Airbnb, Inc.

Previous wording

We are a community based on connection and belonging—a community that was born in 2007 when two hosts welcomed three guests to their San Francisco home, and has since grown to over 5 million hosts who have welcomed over 2 billion guest arrivals in almost every country and region across the globe. Every day, hosts offer unique stays and experiences that make it possible for guests to connect with communities in a more authentic way.

Current wording

We are a community based on connection and belonging—a community that was born in 2007 when two hosts welcomed three guests to their San Francisco home, and has since grown to over 5 million hosts who have welcomed over 2 billion guest arrivals in almost every country and region across the globe. Every day, hosts offer unique stays, experiences, and services that make it possible for guests to connect with communities in a more authentic way.

Previous wording

Revenue for the three months ended March 31, 2025 grew by 6% to $2.3 billion, compared to the same period in the prior year. The increase was primarily due to an increase in the number of check-ins relating to Nights and Experiences Booked, partially offset by the impact of a slight decrease in Average Daily Rate (“ADR”).

Current wording

Revenue for the three months ended June 30, 2025 grew by 13% to $3.1 billion, compared to the same period in the prior year. The increase was primarily due to an increase in the number of check-ins relating to Nights and Seats Booked, a slight increase in Average Daily Rate (“ADR”), and the shift in timing of Easter from the first quarter of 2024 to the second quarter of 2025.

Previous wording

Net income for the three months ended March 31, 2025 decreased by 42% to $154 million, compared to the same period in the prior year. This decline was primarily due to higher payroll-related expenses driven by increased headcount and impairment losses associated with private company investments. Additionally, lower interest income due to a decline in interest rates contributed to the decrease, which was slightly offset by our revenue growth.

Current wording

Net income for the three months ended June 30, 2025 increased by 16% to $642 million, compared to the same period in the prior year. This increase was primarily due to revenue growth, slightly offset by lower interest income due to declining interest rates.

Previous wording

Cash provided by operating activities was $1.8 billion for the three months ended March 31, 2025, compared to $1.9 billion in the same period in the prior year. We generated Free Cash Flow 1 of $1.8 billion for the three months ended March 31, 2025, compared to $1.9 billion, in the same period in the prior year.

Current wording

Cash provided by operating activities was $1.0 billion for the three months ended June 30, 2025, compared to $1.1 billion in the same period in the prior year. Free Cash Flow 1 remained consistent at $1.0 billion for the three months ended June 30, 2025, compared to the same period in the prior year.

Previous wording

During the three months ended March 31, 2025, we repurchased 6.1 million shares of Class A common stock for $807 million, leaving $2.5 billion available to repurchase under our share repurchase program.

Current wording

During the three months ended June 30, 2025, we repurchased 8.1 million shares of Class A common stock for $1.0 billion, leaving $1.5 billion available to repurchase under our share repurchase program.

Previous wording

Nights and Experiences Booked is a key measure of the scale of our platform, which in turn drives our financial performance. Nights and Experiences Booked on our platform in a period represents the sum of the total number of nights booked for stays and the total number of seats booked for experiences, net of cancellations and alterations that occurred in that period. For example, a booking made on February 15 would be reflected in Nights and Experiences Booked for our quarter ended March 31. If, in the example, the booking were canceled on May 15, Nights and Experiences Booked would be reduced by the cancellation for our quarter ended June 30. A night can include one or more guests and can be for a listing with one or more bedrooms. Nights and Experiences Booked grows as we attract new customers to our platform and as repeat guests increase their activity on our platform. A seat is booked for each participant in an experience. Substantially all of the bookings on our platform to date have come from nights. We believe Nights and Experiences Booked is a key business metric to help investors and others understand and evaluate our results of operations in the same manner as our management team, as it represents a single unit of transaction on our platform.

Current wording

Nights and Seats Booked is a key measure of the scale of our platform, which in turn drives our financial performance. Nights and Seats Booked on our platform in a period represents the sum of the total number of nights booked for stays and the total number of seats booked for experiences and services, net of cancellations and alterations that occurred in that period. For example, a booking made on February 15 would be reflected in Nights and Seats Booked for our quarter ended March 31. If, in the example, the booking were canceled on May 15, Nights and Seats Booked would be reduced by the cancellation for our quarter ended June 30. A night can include one or more guests and can be for a listing with one or more bedrooms. Nights and Seats Booked grows as we attract new customers to our platform and as repeat guests increase their activity on our platform. A seat is booked for each participant in an experience or service. Substantially all of the bookings on our platform to date have come from nights. We believe Nights and Seats Booked is a key business metric to help investors and others understand and evaluate our results of operations in the same manner as our management team, as it represents a single unit of transaction on our platform.

Previous wording

The increase in Nights and Experiences Booked during the three months ended March 31, 2025, compared to the same period in the prior year, was driven by growth across all regions, with the strongest growth percentages in Latin America and Asia Pacific, as we continue to focus on international expansion.

Current wording

During the three and six months ended June 30, 2025, the increase in Nights and Seats Booked, compared to the same periods in the prior year, was driven by growth across all regions, with the strongest growth percentages in Latin America and Asia Pacific, as we continue to focus on international expansion.

Previous wording

GBV represents the dollar value of bookings on our platform in a period and is inclusive of host earnings, service fees, cleaning fees, and taxes, net of cancellations and alterations that occurred during that period. The timing of recording GBV and any related cancellations is similar to that described in the subsection titled “— Key Business Metrics and Non-GAAP Financial Measures — Nights and Experiences Booked” above. Revenue from the booking is recognized upon check-in; accordingly, GBV is a leading indicator of revenue. The entire amount of a booking is reflected in GBV during the quarter in which booking occurs, whether the guest pays the entire amount of the booking upfront or elects to use our Pay Less Upfront program. Growth in GBV reflects our ability to attract and retain customers and reflects growth in Nights and Experiences Booked.

Current wording

GBV represents the dollar value of bookings on our platform in a period and is inclusive of host earnings, service fees, cleaning fees, and taxes, net of cancellations and alterations that occurred during that period. The timing of recording GBV and any related cancellations is similar to that described in the subsection titled “— Key Business Metrics and Non-GAAP Financial Measures — Nights and Seats Booked” above. Revenue from the booking is recognized upon check-in; accordingly, GBV is a leading indicator of revenue. The entire amount of a booking is reflected in GBV during the quarter in which booking occurs, whether the guest pays the entire amount of the booking upfront or elects to use our Pay Less Upfront program. Growth in GBV reflects our ability to attract and retain customers and reflects growth in Nights and Seats Booked.

Previous wording

The increase in GBV during the three months ended March 31, 2025, compared to the same period in the prior year, was primarily due to an increase in Nights and Experiences Booked. We saw GBV growth across all regions, with the strongest growth percentages in Latin America and Asia Pacific.

Current wording

During the three and six months ended June 30, 2025, the increase in GBV, compared to the same periods in the prior year, was primarily due to an increase in Nights and Seats Booked. We saw GBV growth across all regions, with the strongest growth percentages in Asia Pacific and Latin America.

Previous wording

The decrease in Adjusted EBITDA for the three months ended March 31, 2025, compared to the same period in the prior year, was primarily due to higher product development and sales and marketing expenses. This was primarily driven by increased employee compensation costs and expenses related to our upcoming product launches. These impacts were partially offset by revenue growth from an increase in the number of check-ins for Nights and Experiences Booked, which was partially offset by the impact of a slight decrease in ADR.

Current wording

The increase in Adjusted EBITDA for the three and six months ended June 30, 2025, compared to the same periods in the prior year, was primarily due to revenue growth from an increase in the number of check-ins for Nights and Seats Booked and a slight increase in ADR.

Previous wording

Our business is seasonal, reflecting typical travel behavior patterns over the course of the calendar year. In a typical year, the first, second, and third quarters have higher Nights and Experiences Booked than the fourth quarter, as guests plan for travel during the peak travel season, which is in the third quarter for North America and EMEA.

Current wording

Our business is seasonal, reflecting typical travel behavior patterns over the course of the calendar year. In a typical year, the first, second, and third quarters have higher Nights and Seats Booked than the fourth quarter, as guests plan for travel during the peak travel season, which is in the third quarter for North America and EMEA.

Previous wording

Our key business metrics, including GBV and Adjusted EBITDA, can also be impacted by the timing of holidays and other events. We experience seasonality in our GBV that is generally consistent with the seasonality of Nights and Experiences Booked. Revenue and Adjusted EBITDA have historically been, and are expected to continue to be, highest in the third quarter when we have the most check-ins, which is the point at which we recognize revenue. Seasonal trends in our GBV impact Free Cash Flow for any given quarter. A significant portion of our costs are relatively fixed across quarters or vary in line with the volume of transactions, and we historically achieve our highest GBV in the first and second quarters of the year with comparatively lower check-ins. As a result, increases in unearned fees typically make our Free Cash Flow and Free Cash Flow Margin the highest in the first two quarters of the year. We typically see a slight decline in GBV and a peak in check-ins in the third quarter, which results in a decrease in unearned fees, a lower sequential decrease in Free Cash Flow, and a greater decline in GBV in the fourth quarter, where Free Cash Flow is typically lower.

Current wording

Our key business metrics, including GBV and Adjusted EBITDA, can also be impacted by the timing of holidays and other events. We experience seasonality in our GBV that is generally consistent with the seasonality of Nights and Seats Booked. Revenue and Adjusted EBITDA have historically been, and are expected to continue to be, highest in the third quarter when we have the most check-ins, which is the point at which we recognize revenue. Seasonal trends in our GBV impact Free Cash Flow for any given quarter. A significant portion of our costs are relatively fixed across quarters or vary in line with the volume of transactions, and we historically achieve our highest GBV in the first and second quarters of the year with comparatively lower check-ins. As a result, increases in unearned fees typically make our Free Cash Flow and Free Cash Flow Margin the highest in the first two quarters of the year. We typically see a slight decline in GBV and a peak in check-ins in the third quarter, which results in a decrease in unearned fees, a lower sequential decrease in Free Cash Flow, and a greater decline in GBV in the fourth quarter, where Free Cash Flow is typically lower.

Previous wording

The following table sets forth our results of operations (in millions, except for percentages):

Current wording

The following table sets forth our results of operations (in millions, except percentages):

Previous wording

Comparison of the Three Months Ended March 31, 2025 with the Same Period in 2024

Current wording

Comparison of the Three and Six Months Ended June 30, 2025 with the Same Periods in 2024

Previous wording

Revenue increased $130 million, or 6%, for the three months ended March 31, 2025, compared to the same period in the prior year, primarily due to an increase in the number of check-ins relating to Nights and Experiences Booked, partially offset by the impact of a slight decrease in ADR. On a constant-currency basis, revenue increased 8% compared to the same period in the prior year.

Current wording

Revenue increased $478 million, or 10%, primarily due to an increase in the number of check-ins relating to Nights and Seats Booked. On a constant-currency basis, revenue increased 11% compared to the same period in the prior year.

Previous wording

Cost of revenue increased $26 million, or 5%, for the three months ended March 31, 2025, compared to the same period in the prior year, primarily due to an increase in merchant fees of $17 million, largely due to an increase in pay-in volumes and an increase in amortization costs related to capitalized internal-use software projects of $12 million, partially offset by a reduction in chargebacks of $11 million.

Current wording

Cost of revenue increased $64 million, or 6%, primarily due to an increase in merchant fees of $52 million, largely due to an increase in pay-in volumes, an increase in data hosting services of $20 million, and an increase in amortization costs related to capitalized internal-use software projects of $19 million, partially offset by a reduction in chargebacks of $22 million.

Previous wording

Operations and support expense increased $18 million, or 6%, for the three months ended March 31, 2025, compared to the same period in the prior year, primarily due to an increase in payroll-related expenses of $9 million, an increase in insurance costs of $7 million, due to higher premiums as a result of higher nights booked, and an increase in customer relations costs of $5 million, which resulted from increased refunds and credits related to customer satisfaction. These increases were partially offset by a decrease in third-party customer service costs of $8 million, due to ongoing partner site optimization.

Current wording

Operations and support expense decreased $6 million, or 2%, primarily due to a decrease in third-party customer service costs of $14 million, due to ongoing partner site optimization, and a decrease in customer relations costs due to fewer refunds and credits related to customer satisfaction of $8 million. These decreases were partially offset by an increase in insurance costs of $6 million, due to higher premiums as a result of higher nights booked, and higher payroll-related expenses of $5 million.

Previous wording

Product development expense increased $93 million, or 20%, for the three months ended March 31, 2025, compared to the same period in the prior year, primarily due to an increase in payroll-related expenses of $86 million, driven by an increase in average headcount of 11%.

Current wording

Product development expense increased $91 million, or 18%, primarily due to an increase in payroll-related expenses of $83 million, driven by an increase in average headcount.

Previous wording

Other expense, net increased $28 million, or 280%, for the three months ended March 31, 2025, compared to the same period in the prior year, primarily due to impairment charges on investments in privately-held companies of $37 million, partially offset by foreign exchange gains of $8 million.

Current wording

Other expense, net increased $9 million, or 17%, primarily due to foreign exchange losses of $20 million, partially offset by lower impairment charges on investments in privately-held companies.

Previous wording

In 2021, the Organization for Economic Co-operation and Development (“OECD”) established an inclusive framework on base erosion and profit shifting and agreed on a two-pillar solution to global taxation, focusing on global profit allocation, known as Pillar One and a 15% global minimum effective tax rate, known as Pillar Two. The OECD issued Pillar Two model rules and continues to release guidance on these rules. The inclusive framework calls for tax law changes by participating countries to further take effect in 2025. Various countries, including the European Union, have enacted or have announced plans to enact new tax laws to implement the global minimum tax. We considered the applicable tax law changes on Pillar Two implementation in the relevant countries, and concluded there was no material impact to our tax provision for the three months ended March 31, 2025. We will continue to evaluate the impact of these tax law changes on future reporting periods.

Current wording

In 2021, the Organization for Economic Co-operation and Development (“OECD”) established an inclusive framework on base erosion and profit shifting and agreed on a two-pillar solution to global taxation, focusing on global profit allocation, known as Pillar One and a 15% global minimum effective tax rate, known as Pillar Two. The OECD issued Pillar Two model rules and continues to release guidance on these rules. The inclusive framework calls for tax law changes by participating countries to further take effect in 2025. Various countries, including the European Union, have enacted or have announced plans to enact new tax laws to implement the global minimum tax. We considered the applicable tax law changes on Pillar Two implementation in the relevant countries, and concluded there was no material impact to our tax provision for the three and six months ended June 30, 2025. We will continue to evaluate the impact of these tax law changes on future reporting periods.

Previous wording

As of March 31, 2025, our principal sources of liquidity were cash, cash equivalents and short-term investments totaling $11.5 billion. As of March 31, 2025, cash and cash equivalents totaled $7.6 billion, which included $2.2 billion held by our foreign subsidiaries. Cash and cash equivalents consist of checking and interest-bearing accounts and highly-liquid securities with an original maturity of 90 days or less. As of March 31, 2025, short-term investments totaled $3.9 billion. Short-term investments primarily consist of highly-liquid investment grade corporate debt securities, time deposits, commercial paper, certificates of deposit, U.S. government and government agency debt securities (“government bonds”), and mortgage-backed and asset-backed securities. These amounts do not include funds of $9.2 billion as of March 31, 2025, that we held for bookings in advance of guests completing check-ins that we record separately on our unaudited condensed consolidated balance sheets in funds receivable and amounts held on behalf of customers with a corresponding liability in funds payable and amounts payable to customers.

Current wording

As of June 30, 2025, our principal sources of liquidity were cash, cash equivalents and short-term investments totaling $11.4 billion. As of June 30, 2025, cash and cash equivalents totaled $7.4 billion, which included $2.8 billion held by our foreign subsidiaries. Cash and cash equivalents consist of cash on deposit with banks and interest-bearing accounts and highly-liquid securities with an original maturity of 90 days or less. As of June 30, 2025, short-term investments totaled $4.0 billion. Short-term investments primarily consist of highly-liquid investment grade corporate debt securities, time deposits, commercial paper, certificates of deposit, U.S. government and government agency debt securities (“government bonds”), and mortgage-backed and asset-backed securities. These amounts do not include funds of $11.1 billion as of June 30, 2025, that we held for bookings in advance of guests completing check-ins that we record separately on our unaudited condensed consolidated balance sheets in funds receivable and amounts held on behalf of customers with a corresponding liability in funds payable and amounts payable to customers.

Previous wording

Our cash and cash equivalents are generally held at large global systemically important banks (“G-SIBs”) which are subject to high capital requirements and are required to regularly perform stringent stress tests related to their ability to absorb capital losses. Our cash, cash equivalents, and short-term investments held outside the United States may be repatriated, subject to certain limitations, and would be available to be used to fund our domestic operations. However, repatriation of such funds may result in additional tax liabilities. We believe that our existing cash, cash equivalents, and short-term investments balances in the United States are sufficient to fund our working capital needs in the United States.

Current wording

Our cash and cash equivalents are generally held at large global systemically important banks (“G-SIBs”) which are subject to high capital requirements and are required to regularly perform stringent stress tests related to their ability to absorb capital losses. Our cash, cash equivalents, and short-term investments held outside the U.S. may be repatriated, subject to certain limitations, and would be available to be used to fund our domestic operations. However, repatriation of such funds may result in additional tax liabilities. We believe that our existing cash, cash equivalents, and short-term investments balances in the U. S. are sufficient to fund our working capital needs.

Previous wording

We have access to $1.0 billion of commitments and a $200 million sub-limit for the issuance of letters of credit under the 2022 Credit Facility. As of March 31, 2025, no amounts were drawn under the 2022 Credit Facility and outstanding letters of credit totaled $25 million. See Note 7, Debt, to our unaudited condensed consolidated financial statements included in Item 1 of Part 1 of this Quarterly Report on Form 10-Q additional information.

Current wording

We have access to $1.0 billion of commitments and a $200 million sub-limit for the issuance of letters of credit under the 2022 Credit Facility. As of June 30, 2025, no amounts were drawn under the 2022 Credit Facility and outstanding letters of credit totaled $25 million. See Note 7, Debt, to our unaudited condensed consolidated financial statements included in Item 1 of Part 1 of this Quarterly Report on Form 10-Q for additional information.

Previous wording

In February 2024, our board of directors approved a share repurchase program to purchase up to $6.0 billion of our Class A common stock. During the three months ended March 31, 2025, we repurchased 6.1 million shares of Class A common stock for $807 million through our share repurchase program. As of March 31, 2025, we had $2.5 billion available to repurchase shares of Class A common stock under our share repurchase program.

Current wording

In February 2024, our board of directors approved a share repurchase program to purchase up to $6.0 billion of our Class A common stock. During the three and six months ended June 30, 2025, we repurchased 8.1 million and 14.2 million shares of Class A common stock for $1.0 billion and $1.8 billion, respectively, through our share repurchase program. As of June 30, 2025, we had $1.5 billion available to repurchase shares of Class A common stock under our share repurchase program.

Previous wording

Net cash provided by operating activities for the three months ended March 31, 2025 was $1.8 billion, which was primarily due to net income of $154 million, additional cash provided by unearned fees of $1.1 billion, resulting from growth in bookings, and an increase in accrued expenses and other liabilities of $155 million. Additionally, we had adjustments for non-cash charges, primarily consisting of $358 million of stock-based compensation expense.

Current wording

Net cash provided by operating activities for the six months ended June 30, 2025 was $2.8 billion, which was primarily due to net income of $796 million, and additional cash provided by unearned fees of $1.2 billion, resulting from growth in bookings. Additionally, we had adjustments for non-cash charges primarily consisting of $782 million of stock-based compensation expense.

Previous wording

Net cash used in investing activities for the three months ended March 31, 2025 was $151 million, which was primarily due to purchases of short-term investments, partially offset by proceeds resulting from sales and maturities of short-term investments.

Current wording

Net cash used in investing activities for the six months ended June 30, 2025 was $242 million, which was primarily due to purchases of short-term investments, partially offset by proceeds resulting from sales and maturities of short-term investments.

Previous wording

Net cash provided by financing activities for the three months ended March 31, 2025 was $2.1 billion, primarily due to an increase in funds payable and amounts payable to customers of $3.1 billion, partially offset by share repurchases of $807 million and taxes paid related to net share settlement of equity awards of $152 million.

Current wording

Net cash provided by financing activities for the six months ended June 30, 2025 was $2.5 billion, primarily due to an increase in funds payable and amounts payable to customers of $4.5 billion, partially offset by share repurchases of $1.8 billion and taxes paid related to net share settlement of equity awards of $295 million.

Previous wording

The effect of exchange rate changes on cash, cash equivalents, and restricted cash on our audited consolidated statements of cash flows relates to certain of our assets, principally cash balances held on behalf of customers, that are denominated in currencies other than the functional currency of certain of our subsidiaries. For the three months ended March 31, 2025, we recorded an increase of $207 million in cash, cash equivalents, and restricted cash, primarily due to the weakening of the U.S. dollar. The impact of exchange rate changes on cash balances can serve as a natural hedge for the effect of exchange rates on our liabilities to our hosts and guests.

Current wording

The effect of exchange rate changes on cash, cash equivalents, and restricted cash on our audited consolidated statements of cash flows relates to certain of our assets, principally cash balances held on behalf of customers, that are denominated in currencies other than the functional currency of certain of our subsidiaries. For the six months ended June 30, 2025, we recorded an increase of $689 million in cash, cash equivalents, and restricted cash, primarily due to the weakening of the U.S. dollar. The impact of exchange rate changes on cash balances can serve as a natural hedge for the effect of exchange rates on our liabilities to our hosts and guests.