ABNB
Airbnb, Inc.
Consumer Cyclical · Travel Services · United States · Stock
Score Breakdown
Scored for Safe Long-Term Investing profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Strong profitability and financial health factors contributed positively, with high margins and solid returns on assets supporting the score.
- The growth factor received only a mid-range score because revenue expansion was offset by a 5.2% decline in net income, reflecting a mixed growth profile.
- The momentum factor weighed heavily on the composite score, as the pronounced drop in revenue and earnings from the 2025Q3 peak through 2026Q1 signaled significant near-term deceleration.
Why Not Higher
- The momentum factor was significantly penalized by the sharp post-peak deceleration, with operating income falling from $1.625 billion in 2025Q3 to $86 million in 2026Q1, dragging down the composite score.
- Zero scores for both the dividend and theme factors — reflecting no dividend payments and no assigned macro thematic tailwind — removed meaningful potential upside from the total score.
Data Confidence
7 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $11,102,000,000 to FY2025's $12,241,000,000, a gain of 10.3%, while net income declined from FY2024's $2,648,000,000 to FY2025's $2,511,000,000, a drop of 5.2%.
The model rewarded meaningful top-line expansion but penalized the contraction in net income, producing a mid-range score that reflects a mixed growth profile where revenue momentum was not matched by bottom-line improvement.
In FY2025, Airbnb posted a net margin of 20.5%, an operating margin of 20.8%, and a return on assets of 11.3%.
The model rewarded these consistently high margin and return figures, reflecting a business that converts a substantial share of revenue into both operating and net income while generating meaningful returns on its asset base.
Filing evidence currently available does not support a more specific explanation for this factor.
Over the last four quarters, revenue peaked at $4,095,000,000 in 2025Q3 before declining to $2,778,000,000 in 2025Q4 and further to $2,678,000,000 in 2026Q1. Operating income followed the same pattern, surging to $1,625,000,000 in 2025Q3 then falling sharply to $269,000,000 in 2025Q4 and $86,000,000 in 2026Q1, with net income similarly dropping from $1,374,000,000 in 2025Q3 to $160,000,000 in 2026Q1.
The model captured a pronounced deceleration in both revenue and earnings after a strong seasonal peak, with the most recent quarters showing materially weaker results, which weighed heavily on the momentum score.
Airbnb does not currently pay a dividend and has no mapped dividend history, making it a genuine non-payer rather than a case of missing data.
The model assigns a score of zero for this factor because dividend income is absent, which will be a consideration for investors who prioritize income generation.
Airbnb is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment means the security did not receive any thematic tailwind credit under the current methodology; this is a neutral classification rather than a negative signal about the company itself.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Airbnb delivered solid top-line growth of 10.3% in FY2025, reaching $12.24 billion in revenue, while maintaining strong profitability with a net margin of 20.5% and operating margin of 20.8%. However, net income declined 5.2% year-over-year, and recent quarterly data reveals a sharp deceleration after a seasonal peak in 2025Q3, with operating income falling to just $86 million in 2026Q1. The company does not pay a dividend and carries no current thematic tailwind credit, resulting in a composite score of 48.8/100 with a Medium risk rating and a Research Further label.
Plain English
Airbnb is growing its sales nicely and keeps a good chunk of that money as profit, but its earnings have been slipping lately and the most recent quarters look much weaker after a strong summer peak, so the overall picture is mixed enough that it warrants more investigation before drawing conclusions.
Bull Case vs. Bear Case
Bull Case
- Strong profitability profile: Airbnb posted a 20.5% net margin and 20.8% operating margin in FY2025, demonstrating the business converts a meaningful share of revenue into income.
- Consistent top-line expansion: Revenue grew 10.3% year-over-year from $11.10 billion in FY2024 to $12.24 billion in FY2025, reflecting durable demand for the platform.
- Solid return on assets: A return on assets of 11.3% in FY2025 against a total asset base of $22.21 billion indicates efficient use of the company's resources.
Bear Case
- Net income contraction: Despite revenue growth, net income fell 5.2% from $2.65 billion in FY2024 to $2.51 billion in FY2025, signaling that bottom-line improvement has not kept pace with top-line gains.
- Sharp recent earnings deceleration: Operating income collapsed from $1.625 billion in 2025Q3 to just $86 million in 2026Q1, and net income dropped from $1.374 billion to $160 million over the same span, indicating materially weaker near-term results.
- No dividend income: Airbnb is a genuine non-payer with no mapped dividend history, making it unsuitable for investors who prioritize income generation.
What Could Change the Picture
Bullish Triggers
- A sustained recovery in quarterly operating income and net income above seasonal trough levels — moving well beyond the $86 million and $160 million posted in 2026Q1 — would suggest the deceleration is temporary rather than structural.
- Stabilization or improvement in net margin beyond the current 20.5% would indicate the company is successfully managing costs even as revenue scales.
Bearish Triggers
- If quarterly revenue continues to trend below the $2.678 billion recorded in 2026Q1 rather than recovering toward prior peak levels, it would suggest demand momentum is genuinely weakening.
- A further decline in net income on an annual basis beyond the 5.2% drop already recorded would reinforce concerns that profitability is eroding despite top-line growth.
Risk Profile
Medium RiskThe momentum data reveals a pronounced seasonal pattern with steep earnings troughs, as operating income fell to $86 million and net income to $160 million in 2026Q1 following a strong 2025Q3 peak, creating uncertainty about near-term earnings consistency. While the financial health factor scored well, the volatility in quarterly results contributes to the Medium risk rating.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.