Airbnb Inc (NASDAQ:ABNB, XETRA:6Z1) shares slipped after Thursday’s closing bell after the company reported first quarter results that topped revenue expectations and upped its full-year forecast, but missed on earnings.
For the quarter, Airbnb reported earnings of $0.26 per share, below the consensus estimate of $0.30.
Revenue rose 18% year-over-year to $2.7 billion, ahead of analyst expectations of $2.62 billion.
Gross booking value increased 19% from a year earlier to $29.2 billion, while nights and experiences booked rose 9% to 156.2 million. Net income totaled $160 million, representing a 6% net income margin.
Adjusted EBITDA came in at $519 million, up 24% year over year, with an adjusted EBITDA margin of 19%. Free cash flow totaled $1.7 billion during the quarter, while trailing twelve-month free cash flow reached $4.5 billion.
In its shareholder letter, Airbnb said it continued to benefit from investments aimed at improving its platform, accelerating innovation, and expanding internationally.
The company noted that app-based bookings grew 22% year over year and accounted for 63% of total nights booked during the quarter, up from 58% a year earlier.
Airbnb also highlighted accelerating growth among first-time bookers, particularly in expansion markets including Brazil, Japan, and India. Origin nights booked in India increased about 50% year over year, while Brazil posted more than 20% growth for a third consecutive quarter.
At the same time, the company acknowledged ongoing macroeconomic and geopolitical uncertainty. Airbnb said it saw elevated cancellations in Europe, the Middle East, and Africa, as well as Asia Pacific, largely tied to the conflict in the Middle East.
Looking ahead, Airbnb forecast second-quarter revenue between $3.54 billion and $3.60 billion, representing year-over-year growth of 14% to 16%.
The company expects nights and experiences booked growth to slow slightly from the first quarter, partly due to headwinds related to the Middle East conflict.
For the full year, Airbnb raised its outlook and said it now expects revenue growth to accelerate to the low-to-mid teens range. The company also said it expects adjusted EBITDA margin for 2026 to be at least 35% as it continues investing in marketing, international expansion, and artificial intelligence initiatives.
Airbnb shares were down 2% at about $137 afterhours.