ABNBNEUTRAL

Gross Margin

78.3%

Higher than 97% of Consumer Cyclical sector peers

Updated 1712h ago

Sector Performance

97th percentile

ABNB

78.3%

Sector Median

36.3%

Sector Avg

30.2%

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Deep Analysis

Airbnb’s gross margin of 78.3% means that for every dollar of revenue, 78.3 cents remain after paying the direct costs of providing its service, such as host payouts and platform expenses.

This is well above the sector median of 32.0%, placing the company in the 94th percentile among Consumer Cyclical peers, indicating it retains a far larger share of revenue than most competitors. The metric has been stable over the past eight quarters, with year-over-year and quarter-over-quarter changes both at +0.0%. A high and stable gross margin suggests the company has durable pricing power and a cost-efficient business model, which reduces earnings risk even if revenue growth slows. This level and trend support the overall NEUTRAL verdict by confirming the company’s strong profitability foundation, but stability may limit upside surprise potential from margin expansion.

Frequently Asked Questions

What does the Gross Margin tell investors about ABNB?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ABNB's Gross Margin compare to its sector?

ABNB's Gross Margin of 78.3% compares to a Consumer Cyclical sector median of 36.3%, placing it in the 97th percentile.

Who are ABNB's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: DKNG (42.3%), BBWI (42.6%), SE (44.3%), YUM (44.7%), RIDE (49.4%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.