Airbnb, Inc. (ABNB) · Quarterly Report (10-Q) SEC Filing

PART I. FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements Airbnb, Inc. Condensed Consolidated Balance Sheets (in millions, except par value) (unaudited) December 31, 2025June 30, 2026 Assets Current assets: Cash and cash equivalents$6,560 $6,821 Short-term investments 4,454 5,248 Funds receivable and amounts held on behalf of customers6,959 12,224 Prepaids and other current assets 824 1,186 Total current assets18,797 25,479 2,102 1,910 Goodwill and intangible assets, net770 765 Other assets, noncurrent539 600 Total assets$22,208 $28,754 Liabilities and Stockholders Equity Current liabilities: Accrued expenses, accounts payable, and other current liabilities$2,948 $3,037 Funds payable and amounts payable to customers6,959 12,224 Current portion of long-term debt 1,999 Unearned fees1,743 2,831 Total current liabilities13,649 18,092 Long-term debt, net 2,476 360 387 Total liabilities14,009 20,955 Commitments and contingencies (Note 9) Stockholders equity: Common stock, $0.0001 par value: Class A - authorized 2,000 shares; 426 and 420 shares issued & outstanding, respectively; Class B - authorized 710 shares; 176 and 170 shares issued & outstanding, respectively; Class C - authorized 2,000 shares; zero shares issued & outstanding, respectively; and Class H - authorized 26 shares; 9 shares issued and zero shares outstanding, respectively. Additional paid-in capital13,763 14,433 Accumulated other comprehensive income (loss)(62)19 Accumulated deficit(5,502)(6,653) Total stockholders equity8,199 7,799 Total liabilities and stockholders equity$22,208 $28,754 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 3 Table of Contents Airbnb, Inc. Condensed Consolidated Statements of Operations (in millions, except per share amounts) (unaudited) Three Months Ended June 30,Six Months Ended June 30, 2025202620252026 Revenue$3,096 $3,608 $5,368 $6,286 Costs and expenses: Cost of revenue544 633 1,050 1,214 Operations and support332 361 635 687 Product development610 672 1,178 1,310 Sales and marketing691 875 1,254 1,626 General and administrative307 309 601 605 2,484 2,850 4,718 5,442 Income from operations612 758 650 844 Interest income190 183 363 338 Interest expense(6)(37)(11)(58) Other income (expense), net (17)(7)(50)54 Income before income taxes779 897 952 1,178 Provision for income taxes137 81 156 202 Net income $642 $816 $796 $976 Net income per share attributable to Class A and Class B common stockholders: Basic$1.04 $1.38 $1.29 $1.64 Diluted$1.03 $1.37 $1.27 $1.62 Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders: Basic615 592 618 595 Diluted626 597 629 602 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 4 Table of Contents Airbnb, Inc. Condensed Consolidated Statements of Comprehensive Income (in millions) (unaudited) Three Months Ended June 30,Six Months Ended June 30, 2025202620252026 Net income $642 $816 $796 $976 Other comprehensive income (loss): Net unrealized gain (loss) on available-for-sale marketable securities, net of tax1 (6)5 (15) Net unrealized gain (loss) on cash flow hedges, net of tax(130)25 (203)98 Foreign currency translation adjustments22 2 35 (2) Other comprehensive income (loss)(107)21 (163)81 Comprehensive income $535 $837 $633 $1,057 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 5 Table of Contents Airbnb, Inc. Condensed Consolidated Statements of Stockholders Equity (in millions) (unaudited) Six months ended June 30, 2025 Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Accumulated DeficitTotal Stockholders Equity Shares Amount Balances as of December 31, 2024623 $ $12,602 $35 $(4,225)$8,412 Net income 154 154 Other comprehensive loss (56) (56) Common stock and stock-based awards issued, net of shares withheld for employee taxes2 (124) (124) Stock-based compensation 363 363 Repurchases of common stock(6) (812)(812) Balances as of March 31, 2025619 12,841 (21)(4,883)7,937 Net income 642 642 Other comprehensive loss (107) (107) Common stock and stock-based awards issued, net of shares withheld for employee taxes2 (98) (98) 425 425 Repurchases of common stock(8) (1,017)(1,017) Balances as of June 30, 2025613 13,168 (128)(5,258)7,782 Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss) Accumulated DeficitTotal Stockholders Equity Shares Amount Balances as of December 31, 2025602 $ $13,763 $(62)$(5,502)$8,199 Net income 160 160 Other comprehensive income 60 60 Common stock and stock-based awards issued, net of shares withheld for employee taxes1 (132) (132) Stock-based compensation 410 410 Repurchases of common stock(8) (1,061)(1,061) Balances as of March 31, 2026595 14,041 (2)(6,403)7,636 Net income 816 816 Other comprehensive income 21 21 Common stock and stock-based awards issued, net of shares withheld for employee taxes3 (95) (95) Stock-based compensation 487 487 Repurchases of common stock(8) (1,066)(1,066) Balances as of June 30, 2026590 $ $14,433 $19 $(6,653)$7,799 20252026 Cash flows from operating activities: Net income $796 $976 Adjustments to reconcile net income to cash provided by operating activities: 782 897 Deferred income taxes70 172 145 114 Changes in operating assets and liabilities: Prepaids and other assets(275)(377) 10 111 1,236 1,085 Net cash provided by operating activities2,764 2,978 Cash flows from investing activities: (1,643)(2,567) Sales and maturities of short-term investments1,432 1,749 Other investing activities, net(31)8 Net cash used in investing activities(242)(810) Cash flows from financing activities: Change in funds payable and amounts payable to customers4,510 5,426 2,478 Principal repayment of long-term debt (2,000) (1,817)(2,139) Taxes paid related to tax on equity awards(295)(305) 75 81 2,473 3,541 Effect of exchange rate changes on cash, cash equivalents, and restricted cash689 (146) Net increase in cash, cash equivalents, and restricted cash5,684 5,563 Cash, cash equivalents, and restricted cash, beginning of period12,760 13,486 Cash, cash equivalents, and restricted cash, end of period$18,444 $19,049 June 30, 2026 Cash and cash equivalents$6,560 $6,821 Cash and cash equivalents included in funds receivable and amounts held on behalf of customers6,891 12,161 Restricted cash included in prepaids and other current assets 35 67 Total cash, cash equivalents, and restricted cash $13,486 $19,049 10 Table of Contents Airbnb, Inc. Notes to Condensed Consolidated Financial Statements (unaudited) Supplemental Disclosures of Cash Flow Information Cash flow information consisted of the following (in millions): Six Months Ended June 30, 20252026 Cash paid for income taxes, net of refunds $168 $158 Cash paid for interest$2 $3 June 30, 2026 Customer receivables$225 $245 Customer receivables reserve(39)(36) Customer receivable, net $186 $209 Accrued Expenses, Accounts Payable, and Other Current Liabilities Accrued expenses, accounts payable, and other current liabilities consisted of the following (in millions): December 31, 2025June 30, 2026 $1,132 $1,357 Compensation and employee benefits593 495 Accounts payable232 144 68 20 Other 923 1,021 Accrued expenses, accounts payable, and other current liabilities$2,948 $3,037 Revenue Disaggregated by Geographic Region The following table presents revenue disaggregated by listing location (in millions): Three Months Ended June 30,Six Months Ended June 30, 2025202620252026 North America$1,377 $1,594 $2,431 $2,732 Europe, the Middle East, and Africa 1,233 1,425 1,830 2,172 Latin America231 291 574 742 Asia Pacific255 298 533 640 Total revenue disaggregated by geographic region$3,096 $3,608 $5,368 $6,286 11 Table of Contents Airbnb, Inc. Notes to Condensed Consolidated Financial Statements (unaudited) Note 4. Investments The following tables summarize the Company s investments by major security type (in millions): December 31, 2025 Amortized Cost Gross Unrealized GainsGross Unrealized LossesTotal Estimated Fair Value Short-term investments Debt securities: Corporate debt securities$2,277 $11 $ $2,288 Mortgage-backed and asset-backed securities 441 2 (2)441 Government bonds262 262 Commercial paper182 182 Certificates of deposit149 149 Total debt securities3,311 13 (2)3,322 Time deposits1,132 1,132 $4,443 $13 $(2)$4,454 Amortized CostGross Unrealized GainsGross Unrealized LossesTotal Estimated Fair Value Short-term investments Debt securities: Corporate debt securities $3,090 $2 $(7)$3,085 Mortgage-backed and asset-backed securities 570 1 (4)567 Government bonds 370 (1)369 Certificates of deposit 56 56 Commercial paper 39 39 Total debt securities4,125 3 (12)4,116 Time deposits1,132 1,132 $5,257 $3 $(12)$5,248 June 30, 2026 Securities in an unrealized loss position Estimated fair value$161 $2,046 Gross unrealized losses$12 $22 Securities in continuous unrealized loss position greater than 12 months Estimated fair value $36 $227 Unrealized losses$12 $12 12 Table of Contents Airbnb, Inc. Notes to Condensed Consolidated Financial Statements (unaudited) The following table summarizes the contractual maturities of the Company s available-for-sale debt securities (in millions): June 30, 2026 Amortized CostEstimated Fair Value Due within one year$1,238 $1,239 Due after one year through five years 2,798 2,782 Due after five years 102 100 Total$4,138 $4,121 Investments Accounted for Under the Equity Method As of December 31, 2025 and June 30, 2026, the carrying values of the Company s equity method investments in privately-held companies were $47 million and $52 million, respectively. Impairment charges were immaterial for the three and six months ended June 30, 2025 and 2026. Unrealized losses were immaterial for the three and six months ended June 30, 2025 and 2026. During the six months ended June 30, 2026, the Company recognized a realized gain of $71 million on the sale of an equity investment, which was recognized in other income (expense), net in the unaudited condensed consolidated statements of operations. The realized gain resulted from the cash proceeds received in connection with the acquisition of the investee by a third party and reflects the difference between the proceeds and the investment s carrying value. Equity Investments Without Readily Determinable Fair Values The Company holds equity investments in privately-held companies where fair values are not readily determinable and in which it lacks a controlling interest or significant influence. The investments are classified within other assets, noncurrent on the unaudited condensed consolidated balance sheets. The net carrying value of these investments was $11 million and $39 million as of December 31, 2025 and June 30, 2026, respectively. During the six months ended June 30, 2025 and 2026, the Company recorded non-cash impairment charges of $30 million and $8 million, respectively, with no impairment charges recorded during the three months ended June 30, 2025 and 2026. There were no upward adjustments for observable price changes recorded for the three and six months ended June 30, 2025 and 2026. As of June 30, 2026, the cumulative impairment and downward adjustments for observable price changes were $115 million. Note 5. Fair Value Measurements and Financial Instruments The following table summarizes the Company s financial assets and liabilities measured at fair value on a recurring basis (in millions): December 31, 2025 Level 1Level 2Level 3Total Assets Cash and cash equivalents: Money market funds$901 $ $ $901 98 98 Government bonds 57 57 Corporate debt securities 7 7 Total cash and cash equivalents901 162 1,063 Short-term investments: Corporate debt securities 2,288 2,288 Mortgage-backed and asset-backed securities 441 441 Government bonds 262 262 Commercial paper 182 182 Certificates of deposit 149 149 3,322 3,322 Money market funds2,164 2,164 Foreign exchange derivative assets 20 20 $3,065 $3,504 $ $6,569 Liabilities Accrued expenses, accounts payable, and other current liabilities: Foreign exchange derivative liabilities$ $68 $ $68 Level 1Level 2Level 3Total Assets Cash and cash equivalents: Money market funds$1,188 $ $ $1,188 Corporate debt securities 12 12 Commercial paper 9 9 3 3 Total cash and cash equivalents1,188 24 1,212 Short-term investments: Corporate debt securities 3,085 3,085 Mortgage-backed and asset-backed securities 567 567 Government bonds 369 369 Certificates of deposit 56 56 Commercial paper 39 39 4,116 4,116 Funds receivable and amounts held on behalf of customers: Money market funds693 693 Foreign exchange derivative assets 84 84 $1,881 $4,224 $ $6,105 Liabilities Accrued expenses, accounts payable, and other current liabilities: Foreign exchange derivative liabilities$ $42 $ $42 December 31, 2025June 30, 2026 Derivatives designated as hedging instruments: Foreign exchange contracts (current) Prepaids and other current assets$4 $70 Foreign exchange contracts (current)Prepaids and other current assets$16 $14 Derivative Liabilities(1)(2) December 31, 2025June 30, 2026 Derivatives designated as hedging instruments: Foreign exchange contracts (current) Accrued expenses, accounts payable, and other current liabilities $61 $9 Foreign exchange contracts (current)Accrued expenses, accounts payable, and other current liabilities$7 $33 Six Months Ended June 30,202620252026$(141)$6 $(202)$64 %850 %%2,476 Outstanding RSUs Weighted- Average Exercise PriceNumber of SharesWeighted- Average Grant Date Fair Value As of December 31, 2025$108.28 32.2 $99.64 Granted134.96 13.7 128.81 67.91 (6.0)134.27 Canceled152.84 (2.1)136.60 As of June 30, 2026$116.16 37.8 $102.59 17 Table of Contents Airbnb, Inc. Notes to Condensed Consolidated Financial Statements (unaudited) Number of SharesWeighted- Average Exercise PriceWeighted- Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Options outstanding as of June 30, 20265.7 $116.16 6.21$191 Options exercisable as of June 30, 20263.5 $101.44 4.26$177 Note 9. Commitments and Contingencies Commitments The Company has commitments including purchase obligations for web-hosting services and other commitments for brand marketing. As of June 30, 2026, there were no material changes outside the ordinary course of business to the Company s commitments, as disclosed in its 2025 Annual Report. Lodging Tax Obligations and Other Non-Income Tax Matters Lodging Tax Obligations Some states and localities in the U.S. and elsewhere in the world impose transient occupancy or lodging accommodations taxes ( Lodging Taxes ) on the use or occupancy of lodging accommodations or other traveler services. As of June 30, 2026, the Company collected and remitted Lodging Taxes in approximately 37,000 jurisdictions around the world on behalf of its hosts. Such Lodging Taxes are generally remitted to tax jurisdictions within a 30- to 90-day period following the end of each month. As of December 31, 2025 and June 30, 2026, the Company had an obligation to remit Lodging Taxes collected from guests on bookings in these jurisdictions totaling $387 million and $609 million, respectively. These payables were recorded in accrued expenses, accounts payable, and other current liabilities on the unaudited condensed consolidated balance sheets. In jurisdictions where the Company does not collect and remit Lodging Taxes, hosts are primarily responsible for such taxes. The Company has estimated Lodging Tax liabilities in a certain number of jurisdictions with respect to state, city, and local taxes where management believes it is probable that the Company can be held jointly liable with hosts for taxes and the related amounts can be reasonably estimated. As of December 31, 2025 and June 30, 2026, accrued obligations related to these estimated taxes, including estimated penalties and interest, totaled $114 million and $127 million, respectively. As of June 30, 2026, the Company estimates that the reasonably possible loss related to certain Lodging Taxes that can be determined in excess of the amounts accrued is between $29 million to $39 million; however, no assurance can be given as to the outcomes and the Company could be subject to significant additional tax liabilities. With respect to all other jurisdictions Lodging Taxes for which a loss is probable or reasonably possible, the Company is unable to determine an estimate of the possible loss or range of loss beyond the amounts already accrued. The Company s potential obligations with respect to Lodging Taxes could be affected by various factors, which include, but are not limited to, whether the Company determines or any tax authority asserts that the Company has a responsibility to collect lodging and related taxes on either historical or future transactions, or by the introduction of new ordinances and taxes that subject the Company s operations to such taxes. Accordingly, the ultimate resolution of Lodging Taxes may be greater or less than the liabilities that the Company has recorded. The Company is currently involved in disputes brought by certain domestic and international states and localities involving the payment of Lodging Taxes. These jurisdictions are asserting that the Company is liable or jointly liable with hosts to collect and remit Lodging Taxes. These disputes are in various stages and the Company continues to vigorously defend these claims. The Company believes that the statutes at issue impose a Lodging Tax obligation on the person exercising the taxable privilege of providing accommodations, or the Company s hosts. The imposition of such taxes on the Company could increase the cost of a guest booking and potentially cause a reduction in the volume of bookings on the Company s platform, which would adversely impact the Company s results of operations. The Company will continue to monitor the application and interpretation of lodging and related taxes and ordinances and will adjust accruals, as appropriate, based on any new information or further developments. Other Non-Income Taxes The Company is under audit and inquiry by various domestic and foreign tax authorities with regard to non-income tax matters. The subject matter of these contingent liabilities primarily arises from the Company s transactions with its customers. Such disputes involve the applicability of non-income taxes such as transactional taxes (sales, value-added, business, digital service, and similar taxes) on services provided, as well as the applicability of withholding tax on payments made to hosts. The Company has estimated non-income tax liabilities where management believes it is probable that the Company can be held liable for such taxes and the related amounts can be reasonably estimated. As of December 31, 2025 and June 30, 2026, accrued obligations related to these estimated taxes, including estimated penalties and interest, totaled $199 million and $219 million, respectively. In addition, the Company has identified reasonably possible exposures related to non-income taxes and has not accrued for these amounts since the likelihood of the contingent liability is less than probable. As of June 30, 2026, the Company estimates that the reasonably possible loss related to these matters in excess of the amounts accrued is between $240 million and $260 million; however, no assurance can be given as 18 Table of Contents Airbnb, Inc. Notes to Condensed Consolidated Financial Statements (unaudited) to the outcomes and the Company could be subject to significant additional tax liabilities. Due to the inherent complexity and uncertainty of these matters and judicial processes in certain jurisdictions, the final outcomes may exceed the estimated liabilities recorded. With respect to all other transactional taxes and withholding tax on payments made to hosts for which a loss is probable or reasonably possible, the Company is unable to determine an estimate of the possible loss or range of loss beyond the amounts already accrued. Payroll Taxes The Company is subject to regular payroll tax examinations by various international, state, and local jurisdictions. Although management believes its tax withholding remittance practices are appropriate, the Company may be subject to additional tax liabilities, including interest and penalties, if any tax authority disagrees with the Company s withholding and remittance practices, or if there are changes in laws, regulations, administrative practices, principles, or interpretations related to payroll tax withholding in the various international, state, and local jurisdictions. Legal and Regulatory Matters The Company has been and is currently a party to various legal and regulatory matters arising in the normal course of business. Such proceedings and claims, even if not meritorious, can require significant financial and operational resources, including the diversion of management s attention from the Company s business objectives. Regulatory Matters The Company operates in a complex legal and regulatory environment, and its operations are subject to various U.S. and foreign laws, rules, and regulations, including those related to: Internet activities; short-term rentals, long-term rentals, and home sharing; real estate, property rights, housing, and land use; travel and hospitality; privacy and data protection; intellectual property; competition; health and safety; protection of minors; consumer protection; employment; payments, money transmission, economic and trade sanctions, anti-corruption, and anti-bribery; taxation; and others. In addition, the nature of the Company s business exposes it to inquiries and potential claims related to the compliance of the business with applicable law and regulations. In some instances, applicable laws and regulations do not yet exist or are being applied, interpreted, or implemented to address aspects of the Company s business, and such adoption, interpretation, or implementation could further alter or impact the Company s business. In certain instances, the Company has been party to litigation with municipalities relating to or arising out of certain regulations. In addition, the implementation and enforcement of regulation can have an impact on the Company s business. In July 2025, Airbnb received a letter from the Spanish Ministry of Consumer Affairs proposing to assess a fine of approximately 110 million Euro ($129 million) in connection with alleged non-compliance with short-term rental listing regulations in Spain. In September 2025, the Spanish Ministry of Consumer Affairs subsequently reduced the fine to approximately 65 million Euro ($76 million). Airbnb has disputed the fine and the applicability of these rules to short-term listings, and any potential loss is neither probable nor estimable at this time. In May 2026, pursuant to a court order in connection with these proceedings, Airbnb entered into an agreement to obtain a surety bond in the amount of 70 million Euro ($80 million) to suspend enforcement of the fine and cover any related interest pending resolution of the matter. The bond remains in force until the final conclusion of the court procedure, or until authorized cancellation, and has no fixed expiration date. Global regulatory requirements and challenges affecting the Company s business continue to increase. These challenges may have a material impact on the Company s business, results of operations, and financial condition. Intellectual Property The Company has been and is currently subject to claims relating to intellectual property, including alleged patent infringement. Adverse results in such lawsuits may include awards of substantial monetary damages, costly royalty or licensing agreements, or orders preventing the Company from offering certain features, functionalities, products, or services, and may also cause the Company to change its business practices or require development of non-infringing products or technologies, which could result in a loss of revenue or otherwise harm its business. To date, the Company has not incurred any material costs as a result of such cases and has not recorded any material liabilities in its unaudited condensed consolidated financial statements related to such matters. Litigation and Other Legal Proceedings The Company is currently involved in, and may in the future be involved in, legal proceedings, claims, and government investigations in the ordinary course of business. These include proceedings, claims, and investigations relating to, among other things, regulatory matters, commercial matters, intellectual property, competition, tax, employment, pricing, discrimination, consumer rights, personal injury, and property rights. Depending on the nature of the proceeding, claim, or investigation, the Company may be subject to monetary damage awards, fines, penalties, and/or injunctive orders. Furthermore, the outcome of these matters could materially adversely affect the Company s business, results of operations, and financial condition. The outcomes of legal proceedings, claims, and government investigations are inherently unpredictable and subject to significant judgment to determine the likelihood and amount of loss related to such matters. While it is not possible to determine the outcomes, the Company believes based on its current knowledge that the resolution of all such pending matters will not, either individually or in the aggregate, have a material adverse effect on the Company s business, results of operations, financial condition, or cash flows. 19 Table of Contents Airbnb, Inc. Notes to Condensed Consolidated Financial Statements (unaudited) The Company establishes an accrued liability for loss contingencies related to legal matters when a loss is both probable and reasonably estimable. These accruals represent management s best estimate of probable losses. Such currently accrued amounts are immaterial to the Company s unaudited condensed consolidated financial statements. However, management s views and estimates related to these matters may change in the future, as new events and circumstances arise and the matters continue to develop. Until the final resolution of legal matters, there may be an exposure to losses in excess of the amounts accrued. With respect to outstanding legal matters, the Company believes based on its current knowledge that the amount or range of reasonably possible loss will not, either individually or in the aggregate, have a material adverse effect on the Company s business, results of operations, financial condition, or cash flows. Legal fees are expensed as incurred. Host Protections The Company offers the Host Damage Protection program, which reimburses hosts up to $3 million for direct physical loss or damage to a host s property caused by guests during a confirmed Airbnb stay if the guest fails to pay for the damage. The Company retains risk and also maintains insurance from third parties on a per claim basis to protect the Company s financial exposure under this program. The Company also maintains Host Liability Insurance ( HLI ) and Experiences & Services Liability Insurance ( ELI ). HLI and ELI each consist of commercial general liability insurance policies, with the Company as named insured and hosts and their landlords as additional insureds. HLI provides coverage up to $1 million per Airbnb stay and ELI provides coverage up to $1 million per guest per Experience. Each coverage includes various market standard conditions, limitations, and exclusions. Indemnifications The Company has entered into indemnification agreements with certain of its employees, officers, and directors. The indemnification agreements and the Company s Amended and Restated Bylaws (the Bylaws ) require the Company to indemnify its directors and officers and those employees who have entered into indemnification agreements to the fullest extent not prohibited by Delaware law. Subject to certain limitations, the indemnification agreements and Bylaws also require the Company to advance expenses incurred by its directors and officers and those employees who have entered into indemnification agreements. No demands have been made upon the Company to provide indemnification or advancement under the indemnification agreements or the Bylaws, and thus, there are no indemnification or advancement claims that the Company is aware of that could have a material adverse effect on the Company s business, results of operations, financial condition, or cash flows. In the ordinary course of business, the Company has included limited indemnification provisions in certain agreements with parties with whom the Company has commercial relations, which provisions are of varying scope and terms with respect to indemnification of certain matters, which may include losses arising out of the Company s breach of such agreements or out of intellectual property infringement claims made by third parties. It is not possible to determine the maximum potential loss under these indemnification provisions due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. To date, no significant costs have been incurred, either individually or collectively, in connection with the Company s indemnification provisions. Note 10. Income Taxes The Company s tax provision for interim periods is determined by using an estimated annual effective tax rate, adjusted for discrete items arising in that quarter. In each quarter, the Company updates the estimated annual effective tax rate and makes a year-to-date adjustment to the provision. The estimated annual effective tax rate is subject to significant volatility due to several factors, including accurately predicting the proportion of the Company s pre-tax income before provision for income taxes in multiple jurisdictions, the U.S. tax benefits from foreign-derived deduction eligible income, audit-related developments, and the effects of tax law changes. The Company recorded income tax expense of $137 million and $81 million for the three months ended June 30, 2025 and 2026, and $156 million and $202 million for the six months ended June 30, 2025 and 2026, respectively. Income tax expense for the three months ended June 30, 2026 was lower than the same period in the prior year primarily due to a $77 million benefit recorded in the current period related to recently published guidance impacting prior year taxes, partially offset by a $9 million increase in current and deferred tax on U.S. and foreign earnings in line with profitability growth. Income tax expense for the six months ended June 30, 2026 increased over the same period in the prior year primarily due to a $29 million increase in current and deferred tax on U.S. and foreign earnings in line with profitability growth and $16 million from decreased excess tax benefits on stock-based compensation. The Company regularly assesses the need for a valuation allowance against its deferred tax assets each quarter. In making that assessment, the Company considers both positive and negative evidence in the various jurisdictions in which it operates related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. As of June 30, 2026, based on all available positive and negative evidence, having demonstrated sustained profitability which is objective and verifiable, and taking into account anticipated future earnings, the Company concluded that it is more likely than not that its U.S. federal and state deferred tax assets will be realizable, with the exception of California research and development credits, federal Corporate Alternative Minimum Tax ( CAMT ) credits, capital loss carryovers, losses subject to the dual consolidated loss rules, and certain state net operating losses. The Company's policy is to not consider the impact of future years CAMT in its valuation allowance assessment for regular deferred tax assets. The Company will continue to monitor the need for a valuation allowance against its deferred tax assets on a quarterly basis. The Company s significant tax jurisdictions include the U.S., California, and Ireland. The Company is currently under examination for income taxes by the Internal Revenue Service ( IRS ) for the 2013, 2016, 2017, and 2018 tax years. The primary issue under examination in the 2013 audit is the valuation of the Company s international intellectual property which was sold to a subsidiary in 2013. In December 2020, the Company received a Notice of Proposed Adjustment ( NOPA ) from the IRS which proposed an increase to the Company s U.S. taxable income that could result in additional income tax expense and cash liability of $1.3 billion, plus penalties and interest, which exceeds the current reserve recorded in its consolidated financial statements by more than $1.0 billion. The Company strongly disagrees with the 20 Table of Contents Airbnb, Inc. Notes to Condensed Consolidated Financial Statements (unaudited) proposed adjustment and continues to vigorously contest it. The Company entered into an administrative dispute process with IRS Appeals, however an acceptable outcome was not reached. In May 2024, the Company received a Statutory Notice of Deficiency ( Notice ) from the IRS related to the aforementioned valuation of its international intellectual property. The Notice claimed that the Company owes $1.3 billion in tax, plus penalties and interest. The Company will continue to pursue all available remedies to resolve this dispute. In July 2024, the Company petitioned the U.S. Tax Court ( Tax Court ) for redetermination, and if necessary, the Company will appeal the Tax Court s decision to the appropriate appellate court. The Company believes that adequate amounts have been reserved for any adjustments that may ultimately result from these examinations. If the IRS prevails in the assessment of additional tax due based on its position and such tax and related interest and penalties, if any, exceeds the Company s current reserves, such outcome could have a material adverse impact on the Company s financial position and results of operations, and any assessment of additional tax could require a significant cash payment and have a material adverse impact on the Company s unaudited condensed consolidated statements of cash flows. Note 11. Net Income per Share The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders (in millions, except per share amounts): Three Months Ended June 30,Six Months Ended June 30, 2025202620252026 Net income $642 $816 $796 $976 Add: convertible senior notes interest expense, net of tax1 1 1 Net income - diluted$643 $816 $797 $977 Weighted-average shares in computing net income per share attributable to Class A and Class B common stockholders: Basic615 592 618 595 Effect of dilutive securities11 5 11 7 Diluted626 597 629 602 Net income per share attributable to Class A and Class B common stockholders: Basic$1.04 $1.38 $1.29 $1.64 Diluted$1.03 $1.37 $1.27 $1.62 As of both June 30, 2025 and 2026, 9.6 million shares of RSUs were excluded from net income per share because they are subject to market conditions that were not achieved as of such dates. Additionally, the following securities were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive (in millions): Three Months Ended June 30,Six Months Ended June 30, 2025202620252026 3 4 3 4 RSUs16 9 14 9 19 13 17 13 Share Repurchase Program In August 2025, the Company announced that its board of directors approved a new share repurchase program with authorization to purchase up to $6.0 billion of the Company's Class A common stock. Share repurchases under the share repurchase program may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, or by any combination of such methods. Any such repurchases will be made from time to time subject to market and economic conditions, applicable legal requirements, and other relevant factors. The share repurchase program does not obligate the Company to repurchase any specific number of shares and may be modified, suspended, or terminated at any time at the Company s discretion. During the three and six months ended June 30, 2025, the Company repurchased and subsequently retired 8.1 million and 14.2 million shares of Class A common stock for $1.0 billion and $1.8 billion, respectively. During the three and six months ended June 30, 2026, the Company repurchased and subsequently retired 7.9 million and 16.0 million shares of Class A common stock for $1.1 billion and $2.1 billion, respectively. As of June 30, 2026, the Company had $3.4 billion available to repurchase shares of Class A common stock under its share repurchase program. 21 Table of Contents Airbnb, Inc. Notes to Condensed Consolidated Financial Statements (unaudited) Note 12. Segment Information Segment Information Operating segments are defined as components of an entity for which discrete financial information is available and is regularly reviewed by the Chief Operating Decision Maker ( CODM ) in making decisions regarding resource allocation and performance assessment. The Company s CODM is its Chief Executive Officer. The Company has one operating segment and one reportable segment. The CODM assesses financial performance and decides how to allocate resources based on consolidated net income. Segment assets are reported on the Company s unaudited condensed consolidated balance sheets. The following table sets forth the Company s significant segment expenses (in millions): Three Months Ended June 30,Six Months Ended June 30, 2025202620252026 Revenue$3,096 $3,608 $5,368 $6,286 Less: Merchant fees and chargebacks 436 517 835 991 Salaries and benefits482 591 989 1,178 Marketing468 600 850 1,106 Stock-based compensation expense 424 487 782 897 Professional and third-party services(1) 320 299 580 581 Non-income taxes50 22 107 70 Other items(2) 304 334 575 619 Total costs and expenses2,484 2,850 4,718 5,442 Income from operations612 758 650 844 Interest income190 183 363 338 Interest expense(6)(37)(11)(58) Other income (expense), net(17)(7)(50)54 Income before income taxes779 897 952 1,178 Provision for income taxes137 81 156 202 Net income $642 $816 $796 $976 (1)Professional and third-party services primarily include expenses related to customer support partners, consultants and third-party service providers, contingent workforce and fees for legal, audit, and tax. (2)Other items primarily include expenses and costs related to data hosting services, insurance, software and equipment, and customer relations. 22 Table of Contents Item 2. Management s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and with our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 ( 2025 Annual Report ). This discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under the section titled Risk Factors of our 2025 Annual Report and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 and any subsequent filings. Our historical results are not necessarily indicative of the results that may be expected for any period in the future. Overview Airbnb was founded in 2007 when two hosts welcomed three guests to their San Francisco home, and has since grown into a global community of over 5.5 million hosts who have welcomed over 2.5 billion guest arrivals in almost every country and region across the globe. Every day, hosts offer unique stays, experiences, and services that enable guests to connect with communities in a more authentic way. We operate a global marketplace connecting guests with these offerings, collectively in over 220 countries and regions. We operate with five key stakeholders in mind: our employees, shareholders, hosts, guests, and the communities we serve. Our commitment to making long-term decisions that benefit all these stakeholders is fundamental to our sustained success. Second Quarter Financial Highlights Top-Line Growth: Revenue grew by 17% to $3.6 billion for the three months ended June 30, 2026, compared to the same period in the prior year. This growth was primarily driven by an increase in the number of check-ins relating to Nights and Seats Booked, and a modest increase in our Average Daily Rate ( ADR ). Increased Profitability: Net income grew by $174 million to $816 million for the three months ended June 30, 2026, compared to the same period in the prior year. This improvement was primarily driven by revenue growth of 17%, which outpaced a 15% increase in operating expenses. Additionally, provision for income taxes decreased $56 million primarily due to a $77 million benefit recorded in the current period related to recently published guidance impacting prior year taxes. Cash Generation: Cash provided by operating activities and Free Cash Flow1 ( FCF ) were both $1.3 billion for the three months ended June 30, 2026, compared to $1.0 billion for both metrics during the same period in the prior year. Share Repurchases: During the three months ended June 30, 2026, we repurchased 7.9 million shares of Class A common stock for $1.1 billion, leaving $3.4 billion available to repurchase under our share repurchase program. Macroeconomic and Geopolitical Conditions on our Business As we look forward, we recognize the potential impact of challenging macroeconomic and geopolitical conditions on our business, including inflation, interest rates, foreign currency fluctuations, tariffs and trade controls, wars and other geopolitical conflicts, and potential decreased consumer spending. The conflict in the Middle East has had and may continue to have an impact on booking trends. To date, these conditions have not had a material impact on our business, results of operations, cash flows, and financial condition; however, the impact in the future of these macroeconomic and geopolitical conditions on our business, results of operations, cash flows, and financial condition is uncertain and will depend on future developments that we may not be able to accurately predict. Key Business Metrics and Non-GAAP Financial Measures We track the following key business metrics and financial measures that are not calculated and presented in accordance with generally accepted accounting principles in the United States of America ( U.S. GAAP ) ( non-GAAP financial measures ) to evaluate our operating performance, identify trends, formulate financial projections, and make strategic decisions. Accordingly, we believe that these key business metrics and non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management team. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance, and assists in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their U.S. GAAP results. These key business metrics and non-GAAP financial measures are presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with U.S. GAAP, and may be different from similarly titled metrics or measures presented by other companies. A reconciliation of each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with U.S. GAAP is provided under the subsection titled Adjusted EBITDA Reconciliation and Free Cash Flow Reconciliation below. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures. 1 A reconciliation of non-GAAP financial measures to the most comparable U.S. GAAP financial measures is provided under the subsection titled Key Business Metrics and Non-GAAP Financial Measures Free Cash Flow Reconciliation below. 23 Table of Contents Key Business Metrics We review the following key business metrics to measure our performance, identify trends, formulate financial projections, and make strategic decisions. We are not aware of any uniform standards for calculating these key metrics, which may hinder comparability with other companies that may calculate similarly titled metrics in a different way. The following table summarizes our key business metrics, for each period presented below (in millions, except percentages): Three Months Ended June 30,Six Months Ended June 30, 20252026% Change20252026% Change Nights and Seats Booked 134 148 10 %277 305 10 % Gross Booking Value$23,447 $27,247 16 %$47,962 $56,434 18 % Nights and Seats Booked Nights and Seats Booked is a key measure of the scale of our platform, which in turn drives our financial performance. Nights and Seats Booked on our platform in a period represents the sum of the total number of nights booked for stays and the total number of seats booked for experiences and services, net of cancellations and alterations that occurred in that period. For example, a booking made on February 15 would be reflected in Nights and Seats Booked for our quarter ended March 31. If, in the example, the booking were canceled on May 15, Nights and Seats Booked would be reduced by the cancellation for our quarter ended June 30. A night can include one or more guests and can be for a listing with one or more bedrooms. Nights and Seats Booked grows as we attract new customers to our platform and as repeat guests increase their activity on our platform. A seat is booked for each participant in an experience or service. Substantially all of the bookings on our platform to date have come from nights. We believe Nights and Seats Booked is a key business metric to help investors and others understand and evaluate our results of operations in the same manner as our management team, as it represents a single unit of transaction on our platform. During the three and six months ended June 30, 2026, the increase in Nights and Seats Booked, compared to the same period in the prior year, was driven by growth across all regions, led by Latin America and Asia Pacific, as we continue to focus on international expansion. North America and EMEA grew more moderately. We also continued to benefit from our product initiatives, including improvements to search and merchandising, pricing and tools, and flexible payment options. Gross Booking Value Gross Booking Value ( GBV ) represents the dollar value of bookings on our platform in a period, inclusive of host earnings, service fees, cleaning fees, and taxes, net of cancellations and alterations. The timing of recording GBV and related cancellations is similar to that described in the subsection titled Key Business Metrics and Non-GAAP Financial Measures Nights and Seats Booked above. The entire amount of a booking is reflected in GBV in the quarter it occurs regardless of when payment is collected. Revenue is recognized upon check-in; accordingly, GBV has generally been a leading indicator of revenue. Our flexible payment options allow guests to defer a portion or all of their payment from the time of booking to a date closer to stay. In 2025, we launched RNPL and expanded it internationally in 2026. To date, RNPL bookings, which require no payment at the time of booking, have experienced higher cancellation rates than historic bookings in which some or all of the cash was received at the time of booking. As adoption of RNPL and our other flexible payment options continues to grow, the timing among GBV, revenue, and cash receipts may become less correlated. During the three and six months ended June 30, 2026, the increase in GBV, compared to the same periods in the prior year, was primarily due to an increase in Nights and Seats Booked and ADR. We saw GBV growth across all regions, led by Latin America and Asia Pacific, with North America and EMEA growing more moderately. The increase in ADR was driven in part by the continued adoption of RNPL. Non-GAAP Financial Measures Our non-GAAP financial measures include Adjusted EBITDA, Adjusted EBITDA Margin, FCF, and FCF Margin, which are described below. A reconciliation of each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with U.S. GAAP is provided below. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures. Adjusted EBITDA and Adjusted EBITDA Margin have limitations as a financial measure, should be considered as supplemental in nature, and are not meant as a substitute for the related financial information prepared in accordance with U.S. GAAP. Because of these limitations, Adjusted EBITDA and Adjusted EBITDA Margin should be considered alongside other financial performance measures, including net income and net income margin as well as our other U.S. GAAP results. FCF and FCF Margin have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of other U.S. GAAP financial measures, such as net cash provided by operating activities and net cash provided by operating activities margin. FCF and FCF Margin do not reflect our ability to meet future contractual commitments and may be calculated differently by other companies in our industry, limiting their usefulness as comparative measures. 24 Table of Contents Non-GAAP MeasureDefinitionPurpose of Non-GAAP Measure Adjusted EBITDA & Adjusted EBITDA MarginAdjusted EBITDA: Net income adjusted for: provision for income taxes, other income (expense), net, Interest expense, interest income, depreciation and amortization, stock-based compensation expense, acquisition-related impacts consisting of gains (losses) recognized on changes in the fair value of contingent consideration arrangements, settlements and reserves for lodging, withholding, transactional and other non-income taxes where significant uncertainty exists as to how these taxes apply to users of our platform and Airbnb, and stock-settlement obligations, which represent employer and related taxes related to our Initial Public Offering ( IPO ). Adjusted EBITDA Margin: Adjusted EBITDA divided by revenue. Enhances comparability on a consistent basis and provides investors with useful insight into the underlying trends of the business. Used by management to make operating decisions such as evaluating performance, performing strategic planning, and budgeting. FCF & FCF MarginFCF: Net cash provided by operating activities less purchases of property and equipment. FCF Margin: FCF divided by revenue. Indicator of liquidity that provides information to our management and investors about the amount of cash generated from operations, after purchases of property and equipment, that can be used for strategic initiatives. Used by management to measure operational performance to assess our ability to generate cash from ongoing business operations, and to make decisions about capital allocation. Constant currency revenue growth rate The change in the current period revenue over the prior comparable period where current period foreign currency revenue is translated using the exchange rates of the comparative period. Enhances comparability and provides investors with useful insight into the operational changes in revenue. Used by management for financial and operational decision-making and as a means to evaluate performance by excluding the effects of foreign currency volatility which is not indicative of our core operating results. The following table summarizes our non-GAAP financial measures, along with the most directly comparable U.S. GAAP measure (in millions, except percentages): Three Months Ended June 30,Six Months Ended June 30, 2025202620252026 $642 $816 $796 $976 Net income margin21 %23 %15 %16 % Adjusted EBITDA$1,043 $1,261 $1,460 $1,780 Adjusted EBITDA Margin34 %35 %27 %28 % Net cash provided by operating activities$975 $1,270 $2,764 $2,978 Net cash provided by operating activities margin31 %35 %51 %47 % FCF$962 $1,253 $2,743 $2,957 FCF Margin31 %35 %51 %47 % 25 Table of Contents Adjusted EBITDA Reconciliation The following is a reconciliation of net income to Adjusted EBITDA (in millions, except percentages): Three Months Ended June 30,Six Months Ended June 30, 2025202620252026 $3,096 $3,608 $5,368 $6,286 Net income $642 $816 $796 $976 Adjusted to exclude the following: Provision for income taxes137 81 156 202 Other (income) expense, net 17 7 50 (54) Interest expense6 37 11 58 Interest income(190)(183)(363)(338) Depreciation and amortization21 17 46 39 Stock-based compensation expense424 487 782 897 Acquisition-related impacts (2)1 (2)(1) Lodging taxes, host withholding taxes, and transactional taxes, net(7)(2)(11)1 Stock-settlement obligations related to IPO (5) (5) Adjusted EBITDA$1,043 $1,261 $1,460 $1,780 Adjusted EBITDA Margin 34 %35 %27 %28 % The above items are excluded from our Adjusted EBITDA measure because they are non-cash in nature, or because the amount and timing of these items are unpredictable, not driven by core results of operations, and renders comparisons with prior periods and competitors less meaningful. The increase in Adjusted EBITDA and Adjusted EBITDA margin for the three and six months ended June 30, 2026, compared to the same periods in the prior year, was primarily due to revenue growth from an increase in the number of check-ins for Nights and Seats Booked and an increase in ADR, which outpaced the growth in our operating expenses. Free Cash Flow Reconciliation The following is a reconciliation of net cash provided by operating activities to FCF (in millions, except percentages): Three Months Ended June 30,Six Months Ended June 30, 2025202620252026 $3,096 $3,608 $5,368 $6,286 Net cash provided by operating activities$975 $1,270 $2,764 $2,978 Purchases of property and equipment(13)(17)(21)(21) FCF$962 $1,253 $2,743 $2,957 FCF Margin31 %35 %51 %47 % % of Revenue2026% of Revenue% Change$3,096 100 %$3,608 100 %17 %544 18 633 18 16 332 10 361 9 9 610 20 672 19 10 691 22 875 24 27 307 10 309 9 1 2,484 80 2,850 79 15 612 20 758 21 24 190 6 183 5 (4)(6) (37)(1)517 (17)(1)(7) 59 779 25 897 25 15 137 4 81 2 (41)$642 21 %$816 23 %27 %% of Total 2026% of Total % Change$23 5 %$38 8 %65 %279 66 298 61 7 52 12 67 14 29 70 17 84 17 20 $424 100 %$487 100 %15 %% of Revenue2026% of Revenue% Change$5,368 100 %$6,286 100 %17 %1,050 20 1,214 19 16 635 12 687 11 8 1,178 22 1,310 21 11 1,254 23 1,626 26 30 601 11 605 10 1 4,718 88 5,442 87 15 650 12 844 13 30 363 7 338 5 (7)(11) (58)(1)427 (50)(1)54 2 208 952 18 1,178 19 24 156 3 202 3 29 $796 15 %$976 16 %23 %% of Total2026% of Total% Change$44 6 %$63 7 %43 %509 65 561 62 10 96 12 122 14 27 133 17 151 17 14 $782 100 %$897 100 %15 %Six Months Ended June 30, 20252026 % Change 20252026 % Change (in millions, except percentages) Revenue$3,096 $3,608 17 %$5,368 $6,286 17 % Three Months Ended June 30, 2026 Compared with the Same Period in 2025 Revenue increased $512 million, or 17%, primarily due to an increase in the number of check-ins relating to Nights and Seats Booked and an increase in ADR. On a constant currency basis, revenue increased 13% compared to the same period in the prior year. Six Months Ended June 30, 2026 Compared with the Same Period in 2025 Revenue increased $918 million, or 17%, primarily due to an increase in the number of check-ins relating to Nights and Seats Booked and an increase in ADR. On a constant currency basis, revenue increased 14% compared to the same period in the prior year. 28 Table of Contents Cost of Revenue Three Months Ended June 30,Six Months Ended June 30, 20252026 % Change 20252026 % Change (in millions, except percentages) Cost of revenue$544 $633 16 %$1,050 $1,214 16 % Percentage of revenue18 %18 %20 %19 % Three Months Ended June 30, 2026 Compared with the Same Period in 2025 Cost of revenue increased $89 million, or 16%, primarily due to a $68 million increase in merchant fees, a $13 million increase in chargebacks, and a $12 million increase in server costs. The increase in merchant fees was driven by higher net pay-in volume. The increase in chargebacks was driven by growth in GBV and a slight increase in our chargeback rate. The increase in server costs was primarily driven by higher amortization related to reserved instance purchases and increased infrastructure spend. These increases were partially offset by a decrease in amortization expenses related to capitalized internal-use software projects, as certain projects became fully amortized during the period. Six Months Ended June 30, 2026 Compared with the Same Period in 2025 Cost of revenue increased $164 million, or 16%, primarily due to a $131 million increase in merchant fees, a $25 million increase in chargebacks, and a $15 million increase in server costs. The increase in merchant fees was driven by higher net pay-in volume. The increase in chargebacks was driven by growth in GBV and a slight increase in our chargeback rate. The increase in server costs was primarily driven by higher amortization related to reserved instance purchases and increased infrastructure spend. These increases were partially offset by a decrease in amortization expenses related to capitalized internal-use software projects, as certain projects became fully amortized during the period. Operations and Support Three Months Ended June 30,Six Months Ended June 30, 20252026 % Change 20252026 % Change (in millions, except percentages) Operations and support$332 $361 9 %$635 $687 8 % Percentage of revenue10 %9 %12 %11 % Three Months Ended June 30, 2026 Compared with the Same Period in 2025 Operations and support expense increased $29 million, or 9%, primarily due to a $27 million increase in payroll-related expenses driven by higher average headcount, a $10 million increase in customer relations costs driven by higher make-good payouts and related case reserves, and a $7 million increase in insurance costs driven by higher host liability insurance premiums. These increases were partially offset by a $17 million decrease in third-party service provider costs due to lower agent contact volume resulting from increased use of artificial intelligence ( AI ) in community support. Six Months Ended June 30, 2026 Compared with the Same Period in 2025 Operations and support expense increased $52 million, or 8%, primarily due to a $41 million increase in payroll-related expenses driven by higher average headcount, a $14 million increase in customer relations costs driven by higher make-good payouts and related case reserves, and a $9 million increase in insurance costs driven by higher host liability insurance premiums. These increases were partially offset by a $15 million decrease in third-party service provider costs due to lower agent contact volume resulting from increased use of AI in community support. Product Development Three Months Ended June 30,Six Months Ended June 30, 20252026 % Change 20252026 % Change (in millions, except percentages) Product development$610 $672 10 %$1,178 $1,310 11 % Percentage of revenue20 %19 %22 %21 % Three Months Ended June 30, 2026 Compared with the Same Period in 2025 Product development expense increased $62 million, or 10%, primarily due to a $62 million increase in payroll-related expenses resulting from an increase in average headcount. 29 Table of Contents Six Months Ended June 30, 2026 Compared with the Same Period in 2025 Product development expense increased $132 million, or 11%, primarily due to a $132 million increase in payroll-related expenses resulting from an increase in average headcount. Sales and Marketing Three Months Ended June 30,Six Months Ended June 30, 20252026 % Change 20252026 % Change (in millions, except percentages) Brand and performance marketing$446 $579 30 %$824 $1,091 32 % Field operations and policy245 296 21 %430 535 24 % Total sales and marketing$691 $875 27 %$1,254 $1,626 30 % Percentage of revenue22 %24 %23 %26 % Three Months Ended June 30, 2026 Compared with the Same Period in 2025 Sales and marketing expense increased $184 million, or 27%, primarily due to a $132 million increase in marketing spend, driven by higher paid growth marketing initiatives in emerging markets and partnerships, and a $48 million increase in payroll-related expenses driven by higher average headcount, partially offset by a decrease in third-party service provider expenses incurred to support the expansion and optimization of Airbnb Experiences and Services supply. Six Months Ended June 30, 2026 Compared with the Same Period in 2025 Sales and marketing expense increased $372 million, or 30%, primarily due to a $258 million increase in marketing spend, driven by higher paid growth marketing initiatives in emerging markets and partnerships, a $90 million increase in payroll-related expenses driven by higher average headcount, and a $10 million increase in third-party service provider expenses incurred to support the expansion and optimization of Airbnb Experiences and Services supply. General and Administrative Three Months Ended June 30,Six Months Ended June 30, 20252026 % Change 20252026 % Change (in millions, except percentages) General and administrative$307 $309 1 %$601 $605 1 % Percentage of revenue10 %9 %11 %10 % Three Months Ended June 30, 2026 Compared with the Same Period in 2025 General and administrative expense increased by $2 million, or 1%. The increase was primarily due to a $32 million increase in payroll-related expenses driven by higher average headcount, largely offset by a $28 million decrease in non-income taxes. Six Months Ended June 30, 2026 Compared with the Same Period in 2025 General and administrative expense increased by $4 million, or 1%. The increase was primarily due to a $38 million increase in payroll-related expenses driven by higher average headcount, and a $4 million increase in various fees and penalties, largely offset by a $38 million decrease in non-income taxes. Interest Income Three Months Ended June 30,Six Months Ended June 30, 20252026 % Change 20252026 % Change (in millions, except percentages) Interest income$190 $183 (4)%$363 $338 (7)% Six Months Ended June 30, 20252026 % Change 20252026 % Change (in millions, except percentages) Interest expense$(6)$(37)517 %$(11)$(58)427 % Six Months Ended June 30, 20252026 % Change 20252026 % Change (in millions, except percentages) Other income (expense), net$(17)$(7)59 %$(50)$54 208 % Six Months Ended June 30, 20252026 % Change 20252026 % Change (in millions, except percentages) Provision for income taxes$137 $81 (41)%$156 $202 29 % Effective tax rate18 %9 %16 %17 % Three Months Ended June 30, 2026 Compared with the Same Period in 2025 The provision for income taxes decreased by $56 million, or 41%. The decrease was primarily due to a $77 million benefit in the quarter related to recently published guidance impacting prior year taxes, partially offset by a $9 million increase in current and deferred tax on U.S. and foreign earnings in line with profitability growth. See Note 10, Income Taxes, to our unaudited condensed consolidated financial statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for additional information. Six Months Ended June 30, 2026 Compared with the Same Period in 2025 The provision for income taxes increased by $46 million, or 29%. The increase was primarily due to a $29 million increase in current and deferred tax on U.S. and foreign earnings in line with profitability growth and $16 million from decreased excess tax benefits on stock-based compensation. 31 Table of Contents Liquidity and Capital Resources Sources and Conditions of Liquidity As of June 30, 2026, our principal sources of liquidity were cash, cash equivalents, and short-term investments totaling $12.1 billion. As of June 30, 2026, cash and cash equivalents totaled $6.8 billion, which included $3.3 billion held by our foreign subsidiaries. Cash and cash equivalents consist of cash on deposit with banks and interest-bearing accounts and highly-liquid securities with an original maturity of 90 days or less. As of June 30, 2026, short-term investments totaled $5.2 billion. Short-term investments primarily consist of highly-liquid investment grade corporate debt securities, time deposits, mortgage-backed and asset-backed securities, U.S. government and government agency debt securities ( government bonds ), certificates of deposit, and commercial paper. These short-term investments do not include funds of $12.2 billion as of June 30, 2026, that were held for bookings in advance of guests completing check-ins, which are recorded separately on our unaudited condensed consolidated balance sheets in funds receivable and amounts held on behalf of customers with a corresponding liability in funds payable and amounts payable to customers. In March 2026, we issued $2.5 billion aggregate principal amount of Senior Notes, consisting of $850 million of 4.40% senior notes due March 2029, $850 million of 4.65% senior notes due March 2031, and $800 million of 5.25% senior notes due March 2036. We utilized $2.0 billion of the net proceeds to fully repay our outstanding 2026 Notes upon their maturity. The remaining net proceeds of approximately $500 million (less underwriting discounts and offering expenses) were retained for general corporate purposes. See Note 7, Debt, to our unaudited condensed consolidated financial statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for additional information. We have access to $1.0 billion of commitments and a $200 million sub-limit for the issuance of letters of credit under the 2022 Credit Facility. As of June 30, 2026, no amounts were drawn under our 2022 Credit Facility and outstanding letters of credit totaled $20 million. See Note 7, Debt, to our unaudited condensed consolidated financial statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for additional information. Our cash and cash equivalents are generally held at large global systemically important banks which are subject to high capital requirements and are required to regularly perform stringent stress tests related to their ability to absorb capital losses. Our cash, cash equivalents, and short-term investments held outside the U.S. may be repatriated, subject to certain limitations, and would be available to be used to fund our domestic operations. However, repatriation of such funds may result in additional tax liabilities. We believe that our existing cash, cash equivalents, and short-term investments balances in the U.S. are sufficient to fund our working capital needs. Material Cash Requirements Our principal contractual obligations and commitments consist primarily of our long-term debt and the associated ongoing semi-annual interest payments. On March 16, 2026, we issued $2.5 billion aggregate principal amount of Senior Notes and utilized a portion of the net proceeds to fully repay the outstanding aggregate principal amount of our $2.0 billion convertible senior notes due 2026 ( 2026 Notes ). The Senior Notes bear fixed interest rates that will materially increase our ongoing semi-annual cash interest obligations. See Note 7, Debt, to our unaudited condensed consolidated financial statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for additional information. In August 2025, our board of directors approved a new share repurchase program with an authorization to purchase up to $6.0 billion of our Class A common stock. Share repurchases under the share repurchase program may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, or accelerated share repurchase transactions, or by any combination of such methods. Any such repurchases will be made from time to time subject to market and economic conditions, applicable legal requirements, and other relevant factors. The share repurchase program does not obligate us to repurchase any specific number of shares and may be modified, suspended, or terminated at any time at our discretion. During the three and six months ended June 30, 2026, we repurchased 7.9 million and 16.0 million shares of Class A common stock for $1.1 billion and $2.1 billion, respectively, through our share repurchase program. As of June 30, 2026, we had $3.4 billion available to repurchase shares of Class A common stock under our share repurchase program. Cash Flows The following table summarizes our cash flows (in millions): Six Months Ended June 30, 20252026 $2,764 $2,978 Net cash used in investing activities(242)(810) Net cash provided by financing activities2,473 3,541 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 689 (146) Net increase in cash, cash equivalents, and restricted cash$5,684 $5,563 Net cash provided by operating activities for the six months ended June 30, 2026 was $3.0 billion. This was primarily due to net income of $976 million and $819 million provided by net working capital items, reflecting growth in unearned fees, partially offset by an increase in prepaid assets, both driven by growth in bookings. Additionally, we had adjustments for non-cash operating expenses primarily consisting of $897 million of stock-based compensation. 32 Table of Contents While we experienced growth in bookings during the six months ended June 30, 2026, net cash provided by operating activities slightly improved compared to the $2.8 billion generated during the same period in the prior year. This reflected unearned fees growing at a rate less than the GBV growth rate during the six months ended June 30, 2026, compared to the same period in the prior year, which was primarily due to the increased guest adoption of our flexible payment options, which allow guests to pay closer to check-in dates rather than at time of booking, shifting the timing of cash collection and its recognition in operating activities. For example, under our RNPL option, payment is collected closer to check-in rather than at booking. Accordingly, unearned fees are not recorded, and operating cash flows are not generated until payment is received. Net cash used in investing activities for the six months ended June 30, 2026 was $810 million. This was primarily driven by purchases of short-term investments, partially offset by proceeds from the sale and maturity of our short-term and equity investments. Net cash provided by financing activities for the six months ended June 30, 2026 was $3.5 billion. This was primarily driven by a $5.4 billion increase in funds payable and amounts payable to customers resulting from the growth in GBV, $2.5 billion in net proceeds from the issuance of our new Senior Notes, which were partially offset by share repurchases of $2.1 billion, repayment of $2.0 billion of our 2026 Notes, and taxes paid related to tax on equity awards of $305 million. The effect of exchange rate changes on cash, cash equivalents, and restricted cash on our unaudited condensed consolidated statements of cash flows relates to certain assets, principally cash balances held on behalf of customers, that are denominated in currencies other than the functional currency of certain of our subsidiaries. For the six months ended June 30, 2026, we recorded a reduction of $146 million in cash, cash equivalents, and restricted cash, primarily due to the strengthening of the U.S. dollar against major currencies, mainly the Euro and British Pound. The impact of exchange rate changes on cash balances can serve as a natural hedge for the effect of exchange rates on our liabilities to our hosts and guests. We assess our liquidity in terms of our ability to generate cash to fund our short- and long-term cash requirements. As such, we believe that the cash flows generated from operating activities will meet our anticipated cash requirements in the short-term. In addition to normal working capital requirements, we anticipate that our short- and long-term cash requirements will include share repurchases, introduction of new products and offerings, timing and extent of spending to support our efforts to develop our platform, debt repayments, and expansion of sales and marketing activities. Our future capital requirements, however, will depend on many factors, including, but not limited to, our growth, headcount, and ability to attract and retain customers on our platform. Additionally, we may in the future raise additional capital or incur additional indebtedness to continue to fund our strategic initiatives. On a long-term basis, we plan to rely on either our access to the capital markets or our credit facility for any long-term funding not provided by operating cash flows and cash on hand. In the event that additional financing is required from outside sources, we may seek to raise additional funds at any time through equity, equity-linked arrangements, and/or debt, which may not be available on favorable terms, or at all. If we are unable to raise additional capital when desired and at reasonable rates, our business, results of operations, and financial condition could be materially adversely affected. Our liquidity is subject to various risks including the risks identified in Item 3. "Quantitative and Qualitative Disclosures About Market Risk" of Part I of this Quarterly Report on Form 10-Q. Critical Accounting Estimates Our discussion and analysis of our financial condition and results of operations are based upon our unaudited condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these unaudited condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. See Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2025 Annual Report for a discussion of the assumptions and judgments involved in our critical accounting estimates. On an ongoing basis, we evaluate our estimates and assumptions. Our actual results may differ from these estimates under different assumptions or conditions. Recent Accounting Pronouncements See Note 2, Significant Accounting Policies, to our unaudited condensed consolidated financial statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for a description of recently adopted accounting pronouncements and recently issued accounting pronouncements not yet adopted. 33 Table of Contents Item 3. Quantitative and Qualitative Disclosures About Market Risk There have been no material changes in our market risk set forth in Part II, Item 7A Quantitative and Qualitative Disclosures About Market Risk of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the 2025 Annual Report ) except for the following interest rate risk which supplements the market risks disclosed in the 2025 Annual Report. Interest Rate Risk As of June 30, 2026, we had $2.5 billion aggregate principal amount of unsecured senior notes ( Senior Notes ) outstanding. To manage our exposure to interest rate risk, we entered into interest rate swap agreements with an aggregate notional amount of approximately $1.7 billion that effectively converted the fixed interest rates on our $850 million of 4.65% senior notes due March 2031 and $800 million of 5.25% senior notes due March 2036 to floating interest rates based on the Secured Overnight Financing Rate. Accordingly, our exposure to fluctuations in market interest rates is on the hedged fixed-rate debt of approximately $1.7 billion. An immediate hypothetical 100 basis point increase or decrease in market interest rates would result in an estimated change of $17 million in our annualized interest expense, and would also impact the fair value of our hedged debt and related derivative instruments. The remainder of our outstanding Senior Notes bear interest at fixed rates, and therefore do not subject us to financial statement risk associated with cash flow changes in interest rates. See Note 6, Derivative Instruments and Hedging, and Note 7, Debt, to our unaudited condensed consolidated financial statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for additional information. Item 4. Controls and Procedures Evaluation of Disclosure Controls and Procedures Our management, with the participation of our principal executive officer and principal financial officer, conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective as of June 30, 2026, the end of the period covered by this Quarterly Report on Form 10-Q, to provide reasonable assurance that information required to be disclosed by us in reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized, and reported within the time periods specified in the SEC rules and forms and (ii) accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Changes in Internal Control Over Financial Reporting There were no changes in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, during the quarter ended June 30, 2026 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Limitations on Controls Our disclosure controls and procedures and internal control over financial reporting are designed to provide reasonable assurance of achieving their desired objectives. Management does not expect, however, that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all error and fraud. Any control system, no matter how well designed and operated, is based upon certain assumptions and can provide only reasonable, not absolute, assurance that its objectives will be met. Further, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within our Company have been detected. 34 Table of Contents PART II. OTHER INFORMATION Item 1. Legal Proceedings We are currently involved in, and may in the future be involved in, legal proceedings, claims, and government investigations in the ordinary course of business. These include proceedings, claims, and investigations relating to, among other things, regulatory matters, commercial matters, intellectual property, competition, tax, employment, pricing, discrimination, consumer rights, personal injury, and property rights. See Note 9, Commitments and Contingencies, and Note 10, Income Taxes, to our unaudited condensed consolidated financial statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q. Depending on the nature of the proceeding, claim, or investigation, we may be subject to monetary damage awards, fines, penalties, or injunctive orders. Furthermore, the outcome of these matters could materially adversely affect our business, results of operations, and financial condition. The outcomes of legal proceedings, claims, and government investigations are inherently unpredictable and subject to significant judgment to determine the likelihood and amount of loss related to such matters. While it is not possible to determine the outcomes, we believe based on our current knowledge that the resolution of all such pending matters will not, either individually or in the aggregate, have a material adverse effect on our business, results of operations, cash flows, or financial condition. Item 1A. Risk Factors There have been no material changes from the risk factors set forth in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the 2025 Annual Report ) and Part II, Item IA of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. Our business, operations, and financial results are subject to various risks and uncertainties that could materially adversely affect our business, results of operations, financial condition, and the trading price of our Class A common stock. Investors should carefully read and consider the risks and uncertainties included in the reports referenced above, together with all of the other information in such reports and this Quarterly Report on Form 10-Q, including the section titled Management s Discussion and Analysis of Financial Condition and Results of Operations and our unaudited condensed consolidated financial statements and related notes, and other documents that we file with the U.S. Securities and Exchange Commission. The risks and uncertainties described in these reports may not be the only ones we face. The factors discussed in these reports, among others, could cause our actual results to differ materially from historical results and those expressed in forward-looking statements made by us or on our behalf in filings with the SEC, press releases, communications with investors, and oral statements. Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Issuer Purchases of Equity Securities The following table sets forth information relating to repurchases of our equity securities during the three months ended June 30, 2026 (in millions, except per share amounts): PeriodTotal Number of Shares Purchased Average Price Paid per Share (1) Total Number of Shares Purchased as Part of Publicly Announced Plans or ProgramsApproximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (2) 2.7$133.35 2.7$4,146 May 1 - 312.6$135.82 2.6$3,798 June 1 - 302.6$136.45 2.6$3,447 7.9$135.17 7.9 (1)Includes broker commissions. (2)On August 6, 2025, we announced that our board of directors approved a share repurchase program with authorization to purchase up to $6.0 billion of our Class A common stock at management s discretion. The share repurchase program does not have an expiration date, does not obligate us to repurchase any specific number of shares, and may be modified, suspended, or terminated at any time at our discretion. Item 3. Defaults Upon Senior Securities None. Item 4. Mine Safety Disclosures Not applicable. 35 Table of Contents Item 5. Other Information Director and Officer 10b5-1 Trading Plans ( 10b5-1 Plans ) The following table sets forth the material terms of 10b5-1 Plans intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) that were adopted, terminated, or modified by our directors and officers during the three months ended June 30, 2026: Name and Title of Director or OfficerAction Date Expiration DateMaximum Number of Shares to be Sold Under the Plan David Bernstein, Chief Accounting Officer Adopt5/26/20262/25/202714,809 Exhibit Number Exhibit Description Form File NumberDate Number Filed Herewith 3.1Restated Certificate of Incorporation of the Registrant 8-K001-397786/7/20243.1 3.2Amended and Restated Bylaws of the Registrant 8-K001-3977812/14/20203.2 31.1Certification of Principal Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 X 31.2Certification of Principal Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 X 32.1*Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 X 101The following unaudited condensed financial statements from the Company s 10-Q, formatted as Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Stockholders Equity, (v) Condensed Consolidated Statements of Cash Flows, and (vi) Notes to Condensed Consolidated Financial StatementsX 104Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)X *The certifications attached as Exhibit 32.1 that accompany this Quarterly Report on Form 10-Q are deemed furnished and not filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of Airbnb, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing. 36 Table of Contents Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. AIRBNB, INC. By:/s/ BRIAN CHESKY Date: August 6, 2026 Brian Chesky Chief Executive Officer (Principal Executive Officer) By:/s/ ELINOR MERTZ Date: August 6, 2026 Elinor Mertz Chief Financial Officer (Principal Financial Officer) 37