01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Airbnb, Inc. reported solid financial results for the first quarter of 2026.
Revenue increased by a healthy 18% year-over-year to $2.7 billiona, driven by a rise in Nights and Seats Booked and higher Average Daily Rates (ADR). Net income saw a modest increase to $160 million, impacted by investments in sales and marketing and a one-time tax adjustment, though a significant gain from an equity investment sale boosted the top line. The company also successfully refinanced $2.0 billion of its convertible senior notes by issuing $2.5 billion in new senior notes, enhancing its liquidity and extending debt maturity.
Operating cash flow remained strong at $1.7 billionb, slightly below the prior year due to shifts in payment timing related to deferred payment programs. Airbnb continued its aggressive share repurchase program, buying back $1.1 billion of stock in the quarter. The company highlighted its focus on international expansion, with strong growth in Latin America and Asia Pacific, alongside continued investments in platform development and marketing.
While Airbnb navigates potential macroeconomic and geopolitical headwinds, its core business metrics, such as Nights and Seats Booked and Gross Booking Value (GBV), showed robust growth, indicating continued user engagement and demand for its offerings. The company's financial position remains strong with significant cash reserves and access to credit facilities, positioning it to manage ongoing investments and potential market volatility.
02—Key points
Key Highlights
- Revenue increased 18% year-over-year to $2.7 billion, driven by higher booking volumes and Average Daily Rates (ADR).
- Net income grew to $160 million, supported by revenue growth and a $70 million gain from an equity investment sale, but was impacted by higher operating expenses and a one-time tax adjustment.
- Operating cash flow was strong at $1.7 billion, reflecting the business's core cash generation capabilities.
- The company completed a debt refinancing, issuing $2.5 billion in Senior Notes and repaying $2.0 billion in convertible senior notes.
- Share repurchases continued aggressively, with $1.1 billion spent in the quarter under a $6.0 billion authorization.
- Key metrics like Nights and Seats Booked (up 9%) and Gross Booking Value (up 19%) demonstrated continued platform growth.
- International expansion is a focus, with strong growth reported in Latin America and Asia Pacific.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Airbnb, Inc. kept $0.06.
- Revenue$2.68B100.0%
- Cost of revenue−$581.0M21.7%
- Gross profit$2.10B78.3%
- Operating costs−$2.01B75.1%
- Operating income$86.0M3.2%
- Interest, other & tax$74.0M2.8%
- Net income$160.0M6.0%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.68B$2.27B | +17.9% |
| Cost of Revenue | $581.00M$506.00M | +14.8% |
| Gross Profit | $2.10B$1.77B | +18.7% |
| R&D Expenses | $638.00M$568.00M | +12.3% |
| Operating Expenses | $2.59B$2.23B | +16.0% |
| Operating Income | $86.00M$38.00M | +126.3% |
| Net Income | $160.00M$154.00M | +3.9% |
| Shares Outstanding (Basic) | 598.00M621.00M | −3.7% |
| Shares Outstanding (Diluted) | 608.00M632.00M | −3.8% |
05—Questions
Frequently Asked Questions
What was the primary driver of Airbnb's revenue growth in Q1 2026?
Airbnb's revenue growth of 18% to $2.7 billion was primarily driven by an increase in the number of check-ins related to Nights and Seats Booked, and an increase in the Average Daily Rate (ADR).
How did the debt refinancing impact Airbnb's financial position?
In March 2026, Airbnb issued $2.5 billion in Senior Notes and used $2.0 billion of the proceeds to repay its 0% convertible senior notes due 2026. This move effectively refinanced its debt, extended maturities, and provided approximately $500 million in net proceeds for general corporate purposes, strengthening its liquidity.
What is the outlook for operating expenses and profitability given the current investments?
Operating expenses increased by 16% year-over-year, slightly less than the 18% revenue growth. While net income saw a modest increase, the company continues to invest in sales and marketing, which grew by 33% in the quarter. This suggests ongoing investments aimed at future growth, which may continue to pressure near-term profitability margins. However, the company also benefited from a significant gain on an equity investment sale and strong underlying operational improvements.
How is Airbnb managing potential macroeconomic uncertainties?
Airbnb acknowledges potential impacts from challenging macroeconomic and geopolitical conditions, such as inflation and currency fluctuations. While these have had a slight impact, notably from the conflict in the Middle East affecting bookings in EMEA and Asia Pacific, they have not materially impacted the company's results to date. Management is closely monitoring these factors and their potential future effects.
06—Continue