ABNB Airbnb 10-Q 2026-09-30 section summaries

Airbnb — Q3 and 9M 2026

Results

Q3 revenue grew 18.9% and 9M revenue 17.9%; operating income rose 24.4% and 25.9%, respectively. Net income increased 37.6% in Q3 and 32.1% in 9M. Lower income tax expense contributed to earnings growth; the prior-year comparison included a $213 million valuation allowance against Corporate Alternative Minimum Tax credits.

Geographic revenue

EMEA was the largest regional source of revenue. North America revenue was $4.674 billion for 9M 2026, versus $4.050 billion in 9M 2025; its 9M growth of 15.4% was slower than its Q3 growth of about 20%.

Cash flow, capital allocation and balance sheet

Investing outflow principally reflected short-term investment purchases. Airbnb repurchased and retired 20.4 million shares for $2.8 billion in 9M 2026, compared with 20.9 million shares for $2.7 billion in 9M 2025. Of its existing $6.0 billion authorization, $2.7 billion remained available at September 30; on November 3, the board authorized an additional $12 billion in repurchases. Repurchases are discretionary.

The balance-sheet line combines goodwill and intangible assets; the summarized information does not split them. Cash and equivalents were $7.272 billion and short-term investments $5.318 billion at September 30. Common shares declined from 602 million at December 31, 2025 to 589 million at September 30, 2026 (versus 623 million to 608 million over the comparable 2025 period).

Debt, investments and compensation

In March 2026, Airbnb issued $2.5 billion principal of senior notes and repaid at maturity its $2.0 billion 0% convertible notes, its only debt at year-end 2025. Senior notes had a $2.371 billion net carrying value at September 30, after unamortized discount and issuance costs and a hedge fair-value adjustment. Principal comprises $850 million due 2029, $850 million due 2031 and $800 million due 2036; about $1.7 billion matures within five years. The notes’ effective rates range from 4.65% to 5.38%. Airbnb swapped approximately $1.7 billion notional of the 2031 and 2036 notes from fixed to SOFR-based floating rates. The $1.0 billion revolver was undrawn at quarter-end, with $19 million of letters of credit outstanding. A new five-year unsecured $1.0 billion revolver replaced it on October 30; the company may request another $500 million, subject to lender participation.

Recurring fair-value financial assets totaled $7.442 billion at September 30, up from $6.569 billion at year-end, with no Level 3 assets. Available-for-sale debt securities had $4.200 billion amortized cost and $4.140 billion estimated fair value. Gross unrealized losses were $61 million on $3.827 billion fair value of securities in a loss position, versus $12 million on $161 million at year-end; Airbnb reported no credit-related losses on these securities. A private investee’s acquisition generated a $71 million realized gain in 9M 2026.

Stock-based compensation expense rose to $462 million in Q3 from $399 million and to $1.359 billion in 9M from $1.181 billion. At September 30, 4.2 million options and 35.2 million RSUs were outstanding; outstanding options had $160 million aggregate intrinsic value.

Risks and notable exposures

Airbnb collected and remitted lodging taxes in approximately 37,000 jurisdictions. Collected-tax remittance payables were $502 million, while estimated liabilities (including penalties and interest) for jurisdictions where it may be jointly liable were $134 million. Accrued non-income tax obligations were $271 million, and the company estimated a further $290–$310 million of reasonably possible non-income tax losses above accruals. Tax disputes could increase booking costs and reduce platform volume.

The IRS asserted $1.3 billion of additional tax, plus penalties and interest, in a dispute over the 2013 transfer-pricing valuation of international intellectual property—more than $1.0 billion above Airbnb’s current reserve. Airbnb is contesting the assessment in Tax Court. In Spain, a proposed short-term-rental listing fine was reduced to €65 million ($76 million); a €70 million ($80 million) surety bond is in place pending resolution.

Currency and interest-rate risks remain despite hedging: Airbnb cautions that hedges may offset only part of its exposures. It expected about $48 million of deferred net hedge gains to be reclassified to revenue over the next 12 months. Airbnb also identifies inflation, foreign exchange movements, interest rates, tariffs, geopolitical conflict and trade controls as sources of estimation uncertainty.

Airbnb — Q3 and first nine months of 2026

Business activity and demand

Nights and Seats Booked grew across regions, led by Latin America and Asia Pacific; North America and EMEA grew more moderately. Management cited search and merchandising improvements, pricing tools, flexible payment options, and sign-up and login enhancements as supporting demand. Gross Booking Value (GBV) growth reflected more bookings and a moderate increase in average daily rate (ADR).

Consolidated results

Revenue growth was driven primarily by more check-ins, reflecting booking growth and moderately higher ADR. Revenue growth was 16% in Q3 and 15% in 9M on a constant-currency basis.

Operating income rose as revenue grew faster than total costs and expenses. Cost of revenue increased partly because merchant fees and chargebacks rose $68M in Q3 and $224M in 9M, mainly with higher net pay-in volume and GBV, and server costs rose $35M and $50M, respectively. Product development expense reflected higher payroll from increased average headcount. Sales and marketing growth reflected paid growth marketing, partnerships, and payroll; brand and performance marketing was $471M versus $380M in Q3 and $1.562B versus $1.204B in 9M. Operations and support costs included higher make-good payouts, case reserves, and payroll, partly offset by lower third-party service costs as AI reduced support-agent contact volume.

The Q3 effective tax rate was 13% versus 23%; for 9M it was 14% versus 21%. Comparisons benefited from a prior-year $213M valuation allowance against deferred tax assets for CAMT credits, partly offset by higher taxes on U.S. and foreign earnings. 9M other income included a $71M realized equity-investment gain, a $22M favorable change in investment impairment losses, and a $21M favorable currency-remeasurement change. Higher interest expense primarily reflected the March 2026 Senior Notes.

Cash generation and capital allocation

Higher net income supported cash generation, partly offset by working-capital outflows, expansion of Reserve Now, Pay Later (RNPL), and a July 2026 New York property purchase. 9M investing cash outflow was $1.019B versus $448M, mainly due to short-term investment purchases; financing cash outflow was $2.110B versus $2.377B. The net increase in cash, cash equivalents, and restricted cash was $1.204B versus $1.953B. Currency effects were a $153M outflow versus a $658M inflow, an $811M unfavorable change, mainly due to a stronger U.S. dollar against the euro and pound.

Airbnb repurchased 4.4M Class A shares for $712M in Q3; 9M repurchases totaled 20.4M shares for $2.8B, leaving $2.7B under the August 2025 authorization at September 30. In November, the board approved an additional discretionary $12B repurchase authorization.

Liquidity, debt, and business considerations

At September 30, 2026, cash, cash equivalents, and short-term investments totaled $12.6B: $7.3B of cash and equivalents (including $2.8B at foreign subsidiaries) and $5.3B of short-term investments. This excludes $7.4B held for bookings before guest check-ins, recorded with corresponding customer-funds liabilities.

In March, Airbnb issued $2.5B principal of fixed-rate Senior Notes: $850M at 4.40% due 2029, $850M at 4.65% due 2031, and $800M at 5.25% due 2036. It used $2.0B of proceeds to repay convertible notes at maturity and retained approximately $500M, before issuance costs, for general corporate purposes. The notes increase ongoing semiannual cash interest obligations. In October, Airbnb replaced its prior revolving facility with a five-year, unsecured $1.0B facility; nothing was drawn as of the filing date.

RNPL, launched in 2025 and expanded internationally in 2026, allows guests to book without paying at booking and has had higher cancellation rates than historic bookings. Its adoption makes GBV, revenue recognition at check-in, and cash receipts less correlated, shifts collection closer to stays, and affects cash-flow timing. Management said inflation, interest rates, currency movements, tariffs and trade controls, conflicts, and weaker consumer spending could affect results; the Middle East conflict has affected and may continue to affect booking trends, though these conditions had not materially affected results to date. Airbnb’s revenue and Adjusted EBITDA historically peak in Q3 and are lowest in Q1, while free cash flow historically peaks in Q1 and is lowest in Q4; RNPL is changing typical cash-flow seasonality. Management expects operating cash flow and U.S.-held liquidity to meet near-term needs, but identifies repurchases, product and platform development, marketing, debt repayment, and other commitments as cash needs; longer-term financing may depend on capital markets or the credit facility.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As of September 30, 2026, Airbnb had $2.5 billion of unsecured senior notes outstanding. Interest rate swaps with approximately $1.7 billion of aggregate notional effectively converted the fixed interest rates on $850 million of 4.65% notes due March 2031 and $800 million of 5.25% notes due March 2036 to floating rates based on SOFR.

Accordingly, approximately $1.7 billion of debt is exposed to interest-rate fluctuations. An immediate hypothetical 100-basis-point increase or decrease in rates would change annualized interest expense by an estimated $17 million and would also affect the fair value of the hedged debt and related derivatives. The remaining senior notes carry fixed rates and do not create cash-flow exposure to interest-rate changes.

Airbnb reported no other material changes to the market risks disclosed in its 2025 Annual Report.

Disclosure controls and internal control over financial reporting

As of September 30, 2026, Airbnb’s CEO and CFO concluded that its disclosure controls and procedures were effective in providing reasonable assurance that required information is recorded, processed, summarized, and reported on time, and communicated to management to support disclosure decisions.

No changes during Q3 2026 materially affected, or were reasonably likely to materially affect, internal control over financial reporting. The company cautioned that controls provide reasonable, not absolute, assurance and may not prevent or detect every error, fraud, misstatement, or control issue.

Airbnb reports no material changes to the risk factors previously disclosed in its 2025 Form 10-K and Q1 and Q2 2026 Forms 10-Q. It directs investors to those filings and to the current 10-Q, including its MD&A and financial statements, for a detailed discussion. Airbnb cautions that its disclosed risks may not be exhaustive and that risks could materially adversely affect its business, operations, financial condition, results, and Class A stock price. These risks could also cause actual results to differ materially from historical results or forward-looking statements.

Credit facility

On October 30, 2026, Airbnb replaced its 2022 facility with a five-year, unsecured $1.0 billion revolving credit facility led by Morgan Stanley Senior Funding. Airbnb may request up to $500 million in additional commitments, subject to lender participation. The facility includes $200 million of letter-of-credit capacity and $50 million of swingline capacity. Approximately $19 million of letters of credit transferred from the prior facility and reduce borrowing availability; no amounts were drawn as of the 10-Q filing date.

Undrawn commitment fees range from 0.07% to 0.15% annually, depending on Airbnb’s senior unsecured credit ratings. Borrowing spreads also vary by rating: Term SOFR plus 0.75%–1.25%, or the base rate plus 0.00%–0.25%, subject to specified rate floors. Borrowings may be prepaid without penalty. The facility contains customary covenants and defaults, including a maximum leverage-ratio covenant and restrictions on certain subsidiary debt, liens, and fundamental changes.

Related-party transaction

In November 2026, Airbnb sold certain intellectual property to a recently formed private AI lab and received $7.1 million in cash, including reimbursement of certain expenses. Airbnb also received an option to invest in future equity financings and a license to use certain lab intellectual property internally. CEO and Chairman Brian Chesky founded and controls the lab, and CTO Ahmad Al-Dahle owns an equity interest in it; both also provide services to the lab. Airbnb said their lab roles do not change their duties to Airbnb. An independent, disinterested board special committee approved the transaction under Airbnb’s related-party transaction policy.

Insider trading plans

During the quarter ended September 30, 2026, Chesky adopted a Rule 10b5-1 plan to sell up to 3,150,000 shares, expiring May 28, 2027. Chief Accounting Officer David Bernstein adopted a plan to sell up to 25,172 shares, expiring October 29, 2027. No non-Rule 10b5-1 trading arrangements were adopted, terminated, or modified during the quarter.