentially stable.
Revenue was lower versus the preceding quarter, while cost of revenue fell at a slower pace, causing gross profit to weaken and gross margin to contract. Against the same quarter one year earlier, revenue was higher and cost of revenue rose proportionally, resulting in a similar gross margin.
Monitor whether the sequential decline in gross margin continues, given that cost of revenue did not decline at the same rate as revenue.