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, 2025 | March 31, 2026 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 6,560 | $ | 7,037 | ||||
| Short-term investments | 4,454 | 4,968 | ||||||
| Funds receivable and amounts held on behalf of customers | 6,959 | 10,550 | ||||||
| Prepaids and other current assets | 824 | 1,046 | ||||||
| Total current assets | 18,797 | 23,601 | ||||||
| Deferred income tax assets | 2,102 | 1,941 | ||||||
| Goodwill and intangible assets, net | 770 | 767 | ||||||
| Other assets, noncurrent | 539 | 519 | ||||||
| Total assets | $ | 22,208 | $ | 26,828 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accrued expenses, accounts payable, and other current liabilities | $ | 2,948 | $ | 3,081 | ||||
| Funds payable and amounts payable to customers | 6,959 | 10,550 | ||||||
| Current portion of long-term debt | 1,999 | — | ||||||
| Unearned fees | 1,743 | 2,733 | ||||||
| Total current liabilities | 13,649 | 16,364 | ||||||
| Long-term debt, net | — | 2,475 | ||||||
| Other liabilities, noncurrent | 360 | 353 | ||||||
| Total liabilities | 14,009 | 19,192 | ||||||
| Commitments and contingencies (Note 9) | ||||||||
| Stockholders’ equity: | ||||||||
| Common stock, $0.0001 par value: Class A - authorized 2,000 shares; 426 and 419 shares issued & outstanding, respectively; Class B - authorized 710 shares; 176 and 176 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 | 13,763 | 14,041 | ||||||
| Accumulated other comprehensive loss | (62) | (2) | ||||||
| Accumulated deficit | (5,502) | (6,403) | ||||||
| Total stockholders’ equity | 8,199 | 7,636 | ||||||
| Total liabilities and stockholders’ equity | $ | 22,208 | $ | 26,828 |
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 March 31, | |||||||||||||||||
| 2025 | 2026 | ||||||||||||||||
| Revenue | $ | 2,272 | $ | 2,678 | |||||||||||||
| Costs and expenses: | |||||||||||||||||
| Cost of revenue | 506 | 581 | |||||||||||||||
| Operations and support | 303 | 326 | |||||||||||||||
| Product development | 568 | 638 | |||||||||||||||
| Sales and marketing | 563 | 751 | |||||||||||||||
| General and administrative | 294 | 296 | |||||||||||||||
| Total costs and expenses | 2,234 | 2,592 | |||||||||||||||
| Income from operations | 38 | 86 | |||||||||||||||
| Interest income | 173 | 155 | |||||||||||||||
| Other income (expense), net | (38) | 40 | |||||||||||||||
| Income before income taxes | 173 | 281 | |||||||||||||||
| Provision for income taxes | 19 | 121 | |||||||||||||||
| Net income | $ | 154 | $ | 160 | |||||||||||||
| Net income per share attributable to Class A and Class B common stockholders: | |||||||||||||||||
| Basic | $ | 0.25 | $ | 0.27 | |||||||||||||
| Diluted | $ | 0.24 | $ | 0.26 | |||||||||||||
| Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders: | |||||||||||||||||
| Basic | 621 | 598 | |||||||||||||||
| Diluted | 632 | 608 |
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 March 31, | |||||||||||||||||
| 2025 | 2026 | ||||||||||||||||
| Net income | $ | 154 | $ | 160 | |||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||
| Net unrealized gain (loss) on available-for-sale marketable securities, net of tax | 4 | (9) | |||||||||||||||
| Net unrealized gain (loss) on cash flow hedges, net of tax | (73) | 73 | |||||||||||||||
| Foreign currency translation adjustments | 13 | (4) | |||||||||||||||
| Other comprehensive income (loss) | (56) | 60 | |||||||||||||||
| Comprehensive income | $ | 98 | $ | 220 |
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)
| Three months ended March 31, 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 | |||||||||
| Three months ended March 31, 2026 | ||||||||||||||||||||
| Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
| Shares | Amount | |||||||||||||||||||
| Balances as of December 31, 2025 | 602 | $ | — | $ | 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 taxes | 1 | — | (132) | — | — | (132) | ||||||||||||||
| Stock-based compensation | — | — | 410 | — | — | 410 | ||||||||||||||
| Repurchases of common stock | (8) | — | — | — | (1,061) | (1,061) | ||||||||||||||
| Balances as of March 31, 2026 | 595 | $ | — | $ | 14,041 | $ | (2) | $ | (6,403) | $ | 7,636 | |||||||||
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)
| Three Months Ended March 31, | ||||||||
| 2025 | 2026 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 154 | $ | 160 | ||||
| Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
| Stock-based compensation expense | 358 | 410 | ||||||
| Deferred income taxes | 1 | 147 | ||||||
| Other, net | 95 | 34 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Prepaids and other assets | (79) | (210) | ||||||
| Accrued expenses and other liabilities | 155 | 179 | ||||||
| Unearned fees | 1,105 | 988 | ||||||
| Net cash provided by operating activities | 1,789 | 1,708 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of short-term investments | (766) | (1,375) | ||||||
| Sales and maturities of short-term investments | 623 | 849 | ||||||
| Other investing activities, net | (8) | 65 | ||||||
| Net cash used in investing activities | (151) | (461) | ||||||
| Cash flows from financing activities: | ||||||||
| Change in funds payable and amounts payable to customers | 3,074 | 3,707 | ||||||
| Proceeds from issuance of long-term debt, net of issuance costs | — | 2,483 | ||||||
| Principal repayment of long-term debt | — | (2,000) | ||||||
| Share repurchases | (807) | (1,088) | ||||||
| Taxes paid related to tax on equity awards | (152) | (140) | ||||||
| Proceeds from exercise of equity awards | 30 | 8 | ||||||
| Net cash provided by financing activities | 2,145 | 2,970 | ||||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 207 | (118) | ||||||
| Net increase in cash, cash equivalents, and restricted cash | 3,990 | 4,099 | ||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 12,760 | 13,486 | ||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 16,750 | $ | 17,585 | ||||
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”) was incorporated in Delaware in June 2008 and is headquartered in San Francisco, California. The Company 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 these offerings around the world.
Note 2. 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, 2025, included in the Company’s Annual Report on Form 10-K, filed with the SEC on February 12, 2026 (“2025 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 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, 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, wars and other geopolitical conflicts, 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.
Derivative Instruments and Hedging
The Company’s primary objective for holding derivative instruments is to manage foreign currency exchange rate risk and interest rate risk associated with long-term debt. The Company enters into master netting arrangements to mitigate credit risk in derivative transactions by permitting net settlement of transactions with the same counterparty. All derivative instruments are recorded on the unaudited condensed consolidated balance sheets at fair value. The Company presents derivative assets and liabilities at their gross fair values in the unaudited condensed consolidated balance sheets, even if they are subject to master netting arrangements with the counterparties. The accounting treatment for derivative gains and losses is based on intended use and hedge designation. The Company classifies cash flows related to derivative instruments as operating activities in the unaudited condensed consolidated statements of cash flows.
Cash Flow Hedges
Gains and losses arising from amounts that are included in the assessment of cash flow hedge effectiveness are initially deferred in accumulated other comprehensive income (loss) (“AOCI”) and subsequently reclassified into earnings when the hedged transaction affects earnings and in the same line item in the unaudited condensed consolidated statements of operations. The Company does not exclude any components in the assessment of hedge effectiveness for forwards and options.
If it is no longer probable that a forecasted hedged transaction will occur in the initially identified time period, hedge accounting is discontinued and the Company accounts for the associated derivatives as undesignated derivative instruments. Gains and losses associated with derivatives no longer designated as hedging instruments in AOCI are recognized immediately in other income (expense), net, in the unaudited condensed consolidated statements of operations if it is probable that the forecasted hedged transaction will not occur by the end of the initially identified time period or within an additional two month period thereafter. In rare circumstances, the additional period of time may exceed two months due to extenuating circumstances related to the nature of the forecasted transaction that are outside the control or influence of the Company.
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
Gains and losses arising from changes in the fair value of derivative instruments that are not designated as accounting hedges are recognized in the unaudited condensed consolidated statements of operations in other income (expense), net.
Fair Value Hedges
For derivative instruments designated and qualifying as fair value hedges, the change in the fair value is recognized in other income (expense), net in the period of change, along with the offsetting gain or loss on the hedged item attributable to the hedged risk. The fair value is recorded in other assets or other liabilities, with a corresponding adjustment to the underlying hedged item on the unaudited condensed consolidated balance sheets.
Recently Adopted Accounting Standards
In September 2025, the Financial Accounting Standards Board (the “FASB”) issued ASU 2025-06 to simplify the criteria required to capitalize internally developed software. The update simplifies the capitalization guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods. The update is effective for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years. Early adoption is permitted. The Company early adopted the guidance effective January 1, 2026, on a prospective basis. At adoption, there was no impact on its unaudited condensed consolidated financial statements. Furthermore, the Company does not expect the guidance to have a material impact on its consolidated financial statements or related disclosures for the year ended 2026.
In July 2025, the FASB issued ASU 2025-05 that allows companies to apply a practical expedient when estimating credit losses on current accounts receivable and contract assets. The update is effective for fiscal years beginning after December 15, 2025, and interim periods within those fiscal years. The Company adopted the guidance effective January 1, 2026, on a prospective basis. At adoption, there was no impact on its unaudited condensed consolidated financial statements. Furthermore, the Company does not expect the guidance to have a material impact on its consolidated financial statements or related disclosures for the year ended 2026.
Recently Issued Accounting Standards Not Yet Adopted
In November 2025, the FASB issued ASU 2025-09, which amends the guidance in ASC 815 Derivatives and Hedging to improve and simplify the application of hedge accounting. The update aligns hedge accounting more closely with an entity’s risk management activities and provides targeted improvements to existing guidance. The update is effective for fiscal years beginning after December 15, 2026, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of the new guidance to have a material impact on its unaudited condensed consolidated financial statements.
In November 2024, the FASB issued ASU 2024-03 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.
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.
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, 2025 | March 31, 2026 | |||||||
| Cash and cash equivalents | $ | 6,560 | $ | 7,037 | ||||
| Cash and cash equivalents included in funds receivable and amounts held on behalf of customers | 6,891 | 10,488 | ||||||
| Restricted cash included in prepaids and other current assets | 35 | 60 | ||||||
| Total cash, cash equivalents, and restricted cash | $ | 13,486 | $ | 17,585 |
Supplemental Disclosures of Cash Flow Information
Cash flow information consisted of the following (in millions):
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
| Three Months Ended March 31, | ||||||||
| 2025 | 2026 | |||||||
| Cash paid for income taxes, net of refunds | $ | 13 | $ | 40 | ||||
Customer Receivables
Customer receivables, net recorded in prepaids and other current assets on the condensed consolidated balance sheets consisted of the following (in millions):
| December 31, 2025 | March 31, 2026 | |||||||
| Customer receivables | $ | 225 | $ | 227 | ||||
| Customer receivables reserve | (39) | (36) | ||||||
| Customer receivable, net | $ | 186 | $ | 191 |
Accrued Expenses, Accounts Payable, and Other Current Liabilities
Accrued expenses, accounts payable, and other current liabilities consisted of the following (in millions):
| December 31, 2025 | March 31, 2026 | |||||||
| Indirect taxes payable and estimated lodging and withholding tax liabilities | $ | 1,132 | $ | 1,501 | ||||
| Compensation and employee benefits | 593 | 446 | ||||||
| Accounts payable | 232 | 180 | ||||||
| Operating lease liabilities, current | 68 | 59 | ||||||
| Other | 923 | 895 | ||||||
| Accrued expenses, accounts payable, and other current liabilities | $ | 2,948 | $ | 3,081 |
Payments to Customers
The following table summarizes total payments made to customers (in millions):
| Three Months Ended March 31, | |||||||||||||||||
| 2025 | 2026 | ||||||||||||||||
| Reductions to revenue | $ | 104 | $ | 124 | |||||||||||||
| Charges to operations and support | 21 | 26 | |||||||||||||||
| Charges to sales and marketing expense | 15 | 20 | |||||||||||||||
| Total payments made to customers | $ | 140 | $ | 170 |
Revenue Disaggregated by Geographic Region
The following table presents revenue disaggregated by listing location (in millions):
| Three Months Ended March 31, | |||||||||||||||||
| 2025 | 2026 | ||||||||||||||||
| North America | $ | 1,054 | $ | 1,138 | |||||||||||||
| Europe, the Middle East, and Africa | 597 | 747 | |||||||||||||||
| Latin America | 343 | 451 | |||||||||||||||
| Asia Pacific | 278 | 342 | |||||||||||||||
| Total revenue disaggregated by geographic region | $ | 2,272 | $ | 2,678 |
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 Gains | Gross Unrealized Losses | Total 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 bonds | 262 | — | — | 262 | ||||||||||
| Commercial paper | 182 | — | — | 182 | ||||||||||
| Certificates of deposit | 149 | — | — | 149 | ||||||||||
| Total debt securities | 3,311 | 13 | (2) | 3,322 | ||||||||||
| Time deposits | 1,132 | — | — | 1,132 | ||||||||||
| Total short-term investments | $ | 4,443 | $ | 13 | $ | (2) | $ | 4,454 | ||||||
| March 31, 2026 | ||||||||||||||
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Total Estimated Fair Value | |||||||||||
| Short-term investments | ||||||||||||||
| Debt securities: | ||||||||||||||
| Corporate debt securities | $ | 2,697 | $ | 4 | $ | (3) | $ | 2,698 | ||||||
| Mortgage-backed and asset-backed securities | 509 | 1 | (3) | 507 | ||||||||||
| Government bonds | 319 | — | (1) | 318 | ||||||||||
| Commercial paper | 185 | — | — | 185 | ||||||||||
| Certificates of deposit | 128 | — | — | 128 | ||||||||||
| Total debt securities | 3,838 | 5 | (7) | 3,836 | ||||||||||
| Time deposits | 1,132 | — | — | 1,132 | ||||||||||
| Total short-term investments | $ | 4,970 | $ | 5 | $ | (7) | $ | 4,968 | ||||||
Long-term investments were immaterial as of December 31, 2025 and March 31, 2026.
As of December 31, 2025 and March 31, 2026, the Company did not have any available-for-sale debt securities for which the Company recorded credit-related losses.
Unrealized gains and losses, net of tax, before reclassifications from AOCI to other income (expense), net, and realized gains and losses reclassified from AOCI to other income (expense), net, were immaterial for the three months ended March 31, 2025 and 2026.
Debt securities in an unrealized loss position had an estimated fair value of $161 million and $1.0 billion, and unrealized losses of $12 million and $16 million as of December 31, 2025 and March 31, 2026, respectively. The total fair value of these securities that were in a continuous unrealized loss position for more than twelve months as of December 31, 2025 and March 31, 2026, was $36 million and $127 million respectively. Unrealized losses on these specific securities were $12 million as of both December 31, 2025 and March 31, 2026.
The following table summarizes the contractual maturities of the Company’s available-for-sale debt securities (in millions):
| March 31, 2026 | ||||||||
| Amortized Cost | Estimated Fair Value | |||||||
| Due within one year | $ | 1,582 | $ | 1,583 | ||||
| Due after one year through five years | 2,168 | 2,158 | ||||||
| Due after five years | 101 | 99 | ||||||
| Total | $ | 3,851 | $ | 3,840 |
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
Investments Accounted for Under the Equity Method
As of December 31, 2025 and March 31, 2026, the carrying values of the Company’s equity method investments in privately-held companies were $47 million and $48 million, respectively. The Company recorded no impairment charges for the three months ended March 31, 2026. There was an impairment charge of $7 million recorded for the three months ended March 31, 2025. Unrealized losses were immaterial for the three months ended March 31, 2025 and 2026, and represent the Company’s proportionate share of net income or loss based on the investee’s financial results and are recorded within other income (expense), net, in the unaudited condensed consolidated statements of operations.
During the three months ended March 31, 2026, the Company recognized a realized gain of $70 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 amount.
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 non-current assets on the unaudited consolidated balance sheets. The net carrying value of these investments was $11 million and $4 million as of December 31, 2025 and March 31, 2026, respectively.
During the three months ended March 31, 2025 and 2026, the Company recorded non-cash impairment charges of $30 million and $8 million, respectively. There were no upward adjustments for observable price changes recorded for the three months ended March 31, 2025 and 2026.
As of March 31, 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 1 | Level 2 | Level 3 | Total | |||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents: | ||||||||||||||
| Money market funds | $ | 901 | $ | — | $ | — | $ | 901 | ||||||
| Commercial paper | — | 98 | — | 98 | ||||||||||
| Government bonds | — | 57 | — | 57 | ||||||||||
| Corporate debt securities | — | 7 | — | 7 | ||||||||||
| Total cash and cash equivalents | 901 | 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 | ||||||||||
| Total short-term investments | — | 3,322 | — | 3,322 | ||||||||||
| Funds receivable and amounts held on behalf of customers: | ||||||||||||||
| Money market funds | 2,164 | — | — | 2,164 | ||||||||||
| Prepaids and other current assets: | ||||||||||||||
| Foreign exchange derivative assets | — | 20 | — | 20 | ||||||||||
| Total assets at fair value | $ | 3,065 | $ | 3,504 | $ | — | $ | 6,569 | ||||||
| Liabilities | ||||||||||||||
| Accrued expenses, accounts payable, and other current liabilities: | ||||||||||||||
| Foreign exchange derivative liabilities | $ | — | $ | 68 | $ | — | $ | 68 | ||||||
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
| March 31, 2026 | ||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents: | ||||||||||||||
| Money market funds | $ | 1,080 | $ | — | $ | — | $ | 1,080 | ||||||
| Government bonds | — | 155 | — | 155 | ||||||||||
| Commercial paper | — | 126 | — | 126 | ||||||||||
| Corporate debt securities | — | 6 | — | 6 | ||||||||||
| Total cash and cash equivalents | 1,080 | 287 | — | 1,367 | ||||||||||
| Short-term investments: | ||||||||||||||
| Corporate debt securities | — | 2,698 | — | 2,698 | ||||||||||
| Mortgage-backed and asset-backed securities | — | 507 | — | 507 | ||||||||||
| Government bonds | — | 318 | — | 318 | ||||||||||
| Commercial paper | — | 185 | — | 185 | ||||||||||
| Certificates of deposit | — | 128 | — | 128 | ||||||||||
| Total short-term investments | — | 3,836 | — | 3,836 | ||||||||||
| Funds receivable and amounts held on behalf of customers: | ||||||||||||||
| Money market funds | 2,386 | — | — | 2,386 | ||||||||||
| Prepaids and other current assets: | ||||||||||||||
| Foreign exchange derivative assets | — | 97 | — | 97 | ||||||||||
| Total assets at fair value | $ | 3,466 | $ | 4,220 | $ | — | $ | 7,686 | ||||||
| Liabilities | ||||||||||||||
| Accrued expenses, accounts payable, and other current liabilities: | ||||||||||||||
| Foreign exchange derivative liabilities | $ | — | $ | 43 | $ | — | $ | 43 | ||||||
As of March 31, 2026, the estimated fair value of the $2.5 billion aggregate principal amount of unsecured senior notes issued in March 2026 (“Senior Notes”) was $2.5 billion, determined using quoted market prices for similar instruments in active markets (Level 2). See Note 7, Debt, for additional information.
There were no 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 three months ended March 31, 2025 and 2026.
There were no transfers of financial instruments into or out of Level 3 during the three months ended March 31, 2025 and 2026.
Note 6. Derivative Instruments and Hedging
The Company uses derivative instruments to manage risks related to foreign currencies and interest rates. The Company does not hold or issue derivatives for trading or speculative purposes.
Interest Rate Risk
In March 2026, in connection with the Company’s issuance of $2.5 billion aggregate principal amount of Senior Notes, the Company entered into interest rate swap agreements with an aggregate notional amount of approximately $1.7 billion. These interest rate swaps effectively convert the fixed interest rates on the $850 million principal amount of the 4.65% senior notes due March 2031 (“2031 Notes”) and $800 million of the principal amount of the 5.25% senior notes due March 2036 (“2036 Notes”) to floating interest rates based on the benchmark interest rate (Secured Overnight Financing Rate (“SOFR”)). Under the terms of the swaps, the Company receives fixed-rate interest payments from the swap counterparties and makes floating-rate interest payments based on SOFR plus a fixed spread.
Foreign Exchange Risk
The Company has a portion of its business denominated and transacted in foreign currencies, which subjects the Company to foreign exchange risk, and it uses derivative instruments to manage financial exposures that occur in the normal course of business.
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 instances where the cost of hedging is determined to outweigh the potential benefit of mitigating the exposure. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange rates.
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
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 initiated a foreign exchange cash flow hedging program to minimize the effects of foreign currency fluctuations on future revenue. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue, typically 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.
Fair Value of Derivative Instruments
The following table summarizes the effect of derivative instruments on the Company’s unaudited condensed consolidated balance sheets (in millions):
| Derivative Assets**(1)(2)** | |||||||||||
| Location | December 31, 2025 | March 31, 2026 | |||||||||
| Derivatives designated as hedging instruments: | |||||||||||
| Foreign exchange contracts (current) | Prepaids and other current assets | $ | 4 | $ | 60 | ||||||
| Derivatives not designated as hedging instruments: | |||||||||||
| Foreign exchange contracts (current) | Prepaids and other current assets | $ | 16 | $ | 37 |
| Derivative Liabilities**(1)(2)** | |||||||||||
| Location | December 31, 2025 | March 31, 2026 | |||||||||
| Derivatives designated as hedging instruments: | |||||||||||
| Foreign exchange contracts (current) | Accrued expenses, accounts payable, and other current liabilities | $ | 61 | $ | 18 | ||||||
| Derivatives not designated as hedging instruments: | |||||||||||
| Foreign exchange contracts (current) | Accrued expenses, accounts payable, and other current liabilities | $ | 7 | $ | 25 | ||||||
(1)Derivative assets and derivatives liabilities are measured using Level 2 inputs.
(2)Noncurrent derivative assets and liabilities were immaterial.
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 March 31, 2026, 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 $42 million, resulting in net derivative assets of $62 million and immaterial net derivative liabilities.
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 March 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2026 | ||||||||||||||||||||||||||||||||||
| Derivatives designated as cash flow hedges: | |||||||||||||||||||||||||||||||||||
| Foreign exchange contracts | $ | (61) | $ | 58 | |||||||||||||||||||||||||||||||
Realized losses on derivative instruments designated as hedging instruments reclassified from AOCI to revenue in the unaudited condensed consolidated statements of operations were immaterial and $15 million for the three months ended March 31, 2025 and 2026.
As of December 31, 2025 and March 31, 2026, cumulative unrealized gains (losses) recorded in AOCI, net of tax, related to derivative instruments designated as hedging instruments were $(59) million and $14 million, respectively.
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
Derivative Instruments Not Designated as Hedging Instruments
Realized gain (loss) on derivative instruments not designated as hedging instruments on the unaudited condensed consolidated statements of operations was $5 million and $(14) million for the three months ended March 31, 2025 and 2026, respectively. Unrealized gain (loss) on derivative instruments not designated as hedging instruments on the unaudited condensed consolidated statements of operations was immaterial for the three months ended March 31, 2025 and 2026.
The total notional amount of outstanding derivatives not designated as hedging instruments was $2.7 billion and $3.2 billion as of December 31, 2025 and March 31, 2026, respectively.
Cash Flow Hedges
The total notional amount of outstanding foreign currency derivatives designated as cash flow hedges was $3.1 billion and $3.3 billion as of December 31, 2025 and March 31, 2026, respectively.
As of March 31, 2026, approximately $7 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.
Fair Value Hedges
The Company has designated its interest rate swaps as fair value hedges for accounting purposes, and these fair value hedges meet the shortcut method requirements under GAAP. Accordingly, the gains and losses related to changes in the fair value of the interest rate swaps completely offset the changes in the fair value of the hedged portion of the underlying Senior Notes that are attributable to changes in market interest rates. The net interest settlements on the interest rate swaps, along with the offsetting fair value adjustments on the swaps and the hedged debt, are recognized as interest expense and presented within other income (expense), net, in the Company’s unaudited condensed consolidated statements of operations. For the three months ended March 31, 2026, the recognized fair value gains and losses on the Company’s interest rate swaps were immaterial.
Note 7. Debt
Senior Unsecured Notes
On March 16, 2026, the Company issued $2.5 billion aggregate principal amount of Senior Notes and utilized a portion of the net proceeds to fully repay the $2.0 billion outstanding aggregate principal amount of its 0% convertible senior notes due 2026 (“2026 Notes”) upon their maturity. The Company incurred debt discount and issuance costs of approximately $22 million in connection with the Senior Notes offering, which were allocated on a pro rata basis to the $850 million of 4.40% senior notes due March 2029 (“2029 Notes”), the 2031 Notes, and the 2036 Notes. The debt discount and issuance costs are amortized on an effective interest rate method to interest expense, which is presented within other income (expense), net, in the Company’s unaudited condensed consolidated statements of operations, over the contractual term of the Senior Notes.
The Senior Notes rank equally with all of the Company's existing and future unsecured senior indebtedness. Interest is payable semi-annually in arrears on March 16 and September 16 of each year.
The following table summarizes our long-term debt as of March 31, 2026 (in millions, except percentages):
| March 31, 2026 | ||||||||||||||||||||||||||
| Instruments | Effective Interest Rate | Amount | ||||||||||||||||||||||||
| 4.40% Senior Notes due March 2029 | 4.7 | % | $ | 850 | ||||||||||||||||||||||
| 4.65% Senior Notes due March 2031 | 4.9 | % | 850 | |||||||||||||||||||||||
| 5.25% Senior Notes due March 2036 | 5.4 | % | 800 | |||||||||||||||||||||||
| Total long-term debt | 2,500 | |||||||||||||||||||||||||
| Unamortized discount and debt issuance costs | (22) | |||||||||||||||||||||||||
| Hedge fair value adjustments(1) | (3) | |||||||||||||||||||||||||
| Total long-term debt, net | $ | 2,475 |
(1)See Note 6, Derivative Instruments and Hedging, for further information on the interest rate swaps related to fixed-rate debt.
The principal maturities of the Senior Notes over the next five years of approximately $1.7 billion consist of the 2029 Notes and 2031 Notes, with the remaining $800 million maturing thereafter. For the three months ended March 31, 2025 and 2026, total interest expense related to the Senior Notes and the 2026 Notes, including the amortization of the debt discount and issuance costs, was immaterial.
The indenture governing the Senior Notes contains covenants that limit the ability of the Company and its restricted subsidiaries to, among other things: (i) create liens on certain assets to secure debt; (ii) enter into certain sale and leaseback transactions; and (iii) in the case of the Company, consolidate with, merge into or sell, convey or lease all or substantially all of the Company’s assets to any other person, in each
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
case as set forth in the indenture. These covenants are, however, subject to a number of important limitations and exceptions. The indenture governing the Senior Notes also contains customary event of default provisions. The Company was in compliance with all covenants as of March 31, 2026.
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 March 31, 2026.
As of March 31, 2026, no amounts were drawn under the 2022 Credit Facility and outstanding letters of credit totaled $20 million.
Note 8. Stock-Based Compensation
Stock-Based Compensation Expense
Stock-based compensation expense was $358 million and $410 million for the three months ended March 31, 2025 and 2026, respectively.
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, 2025 | 5.4 | $ | 108.28 | 32.2 | $ | 99.64 | |||||||||||||||||
| Granted | 0.5 | 126.51 | 11.2 | 126.55 | |||||||||||||||||||
| Exercised/Vested | (0.1) | 55.19 | (2.8) | 136.43 | |||||||||||||||||||
| Canceled | (0.1) | 151.92 | (1.0) | 138.13 | |||||||||||||||||||
| As of March 31, 2026 | 5.7 | $ | 110.54 | 39.6 | $ | 103.63 |
| Number of Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||||
| Options outstanding as of March 31, 2026 | 5.7 | $ | 110.54 | 5.94 | $ | 166 | ||||||||
| Options exercisable as of March 31, 2026 | 3.8 | $ | 97.02 | 4.36 | $ | 164 |
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 March 31, 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 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 March 31, 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 March 31, 2026, the Company had an obligation to remit Lodging Taxes collected from guests on bookings in these jurisdictions totaling $387 million and $662 million, respectively. These payables were recorded in accrued expenses, accounts
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
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 March 31, 2026, accrued obligations related to these estimated taxes, including estimated penalties and interest, totaled $114 million and $131 million, respectively. As of March 31, 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 $25 million to $35 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 March 31, 2026, accrued obligations related to these estimated taxes, including estimated penalties and interest, totaled $199 million and $245 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 March 31, 2026, the Company estimates that the reasonably possible loss related to these matters in excess of the amounts accrued is between $195 million and $215 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.
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
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
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. 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 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.
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 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
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
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 $19 million and $121 million for the three months ended March 31, 2025 and 2026, respectively. The effective tax rate for the three months ended March 31, 2026 was higher than the same period in the prior year primarily due to a $69 million one-time adjustment of certain deferred tax assets as a result of changes to the US Corporate Alternative Minimum Tax (“CAMT”) and decreased stock-based compensation deductions.
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 March 31, 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 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 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 March 31, | |||||||||||||||||
| 2025 | 2026 | ||||||||||||||||
| Net income | $ | 154 | $ | 160 | |||||||||||||
| Add: convertible notes interest expense, net of tax | 1 | — | |||||||||||||||
| Net income - diluted | $ | 155 | $ | 160 | |||||||||||||
| Weighted-average shares in computing net income per share attributable to Class A and Class B common stockholders: | |||||||||||||||||
| Basic | 621 | 598 | |||||||||||||||
| Effect of dilutive securities | 11 | 10 | |||||||||||||||
| Diluted | 632 | 608 | |||||||||||||||
| Net income per share attributable to Class A and Class B common stockholders: | |||||||||||||||||
| Basic | $ | 0.25 | $ | 0.27 | |||||||||||||
| Diluted | $ | 0.24 | $ | 0.26 |
Airbnb, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
As of both March 31, 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 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 March 31, | |||||||||||||||||
| 2025 | 2026 | ||||||||||||||||
| Stock options | 2 | 3 | |||||||||||||||
| RSUs | 11 | 11 | |||||||||||||||
| Total | 13 | 14 |
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 an additional $6.0 billion of the Company's Class A common stock.
Share repurchases under the share repurchase programs 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 programs do 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 months ended March 31, 2026, the Company repurchased and subsequently retired 8.1 million shares of Class A common stock for $1.1 billion. As of March 31, 2026, the Company had $4.5 billion available to repurchase shares of Class A common stock under its share repurchase program.
During the three months ended March 31, 2025, the Company repurchased and subsequently retired 6.1 million shares of Class A common stock for $807 million.
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 March 31, | |||||||||||||||||
| 2025 | 2026 | ||||||||||||||||
| Revenue | $ | 2,272 | $ | 2,678 | |||||||||||||
| Less: | |||||||||||||||||
| Merchant fees and chargebacks | 399 | 474 | |||||||||||||||
| Salaries and benefits | 507 | 587 | |||||||||||||||
| Marketing | 382 | 506 | |||||||||||||||
| Stock-based compensation expense | 358 | 410 | |||||||||||||||
| Professional and third-party services(1) | 260 | 282 | |||||||||||||||
| Non-income taxes | 57 | 48 | |||||||||||||||
| Other items(2) | 271 | 285 | |||||||||||||||
| Total costs and expenses | 2,234 | 2,592 | |||||||||||||||
| Income from operations | 38 | 86 | |||||||||||||||
| Interest income | 173 | 155 | |||||||||||||||
| Other income (expense), net | (38) | 40 | |||||||||||||||
| Income before income taxes | 173 | 281 | |||||||||||||||
| Provision for income taxes | 19 | 121 | |||||||||||||||
| Net income | $ | 154 | $ | 160 |
(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.
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