Airbnb, Inc. (ABNB)

Business

From the FY2025 Form 10-K, accession 0001559720-26-000004, and the Q2 2026 Form 10-Q, accession 0001559720-26-000027.

Airbnb operates a global two-sided marketplace that connects guests with stays, experiences and services in over 220 countries and regions. Hosts list homes, experiences and services on the platform; guests discover and book them through Airbnb's website and mobile app; and Airbnb earns its revenue from service fees charged on those bookings. For stays, service fees are charged as a percentage of the booking value excluding taxes and vary with booking value, trip duration, geography and host type; for experiences and services, Airbnb earns only a host fee. Substantially all revenue comes from stays. Revenue is recognized when the guest checks in, not when the booking is made, so bookings are a leading indicator of revenue rather than a coincident one. Airbnb is the merchant of record and offers integrated payments in approximately 50 currencies, holding guest funds between booking and check-in and remitting to the host generally on the business day after scheduled check-in.

The company reports as a single operating and reportable segment, with the chief executive officer as chief operating decision maker assessing performance on consolidated net income. Revenue is disclosed geographically by the location of the host's listing: for 2025, $4,814 million from the United States and $7,427 million international, of $12,241 million total, roughly 61% of revenue generated from listings outside the United States, with no individual international country accounting for 10% or more of revenue in 2023, 2024 or 2025. No single city represented more than 2% of revenue before incentives and refunds, or more than 1% of active listings, in 2024 or 2025.

The community reached over 5.5 million hosts as of the Q2 2026 report, having welcomed over 2.5 billion cumulative guest arrivals since the company was founded in 2007. Beyond stays, Airbnb launched services and redesigned experiences in May 2025, and its stated strategy has three legs: making the core service better, bringing Airbnb to more parts of the world through a localized global-markets approach, and expanding what it offers beyond travel accommodations along a multi-year product roadmap.

Host and guest platforms. For hosts, Airbnb provides listing setup, scheduling, merchandising, integrated payments, community support, host protections, pricing tools and review feedback, plus a Co-Host Network that connects hosts with experienced co-hosts who manage listings on their behalf. For guests, 2025 brought a redesigned app with unified search and booking across all offerings, AI-powered personalization and integrated social features, alongside flexible payment options, Pay Less Upfront and Reserve Now, Pay Later ("RNPL").

Trust and safety. The system of trust includes reviews, account protection, risk scoring, secure payments, a nondiscrimination policy, watchlist and background checks in certain jurisdictions, fraud and scam prevention, insurance and similar protections, booking restrictions, an urgent safety line, a 24/7 neighborhood support line, anti-party technology and a guest refund policy. AirCover for Hosts includes property damage protection of up to $3 million per stay, liability coverage of up to $1 million per occurrence, deep cleaning protection and pet damage protection; AirCover for guests covers host cancellations, check-in failures and inaccurate listings. Airbnb uses a combination of third-party insurance and self-insurance including a wholly-owned captive insurance subsidiary.

Marketing. The approach combines brand marketing, communications, performance marketing and strategic partnerships, with unified brand campaigns across homes, experiences and services and sponsorships with cultural, sports and entertainment organizations. Management states the strength of the brand has allowed it to maintain lower reliance on paid marketing channels than it otherwise would need.

People. Approximately 8,200 employees as of December 31, 2025, supported by a global network of approximately 13,000 third-party workers handling the majority of community support contacts. A "Live and Work Anywhere" policy adopted in 2022 permits the vast majority of employees to work remotely.

Competition. Airbnb names online travel agencies (Booking Holdings including Booking.com, Expedia Group including Expedia and VRBO, Trip.com Group and regional OTAs); internet search engines including Google and AI-powered search with travel products; hotel chains (Marriott, Hilton, Accor, Wyndham) plus boutique and independent hotels; property management companies; experience platforms (Viator, GetYourGuide, Klook); and the highly fragmented guest services industry.

Seasonality. Nights and Seats Booked are highest in the first, second and third quarters and lowest in the fourth, with peak travel in the third quarter across North America and EMEA. Because revenue is recognized at check-in, revenue and Adjusted EBITDA have historically been highest in the third quarter and lowest in the first.

Intellectual property. A substantial patent portfolio of organically developed and acquired assets across the United States and multiple foreign jurisdictions, plus trademarks for AIRBNB, the Bélo logo, Rausch (the primary corporate color), sub-brands including AirCover, and brands from acquired businesses including HotelTonight.

Regulation. Airbnb is subject to short-term rental, home-sharing and rental laws at local, city, state and national levels worldwide; some cities have imposed onerous restrictions, notably New York City's 2023 regulations that produced a de facto ban on short-term rental activity. Beyond rental rules, the business is subject to laws on e-commerce, taxation, privacy and data security, insurance, pricing, content, advertising, discrimination, consumer protection, employment, AI, competition and unfair commercial practices. The payments platform is regulated for cross-border and domestic money transmission, stored value, foreign exchange, payment services, sanctions, anti-corruption and anti-money laundering.

Risk factors

From the FY2025 Form 10-K, accession 0001559720-26-000004. The Q2 2026 Form 10-Q reports no material changes to these risk factors from the 2025 Annual Report and the Q1 2026 Form 10-Q.

Growth, supply and demand. Revenue growth depends on the growth of both supply and demand for listings and on adoption of new offerings. Softening in either, from macroeconomic or political conditions, shifts in host and guest preferences, or public health crises, would reduce revenue. Hosts control listing quality, pricing and hospitality, which is largely outside Airbnb's direct control, and hosts may cross-list or list exclusively with competitors.

New offerings carry unproven-business risk. Services and redesigned experiences involve businesses in which Airbnb has limited or no prior development or operating experience, and increase expenses and organizational complexity.

International operations. With over 220 countries and regions served and 61% of 2025 revenue from listings outside the United States, managing a global organization exposes the company to operational, tax, regulatory and compliance risk, and international expansion efforts may not succeed.

Brand, traffic and marketing efficiency. Airbnb relies on brand strength and platform traffic rather than paid acquisition. Rising keyword costs, search-algorithm changes, and a shift of travel search away from search engines toward AI apps and other emerging channels could reduce visibility and raise customer acquisition costs; Airbnb states it may not be able to optimize for searches on these emerging channels. Major platforms favoring their own travel services could further disintermediate the platform.

Trust and safety incidents. Airbnb cannot control the actions of users and third parties during stays. Incidents involving alleged fatalities, injuries, sexual violence, fraud, privacy invasion, property damage and discrimination have occurred and may recur. Airbnb does not verify all listings for safety or compliance, including fire code compliance, carbon monoxide detectors, hidden cameras or pool safety, relying instead on user-reported issues, and does not require users to re-verify identity after initial verification. Background checks are conducted in the United States and India for certain users.

Metrics measurement. Nights and Seats Booked and GBV are adjusted for cancellations and alterations occurring within the reporting period, but cancellations can occur beyond it and affect future metrics. Individuals may hold more than one guest or host account and be counted more than once. Real or perceived inaccuracy could harm reputation and the stock price.

Travel industry cyclicality. Performance depends on the travel and hospitality industries, which are exposed to extreme weather, natural disasters, pandemics, economic downturns, political unrest, wars and travel-policy changes, and to macroeconomic conditions including inflation, tariffs and currency fluctuations affecting discretionary spending on leisure travel.

Competition. Many competitors have greater brand recognition, larger marketing budgets and more resources; some property managers and hosts encourage direct bookings that bypass the platform; competitors with established consumer relationships may build "super-apps" integrating multiple services.

Customer funds. At any time Airbnb holds a substantial amount of guest funds on behalf of hosts and guests. Certain jurisdictions require safeguarding in bankruptcy-remote accounts or holding eligible liquid assets equal to at least 100% of the aggregate held. Failure of controls could produce reputational harm and significant regulatory penalties.

Insurance adequacy. Spending on insurance has increased as the business has grown, losses from covered claims have increased and premiums have risen; the limited availability of insurers for Airbnb's risks has made appropriate limits and coverage harder to obtain at reasonable cost. The Host Damage Protection program is a commercial guaranty agreement reimbursing up to $3 million for certain guest-caused losses.

Payment providers and counterparties. Airbnb depends on payment card networks, banks, processors and gateways, some of which are sole providers of their service, and pays interchange and other fees that may rise. It also holds significant cash and investments with banks and financial institutions, and default or failure of a counterparty could force Airbnb to pay hosts or refund guests out of its own funds.

Indebtedness. In March 2026 Airbnb issued $2.5 billion aggregate principal of senior unsecured notes; the 2022 Credit Facility provides $1.0 billion of commitments with a $200 million letter-of-credit sub-limit and contains a leverage ratio and fixed charge coverage ratio covenant along with restrictions on subsidiary indebtedness, liens, sale/leasebacks, fundamental changes and negative pledges.

Acquisitions. Airbnb has acquired multiple businesses and regularly evaluates more, with attendant integration, retention, liability-assumption and goodwill-impairment risk; it also makes minority investments in private companies, some of which have been written down to estimated fair value.

Tax, the most specific exposure disclosed. Airbnb is under IRS examination for the 2013, 2016, 2017 and 2018 tax years. The principal issue is the valuation of international intellectual property sold to a subsidiary in 2013. A December 2020 Notice of Proposed Adjustment proposed an increase to U.S. taxable income that could result in additional income tax expense and cash tax liability of $1.3 billion plus penalties and interest, exceeding the reserve recorded in the financial statements by more than $1.0 billion. After an unsuccessful IRS Appeals process, Airbnb received a Statutory Notice of Deficiency in May 2024 claiming $1.3 billion in tax plus penalties and interest, and petitioned the U.S. Tax Court in July 2024. Separately, Airbnb Ireland settled Italian audit periods without admitting liability: 2017–2021 for €576 million ($621 million) in December 2023; 2022 for €139 million ($150 million) in December 2024; and 2023 for €179 million ($186 million) in January 2025. Withholding on host payments for Italian listings began in 2024. Other exposures include the OECD Pillar Two 15% global minimum tax, the U.S. corporate alternative minimum tax and stock-repurchase excise tax under the Inflation Reduction Act, and evolving indirect taxes (lodging, VAT, digital services) applied to the platform and its users.

Regulatory developments. Hotels and affiliated groups lobby for stricter regulation; homeowners and neighborhood associations may adopt restrictions. The EU Short-Term Rental Regulation enters into force in May 2026 and will require enhanced transparency of host information plus reporting and data sharing with local authorities. New York City has effectively banned short-term rentals. In 2025 the Spanish Ministry of Consumer Affairs proposed a fine of approximately €65 million ($76 million) over alleged non-compliance with short-term rental listing regulations.

Payments and financial-services regulation. Airbnb Payments, Inc. is regulated as a Money Services Business by FinCEN and requires state money-transmitter licenses; Airbnb Payments Luxembourg SA is a licensed payments institution operating across the EEA; Airbnb Payments UK Limited is a licensed electronic money institution; Airbnb Payments Canada Inc. is a registered payment service provider. Airbnb UK Services Limited operates as an "appointed representative" using a third-party principal firm's license to distribute guest travel insurance and host and experiences liability insurance, and that principal firm can cancel the agreement with notice at any time. Non-compliance with EU anti-money-laundering rules could produce fines of up to 10% of the Luxembourg entity's annual revenue, and the EU's MLD6 package will force material divergence between UK and EU procedures.

Artificial intelligence. AI and machine learning are used for fraud detection, search, customization and community support. Risks include incorrect design or implementation, reliance on incomplete or biased data or data to which Airbnb lacks sufficient rights, hallucinatory or factually incorrect output that hosts and guests may rely on to their detriment, dependence on third-party models and infrastructure whose quality, availability and pricing Airbnb does not control, competitive risk from faster or cheaper AI deployment by rivals, and a rapidly evolving regulatory and intellectual property framework including scrutiny from the Irish Data Protection Commission as lead EU regulator.

Platform liability and content. Airbnb relies on the DMCA and Communications Decency Act in the United States and the E-Commerce Directive and Digital Services Act in the EU; to the extent Airbnb is deemed to create or facilitate content, those defenses may be less available. The UK Digital Markets, Competition and Consumers Act 2024 and the EU Collective Redress Directive increase enforcement and class-action risk. Airbnb states it does not meet the thresholds to be designated a gatekeeper platform under the Digital Markets Act, although this could change.

Fraud and chargebacks. For the year ended December 31, 2025, total chargeback expense was $67 million.

Third-party infrastructure. Airbnb relies primarily on Amazon Web Services to host and deliver the platform, on Google Maps and other services for maps and location data core to functionality, and on a limited number of third-party providers for the vast majority of community support operations. Its systems do not provide complete redundancy of hosting, data storage, processing or payment processing.

Share structure and control. Class A common stock carries one vote per share, Class B 20 votes, Class C no votes and Class H no votes. The founders collectively hold a majority of voting power and are party to a Voting Agreement and a Nominating Agreement. Airbnb is authorized to issue 2,000,000,000 shares of non-voting Class C common stock, future issuance of which would further concentrate voting control. The multi-series structure could make the company ineligible for inclusion in certain indices.

Management's discussion, fiscal year 2025

From the FY2025 Form 10-K, accession 0001559720-26-000004. The 10-K discusses 2025 versus 2024 only; the 2024-versus-2023 comparison is in the prior year's annual report.

Headline results. Revenue increased $1.1 billion, or 10%, to $12,241 million, driven by more check-ins relating to Nights and Seats Booked and a modest increase in Average Daily Rate; on a constant-currency basis revenue also increased 10%. Net income decreased 5% to $2,511 million from $2,648 million, as higher compensation expense, higher marketing spend and lower interest income more than offset the revenue gain. Income from operations was essentially flat at $2,544 million versus $2,553 million, with total costs and expenses rising 13% to $9,697 million, 79% of revenue, up from 77%.

Key business metrics. Nights and Seats Booked rose 8% to 533 million from 492 million, with growth across all regions. Gross Booking Value rose 12% to $91,273 million from $81,784 million, driven by Nights and Seats Booked and a modest ADR increase, again with growth in all regions. Total company average nights per booking, excluding experiences and services, was 3.7 in 2025 versus 3.8 in 2024, 4.1 in North America, 3.8 in EMEA, 3.6 in Latin America and 3.3 in Asia Pacific.

Non-GAAP measures. Adjusted EBITDA increased to $4,297 million from $4,041 million, with Adjusted EBITDA Margin of 35% versus 36%. Net cash provided by operating activities was $4,646 million versus $4,518 million; Free Cash Flow was $4,613 million versus $4,484 million, a 38% FCF margin versus 40%.

Expense lines.

• Cost of revenue rose $208 million, or 11%, to $2,086 million: a $188 million increase in merchant fees on higher pay-in volumes, $28 million more amortization of capitalized internal-use software and $27 million more data hosting, partly offset by $29 million lower chargebacks and $12 million lower other service costs.
• Operations and support rose $45 million, or 4%, to $1,327 million: $33 million more payroll, $14 million higher insurance costs from higher premiums on higher nights booked, $11 million more allocated facilities and IT and $10 million more expensed software and equipment, partly offset by an $18 million decline in customer relations costs on lower refunds and credits.
• Product development rose $298 million, or 14%, to $2,354 million, almost entirely a $293 million payroll increase driven by headcount.
• Sales and marketing rose 20% to $2,588 million, moving from 19% to 21% of revenue.
• General and administrative rose $157 million, or 13%, to $1,342 million: $74 million more from non-income taxes and related fees and penalties, $51 million more payroll on headcount and $37 million more professional service fees.
• Interest income fell $113 million, or 14%, to $705 million on lower rates, partly offset by higher balances.
• Other expense, net worsened by $72 million, primarily from $64 million of net foreign exchange losses, partly offset by lower impairment charges on privately-held company investments.
• Provision for income taxes fell $57 million, or 8%, to $626 million: a larger foreign-derived intangible income benefit and a $105 million reduction in uncertain tax positions relating to prior years, partly offset by recognition of a $213 million valuation allowance against the corporate alternative minimum tax credit deferred tax asset. Following enactment of the One Big Beautiful Bill Act on July 4, 2025, which allows immediate expensing of domestic U.S. research and development expense and changes taxation of foreign-derived intangible income, management concluded it is no longer more-likely-than-not that historic CAMT credits can be utilized and that no prudent and feasible tax-planning strategies are currently available to use them.

Segment expense view. On the single-segment disclosure for 2025: merchant fees and chargebacks $1,666 million, stock-based compensation $1,592 million, salaries and benefits $2,009 million, marketing $1,704 million, professional and third-party services $1,218 million, non-income taxes $305 million and other items $1,203 million.

Liquidity. As of December 31, 2025, cash, cash equivalents and short-term investments totaled $11.0 billion, $6.6 billion of cash and cash equivalents, including $2.3 billion held by foreign subsidiaries, and $4.5 billion of short-term investments. Separately, $7.0 billion was held for bookings in advance of guest check-ins, recorded as funds receivable and amounts held on behalf of customers with an offsetting liability. Outstanding at year-end was $2.0 billion aggregate principal of 0% convertible senior notes due March 15, 2026. No amounts were drawn under the 2022 Credit Facility; outstanding letters of credit totaled $20 million. Minimum lease payments totaled $272 million, of which $86 million was due in 2026, and a commercial agreement with a data hosting services provider commits Airbnb to spend or incur at least $1.7 billion for vendor services through 2031.

Capital returns. In 2025 Airbnb repurchased 29.7 million shares of Class A common stock for $3.8 billion under two programs, completing the February 2024 $6.0 billion authorization and leaving $5.6 billion available under the August 2025 $6.0 billion authorization at year-end.

Cash flows. Operating cash flow of $4.6 billion reflected net income of $2.5 billion and $122 million provided by unearned fees on booking growth, partly offset by a $346 million movement in prepaids and other assets, with $1.6 billion of stock-based compensation as the principal non-cash add-back. Investing used $748 million, primarily short-term investment purchases net of sales and maturities. Financing used $3.8 billion, primarily $3.8 billion of share repurchases and $561 million of taxes paid on net share settlement of equity awards, partly offset by a $401 million increase in funds payable and amounts payable to customers. Exchange rate changes increased cash, cash equivalents and restricted cash by $655 million, primarily from a weaker U.S. dollar against the Euro and British Pound.

Market risk. The most significant foreign currencies in 2025 were the Euro, British pound, Canadian dollar, Australian dollar, Brazilian real and Mexican peso. An adverse 10% move against net monetary assets and liabilities denominated in non-local currencies would have produced a loss of approximately $38 million at December 31, 2025; a hypothetical 100 basis point rise in interest rates would have decreased the investment portfolio by $30 million.

Current quarter, Q2 and first half 2026

From the Q2 2026 Form 10-Q, accession 0001559720-26-000027, and the Q2 2026 Shareholder Letter furnished as Exhibit 99.1 to the Form 8-K, accession 0001193125-26-337928.

Q2 2026 results. Revenue grew 17% to $3,608 million from $3,096 million, 13% on a constant-currency basis, driven by more check-ins relating to Nights and Seats Booked and an increase in ADR. Net income grew $174 million to $816 million from $642 million, a 23% net income margin versus 21%, as 17% revenue growth outpaced a 15% increase in operating expenses and the tax provision fell $56 million. Income from operations was $758 million versus $612 million. Adjusted EBITDA increased 21% to $1,261 million from $1,043 million, a 35% margin versus 34%. Net cash provided by operating activities and Free Cash Flow were both $1.3 billion ($1,270 million and $1,253 million respectively), versus $975 million and $962 million a year earlier, a 35% FCF margin versus 31%. Trailing-twelve-month Free Cash Flow was $4,827 million, a 37% TTM margin.

Six months. Revenue increased $918 million, or 17%, to $6,286 million, and 14% on a constant-currency basis. Net income was $976 million versus $796 million. Adjusted EBITDA was $1,780 million versus $1,460 million. Operating cash flow was $2,978 million versus $2,764 million and Free Cash Flow $2,957 million versus $2,743 million.

Key business metrics. Nights and Seats Booked grew 10% in the quarter to 148.3 million and 10% in the half to 304.5 million, with growth across all regions led by Latin America and Asia Pacific and more moderate growth in North America and EMEA. GBV grew 16% in the quarter to $27,247 million and 18% in the half to $56,434 million, driven by Nights and Seats Booked and ADR; on an ex-FX basis Q2 GBV grew 15%, two percentage points faster than Q1 2026. ADR was $184 in Q2 2026, up 5% year over year and 4% ex-FX. The implied take rate (revenue divided by GBV) of 13.2% was in line with Q2 2025.

Management attributes the acceleration in part to product work, improvements to search and merchandising, pricing and tools, and flexible payment options, and to its app strategy, with nights booked on the app up 23% year over year and accounting for 64% of total nights booked, up from 59%. Year-over-year growth in first-time bookers accelerated to 11%, described as the highest in four years. Bedroom Nights Booked (nights multiplied by bedroom count) grew over 12%, faster than the 10% growth in Nights and Seats Booked, and exceeded 1 billion over the trailing twelve months.

By region (Q2 2026 versus Q2 2025). North America: high-single-digit growth in Nights and Seats Booked, described as the highest in almost three years, with ADR up 7% on price appreciation and mix; short-term stays and entire homes, particularly four-or-more-bedroom listings, continued to outpace long-term stays of 28 days or more and private rooms. EMEA: high-single-digit growth accelerating from Q1 2026, with a steady recovery of demand following headwinds related to the conflict in the Middle East, and ADR up 7% (5% ex-FX). Latin America: approximately 20% growth, with ADR up 9% (2% ex-FX) and Brazil origin net nights booked accelerating to over 30% growth and first-time bookers up 40%. Asia Pacific: high-teens growth, with ADR up 1%, Japan origin net nights booked in the high teens and India accelerating to 60% with first-time bookers more than doubling.

Product and platform. The 2026 Summer Release expanded Airbnb Services to grocery delivery, car rentals, airport pickups and luggage storage, and added resort passes giving guests day access to hotel amenities. Airbnb Experiences supply grew nearly 80% year over year in Q2 2026. Thousands of boutique and independent hotels were added across more than 20 destinations including New York, Paris, London, Madrid, Rome and Singapore; hotels remain a single-digit percentage of nights booked but hotel nights booked grew roughly three times as fast as the homes business. In customer support, the AI assistant is available in more than 50 languages and nearly 45% of issues beginning with it are resolved without a human agent; customer support cost per booking declined approximately 16% year over year. Reserve Now, Pay Later was extended to more listings in more countries, and interest-free installments launched for eligible guests in Mexico and Brazil. Airbnb served as an official Tournament Supporter of the FIFA World Cup 2026, with more than 150,000 homes across host cities listed for the first time.

Expense detail (Q2 2026 versus Q2 2025). Cost of revenue rose $89 million, or 16%, to $633 million on $68 million more merchant fees from higher net pay-in volume, $13 million more chargebacks from GBV growth and a slightly higher chargeback rate, and $12 million more server costs, partly offset by lower amortization as certain capitalized internal-use software projects became fully amortized. Operations and support rose $29 million, or 9%, to $361 million, with $27 million more payroll, $10 million more customer relations costs from higher make-good payouts and case reserves and $7 million higher host liability insurance premiums, partly offset by a $17 million decrease in third-party service provider costs on lower agent contact volume from increased use of AI in community support. Product development rose $62 million, or 10%, to $672 million, entirely payroll on higher average headcount. Sales and marketing rose $184 million, or 27%, to $875 million, $132 million more marketing spend on paid growth marketing in emerging markets and partnerships and $48 million more payroll. General and administrative was roughly flat at $309 million, up $2 million, as a $32 million payroll increase was largely offset by a $28 million decrease in non-income taxes. Stock-based compensation was $487 million in the quarter and $897 million in the half.

Below the operating line, interest income fell $7 million, or 4%, to $183 million on lower rates. Interest expense rose $31 million to $37 million, primarily interest on the senior notes issued in March 2026. The provision for income taxes fell $56 million, or 41%, to $81 million, primarily a $77 million benefit related to recently published guidance impacting prior year taxes, partly offset by $9 million more current and deferred tax in line with profitability growth. For the six months, other income (expense), net swung $104 million to income of $54 million, primarily a $71 million realized gain on an equity investment and a $29 million favorable impact from lower impairment losses.

Debt refinancing. On March 16, 2026, Airbnb issued $2.5 billion aggregate principal amount of senior unsecured notes, $850 million of 4.40% notes due March 2029, $850 million of 4.65% notes due March 2031 and $800 million of 5.25% notes due March 2036, incurring approximately $22 million of debt discount and issuance costs. It used $2.0 billion of the net proceeds to fully repay the 0% convertible senior notes due 2026 at maturity, retaining approximately $500 million for general corporate purposes. Interest is payable semi-annually on March 16 and September 16. Total long-term debt, net was $2,476 million at June 30, 2026. Airbnb entered interest rate swaps with an aggregate notional of approximately $1.7 billion converting the 2031 and 2036 notes to floating rates based on SOFR; a hypothetical 100 basis point move would change annualized interest expense by an estimated $17 million. Airbnb was in compliance with all covenants under both the senior notes indenture and the 2022 Credit Facility at June 30, 2026.

Liquidity and capital returns. As of June 30, 2026, cash, cash equivalents and short-term investments totaled $12.1 billion, $6,821 million of cash and cash equivalents, including $3.3 billion held by foreign subsidiaries, and $5,248 million of short-term investments. Separately, $12,224 million was held for bookings in advance of check-ins, with unearned fees of $2,831 million, described as relatively stable versus June 30, 2025; management states that absent the impact of Reserve Now, Pay Later, unearned fees would have grown year over year. No amounts were drawn under the 2022 Credit Facility and letters of credit totaled $20 million. Airbnb repurchased 7.9 million shares for $1.1 billion in the quarter and 16.0 million shares for $2.1 billion in the half, leaving $3.4 billion available under the August 2025 authorization. Management states that since share repurchases began in Q3 2022, fully diluted share count has declined approximately 10%, on repurchases and cash used for employee tax obligations totaling over $16 billion.

Cash flow mechanics. Six-month operating cash flow of $2,978 million reflected net income of $976 million, $819 million from net working capital items and $897 million of stock-based compensation. Management notes that operating cash flow only slightly improved over the $2.8 billion generated a year earlier because unearned fees grew more slowly than GBV, principally due to increased adoption of flexible payment options: under RNPL no payment is taken at booking, so unearned fees are not recorded and operating cash is not generated until payment is received closer to check-in. This also changes the historical seasonal relationship in which FCF is highest in the first quarter and lowest in the fourth. Investing used $810 million and financing provided $3,541 million, the latter driven by a $5.4 billion increase in funds payable and amounts payable to customers on GBV growth plus $2.5 billion of net senior note proceeds, partly offset by $2.1 billion of share repurchases, $2.0 billion of convertible note repayment and $305 million of taxes on equity awards. Exchange rate changes reduced cash, cash equivalents and restricted cash by $146 million on a stronger U.S. dollar against the Euro and British Pound.

Legal and tax developments in the period. In May 2026, pursuant to a court order in the Spanish Ministry of Consumer Affairs proceedings, Airbnb entered into an agreement to obtain a surety bond of approximately €70 million ($80 million) to suspend enforcement of the proposed fine (reduced from approximately €110 million / $129 million to approximately €65 million / $76 million in September 2025) and cover related interest pending resolution; the bond has no fixed expiration date. Airbnb has disputed the fine and states any potential loss is neither probable nor estimable. Lodging tax obligations collected and not yet remitted rose to $609 million at June 30, 2026 from $387 million at December 31, 2025, across approximately 37,000 jurisdictions; accrued estimated lodging tax liabilities where Airbnb may be jointly liable with hosts were $127 million versus $114 million, with a reasonably possible loss in excess of amounts accrued estimated at $29 million to $39 million. Accrued other non-income tax obligations were $219 million versus $199 million, with reasonably possible loss in excess of accruals estimated at $240 million to $260 million. The IRS dispute over the 2013 valuation of international intellectual property, $1.3 billion in claimed tax plus penalties and interest, exceeding reserves by more than $1.0 billion, remains before the U.S. Tax Court.

Guidance. For Q3 2026, Airbnb expects revenue of $4.69 billion to $4.77 billion, year-over-year growth of 15% to 17% inclusive of an approximate three percentage point FX tailwind after its hedging program, with the implied take rate relatively in line year over year. It expects GBV growth in the mid teens, driven by low-double-digit growth in Nights and Seats Booked and a moderate ADR increase from mix shift and price appreciation, and expects Adjusted EBITDA to increase year over year with Adjusted EBITDA Margin down slightly versus Q3 2025 on the timing of investments. For full-year 2026 the company raised its outlook, now expecting revenue growth to improve to at least mid teens and a full-year Adjusted EBITDA Margin of at least 35.5%. It expects a full-year 2026 effective tax rate in the high teens.

Subsequent events

In the Q2 2026 Shareholder Letter furnished as Exhibit 99.1 to the Form 8-K filed August 6, 2026 (accession 0001193125-26-337928), Airbnb states that in July 2026 it announced plans to migrate most of its remaining hosts to a single 15.5% service fee, with migration expected to be completed during 2026. This continues a simplification begun in Q4 2025, when Airbnb migrated most property management software hosts from a split fee structure, a 3% host fee plus a separate guest service fee, to the single 15.5% fee. Hosts are able to adjust prices to maintain the same net earnings, and guests continue to see the full price upfront.

Neither the Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 (accession 0001559720-26-000027) nor the FY2025 Form 10-K (accession 0001559720-26-000004) contains a subsequent events note, and no acquisitions, divestitures, financings, borrowings or litigation outcomes occurring after June 30, 2026 are disclosed in those filings.

Filings that contain financial statements

The following list covers Form 8-K filings from May 2024 through August 2026. Each furnishes an Exhibit 99.1 shareholder letter containing condensed consolidated statements of operations, balance sheets, and cash flows (interim, unaudited, except FY2025 which reconciles to audited full-year results):

• Accession 0001193125-26-337928 (filed August 6, 2026), quarter ended June 30, 2026 (Q2 2026)
• Accession 0001193125-26-211816 (filed May 7, 2026), quarter ended March 31, 2026 (Q1 2026)
• Accession 0001193125-26-048670 (filed February 12, 2026), quarter and full year ended December 31, 2025 (Q4/FY 2025)
• Accession 0001193125-25-269432 (filed November 6, 2025), quarter ended September 30, 2025 (Q3 2025)
• Accession 0001193125-25-174438 (filed August 6, 2025), quarter ended June 30, 2025 (Q2 2025)
• Accession 0001193125-25-109934 (filed May 1, 2025), quarter ended March 31, 2025 (Q1 2025)
• Accession 0001193125-25-026054 (filed February 13, 2025), quarter and full year ended December 31, 2024 (Q4/FY 2024)
• Accession 0001193125-24-253103 (filed November 7, 2024), quarter ended September 30, 2024 (Q3 2024)
• Accession 0001193125-24-194849 (filed August 6, 2024), quarter ended June 30, 2024 (Q2 2024)
• Accession 0001193125-24-134183 (filed May 8, 2024), quarter ended March 31, 2024 (Q1 2024)

Earnings and Guidance

Q2 2026 (reported August 6, 2026, accession 0001193125-26-337928). Revenue was $3.6 billion, up 17% year-over-year (13% ex-FX). Net income was $816 million (23% margin), including a $77 million benefit from recently published guidance affecting prior-year taxes. Adjusted EBITDA was $1.3 billion, up 21% year-over-year, for a 35% margin. Gross Booking Value (GBV) was $27.2 billion, up 16% year-over-year, and Nights and Seats Booked grew 10% to 148.3 million. The company raised its full-year 2026 outlook: revenue growth is now expected to be "at least mid teens" year-over-year and full-year Adjusted EBITDA margin is now expected to be "at least 35.5%," both improved from the prior guidance issued in May 2026. For Q3 2026, the company guided to revenue of $4.69–$4.77 billion (15%–17% growth) and Adjusted EBITDA margin down slightly year-over-year on timing of investments. The company repurchased $1.1 billion of Class A common stock during the quarter, leaving $3.4 billion of remaining buyback authorization as of June 30, 2026. Having migrated most property management software hosts off the split 3% host fee / separate guest service fee structure beginning in Q4 2025, the company announced in July 2026 plans to migrate most of the remaining hosts to a single 15.5% service fee, with that migration expected to be completed during 2026.

Q1 2026 (reported May 7, 2026, accession 0001193125-26-211816). Revenue was $2.7 billion, up 18% year-over-year (15% ex-FX), exceeding the high end of prior guidance. Net income was $160 million (6% margin); Adjusted EBITDA was $519 million, up 24% year-over-year (19% margin). GBV was $29.2 billion (up 19%), and Nights and Seats Booked grew 9% to 156.2 million. The company raised full-year 2026 guidance to revenue growth "accelerating to low to mid teens" and Adjusted EBITDA margin of "at least 35%." Airbnb repurchased $1.1 billion of Class A common stock in the quarter. The letter also disclosed that in Q1 2026 the company received inaugural investment-grade credit ratings of A- (S&P) and Baa1 (Moody's).

Q4 and full-year 2025 (reported February 12, 2026, accession 0001193125-26-048670). Q4 2025 revenue was $2.8 billion, up 12% year-over-year, exceeding guidance; GBV grew 16% to $20.4 billion, the fastest GBV growth rate in more than two years. Full-year 2025 revenue was $12.2 billion (up 10%), net income was $2.5 billion (21% margin), Adjusted EBITDA was $4.3 billion (35% margin), and free cash flow was $4.6 billion. The full-year 2025 effective tax rate was 20%, including a one-time $213 million valuation allowance against CAMT tax credits, partly offset by a $60 million release of an uncertain tax position. Initial full-year 2026 guidance called for revenue growth of "at least low double digits" and a stable Adjusted EBITDA margin year-over-year.

Q3 2025 (reported November 6, 2025, accession 0001193125-25-269432). Revenue was $4.1 billion, up 10% year-over-year, at the high end of guidance. Net income was $1.4 billion (34% margin); Adjusted EBITDA was $2.1 billion (50% margin), the highest quarterly Adjusted EBITDA in company history at the time. GBV grew 14% to $22.9 billion. The letter reiterated a full-year 2025 Adjusted EBITDA margin outlook of approximately 35%, with Q4 2025 Adjusted EBITDA expected flat to down slightly year-over-year due to growth investments.

Q2 2025 (reported August 6, 2025, accession 0001193125-25-174438). Revenue was $3.1 billion, up 13% year-over-year. Net income was $642 million (21% margin, up 16% year-over-year); Adjusted EBITDA was $1.0 billion (34% margin, up 17%). GBV grew 11% to $23.5 billion. Airbnb repurchased $1.0 billion of stock and announced a new share repurchase authorization of up to $6 billion of Class A common stock (see Capital Actions below).

Q1 2025 (reported May 1, 2025, accession 0001193125-25-109934). Revenue was $2.3 billion, up 6% year-over-year (11% excluding FX and calendar effects). Net income declined to $154 million (7% margin) from $264 million a year earlier, primarily on higher stock-based compensation, write-downs of certain privately-held equity investments, and lower interest income. Adjusted EBITDA was $417 million (18% margin). GBV grew 7% to $24.5 billion.

Q4 and full-year 2024 (reported February 13, 2025, accession 0001193125-25-026054). Q4 2024 revenue was $2.5 billion, up 12% year-over-year; net income was $461 million versus a $349 million net loss in Q4 2023 (which had included roughly $1 billion of non-recurring tax withholding and lodging-tax reserve expenses). Full-year 2024 revenue was $11.1 billion, net income was $2.6 billion, and Adjusted EBITDA was $4.0 billion (36% margin).

Capital Actions

Senior notes offering and convertible note repayment (March 12–16, 2026, accession 0001193125-26-108514). Airbnb priced a registered public offering of $2.5 billion aggregate principal amount of senior unsecured notes: $850.0 million of 4.400% notes due 2029, $850.0 million of 4.650% notes due 2031, and $800.0 million of 5.250% notes due 2036. The offering closed March 16, 2026. Airbnb used the net proceeds to repay in full the $2.0 billion aggregate principal amount of its 0% convertible senior notes that matured in March 2026.

New $6 billion share repurchase authorization (announced with Q2 2025 results, August 6, 2025, accession 0001193125-25-174438). Alongside Q2 2025 earnings, Airbnb announced a new share repurchase program authorizing the purchase of up to an additional $6 billion of Class A common stock, on top of the existing authorization. The company has repurchased Class A common stock in every quarter covered by these filings, most recently $1.1 billion in Q2 2026, leaving $3.4 billion of remaining authorization as of June 30, 2026.

Management Change

Chief Technology Officer departure (November 18, 2025, accession 0001193125-25-291024). Aristotle Balogh notified Airbnb that he would depart the role of Chief Technology Officer in December 2025, agreeing to remain through at least February 2026 in an advisory, non-executive transition capacity.

Governance

Airbnb's 2025 and 2026 annual meetings of stockholders (accessions 0001193125-25-137216, filed June 9, 2025, and 0001559720-26-000018, filed June 11, 2026) both resulted in routine director elections, auditor ratification (PricewaterhouseCoopers LLP), and advisory approval of executive compensation. At the 2025 meeting, stockholders rejected a single stockholder proposal regarding voting disclosure. At the 2026 meeting, stockholders rejected four stockholder proposals: oversight of risks relating to digital services, a report on discrimination in charitable support, a dual-class sunset, and a report on risks of politicized divestments.

Note on scope

No merger, acquisition, or divestiture was disclosed in any Form 8-K filed from May 2024 through August 2026, including the Exhibit 99.1 shareholder letters furnished with each quarterly earnings release over that period (accessions 0001193125-24-134183, 0001193125-24-194849, 0001193125-24-253103, 0001193125-25-026054, 0001193125-25-109934, 0001193125-25-174438, 0001193125-25-269432, 0001193125-26-048670, 0001193125-26-211816, and 0001193125-26-337928) and the 2024 annual meeting 8-K (accession 0001193125-24-157426), whose only exhibit was a restated certificate of incorporation adopted to provide for officer exculpation. Capital allocation commentary in each shareholder letter continues to describe strategic acquisitions or partnerships as a lower-priority use of capital behind organic growth investment, but no specific transaction has been announced in this filing history.

About this file

ABNB annual income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

ABNB quarterly income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

ABNB year-to-date income statement and cash flow

Taken from the SEC filings and normalized to actual dollars.

ABNB trailing twelve month income statement and cash flow

Derived by AI from the figures the filings report. No filing prints these, so none of them is linked.

• Basis. fiscal year 2025 plus the six months ended June 30, 2026 less the six months ended June 30, 2025

Adjustments

Notes

• All figures come from two filings: Airbnb's annual report on Form 10-K for fiscal 2025 (accession 0001559720-26-000004, filed February 12, 2026) and its quarterly report on Form 10-Q for the quarter ended June 30, 2026 (accession 0001559720-26-000027, filed August 6, 2026). Those statements are presented in millions; every amount here has been restated into actual dollars, and share counts into actual shares.
• Periods on the face of those filings, and therefore in this record: fiscal 2023, 2024 and 2025 (income statement and cash flow) and the December 31, 2024 and December 31, 2025 balance sheets from the 10-K; the second quarters of 2025 and 2026 and the six months ended June 30, 2025 and 2026, plus the June 30, 2026 balance sheet, from the 10-Q. The six-month columns are held in `year_to_date` rather than among the quarters, and the trailing-twelve-month view is a separate block, so every entry in `quarterly` is a discrete three-month period.
• The first quarters of 2025 and 2026 are not presented as quarters in either filing and are not reported here; they are covered by the quarterly reports for those periods.
• Airbnb does not present a gross profit subtotal. `gross_profit` here is revenue less cost of revenue exactly as those two lines are reported, and is shown to make the margin comparable across periods.
• `total_debt` is the current portion of long-term debt plus long-term debt as they appear on the balance sheet. At December 31, 2025 the $2.0 billion principal amount of 0% convertible senior notes due 2026 was classified as current. On March 16, 2026 Airbnb issued $2.5 billion of unsecured senior notes ($850 million of 4.40% notes due 2029, $850 million of 4.65% notes due 2031 and $800 million of 5.25% notes due 2036) and used part of the proceeds to repay the 2026 convertible notes at maturity, which is why long-term debt, net of $21 million of unamortized discount and issuance costs and a $3 million hedge fair value adjustment, is $2.476 billion at June 30, 2026. No amounts were drawn under the company's $1.0 billion revolving credit facility at that date.
• Airbnb does not show purchases of property and equipment as a separate line on the face of its cash flow statement. The `capex` and `free_cash_flow` figures here are the ones the company itself discloses in the free cash flow reconciliation in Management's Discussion and Analysis of each filing, where free cash flow is defined as net cash provided by operating activities less purchases of property and equipment. That reconciliation covers fiscal 2024 and 2025 only, so fiscal 2023 carries no capital expenditure or free cash flow figure.
• The 10-Q's cash flow statement presents six-month columns only. The operating cash flow, capital expenditure and free cash flow figures shown for the second quarters of 2025 and 2026 are the three-month amounts disclosed in the free cash flow reconciliation in that same 10-Q; the remaining cash flow lines for those quarters are not presented and are therefore absent.
• The 10-K's balance sheet presents only December 31, 2024 and December 31, 2025. For fiscal 2023 the only balance-sheet data on the face of that filing are closing stockholders' equity of $8.165 billion and 638 million shares outstanding, from the consolidated statement of stockholders' equity; no other fiscal 2023 balance-sheet line is reported here. The same applies to the quarter ended June 30, 2025: the 10-Q's balance sheet shows December 31, 2025 and June 30, 2026 only, so that quarter carries just the $7.782 billion of closing equity and 613 million shares shown in the statement of stockholders' equity.
• Fiscal 2023 carries a net income tax benefit of $2.690 billion rather than an expense, so fiscal 2023 net income of $4.792 billion is larger than pre-tax income of $2.102 billion. Fiscal 2023's results are not comparable with later years on a net income or earnings per share basis for that reason.
• The 10-Q presents interest expense as its own line; the 10-K's fiscal-year income statement does not break it out and reports other expense, net instead. The trailing-twelve-month view therefore states revenue through operating income, interest income, pre-tax income, tax and net income, but no interest expense or other income (expense), net line, because those two cannot be combined across the two presentations on a consistent basis.
• `other_income_expense_net` is not on the same basis in the fiscal years as in the quarters and six-month periods, and the two should not be compared directly. The 10-K's fiscal-year income statement reports a single `Other expense, net` line with interest expense folded into it: $137 million in fiscal 2023, $40 million in fiscal 2024 and $112 million in fiscal 2025, all expense. The 10-Q breaks interest expense out on its own line, so the `other_income_expense_net` figures for the second quarters of 2025 and 2026 and for the six months ended June 30, 2025 and 2026 exclude interest expense, which is carried separately as `interest_expense` in those periods. Every figure is as its filing prints it.
• Trailing-twelve-month amounts are fiscal 2025 plus the six months ended June 30, 2026 less the six months ended June 30, 2025. They are arithmetic from the columns described above, not a column any filing prints. No trailing-twelve-month earnings per share or weighted-average share count is given, because neither filing presents a weighted-average share count for that span.
• Share counts shown as `shares_outstanding` are Class A and Class B common stock combined, taken from the statements of stockholders' equity. Weighted-average basic and diluted share counts in the income statement block are the ones used for earnings per share attributable to Class A and Class B common stockholders.
• Airbnb has one operating segment and one reportable segment. `revenue_by_geography` is the company's own disaggregation of revenue by the location of the host's listing, and `key_metrics` holds Nights and Seats Booked, Gross Booking Value and Adjusted EBITDA as the company reports them. Nights and Seats Booked is a count of bookings, not a dollar amount; Gross Booking Value and Adjusted EBITDA are in dollars. Adjusted EBITDA and free cash flow are measures the company defines itself and are not defined under US generally accepted accounting principles.
• Nights and Seats Booked is reported at different precisions in different places, so this record notes where each figure comes from. The key business metrics tables in the 10-K and the 10-Q round the metric to whole millions (492 and 533 for fiscal 2024 and 2025; 134 and 148 for the second quarters of 2025 and 2026; 277 and 305 for the six months). Airbnb's Q2 2026 shareholder letter, furnished as Exhibit 99.1 to its Current Report on Form 8-K of August 6, 2026 (accession 0001193125-26-337928), states the same metric to one decimal place: 148.3 million for the second quarter of 2026 against 134.4 million for the second quarter of 2025, a 10% increase. The two quarterly figures here are the shareholder letter's one-decimal amounts; the fiscal-year and six-month figures are the whole-million amounts the 10-K and 10-Q print, and the trailing-twelve-month figure is derived from those whole-million amounts as described above, so a growth rate computed from those will differ slightly from the percentages the company states. Gross Booking Value and Adjusted EBITDA in the same `key_metrics` blocks are exact millions as printed.

Uncertainties

• Fiscal 2023 has no capital expenditure and no free cash flow figure: the fiscal 2025 10-K's free cash flow reconciliation covers 2024 and 2025 only, and purchases of property and equipment are not a line on the face of the cash flow statement.
• Fiscal 2023 carries no Nights and Seats Booked, Gross Booking Value or Adjusted EBITDA: the fiscal 2025 10-K's key business metrics and non-GAAP measures tables present 2025 and 2024 only. Those figures are not on the face of either filing read here and have not been derived from anywhere else.
• Fiscal 2023 has no full balance sheet, and the quarter ended June 30, 2025 has no balance sheet beyond closing equity and shares outstanding, because neither date is a balance-sheet column in the two filings read.
• The second quarters of 2025 and 2026 carry only operating cash flow, capital expenditure and free cash flow on the cash flow side. The 10-Q files no three-month cash flow statement, so investing and financing cash flows, stock-based compensation and share repurchases are six-month figures only and are reported in the year-to-date block rather than against a quarter.
• Trailing-twelve-month figures are derived by adding the six months ended June 30, 2026 to fiscal 2025 and subtracting the six months ended June 30, 2025. They are not a reported column and no filing attests to them.
• The trailing-twelve-month view omits interest expense and other income (expense), net because the 10-K and the 10-Q present those two lines differently, and the 10-Q states that certain immaterial prior-period amounts were reclassified to conform to the current presentation. The reclassification does not affect revenue, operating income, pre-tax income or net income in any period shown here.

Company details

Fiscal period

Source filings