filings.toolsItem 1. Condensed Consolidated Financial Statements
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Item 1. Condensed Consolidated Financial Statements
Airbnb, Inc.
Condensed Consolidated Balance Sheets
(in millions, except par value)
(unaudited)
| December 31, 2024 | June 30, 2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 6,864 | $ | 7,402 | ||||
| Short-term investments | 3,747 | 3,954 | ||||||
| Funds receivable and amounts held on behalf of customers | 5,931 | 11,067 | ||||||
| Prepaids and other current assets | 638 | 757 | ||||||
| Total current assets | 17,180 | 23,180 | ||||||
| Deferred income tax assets | 2,439 | 2,428 | ||||||
| Goodwill and intangible assets, net | 777 | 776 | ||||||
| Other assets, noncurrent | 563 | 608 | ||||||
| Total assets | $ | 20,959 | $ | 26,992 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accrued expenses, accounts payable, and other current liabilities | $ | 2,614 | $ | 2,895 | ||||
| Funds payable and amounts payable to customers | 5,931 | 11,067 | ||||||
| Current portion of long-term debt | — | 1,997 | ||||||
| Unearned fees | 1,616 | 2,857 | ||||||
| Total current liabilities | 10,161 | 18,816 | ||||||
| Long-term debt | 1,995 | — | ||||||
| Other liabilities, noncurrent | 391 | 394 | ||||||
| Total liabilities | 12,547 | 19,210 | ||||||
| Commitments and contingencies (Note 9) | ||||||||
| Stockholders’ equity: | ||||||||
| Common stock, $0.0001 par value: Class A - authorized 2,000 shares; 434 and 430 shares issued & outstanding, respectively; Class B - authorized 710 shares; 189 and 183 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 capital | 12,602 | 13,168 | ||||||
| Accumulated other comprehensive income (loss) | 35 | (128) | ||||||
| Accumulated deficit | (4,225) | (5,258) | ||||||
| Total stockholders’ equity | 8,412 | 7,782 | ||||||
| Total liabilities and stockholders’ equity | $ | 20,959 | $ | 26,992 |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
Airbnb, Inc.
Condensed Consolidated Statements of Operations
(in millions, except per share amounts)
(unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | ||||||||||||||
| Revenue | $ | 2,748 | $ | 3,096 | $ | 4,890 | $ | 5,368 | |||||||||
| Costs and expenses: | |||||||||||||||||
| Cost of revenue | 506 | 544 | 986 | 1,050 | |||||||||||||
| Operations and support | 338 | 332 | 623 | 635 | |||||||||||||
| Product development | 519 | 610 | 994 | 1,178 | |||||||||||||
| Sales and marketing | 573 | 691 | 1,087 | 1,254 | |||||||||||||
| General and administrative | 315 | 307 | 602 | 601 | |||||||||||||
| Total costs and expenses | 2,251 | 2,484 | 4,292 | 4,718 | |||||||||||||
| Income from operations | 497 | 612 | 598 | 650 | |||||||||||||
| Interest income | 226 | 190 | 428 | 363 | |||||||||||||
| Other expense, net | (42) | (23) | (52) | (61) | |||||||||||||
| Income before income taxes | 681 | 779 | 974 | 952 | |||||||||||||
| Provision for income taxes | 126 | 137 | 155 | 156 | |||||||||||||
| Net income | $ | 555 | $ | 642 | $ | 819 | $ | 796 | |||||||||
| Net income per share attributable to Class A and Class B common stockholders: | |||||||||||||||||
| Basic | $ | 0.87 | $ | 1.04 | $ | 1.29 | $ | 1.29 | |||||||||
| Diluted | $ | 0.86 | $ | 1.03 | $ | 1.26 | $ | 1.27 | |||||||||
| Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders: | |||||||||||||||||
| Basic | 635 | 615 | 636 | 618 | |||||||||||||
| Diluted | 649 | 626 | 651 | 629 |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
Airbnb, Inc.
Condensed Consolidated Statements of Comprehensive Income
(in millions)
(unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | ||||||||||||||
| Net income | $ | 555 | $ | 642 | $ | 819 | $ | 796 | |||||||||
| Other comprehensive income (loss): | |||||||||||||||||
| Net unrealized gain (loss) on available-for-sale marketable securities, net of tax | (2) | 1 | (5) | 5 | |||||||||||||
| Net unrealized gain (loss) on cash flow hedges, net of tax | 14 | (130) | 62 | (203) | |||||||||||||
| Foreign currency translation adjustments | (8) | 22 | (13) | 35 | |||||||||||||
| Other comprehensive income (loss) | 4 | (107) | 44 | (163) | |||||||||||||
| Comprehensive income | $ | 559 | $ | 535 | $ | 863 | $ | 633 |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
Airbnb, Inc.
Condensed Consolidated Statements of Stockholders’ Equity
(in millions)
(unaudited)
| Six months ended June 30, 2024 | ||||||||||||||||||||
| Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
| Shares | Amount | |||||||||||||||||||
| Balances as of December 31, 2023 | 638 | $ | — | $ | 11,639 | $ | (49) | $ | (3,425) | $ | 8,165 | |||||||||
| Net income | — | — | — | — | 264 | 264 | ||||||||||||||
| Other comprehensive income | — | — | — | 40 | — | 40 | ||||||||||||||
| Common stock and stock-based awards issued, net of shares withheld for employee taxes | 3 | — | (122) | — | — | (122) | ||||||||||||||
| Stock-based compensation | — | — | 302 | — | — | 302 | ||||||||||||||
| Repurchases of common stock | (5) | — | — | — | (753) | (753) | ||||||||||||||
| Balances as of March 31, 2024 | 636 | — | 11,819 | (9) | (3,914) | 7,896 | ||||||||||||||
| Net income | — | — | — | — | 555 | 555 | ||||||||||||||
| Other comprehensive loss | — | — | — | 4 | — | 4 | ||||||||||||||
| Common stock and stock-based awards issued, net of shares withheld for employee taxes | 2 | — | (88) | — | — | (88) | ||||||||||||||
| Shares issued upon net settlement of warrants exercised | 1 | — | — | — | — | — | ||||||||||||||
| Stock-based compensation | — | — | 385 | — | — | 385 | ||||||||||||||
| Repurchases of common stock | (5) | — | — | — | (750) | (750) | ||||||||||||||
| Balances as of June 30, 2024 | 634 | $ | — | $ | 12,116 | $ | (5) | $ | (4,109) | $ | 8,002 | |||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
Airbnb, Inc.
Condensed Consolidated Statements of Stockholders’ Equity
(in millions)
(unaudited)
| Six months ended June 30, 2025 | ||||||||||||||||||||
| Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
| Shares | Amount | |||||||||||||||||||
| Balances as of December 31, 2024 | 623 | $ | — | $ | 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 taxes | 2 | — | (124) | — | — | (124) | ||||||||||||||
| Stock-based compensation | — | — | 363 | — | — | 363 | ||||||||||||||
| Repurchases of common stock | (6) | — | — | — | (812) | (812) | ||||||||||||||
| Balances as of March 31, 2025 | 619 | — | 12,841 | (21) | (4,883) | 7,937 | ||||||||||||||
| Net income | — | — | — | — | 642 | 642 | ||||||||||||||
| Other comprehensive income | — | — | — | (107) | — | (107) | ||||||||||||||
| Common stock and stock-based awards issued, net of shares withheld for employee taxes | 2 | — | (98) | — | — | (98) | ||||||||||||||
| Stock-based compensation | — | — | 425 | — | — | 425 | ||||||||||||||
| Repurchases of common stock | (8) | — | — | — | (1,017) | (1,017) | ||||||||||||||
| Balances as of June 30, 2025 | 613 | $ | — | $ | 13,168 | $ | (128) | $ | (5,258) | $ | 7,782 | |||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
Airbnb, Inc.
Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)
| Six Months Ended June 30, | ||||||||
| 2024 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 819 | $ | 796 | ||||
| Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
| Stock-based compensation expense | 677 | 782 | ||||||
| Deferred income taxes | 65 | 70 | ||||||
| Other, net | 89 | 145 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Prepaids and other assets | (105) | (275) | ||||||
| Accrued expenses and other liabilities | 230 | 10 | ||||||
| Unearned fees | 1,199 | 1,236 | ||||||
| Net cash provided by operating activities | 2,974 | 2,764 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of short-term investments | (1,520) | (1,643) | ||||||
| Sales and maturities of short-term investments | 1,348 | 1,432 | ||||||
| Other investing activities, net | (22) | (31) | ||||||
| Net cash used in investing activities | (194) | (242) | ||||||
| Cash flows from financing activities: | ||||||||
| Change in funds payable and amounts payable to customers | 4,654 | 4,510 | ||||||
| Repurchases of common stock | (1,499) | (1,817) | ||||||
| Taxes paid related to net share settlement of equity awards | (309) | (295) | ||||||
| Proceeds from exercise of equity awards and employee stock purchase plan | 99 | 75 | ||||||
| Net cash provided by financing activities | 2,945 | 2,473 | ||||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (202) | 689 | ||||||
| Net increase in cash, cash equivalents, and restricted cash | 5,523 | 5,684 | ||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 12,667 | 12,760 | ||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 18,190 | $ | 18,444 | ||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
Note 1. Description of Business
Airbnb, Inc. (the “Company” or “Airbnb”) operates a global platform for unique stays, experiences, and services. The Company’s marketplace model connects hosts and guests (collectively referred to as “customers”) online or through mobile devices to book spaces, experiences, and services around the world.
Note 2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial information. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2024, included in the Company’s Annual Report on Form 10-K, filed with the SEC on February 13, 2025 (“2024 Annual Report”). The results for the interim periods are not necessarily indicative of results for the full year. Certain immaterial amounts in prior periods have been reclassified to conform to the current period presentation.
In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the unaudited condensed consolidated financial position, results of operations, and cash flows for these interim periods.
Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries in accordance with consolidation accounting guidance. All intercompany transactions have been eliminated in consolidation.
Use of Estimates
The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. The Company regularly evaluates its estimates, including those related to bad debt reserves, fair value of investments, useful lives of long-lived assets and intangible assets, valuation of goodwill and intangible assets from acquisitions, contingent liabilities, insurance reserves, revenue recognition, valuation of common stock, stock-based compensation, and income and non-income taxes, among others. Actual results could differ materially from these estimates.
As the impact of the macroeconomic and geopolitical conditions, including inflation, interest rates, foreign currency fluctuations, tariffs, and trade controls continue to evolve, estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require increased judgment. These estimates and assumptions may change in future periods and will be recognized in the unaudited condensed consolidated financial statements as new events occur and additional information becomes known. To the extent the Company’s actual results differ materially from those estimates and assumptions, the Company’s future unaudited condensed consolidated financial statements could be affected.
Recently Adopted Accounting Standards
There are no recently adopted accounting pronouncements.
Recently Issued Accounting Standards Not Yet Adopted
In November 2024, the Financial Accounting Standards Board (the “FASB”) issued an update to improve the disclosures about an entity’s expenses, for both annual and interim periods in a tabular format in the footnotes to the financial statements, to include disaggregated information about specific categories underlying certain income statement expense line items. The update is effective for public companies on a prospective basis, with the option for retrospective application in fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the standard to determine its impact on the Company's disclosures.
In December 2023, the FASB issued an update to standardize income tax disclosures primarily related to the presentation of the effective tax rate reconciliation and income taxes paid information in the financial statements and disclosures. The standard is effective for annual reporting periods beginning after December 15, 2024. The Company is currently evaluating the standard to determine its impact on the Company's disclosures.
There are other new accounting pronouncements issued by the FASB that the Company has adopted or will adopt, as applicable, and the Company does not believe any of these accounting pronouncements have had, or will have, a material impact on its unaudited condensed consolidated financial statements or disclosures.
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
Note 3. Supplemental Financial Statement Information
Cash, Cash Equivalents, and Restricted Cash
The following table reconciles cash, cash equivalents, and restricted cash reported on the Company’s unaudited condensed consolidated balance sheets to the total amount presented in the unaudited condensed consolidated statements of cash flows (in millions):
| December 31, 2024 | June 30, 2025 | |||||||
| Cash and cash equivalents | $ | 6,864 | $ | 7,402 | ||||
| Cash and cash equivalents included in funds receivable and amounts held on behalf of customers | 5,871 | 10,998 | ||||||
| Restricted cash included in prepaids and other current assets | 25 | 44 | ||||||
| Total cash, cash equivalents, and restricted cash presented in the unaudited condensed consolidated statements of cash flows | $ | 12,760 | $ | 18,444 |
Supplemental Disclosures of Cash Flow Information
Supplemental cash flow information consisted of the following (in millions):
| Six Months Ended June 30, | ||||||||
| 2024 | 2025 | |||||||
| Cash paid for income taxes, net of refunds | $ | 127 | $ | 168 | ||||
| Non-cash financing activities: | ||||||||
| Net settlement of cashless warrants exercised | $ | 22 | $ | — |
Supplemental disclosures of balance sheet information
Supplemental balance sheet information consisted of the following (in millions):
| December 31, 2024 | June 30, 2025 | |||||||
| Prepaids and other current assets: | ||||||||
| Customer receivables | $ | 175 | $ | 224 | ||||
| Customer receivables reserve | (28) | (38) | ||||||
| Other | 491 | 571 | ||||||
| Prepaids and other current assets | $ | 638 | $ | 757 | ||||
| Other assets, noncurrent: | ||||||||
| Property and equipment, net | $ | 147 | $ | 132 | ||||
| Operating lease right-of-use assets | 144 | 144 | ||||||
| Other | 272 | 332 | ||||||
| Other assets, noncurrent | $ | 563 | $ | 608 | ||||
| Accrued expenses, accounts payable, and other current liabilities: | ||||||||
| Indirect taxes payable and estimated lodging and withholding tax liabilities | $ | 1,055 | $ | 1,197 | ||||
| Compensation and employee benefits | 498 | 407 | ||||||
| Accounts payable | 142 | 221 | ||||||
| Operating lease liabilities, current | 63 | 67 | ||||||
| Other | 856 | 1,003 | ||||||
| Accrued expenses, accounts payable, and other current liabilities | $ | 2,614 | $ | 2,895 | ||||
| Other liabilities, noncurrent: | ||||||||
| Operating lease liabilities, noncurrent | $ | 236 | $ | 218 | ||||
| Other liabilities, noncurrent | 155 | 176 | ||||||
| Other liabilities, noncurrent | $ | 391 | $ | 394 |
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
Payments to CustomersThe Company makes payments to customers as part of its incentive programs (composed of referral programs and marketing promotions) and refund activities. The payments are generally in the form of coupon credits to be applied toward future bookings or as cash refunds.
The following table summarizes total payments made to customers (in millions):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | ||||||||||||||
| Reductions to revenue | $ | 118 | $ | 117 | $ | 205 | $ | 221 | |||||||||
| Charges to operations and support | 30 | 26 | 50 | 47 | |||||||||||||
| Charges to sales and marketing expense | 10 | 16 | 19 | 31 | |||||||||||||
| Total payments made to customers | $ | 158 | $ | 159 | $ | 274 | $ | 299 |
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, | ||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | ||||||||||||||
| North America | $ | 1,308 | $ | 1,377 | $ | 2,323 | $ | 2,431 | |||||||||
| Europe, the Middle East, and Africa | 1,048 | 1,233 | 1,615 | 1,830 | |||||||||||||
| Latin America | 185 | 231 | 492 | 574 | |||||||||||||
| Asia Pacific | 207 | 255 | 460 | 533 | |||||||||||||
| Total revenue disaggregated by geographic region | $ | 2,748 | $ | 3,096 | $ | 4,890 | $ | 5,368 |
Note 4. Investments
The following tables summarize the Company’s investments by major security type (in millions):
| December 31, 2024 | ||||||||||||||
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Total Estimated Fair Value | |||||||||||
| Short-term investments | ||||||||||||||
| Debt securities: | ||||||||||||||
| Corporate debt securities | $ | 2,176 | $ | 4 | $ | (3) | $ | 2,177 | ||||||
| Mortgage-backed and asset-backed securities | 381 | 1 | (4) | 378 | ||||||||||
| Government bonds | 224 | — | — | 224 | ||||||||||
| Commercial paper | 214 | — | — | 214 | ||||||||||
| Certificates of deposit | 52 | — | — | 52 | ||||||||||
| Total debt securities | 3,047 | 5 | (7) | 3,045 | ||||||||||
| Time deposits | 702 | — | — | 702 | ||||||||||
| Total short-term investments | $ | 3,749 | $ | 5 | $ | (7) | $ | 3,747 | ||||||
| Long-term investments (1) | ||||||||||||||
| Debt securities: | ||||||||||||||
| Corporate debt securities | $ | 13 | $ | — | $ | (9) | $ | 4 |
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
| June 30, 2025 | ||||||||||||||
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Total Estimated Fair Value | |||||||||||
| Short-term investments | ||||||||||||||
| Debt securities: | ||||||||||||||
| Corporate debt securities | $ | 2,305 | $ | 8 | $ | (1) | $ | 2,312 | ||||||
| Mortgage-backed and asset-backed securities | 430 | 1 | (3) | 428 | ||||||||||
| Government bonds | 230 | — | — | 230 | ||||||||||
| Commercial paper | 166 | — | — | 166 | ||||||||||
| Certificates of deposit | 111 | — | — | 111 | ||||||||||
| Total debt securities | 3,242 | 9 | (4) | 3,247 | ||||||||||
| Time deposits | 707 | — | — | 707 | ||||||||||
| Total short-term investments | $ | 3,949 | $ | 9 | $ | (4) | $ | 3,954 | ||||||
| Long-term investments (1) | ||||||||||||||
| Debt securities: | ||||||||||||||
| Corporate debt securities | $ | 13 | $ | — | $ | (9) | $ | 4 |
(1)Classified within other assets, noncurrent on the unaudited condensed consolidated balance sheets.
As of December 31, 2024 and June 30, 2025, the Company did not have any available-for-sale debt securities for which the Company recorded credit-related losses.
Unrealized gains and losses before reclassifications from accumulated other comprehensive income (loss) (“AOCI”) to other expense, net, and realized gains and losses reclassified from AOCI to other expense, net, were immaterial for the three and six months ended June 30, 2024 and 2025.
Debt securities in an unrealized loss position had an estimated fair value of $1.1 billion and $582 million, and unrealized losses of $17 million and $13 million as of December 31, 2024 and June 30, 2025, respectively. A total of $269 million and $136 million of these securities, with unrealized losses of $14 million and $13 million, were in a continuous unrealized loss position for more than twelve months as of December 31, 2024 and June 30, 2025, respectively.
The following table summarizes the contractual maturities of the Company’s available-for-sale debt securities (in millions):
| June 30, 2025 | ||||||||
| Amortized Cost | Estimated Fair Value | |||||||
| Due within one year | $ | 1,734 | $ | 1,735 | ||||
| Due after one year through five years | 1,422 | 1,419 | ||||||
| Due after five years | 99 | 97 | ||||||
| Total | $ | 3,255 | $ | 3,251 |
Investments Accounted for Under the Equity Method
As of December 31, 2024 and June 30, 2025, the carrying values of the Company’s equity method investments in privately-held companies were $47 million and $48 million, respectively. The Company recorded an impairment charge of $7 million for the six months ended June 30, 2025. There were no impairment charges recorded for the three months ended June 30, 2025. There were no impairment charges recorded during the six months ended June 30, 2024. Unrealized losses were immaterial for the three and six months ended June 30, 2024 and 2025.
Equity Investments Without Readily Determinable Fair Value
The Company holds investments in privately-held companies in the form of equity securities without readily determinable fair values and in which the Company does not have a controlling interest or significant influence. These investments had a net carrying value of $38 million and $8 million as of December 31, 2024 and June 30, 2025, respectively, and are classified within other assets, noncurrent on the unaudited condensed consolidated balance sheets.
For the six months ended June 30, 2025, the Company recorded a non-cash impairment charge of $30 million due to a decline in the investee’s financial condition. There were no upward adjustments for observable price changes recorded for the three months ended June 30, 2025. For the three and six months ended June 30, 2024, the Company recorded a non-cash impairment charge of $45 million due to a downward adjustment for an observable price change.
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
As of June 30, 2025, the cumulative impairment and downward adjustments for observable price changes were $131 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, 2024 | ||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents: | ||||||||||||||
| Money market funds | $ | 1,635 | $ | — | $ | — | $ | 1,635 | ||||||
| Commercial paper | — | 152 | — | 152 | ||||||||||
| Government bonds | — | 33 | — | 33 | ||||||||||
| Corporate debt securities | — | 2 | — | 2 | ||||||||||
| Total cash and cash equivalents | 1,635 | 187 | — | 1,822 | ||||||||||
| Short-term investments: | ||||||||||||||
| Corporate debt securities | — | 2,177 | — | 2,177 | ||||||||||
| Mortgage-backed and asset-backed securities | — | 378 | — | 378 | ||||||||||
| Government bonds | — | 224 | — | 224 | ||||||||||
| Commercial paper | — | 214 | — | 214 | ||||||||||
| Certificates of deposit | — | 52 | — | 52 | ||||||||||
| Total short-term investments | — | 3,045 | — | 3,045 | ||||||||||
| Funds receivable and amounts held on behalf of customers: | ||||||||||||||
| Money market funds | 1,340 | — | — | 1,340 | ||||||||||
| Prepaids and other current assets: | ||||||||||||||
| Foreign exchange derivative assets | — | 114 | — | 114 | ||||||||||
| Other assets, noncurrent: | ||||||||||||||
| Foreign exchange derivative assets | — | 6 | — | 6 | ||||||||||
| Corporate debt securities | — | — | 4 | 4 | ||||||||||
| Total assets at fair value | $ | 2,975 | $ | 3,352 | $ | 4 | $ | 6,331 | ||||||
| Liabilities | ||||||||||||||
| Accrued expenses, accounts payable, and other current liabilities: | ||||||||||||||
| Foreign exchange derivative liabilities | $ | — | $ | 20 | $ | — | $ | 20 | ||||||
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
| June 30, 2025 | ||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents: | ||||||||||||||
| Money market funds | $ | 1,624 | $ | — | $ | — | $ | 1,624 | ||||||
| Commercial paper | — | 126 | — | 126 | ||||||||||
| Government bonds | — | 16 | — | 16 | ||||||||||
| Certificates of deposit | — | 8 | — | 8 | ||||||||||
| Corporate debt securities | — | 5 | — | 5 | ||||||||||
| Total cash and cash equivalents | 1,624 | 155 | — | 1,779 | ||||||||||
| Short-term investments: | ||||||||||||||
| Corporate debt securities | — | 2,312 | — | 2,312 | ||||||||||
| Mortgage-backed and asset-backed securities | — | 428 | — | 428 | ||||||||||
| Government bonds | — | 230 | — | 230 | ||||||||||
| Commercial paper | — | 166 | — | 166 | ||||||||||
| Certificates of deposit | — | 111 | — | 111 | ||||||||||
| Total short-term investments | — | 3,247 | — | 3,247 | ||||||||||
| Funds receivable and amounts held on behalf of customers: | ||||||||||||||
| Money market funds | 3,399 | — | — | 3,399 | ||||||||||
| Prepaids and other current assets: | ||||||||||||||
| Foreign exchange derivative assets | — | 25 | — | 25 | ||||||||||
| Other assets, noncurrent: | ||||||||||||||
| Corporate debt securities | — | — | 4 | 4 | ||||||||||
| Total assets at fair value | $ | 5,023 | $ | 3,427 | $ | 4 | $ | 8,454 | ||||||
| Liabilities | ||||||||||||||
| Accrued expenses, accounts payable and other current liabilities: | ||||||||||||||
| Foreign exchange derivative liabilities | $ | — | $ | 151 | $ | — | $ | 151 | ||||||
| Other liabilities, noncurrent: | ||||||||||||||
| Foreign exchange derivative liabilities | — | 7 | — | 7 | ||||||||||
| Total liabilities at fair value | $ | — | $ | 158 | $ | — | $ | 158 |
There were no material changes in unrealized losses included in other comprehensive income (loss) relating to investments measured at fair value for which the Company has utilized Level 3 inputs to determine fair value during the six months ended June 30, 2024 and 2025.
There were no transfers of financial instruments into or out of Level 3 during the six months ended June 30, 2024 and 2025.
Note 6. Derivative Instruments and Hedging
The Company has a portion of its business denominated and transacted in foreign currencies, which subjects the Company to foreign exchange risk, and uses derivative instruments to manage financial exposures that occur in the normal course of business. The Company does not hold or issue derivatives for trading or speculative purposes.
The Company may elect to designate certain derivatives to partially offset its business exposure to foreign exchange risk. However, the Company may choose not to hedge certain exposures for a variety of reasons including accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange rates.
Foreign Exchange Risk
To protect revenue from fluctuations in foreign currency exchange rates, the Company may enter into forward contracts, option contracts, or other instruments, and may designate these instruments as cash flow hedges. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue, for up to 18 months.
The Company may also enter into derivative instruments that are not designated as accounting hedges to offset a portion of the foreign currency exchange gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies.
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
The following table summarizes the effect of derivative instruments on the Company’s unaudited condensed consolidated balance sheets (in millions):
| Derivative Assets**(1)** | |||||||||||
| Location | December 31, 2024 | June 30, 2025 | |||||||||
| Derivatives designated as hedging instruments: | |||||||||||
| Foreign exchange contracts (current) | Prepaids and other current assets | $ | 90 | $ | — | ||||||
| Foreign exchange contracts (noncurrent) | Other assets, noncurrent | 7 | — | ||||||||
| Total derivatives designated as hedging instruments | $ | 97 | $ | — | |||||||
| Derivatives not designated as hedging instruments: | |||||||||||
| Foreign exchange contracts (current) | Prepaids and other current assets | $ | 23 | $ | 25 |
| Derivative Liabilities**(1)** | |||||||||||
| Location | December 31, 2024 | June 30, 2025 | |||||||||
| Derivatives designated as hedging instruments: | |||||||||||
| Foreign exchange contracts (current) | Accrued expenses, accounts payable, and other current liabilities | $ | — | $ | 141 | ||||||
| Foreign exchange contracts (noncurrent) | Other liabilities, noncurrent | — | 7 | ||||||||
| Total derivatives designated as hedging instruments | $ | — | $ | 148 | |||||||
| Derivatives not designated as hedging instruments: | |||||||||||
| Foreign exchange contracts (current) | Accrued expenses, accounts payable, and other current liabilities | $ | 20 | $ | 10 | ||||||
(1)Derivative assets and derivatives liabilities are measured using Level 2 inputs.
To limit credit risk, the Company generally enters into master netting arrangements with the respective counterparties to the Company’s derivative contracts, under which the Company is allowed to settle transactions with a single net amount payable by one party to the other. As of June 30, 2025, the potential effect of these rights of offset associated with the Company’s derivative contracts would be a reduction to both derivative assets and liabilities of $24 million, resulting in net derivative assets of $1 million and net derivative liabilities of $134 million.
Realized gains on derivative instruments designated as hedging instruments reclassified from AOCI to revenue in the unaudited condensed consolidated statements of operations were immaterial for three and six months ended June 30, 2024 and 2025.
Effect of Derivative Instruments Designated as Hedging Instruments on AOCI
The following table presents the impact of derivative instruments designated as cash flow hedges on AOCI, net of tax (in millions):
| Gain (Loss) Recognized in Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | ||||||||||||||||||||||||||||||||
| Derivatives designated as cash flow hedges: | |||||||||||||||||||||||||||||||||||
| Foreign exchange contracts(1) | $ | 21 | $ | (141) | $ | 71 | $ | (202) | |||||||||||||||||||||||||||
(1)Gain (loss) recognized in other comprehensive income (loss).
Gains reclassified from AOCI to revenue were immaterial for the three and six months ended June 30, 2024 and 2025.
As of December 31, 2024 and June 30, 2025, cumulative unrealized gains (losses) recorded in AOCI, net of tax, related to derivative instruments designated as hedging instruments were $80 million and $(123) million, respectively.
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
Derivative instruments not designated as hedging instruments
The following table presents the impact of activity of derivative instruments not designated as hedging instruments on the unaudited condensed consolidated statements of operations (in millions):
| Realized Gain (Loss) on Derivatives | Unrealized Gain (Loss) on Derivatives | ||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | ||||||||||||||||||||||||||||
| Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||
| Foreign exchange contracts | $ | 2 | $ | 23 | $ | (19) | $ | 28 | $ | 23 | $ | 15 | $ | 34 | $ | 12 | |||||||||||||||||||
The total notional amount of outstanding derivatives not designated as hedging instruments was $2.1 billion and $1.9 billion as of December 31, 2024 and June 30, 2025, respectively.
Cash flow hedges
The total notional amount of outstanding foreign currency derivatives designated as cash flow hedges was $2.5 billion and $2.4 billion as of December 31, 2024 and June 30, 2025, respectively.
As of June 30, 2025, approximately $104 million of deferred net losses on both outstanding and matured derivatives in AOCI were expected to be reclassified to revenue during the next 12 months concurrent with the underlying hedged transactions which will be recorded in revenue. Actual amounts ultimately reclassified to revenue are dependent on the exchange rates in effect when derivative contracts currently outstanding mature.
Note 7. Debt
Convertible Senior Notes
On March 8, 2021, the Company issued $2.0 billion aggregate principal amount of 0% convertible senior notes due March 15, 2026 (the "2026 Notes") pursuant to an indenture, dated March 8, 2021 (the "Indenture"), between the Company and U.S. Bank National Association, as trustee. The 2026 Notes were offered and sold in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.
As of both December 31, 2024 and June 30, 2025, total outstanding debt, net of unamortized debt discount and debit issuance costs, was $2.0 billion and the effective interest rate was 0.2%. Debt issuance costs related to the 2026 Notes totaled $21 million and were comprised of commissions payable to the initial purchasers and third-party offering costs and are amortized to interest expense using the effective interest method over the contractual term. Interest expense, which includes the amortization of debt discount and issuance costs, was immaterial for both the three and six months ended June 30, 2024 and 2025.
As of June 30, 2025, the if-converted value of the 2026 Notes did not exceed the outstanding principal amount.
As of June 30, 2025, the total estimated fair value of the 2026 Notes was $1.9 billion and was determined based on a market approach using actual bids and offers of the 2026 Notes in an over-the-counter market on the last trading day of the period, or Level 2 inputs.
2022 Credit Facility
In 2022, the Company entered into a five-year unsecured Revolving Credit Agreement, which provides for initial commitments by a group of lenders led by Morgan Stanley Senior Funding, Inc. of $1.0 billion (“2022 Credit Facility”). The 2022 Credit Facility provides a $200 million sub-limit for the issuance of letters of credit.
The 2022 Credit Facility contains customary events of default, and affirmative and negative covenants, including restrictions on the Company’s and certain of its subsidiaries’ ability to incur debt and liens, undergo fundamental changes, as well as certain financial covenants. The Company was in compliance with all financial covenants as of June 30, 2025.
As of June 30, 2025, no amounts were drawn under the 2022 Credit Facility and outstanding letters of credit totaled $25 million.
Note 8. Stock-Based Compensation
Stock-Based Compensation Expense
Stock-based compensation expense was $382 million and $424 million for the three months ended June 30, 2024 and 2025, respectively, and $677 million and $782 million for the six months ended June 30, 2024 and 2025, respectively.
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
Stock Option and Restricted Stock Unit Activity
A summary of stock option and restricted stock unit (“RSU”) activity under the Company’s equity incentive plans was as follows (in millions, except per share amounts):
| Outstanding Stock Options | Outstanding RSUs | ||||||||||||||||||||||
| Number of Shares | Weighted- Average Exercise Price | Number of Shares | Weighted- Average Grant Date Fair Value | ||||||||||||||||||||
| As of December 31, 2024 | 5 | $ | 93.53 | 30 | $ | 97.93 | |||||||||||||||||
| Granted | 1 | 142.06 | 11 | 138.33 | |||||||||||||||||||
| Exercised/Vested | (1) | 51.44 | (5) | 140.42 | |||||||||||||||||||
| Canceled | — | — | (2) | 140.87 | |||||||||||||||||||
| As of June 30, 2025 | 5 | $ | 104.98 | 34 | $ | 103.06 |
| Number of Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||||
| Options outstanding as of June 30, 2025 | 5 | $ | 104.98 | 5.89 | $ | 205 | ||||||||
| Options exercisable as of June 30, 2025 | 4 | $ | 88.89 | 4.68 | $ | 201 |
Note 9. Commitments and Contingencies
Commitments
In June 2025, the Company signed a new enterprise agreement with a web-hosting service company for cloud hosting and related services, which extends through 2031, resulting in annual minimum purchase commitments of $202 million to $457 million per contract year, totaling $1.9 billion over the six-year term.
The Company also signed a three-year sponsorship agreement, which includes annual minimum service commitments of $11 million to $34 million per contract year, totaling $55 million.
No other significant new or amended commitments occurred outside the ordinary course of business during the six months ended June 30, 2025. Refer to Note 13 in Part II, Item 8 of the Company’s 2024 Annual Report for further details on commitments.
Lodging Tax Obligations and Other Non-Income Tax MattersLodging 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, 2025, the Company collected and remitted Lodging Taxes in approximately 33,000 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, 2024 and June 30, 2025, the Company had an obligation to remit Lodging Taxes collected from guests on bookings in these jurisdictions totaling $312 million and $465 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, 2024 and June 30, 2025, accrued obligations related to these estimated taxes, including estimated penalties and interest, totaled $83 million and $67 million, respectively. As of June 30, 2025, 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 $52 million to $62 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.
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
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 transactional taxes (such as sales, value-added, business, digital service, and similar taxes) to services provided, as well as the applicability of withholding tax on payments made to hosts.
The Company has estimated transactional 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, 2024, accrued obligations related to these estimated taxes, including estimated penalties and interest, totaled $55 million. As of June 30, 2025, there were no accrued obligations related to these tax liabilities . In addition, the Company has identified reasonably possible exposures related to transactional taxes and business taxes and has not accrued for these amounts since the likelihood of the contingent liability is less than probable. As of June 30, 2025, the Company estimates that the reasonably possible loss related to these matters in excess of the amounts accrued is between $232 million and $252 million; however, no assurance can be given as to the outcomes and the Company could be subject to significant additional tax liabilities.
As of December 31, 2024 and June 30, 2025, the Company accrued a total of $227 million and $177 million of estimated tax liabilities, including interest and penalties, related to hosts’ withholding tax obligations, respectively. As of June 30, 2025, the Company estimates that the reasonably possible loss related to withholding income taxes that can be determined in excess of the amounts accrued is between $138 million to $148 million; however, no assurance can be given as 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.
In 2017, Italy passed a law purporting to require short-term rental platforms that process payments to withhold and remit host income tax and collect and remit tourist tax, amongst other obligations (“2017 Law”). The Company challenged this law before the Italian courts and the Court of Justice of the European Union (“CJEU”). On December 13, 2023, without admitting any liability, Airbnb Ireland signed an agreement with the Italian Revenue Agency (“ITA”) in settlement of the 2017-2021 audit period for an aggregate payment of 576 million Euro ($621 million). In December 2024, Airbnb Ireland signed a similar agreement in settlement of the 2022 audit period for an aggregate payment of 139 million Euro ($150 million). In January 2025, Airbnb Ireland entered into an agreement with the Italian Revenue Agency to close the 2023 audit period for an aggregate payment of 179 million Euro ($186 million). Of this amount, 123 million Euro was paid in December of 2024, while 56 million Euro, which was recognized as a liability as of December 31, 2024, was paid in January 2025. In 2024, Airbnb Ireland commenced withholding on host payments related to Italian listings.
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
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
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 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 in connection with alleged non-compliance with short-term rental listing regulations in Spain. Airbnb disputes the proposed fine and the applicability of these rules to short-term listings. Airbnb intends to dispute this matter and any potential loss is neither probable or estimable at this time. Global regulatory requirements and challenges affecting our business continue to increase. These challenges may have a material impact on our 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.
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 AirCover coverage, which includes but is not limited to, the Company’s Host Damage Protection program that provides protection of up to $3 million for direct physical loss or damage to a host’s covered property caused by guests during a confirmed booking and when the host and guest are unable to resolve the dispute. 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. In addition, through third-party insurers and self-insurance mechanisms, including a wholly-owned captive insurance subsidiary, the Company provides insurance coverage for third-party bodily injury or property damage liability claims that occur during a stay. The Company’s Host Liability Insurance and Experiences Liability Insurance consists of a commercial general liability policy, with hosts and the Company as named insureds and landlords of hosts as additional insureds. The Host Liability Insurance and Experiences Liability Insurance provides primary coverage for up to $1 million per occurrence, subject to a $1 million cap per listing location, and includes various conditions, limitations, and exclusions.
IndemnificationsThe 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
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
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 intangible income, audit-related developments, and the effects of tax law changes.
The Company recorded income tax expense of $126 million and $137 million for the three months ended June 30, 2024 and 2025, and $155 million and $156 million for the six months ended June 30, 2024 and 2025, respectively, which were primarily driven by current and deferred tax on U.S. and foreign earnings and the income tax benefit from excess tax benefits on stock-based compensation arising during the quarter.
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, 2025, 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, capital loss carryovers, and certain losses subject to the dual consolidated loss rules. As of June 30, 2025, the Company continued to maintain a valuation allowance against its California research and development credit deferred tax assets due to the uncertainty regarding realizability of these deferred tax assets as they have not met the “more likely than not” realization criteria, particularly as the Company expects research and development tax credit generation to exceed its ability to use the credits in future years. When a change in valuation allowance is recognized during an interim period, the change in valuation allowance resulting from current year income is included in the annual effective tax rate and the release of valuation allowance supported by projections of future taxable income is recorded as a discrete tax benefit in the interim period. 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 reserve recorded in its consolidated financial statements by more than $1.0 billion. The Company strongly disagrees with the proposed adjustment and continues to vigorously contest it. In February 2021, the Company submitted a protest to the IRS describing its disagreement with the proposed adjustment and requesting the case be transferred to the IRS Independent Office of Appeals (“IRS Appeals”). In December 2021, the Company received a rebuttal from the IRS with the same proposed adjustments that were in the NOPA. In January 2022, the Company entered into an administrative dispute process with IRS Appeals. An acceptable outcome was not reached with IRS Appeals, and 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 claims 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.
On August 16, 2022, the Inflation Reduction Act was signed into law, with tax provisions primarily focused on implementing a 15% minimum tax known as the Corporate Alternative Minimum Tax (“CAMT”) on global adjusted financial statement income and a 1% excise tax on net share repurchases. The Inflation Reduction Act became effective beginning in fiscal year 2023. The Company anticipates paying additional federal taxes in 2025 due to the CAMT. The additional CAMT will result in tax credits that are expected to offset the Company’s federal tax in subsequent years, thus there is no impact to the overall tax provision.
On July 4, 2025, the One Big Beautiful Bill Act (“the OBBBA”) was signed into law. Included in this legislation are provisions that allow for the immediate expensing of domestic U.S. research and development expenses and changes to the U.S. taxation of foreign derived intangible income. This legislation may be subject to further clarification and the issuance of interpretive guidance. The Company is evaluating the impact the new legislation will have on its unaudited condensed consolidated financial statements, specifically related to the U.S. taxation of foreign derived intangible income and the Company’s ability to utilize its CAMT credits, and expects to begin reflecting the impact in the three-month period ending September 30, 2025. As of December 31, 2024, the Company had approximately $300 million of CAMT credit carryforwards. The Company will continue its evaluation of the OBBBA and determine whether a valuation allowance is necessary against its CAMT credits.
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
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, | ||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | ||||||||||||||
| Net income | $ | 555 | $ | 642 | $ | 819 | $ | 796 | |||||||||
| Add: convertible notes interest expense, net of tax | 1 | 1 | 2 | 1 | |||||||||||||
| Net income - diluted | $ | 556 | $ | 643 | $ | 821 | $ | 797 | |||||||||
| Weighted-average shares in computing net income per share attributable to Class A and Class B common stockholders: | |||||||||||||||||
| Basic | 635 | 615 | 636 | 618 | |||||||||||||
| Effect of dilutive securities | 14 | 11 | 15 | 11 | |||||||||||||
| Diluted | 649 | 626 | 651 | 629 | |||||||||||||
| Net income per share attributable to Class A and Class B common stockholders: | |||||||||||||||||
| Basic | $ | 0.87 | $ | 1.04 | $ | 1.29 | $ | 1.29 | |||||||||
| Diluted | $ | 0.86 | $ | 1.03 | $ | 1.26 | $ | 1.27 |
As of both June 30, 2024 and 2025, 9.6 million shares of RSUs were excluded from earning per share because they are subject to market and performance conditions that were not achieved as of such date.
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, | ||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | ||||||||||||||
| Stock options | 2 | 3 | 2 | 3 | |||||||||||||
| RSUs | 9 | 16 | 9 | 14 | |||||||||||||
| Total | 11 | 19 | 11 | 17 |
Share Repurchase Program
In February 2024, the Company announced that its board of directors approved a share repurchase program 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, such as 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 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. As of June 30, 2025, the Company had $1.5 billion available to repurchase shares of Class A common stock under its share repurchase program. During the three and six months ended June 30, 2024, the Company repurchased and subsequently retired 4.9 million and 9.6 million shares of Class A common stock for $749 million and $1.5 billion, respectively.
Class A Common Stock Warrants
In 2024, the Company had warrants outstanding to purchase shares of Class A common stock with an exercise price of $28.355 per share. During the three months ended June 30, 2024, all the outstanding warrants were exercised to purchase 0.8 million shares of Class A common stock. The warrants were exercised on a cashless basis, resulting in the issuance of 0.7 million shares of the Class A common stock.
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
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
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, | ||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | ||||||||||||||
| Revenue | $ | 2,748 | $ | 3,096 | $ | 4,890 | $ | 5,368 | |||||||||
| Less: | |||||||||||||||||
| Merchant fees and chargebacks | 412 | 436 | 805 | 835 | |||||||||||||
| Salaries and benefits | 405 | 482 | 846 | 989 | |||||||||||||
| Marketing | 409 | 468 | 783 | 850 | |||||||||||||
| Stock-based compensation expense | 382 | 424 | 677 | 782 | |||||||||||||
| Professional and third-party services(1) | 283 | 320 | 530 | 580 | |||||||||||||
| Non-income taxes | 83 | 50 | 138 | 107 | |||||||||||||
| Other items(2) | 277 | 304 | 513 | 575 | |||||||||||||
| Total cost and expense | 2,251 | 2,484 | 4,292 | 4,718 | |||||||||||||
| Income from operations | 497 | 612 | 598 | 650 | |||||||||||||
| Interest income | 226 | 190 | 428 | 363 | |||||||||||||
| Other expense, net | (42) | (23) | (52) | (61) | |||||||||||||
| Income before income taxes | 681 | 779 | 974 | 952 | |||||||||||||
| Provision for income taxes | 126 | 137 | 155 | 156 | |||||||||||||
| Net income | $ | 555 | $ | 642 | $ | 819 | $ | 796 |
(1)Professional and third-party services primarily include expenses related to customer support partners, consultants and third-party service providers, contingent workforce, legal, audit, and tax.
(2)Other items primarily include expenses and costs related to data hosting services, insurance, customer relations, and software and equipment.
Note 13. Subsequent Event
In August 2025, the Company’s board of directors approved a new share repurchase program with authorization to purchase up to an additional $6.0 billion of the Company's Class A common stock at management’s discretion. 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 the Company to repurchase any specific number of shares and may be modified, suspended, or terminated at any time at the Company’s discretion.
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