Airbnb (NasdaqGS:ABNB) Q3 2025 Earnings Call November 06, 2025 05:00 PM ET Company ParticipantsDouglas Anmuth - Head of US Internet Equity ResearchRon Josey - Managing DirectorJed Kelly - Equity ResearchColin Sebastian - Managing Director covering Internet, E-commerce, Digital Media and MarketplacesLee Horowitz - Co-Head Internet Equity ResearchRichard Clarke - Managing DirectorAngela Yang - Director of Investor RelationsKevin Kopelman - Hotels and Online Travel Equity ResearchEric Sheridan - Partner and Ma ...

Core Viewpoint - The company experienced a decline in revenue and net profit in the first half of 2025, attributed to external environmental factors affecting customer flow and same-store sales performance [1][2]. Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of 2.753 billion yuan, a year-on-year decrease of 10.1%, and net profit attributable to shareholders of 61 million yuan, down 16.05% year-on-year [1]. - The same-store sales for the company's brands, including Tai Er, Song Hotpot, and Jiumaojiu, fell by 19%, 20.1%, and 19.8% respectively [1]. Group 2: Store Operations - The company opened 10 new restaurants in the first half of 2025, while closing 88 underperforming locations, resulting in a total of 729 restaurants as of June 30, 2025 [2]. - The brand distribution includes 566 Tai Er restaurants, 76 Song Hotpot, and 68 Jiumaojiu, with a focus on optimizing store models and concentrating resources on high-quality restaurants [2]. Group 3: Cost Structure and Profitability - The cost of raw materials and consumables accounted for 35.6% of total revenue, while employee costs represented 30.1%, reflecting a slight increase due to reduced revenue [3]. - The restaurant-level profit margin and core operating profit margin were 11.8% and 3.6% respectively, both showing a year-on-year decline of 1.2 percentage points and 1.5 percentage points [3]. Group 4: Future Outlook - The company plans to continue optimizing its store layout and expanding into global markets, particularly in regions with significant Chinese populations [3]. - Revenue projections for 2025, 2026, and 2027 are estimated at 6.289 billion, 6.763 billion, and 7.398 billion yuan, with net profits of 153 million, 240 million, and 294 million yuan respectively [3].