Airbnb, Inc. (ABNB) Earnings & Analysis

Latest quarter

Airbnb reported Q2 FY2026 revenue of $3.6 billion, up 16.5% from $3.1 billion a year earlier. The company reported revenue of $3.6 billion against consensus revenue of $3.6 billion, exceeding the consensus by 0.81%. Airbnb reported adjusted EPS, as the consensus counts it, of $1.37 against consensus adjusted EPS of $1.20, exceeding the consensus by 14.2%.

The filing attributed revenue growth to more check-ins related to Nights and Seats Booked and a higher average daily rate. Airbnb said Nights and Seats Booked grew 10.0% in Q2 FY2026, while the filing said growth occurred across all regions, led by Latin America and Asia Pacific. The company reported gross margin of 82.5% and operating margin of 21.0%, compared with 82.4% and 19.8%, respectively, a year earlier. Airbnb reported free cash flow of $1.3 billion, up 30.3% from $975.0 million. The company said Q2 revenue was above its $3.5 billion to $3.6 billion guidance range.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Brian Chesky said Q2 revenue grew 17% year over year to $3.6 billion, gross booking value grew 16% to $27.2 billion, and nights and seats booked grew 10% as demand accelerated from Q1. Elinor Mertz said underlying global demand continued despite the Middle East conflict, whose effect on the business was less than the company had anticipated. She said North America and Europe recorded high-single-digit growth in nights and seats booked, Latin America grew about 20%, and Asia Pacific grew in the high teens.

Mertz said average daily rate increased 5% year over year, or 4% excluding foreign exchange, and said Reserve Now, Pay Later accounted for more than 20% of Q2 gross booking value. She said the option contributed to bookings, longer booking lead times and the increase in average daily rate. Mertz also said Airbnb was broadening its single-service-fee rollout, which the company expects to cover its entire supply base by year-end, and said the structure supports simpler price recommendations and competitive pricing.

Chesky said AI had accelerated work across search, sign-up, checkout and payments, which he said was improving conversion. He said customer-support costs per booking declined about 16% year over year, partly because of the AI assistant, and Mertz said AI spending was included in the updated guidance while customer-service costs and slower headcount growth provided offsets.

On profitability, Mertz said Q2 adjusted EBITDA was $1.3 billion and the adjusted EBITDA margin was 35%, with expansion driven by revenue growth and cost efficiencies in operations and support and product development, partly offset by sales-and-marketing investment. She said Airbnb spent $1.1 billion repurchasing common stock in Q2.

In response to analyst questions about hotels, Chesky said the company was seeing hotel supply interest and that about 35% of first-time hotel guests returned to book a home. Mertz said hotels remained a single-digit percentage of nights booked but were growing about three times as quickly as homes. When asked about 2027 and later, Mertz said she would not provide a specific guide.

Guidance

Airbnb raised its full-year 2026 revenue-growth outlook to at least mid-teens from its previous low-to-mid-teens outlook. Elinor Mertz said Airbnb now expects full-year 2026 adjusted EBITDA margin of at least 35.5%, up from its previous expectation of at least 35%.