Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
Airbnb Inc. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Airbnb Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Profitability Ratios (Summary)
Airbnb Inc., profitability ratios
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The profitability ratios demonstrate a significant improvement over the observed period, followed by a stabilization in later years. Gross profit margin exhibits a consistent upward trend initially, peaking in 2024 before experiencing a slight decline in 2025. Operating and net profit margins show the most dramatic changes, moving from negative values to substantial positive figures, then moderating in the final two years. Return on equity and return on assets follow a similar pattern of rapid improvement followed by stabilization.
- Gross Profit Margin
- The gross profit margin increased steadily from 80.71% in 2021 to 83.08% in 2024, indicating increasing efficiency in managing the cost of goods sold. A minor decrease to 82.96% in 2025 suggests potential pressures on pricing or input costs, but remains at a strong level overall.
- Operating Profit Margin
- The operating profit margin experienced a substantial increase from 7.17% in 2021 to 21.45% in 2022, reflecting improved operational efficiency and cost control. It decreased to 15.31% in 2023, then rose again to 23.00% in 2024 before settling at 20.78% in 2025. This suggests operational performance is strong but subject to some fluctuation.
- Net Profit Margin
- The net profit margin underwent the most significant transformation, moving from a loss of -5.88% in 2021 to a substantial gain of 22.54% in 2022. This trend continued with a peak of 48.32% in 2023, followed by a decrease to 23.85% in 2024 and 20.51% in 2025. The initial improvement indicates successful management of all expenses, including interest and taxes, while the subsequent moderation suggests a leveling off of growth or increased non-operating expenses.
- Return on Equity (ROE)
- ROE mirrored the trend in net profit margin, shifting from -7.37% in 2021 to 34.05% in 2022 and peaking at 58.69% in 2023. It then decreased to 31.48% in 2024 and 30.63% in 2025. This indicates a substantial improvement in the profitability of shareholder equity, followed by a period of stabilization.
- Return on Assets (ROA)
- ROA followed a similar trajectory, increasing from -2.57% in 2021 to 11.80% in 2022 and reaching 23.21% in 2023. It then declined to 12.63% in 2024 and 11.31% in 2025. This demonstrates improved efficiency in utilizing assets to generate profit, with a recent trend towards stabilization.
Overall, the observed period indicates a period of rapid improvement in profitability, followed by a stabilization of performance. While margins and returns remain at healthy levels in the final year, the slight declines from peak values warrant further investigation to understand the underlying drivers and potential future trends.
Return on Sales
Return on Investment
Gross Profit Margin
Airbnb Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The gross profit margin demonstrates a generally positive trend over the observed period, with a slight moderation in the most recent year. Gross profit increased consistently from US$4,836 million in 2021 to US$10,155 million in 2025. Revenue also exhibited consistent growth, rising from US$5,992 million in 2021 to US$12,241 million in 2025.
- Gross Profit Margin Trend
- The gross profit margin began at 80.71% in 2021 and increased steadily through 2023, reaching 82.83%. A further increase was observed in 2024, with the margin reaching 83.08%. However, in 2025, the gross profit margin experienced a slight decrease to 82.96%. This suggests a continued strong ability to control the cost of revenue, although the rate of improvement has slowed and a minor contraction occurred in the latest year.
- Relationship between Gross Profit and Revenue
- The consistent growth in both gross profit and revenue indicates a strong correlation between the two. The increasing gross profit margin suggests that the company is effectively managing its direct costs associated with service delivery as revenue scales. The slight dip in the gross profit margin in 2025, despite continued growth in both metrics, warrants further investigation to determine the underlying cause.
- Overall Assessment
- The company maintains a high gross profit margin throughout the period. The observed trend indicates efficient cost management and a strong pricing strategy. The recent stabilization and slight decline in the margin in 2025 suggest potential emerging cost pressures or shifts in revenue mix that may require attention.
Operating Profit Margin
Airbnb Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Income from operations | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Operating Profit Margin, Sector | ||||||
| Consumer Services | ||||||
| Operating Profit Margin, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Operating profit margin = 100 × Income from operations ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The operating profit margin exhibited significant fluctuation over the five-year period. Initial values demonstrated a substantial increase followed by a moderation, and then a renewed expansion, ultimately settling at a level slightly below the peak.
- Operating Profit Margin - Overall Trend
- The operating profit margin began at 7.17% in 2021. A marked improvement was observed in 2022, with the margin increasing to 21.45%. This represented a considerable expansion in profitability. However, 2023 saw a decline to 15.31%, indicating a partial reversal of the prior year’s gains. The margin then rebounded strongly in 2024, reaching 23.00%, its highest point in the observed period. The most recent year, 2025, showed a slight decrease to 20.78%, suggesting a potential stabilization after the rapid growth.
- Relationship to Revenue
- The increase in operating profit margin in 2022 coincided with a substantial rise in revenue. While revenue continued to grow in subsequent years, the operating profit margin did not maintain the same rate of increase, indicating that revenue growth alone does not fully explain the margin’s behavior. The margin’s performance in 2024 and 2025 suggests a growing ability to convert revenue into operating profit, despite the continued revenue expansion.
- Income from Operations
- Income from operations increased significantly from 2021 to 2022, mirroring the rise in the operating profit margin. While income from operations decreased in 2023, it recovered strongly in 2024 and remained relatively stable in 2025. This suggests that the company’s core business operations are becoming increasingly profitable, although growth in operating income has slowed in the most recent period.
In summary, the operating profit margin demonstrates a pattern of initial strong growth, a temporary setback, and subsequent recovery, culminating in a high, but slightly moderated, level. This suggests improving operational efficiency and profitability, though recent performance indicates a potential plateauing of margin expansion.
Net Profit Margin
Airbnb Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Net Profit Margin, Sector | ||||||
| Consumer Services | ||||||
| Net Profit Margin, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net profit margin = 100 × Net income (loss) ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The net profit margin exhibited significant fluctuations over the five-year period. Initially negative, it demonstrated substantial improvement before stabilizing at a lower, yet still positive, level.
- Net Profit Margin - Overall Trend
- The net profit margin began at -5.88% in 2021, indicating a net loss relative to revenue. A dramatic increase was observed in 2022, reaching 22.54%, followed by a further surge to 48.32% in 2023. Subsequent years saw a decline, with the margin decreasing to 23.85% in 2024 and 20.51% in 2025. Despite the decrease from the 2023 peak, the margin remained positive throughout the latter part of the analyzed period.
- Net Profit Margin - 2021-2022
- The shift from a negative net profit margin in 2021 to a positive margin of 22.54% in 2022 represents a considerable turnaround. This suggests a substantial improvement in profitability, potentially driven by increased revenue and/or effective cost management. The magnitude of the change indicates a significant operational improvement or a favorable shift in market conditions.
- Net Profit Margin - 2023 Peak
- The peak net profit margin of 48.32% in 2023 is the highest value recorded within the observed timeframe. This suggests a period of exceptional profitability, potentially due to strong revenue growth combined with efficient cost control. Further investigation would be needed to determine the specific factors contributing to this peak performance.
- Net Profit Margin - 2024-2025 Decline
- The decline in net profit margin from 2023 to 2025, while remaining positive, warrants attention. This suggests that while the company remained profitable, its ability to convert revenue into profit decreased. Potential causes could include increased operating expenses, pricing pressures, or a shift in revenue mix towards lower-margin products or services. The rate of decline slowed between 2024 and 2025, indicating a possible stabilization of profitability.
In summary, the net profit margin demonstrates a strong recovery and subsequent stabilization. While the peak margin in 2023 was exceptional, the overall trend indicates a move towards sustained profitability, albeit with some moderation in recent periods.
Return on Equity (ROE)
Airbnb Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | ||||||
| Stockholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| ROE, Sector | ||||||
| Consumer Services | ||||||
| ROE, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited significant fluctuations over the observed period. Initially negative in 2021, it demonstrated substantial growth through 2023, followed by a moderation in subsequent years. This analysis details the observed trends in ROE alongside its constituent components, net income and stockholders’ equity.
- Net Income
- Net income transitioned from a loss of US$352 million in 2021 to a profit of US$1,893 million in 2022, representing a considerable improvement. This positive trend continued into 2023, with net income reaching US$4,792 million. However, net income decreased to US$2,648 million in 2024 and further to US$2,511 million in 2025, indicating a leveling off and slight decline from the peak in 2023.
- Stockholders’ Equity
- Stockholders’ equity generally increased throughout the period. From US$4,776 million in 2021, it rose to US$5,560 million in 2022 and continued its upward trajectory to US$8,165 million in 2023. The rate of growth slowed in 2024, with equity reaching US$8,412 million, and experienced a slight decrease to US$8,199 million in 2025.
- Return on Equity (ROE)
- The ROE was -7.37% in 2021, reflecting the net loss for that year. A dramatic increase was observed in 2022, with ROE reaching 34.05%. This upward momentum continued into 2023, resulting in a peak ROE of 58.69%. The ROE then decreased to 31.48% in 2024 and 30.63% in 2025. While remaining positive and substantial, the ROE in 2024 and 2025 indicates a return towards more moderate levels following the exceptionally high value in 2023. The decline in ROE from 2023 to 2025 is attributable to a combination of decreasing net income and a slower growth rate in stockholders’ equity.
In summary, the period began with a negative ROE, followed by a period of strong growth driven by significant improvements in net income and increasing equity. The most recent years show a stabilization of ROE, suggesting a maturing of profitability relative to equity investment.
Return on Assets (ROA)
Airbnb Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| ROA, Sector | ||||||
| Consumer Services | ||||||
| ROA, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited significant fluctuations over the observed period. Initially negative, it demonstrated substantial improvement before stabilizing. A detailed examination of the ROA alongside its constituent components reveals key performance trends.
- Overall Trend
- The ROA began at -2.57% in 2021, indicating a loss relative to the company’s assets. A dramatic increase was then observed, reaching a peak of 23.21% in 2023. Subsequently, the ROA experienced a decline to 12.63% in 2024 and further decreased to 11.31% in 2025. Despite the recent decline, the ROA remained positive and at a relatively high level compared to its initial value.
- Net Income Influence
- The substantial improvement in ROA from 2021 to 2023 correlates directly with the shift from a net loss of US$352 million in 2021 to a net income of US$4,792 million in 2023. This indicates that the primary driver of the ROA increase was improved profitability. The subsequent decrease in ROA from 2023 to 2025 coincides with a reduction in net income, from US$4,792 million to US$2,511 million.
- Asset Base Impact
- Total assets increased consistently throughout the period, rising from US$13,708 million in 2021 to US$22,208 million in 2025. While asset growth generally contributes to higher net income potential, the ROA decline in 2024 and 2025 suggests that the increase in assets outpaced the growth in net income during those years. This implies diminishing returns on the expanding asset base.
In summary, the ROA trajectory reflects a significant turnaround in financial performance, followed by a period of stabilization with a slight downward trend. The primary driver of these changes appears to be net income, with asset growth playing a secondary, and potentially moderating, role in recent periods.