The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and with our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (“2025 Annual Report”). This discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under the section titled “Risk Factors” of our 2025 Annual Report and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 and any subsequent filings. Our historical results are not necessarily indicative of the results that may be expected for any period in the future. Overview Airbnb was founded in 2007 when two hosts welcomed three guests to their San Francisco home, and has since grown into a global community of over 5.5 million hosts who have welcomed over 2.5 billion guest arrivals in almost every country and region across the globe. Every day, hosts offer unique stays, experiences, and services that enable guests to connect with communities in a more authentic way. We operate a global marketplace connecting guests with these offerings, collectively in over 220 countries and regions. We operate with five key stakeholders in mind: our employees, shareholders, hosts, guests, and the communities we serve. Our commitment to making long-term decisions that benefit all these stakeholders is fundamental to our sustained success. Second Quarter Financial Highlights •Top-Line Growth: Revenue grew by 17% to $3.6 billion for the three months ended June 30, 2026, compared to the same period in the prior year. This growth was primarily driven by an increase in the number of check-ins relating to Nights and Seats Booked, and a modest increase in our Average Daily Rate (“ADR”). •Increased Profitability: Net income grew by $174 million to $816 million for the three months ended June 30, 2026, compared to the same period in the prior year. This improvement was primarily driven by revenue growth of 17%, which outpaced a 15% increase in operating expenses. Additionally, provision for income taxes decreased $56 million primarily due to a $77 million benefit recorded in the current period related to recently published guidance impacting prior year taxes. •Cash Generation: Cash provided by operating activities and Free Cash Flow1 (“FCF”) were both $1.3 billion for the three months ended June 30, 2026, compared to $1.0 billion for both metrics during the same period in the prior year. •Share Repurchases: During the three months ended June 30, 2026, we repurchased 7.9 million shares of Class A common stock for $1.1 billion, leaving $3.4 billion available to repurchase under our share repurchase program. Macroeconomic and Geopolitical Conditions on our Business As we look forward, we recognize the potential impact of challenging macroeconomic and geopolitical conditions on our business, including inflation, interest rates, foreign currency fluctuations, tariffs and trade controls, wars and other geopolitical conflicts, and potential decreased consumer spending. The conflict in the Middle East has had and may continue to have an impact on booking trends. To date, these conditions have not had a material impact on our business, results of operations, cash flows, and financial condition; however, the impact in the future of these macroeconomic and geopolitical conditions on our business, results of operations, cash flows, and financial condition is uncertain and will depend on future developments that we may not be able to accurately predict. Key Business Metrics and Non-GAAP Financial Measures We track the following key business metrics and financial measures that are not calculated and presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) (“non-GAAP financial measures”) to evaluate our operating performance, identify trends, formulate financial projections, and make strategic decisions. Accordingly, we believe that these key business metrics and non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management team. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance, and assists in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their U.S. GAAP results. These key business metrics and non-GAAP financial measures are presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with U.S. GAAP, and may be different from similarly titled metrics or measures presented by other companies. A reconciliation of each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with U.S. GAAP is provided under the subsection titled “— Adjusted EBITDA Reconciliation” and “— Free Cash Flow Reconciliation” below. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures. 1 A reconciliation of non-GAAP financial measures to the most comparable U.S. GAAP financial measures is provided under the subsection titled “Key Business Metrics and Non-GAAP Financial Measures— Free Cash Flow Reconciliation” below. 23 Table of Contents Key Business Metrics We review the following key business metrics to measure our performance, identify trends, formulate financial projections, and make strategic decisions. We are not aware of any uniform standards for calculating these key metrics, which may hinder comparability with other companies that may calculate similarly titled metrics in a different way. The following table summarizes our key business metrics, for each period presented below (in millions, except percentages): Three Months Ended June 30, Six Months Ended June 30, 2025 2026 % Change 2025 2026 % Change Nights and Seats Booked 134 148 10 % 277 305 10 % Gross Booking Value $ 23,447 $ 27,247 16 % $ 47,962 $ 56,434 18 % Nights and Seats Booked 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. During the three and six months ended June 30, 2026, the increase in Nights and Seats Booked, compared to the same period in the prior year, was driven by growth across all regions, led by Latin America and Asia Pacific, as we continue to focus on international expansion. North America and EMEA grew more moderately. We also continued to benefit from our product initiatives, including improvements to search and merchandising, pricing and tools, and flexible payment options. Gross Booking Value Gross Booking Value (“GBV”) represents the dollar value of bookings on our platform in a period, inclusive of host earnings, service fees, cleaning fees, and taxes, net of cancellations and alterations. The timing of recording GBV and related cancellations is similar to that described in the subsection titled “— Key Business Metrics and Non-GAAP Financial Measures — Nights and Seats Booked” above. The entire amount of a booking is reflected in GBV in the quarter it occurs regardless of when payment is collected. Revenue is recognized upon check-in; accordingly, GBV has generally been a leading indicator of revenue. Our flexible payment options allow guests to defer a portion or all of their payment from the time of booking to a date closer to stay. In 2025, we launched RNPL and expanded it internationally in 2026. To date, RNPL bookings, which require no payment at the time of booking, have experienced higher cancellation rates than historic bookings in which some or all of the cash was received at the time of booking. As adoption of RNPL and our other flexible payment options continues to grow, the timing among GBV, revenue, and cash receipts may become less correlated. During the three and six months ended June 30, 2026, the increase in GBV, compared to the same periods in the prior year, was primarily due to an increase in Nights and Seats Booked and ADR. We saw GBV growth across all regions, led by Latin America and Asia Pacific, with North America and EMEA growing more moderately. The increase in ADR was driven in part by the continued adoption of RNPL. Non-GAAP Financial Measures Our non-GAAP financial measures include Adjusted EBITDA, Adjusted EBITDA Margin, FCF, and FCF Margin, which are described below. A reconciliation of each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with U.S. GAAP is provided below. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures. Adjusted EBITDA and Adjusted EBITDA Margin have limitations as a financial measure, should be considered as supplemental in nature, and are not meant as a substitute for the related financial information prepared in accordance with U.S. GAAP. Because of these limitations, Adjusted EBITDA and Adjusted EBITDA Margin should be considered alongside other financial performance measures, including net income and net income margin as well as our other U.S. GAAP results. FCF and FCF Margin have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of other U.S. GAAP financial measures, such as net cash provided by operating activities and net cash provided by operating activities margin. FCF and FCF Margin do not reflect our ability to meet future contractual commitments and may be calculated differently by other companies in our industry, limiting their usefulness as comparative measures. 24 Table of Contents Non-GAAP Measure Definition Purpose of Non-GAAP Measure Adjusted EBITDA & Adjusted EBITDA Margin Adjusted EBITDA: Net income adjusted for:•provision for income taxes,•other income (expense), net,•Interest expense,•interest income, •depreciation and amortization,•stock-based compensation expense, •acquisition-related impacts consisting of gains (losses) recognized on changes in the fair value of contingent consideration arrangements, •settlements and reserves for lodging, withholding, transactional and other non-income taxes where significant uncertainty exists as to how these taxes apply to users of our platform and Airbnb, and•stock-settlement obligations, which represent employer and related taxes related to our Initial Public Offering (“IPO”). Adjusted EBITDA Margin: Adjusted EBITDA divided by revenue. •Enhances comparability on a consistent basis and provides investors with useful insight into the underlying trends of the business. •Used by management to make operating decisions such as evaluating performance, performing strategic planning, and budgeting. FCF & FCF Margin FCF: Net cash provided by operating activities less purchases of property and equipment. FCF Margin: FCF divided by revenue. •Indicator of liquidity that provides information to our management and investors about the amount of cash generated from operations, after purchases of property and equipment, that can be used for strategic initiatives. •Used by management to measure operational performance to assess our ability to generate cash from ongoing business operations, and to make decisions about capital allocation. Constant currency revenue growth rate The change in the current period revenue over the prior comparable period where current period foreign currency revenue is translated using the exchange rates of the comparative period. •Enhances comparability and provides investors with useful insight into the operational changes in revenue. •Used by management for financial and operational decision-making and as a means to evaluate performance by excluding the effects of foreign currency volatility which is not indicative of our core operating results. The following table summarizes our non-GAAP financial measures, along with the most directly comparable U.S. GAAP measure (in millions, except percentages): Three Months Ended June 30, Six Months Ended June 30, 2025 2026 2025 2026 Net income $ 642 $ 816 $ 796 $ 976 Net income margin 21 % 23 % 15 % 16 % Adjusted EBITDA $ 1,043 $ 1,261 $ 1,460 $ 1,780 Adjusted EBITDA Margin 34 % 35 % 27 % 28 % Net cash provided by operating activities $ 975 $ 1,270 $ 2,764 $ 2,978 Net cash provided by operating activities margin 31 % 35 % 51 % 47 % FCF $ 962 $ 1,253 $ 2,743 $ 2,957 FCF Margin 31 % 35 % 51 % 47 % 25 Table of Contents Adjusted EBITDA Reconciliation The following is a reconciliation of net income to Adjusted EBITDA (in millions, except percentages): Three Months Ended June 30, Six Months Ended June 30, 2025 2026 2025 2026 Revenue $ 3,096 $ 3,608 $ 5,368 $ 6,286 Net income $ 642 $ 816 $ 796 $ 976 Adjusted to exclude the following: Provision for income taxes 137 81 156 202 Other (income) expense, net 17 7 50 (54) Interest expense 6 37 11 58 Interest income (190) (183) (363) (338) Depreciation and amortization 21 17 46 39 Stock-based compensation expense 424 487 782 897 Acquisition-related impacts (2) 1 (2) (1) Lodging taxes, host withholding taxes, and transactional taxes, net (7) (2) (11) 1 Stock-settlement obligations related to IPO (5) — (5) — Adjusted EBITDA $ 1,043 $ 1,261 $ 1,460 $ 1,780 Adjusted EBITDA Margin 34 % 35 % 27 % 28 % The above items are excluded from our Adjusted EBITDA measure because they are non-cash in nature, or because the amount and timing of these items are unpredictable, not driven by core results of operations, and renders comparisons with prior periods and competitors less meaningful. The increase in Adjusted EBITDA and Adjusted EBITDA margin for the three and six months ended June 30, 2026, 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 an increase in ADR, which outpaced the growth in our operating expenses. Free Cash Flow Reconciliation The following is a reconciliation of net cash provided by operating activities to FCF (in millions, except percentages): Three Months Ended June 30, Six Months Ended June 30, 2025 2026 2025 2026 Revenue $ 3,096 $ 3,608 $ 5,368 $ 6,286 Net cash provided by operating activities $ 975 $ 1,270 $ 2,764 $ 2,978 Purchases of property and equipment (13) (17) (21) (21) FCF $ 962 $ 1,253 $ 2,743 $ 2,957 FCF Margin 31 % 35 % 51 % 47 % Our FCF is impacted by the timing of GBV, as we generally collect our service fees at booking, which typically occurs before a stay, experience, or service. For bookings under RNPL, we collect payment closer to the date of stay. The continued expansion of RNPL results in a shift in timing of when cash for unearned fees is received, which impacts our FCF. Funds held on behalf of customers and amounts payable to customers do not impact FCF, except for interest earned on those funds. Constant Currency In addition to revenue growth rates derived from revenue presented in accordance with U.S. GAAP, we disclose the percentage change in our current period revenue from the corresponding prior period by comparing the change in revenue using constant currencies. We present constant currency revenue growth rate information to provide a framework for assessing how our underlying revenue performed excluding the effect of changes in exchange rates. We use the percentage change in constant currency revenues for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe the presentation of revenue on a constant currency basis in addition to the U.S. GAAP presentation helps improve the ability to understand our performance because it excludes the effects of foreign currency volatility that are not indicative of our core operating results. 26 Table of Contents Seasonality Our business is seasonal, reflecting typical global travel patterns. Revenue, which is recognized when guests check-in, and Adjusted EBITDA have historically been highest in the third quarter and lowest in the first quarter. Holiday timing, such as Easter, and other events can also shift quarterly performance. In a typical year, Nights and Seats Booked are generally higher in the first, second, and third quarters and lowest in the fourth quarter, with the peak travel season occurring in the third quarter across North America and EMEA. GBV generally follows the same seasonal trends as Nights and Seats Booked. Seasonality in GBV also affects FCF. Unearned fees typically rise when GBV rises since guests pay at the time of booking. As such, FCF is typically highest in the first quarter and lowest in the fourth quarter. However, increasing adoption of RNPL, which shifts payment and unearned fees closer to the date of stay, is changing the typical seasonal dynamics between GBV and FCF. Results of Operations The following table sets forth our results of operations (in millions, except percentages): Three Months Ended June 30, 2025 % of Revenue 2026 % of Revenue % Change Revenue $ 3,096 100 % $ 3,608 100 % 17 % Costs and expenses: Cost of revenue 544 18 633 18 16 Operations and support(1) 332 10 361 9 9 Product development(1) 610 20 672 19 10 Sales and marketing(1) 691 22 875 24 27 General and administrative(1) 307 10 309 9 1 Total costs and expenses 2,484 80 2,850 79 15 Income from operations 612 20 758 21 24 Interest income 190 6 183 5 (4) Interest expense (6) — (37) (1) 517 Other income (expense), net (17) (1) (7) — 59 Income before income taxes 779 25 897 25 15 Provision for income taxes 137 4 81 2 (41) Net income $ 642 21 % $ 816 23 % 27 % (1)Includes stock-based compensation expense as follows (in millions, except percentages): Three Months Ended June 30, 2025 % of Total 2026 % of Total % Change Operations and support $ 23 5 % $ 38 8 % 65 % Product development 279 66 298 61 7 Sales and marketing 52 12 67 14 29 General and administrative 70 17 84 17 20 Stock-based compensation expense $ 424 100 % $ 487 100 % 15 % 27 Table of Contents The following table sets forth our results of operations (in millions, except percentages): Six Months Ended June 30, 2025 % of Revenue 2026 % of Revenue % Change Revenue $ 5,368 100 % $ 6,286 100 % 17 % Costs and expenses: Cost of revenue 1,050 20 1,214 19 16 Operations and support(1) 635 12 687 11 8 Product development(1) 1,178 22 1,310 21 11 Sales and marketing(1) 1,254 23 1,626 26 30 General and administrative(1) 601 11 605 10 1 Total costs and expenses 4,718 88 5,442 87 15 Income from operations 650 12 844 13 30 Interest income 363 7 338 5 (7) Interest expense (11) — (58) (1) 427 Other income (expense), net (50) (1) 54 2 208 Income before income taxes 952 18 1,178 19 24 Provision for income taxes 156 3 202 3 29 Net income $ 796 15 % $ 976 16 % 23 % (1)Includes stock-based compensation expense as follows (in millions, except percentages): Six Months Ended June 30, 2025 % of Total 2026 % of Total % Change Operations and support $ 44 6 % $ 63 7 % 43 % Product development 509 65 561 62 10 Sales and marketing 96 12 122 14 27 General and administrative 133 17 151 17 14 Stock-based compensation expense $ 782 100 % $ 897 100 % 15 % Comparison of the Three and Six Months Ended June 30, 2026 with the Same Periods in 2025 Revenue Three Months Ended June 30, Six Months Ended June 30, 2025 2026 % Change 2025 2026 % Change (in millions, except percentages) Revenue $ 3,096 $ 3,608 17 % $ 5,368 $ 6,286 17 % Three Months Ended June 30, 2026 Compared with the Same Period in 2025 Revenue increased $512 million, or 17%, primarily due to an increase in the number of check-ins relating to Nights and Seats Booked and an increase in ADR. On a constant currency basis, revenue increased 13% compared to the same period in the prior year. Six Months Ended June 30, 2026 Compared with the Same Period in 2025 Revenue increased $918 million, or 17%, primarily due to an increase in the number of check-ins relating to Nights and Seats Booked and an increase in ADR. On a constant currency basis, revenue increased 14% compared to the same period in the prior year. 28 Table of Contents Cost of Revenue Three Months Ended June 30, Six Months Ended June 30, 2025 2026 % Change 2025 2026 % Change (in millions, except percentages) Cost of revenue $ 544 $ 633 16 % $ 1,050 $ 1,214 16 % Percentage of revenue 18 % 18 % 20 % 19 % Three Months Ended June 30, 2026 Compared with the Same Period in 2025 Cost of revenue increased $89 million, or 16%, primarily due to a $68 million increase in merchant fees, a $13 million increase in chargebacks, and a $12 million increase in server costs. The increase in merchant fees was driven by higher net pay-in volume. The increase in chargebacks was driven by growth in GBV and a slight increase in our chargeback rate. The increase in server costs was primarily driven by higher amortization related to reserved instance purchases and increased infrastructure spend. These increases were partially offset by a decrease in amortization expenses related to capitalized internal-use software projects, as certain projects became fully amortized during the period. Six Months Ended June 30, 2026 Compared with the Same Period in 2025 Cost of revenue increased $164 million, or 16%, primarily due to a $131 million increase in merchant fees, a $25 million increase in chargebacks, and a $15 million increase in server costs. The increase in merchant fees was driven by higher net pay-in volume. The increase in chargebacks was driven by growth in GBV and a slight increase in our chargeback rate. The increase in server costs was primarily driven by higher amortization related to reserved instance purchases and increased infrastructure spend. These increases were partially offset by a decrease in amortization expenses related to capitalized internal-use software projects, as certain projects became fully amortized during the period. Operations and Support Three Months Ended June 30, Six Months Ended June 30, 2025 2026 % Change 2025 2026 % Change (in millions, except percentages) Operations and support $ 332 $ 361 9 % $ 635 $ 687 8 % Percentage of revenue 10 % 9 % 12 % 11 % Three Months Ended June 30, 2026 Compared with the Same Period in 2025 Operations and support expense increased $29 million, or 9%, primarily due to a $27 million increase in payroll-related expenses driven by higher average headcount, a $10 million increase in customer relations costs driven by higher make-good payouts and related case reserves, and a $7 million increase in insurance costs driven by higher host liability insurance premiums. These increases were partially offset by a $17 million decrease in third-party service provider costs due to lower agent contact volume resulting from increased use of artificial intelligence (“AI”) in community support. Six Months Ended June 30, 2026 Compared with the Same Period in 2025 Operations and support expense increased $52 million, or 8%, primarily due to a $41 million increase in payroll-related expenses driven by higher average headcount, a $14 million increase in customer relations costs driven by higher make-good payouts and related case reserves, and a $9 million increase in insurance costs driven by higher host liability insurance premiums. These increases were partially offset by a $15 million decrease in third-party service provider costs due to lower agent contact volume resulting from increased use of AI in community support. Product Development Three Months Ended June 30, Six Months Ended June 30, 2025 2026 % Change 2025 2026 % Change (in millions, except percentages) Product development $ 610 $ 672 10 % $ 1,178 $ 1,310 11 % Percentage of revenue 20 % 19 % 22 % 21 % Three Months Ended June 30, 2026 Compared with the Same Period in 2025 Product development expense increased $62 million, or 10%, primarily due to a $62 million increase in payroll-related expenses resulting from an increase in average headcount. 29 Table of Contents Six Months Ended June 30, 2026 Compared with the Same Period in 2025 Product development expense increased $132 million, or 11%, primarily due to a $132 million increase in payroll-related expenses resulting from an increase in average headcount. Sales and Marketing Three Months Ended June 30, Six Months Ended June 30, 2025 2026 % Change 2025 2026 % Change (in millions, except percentages) Brand and performance marketing $ 446 $ 579 30 % $ 824 $ 1,091 32 % Field operations and policy 245 296 21 % 430 535 24 % Total sales and marketing $ 691 $ 875 27 % $ 1,254 $ 1,626 30 % Percentage of revenue 22 % 24 % 23 % 26 % Three Months Ended June 30, 2026 Compared with the Same Period in 2025 Sales and marketing expense increased $184 million, or 27%, primarily due to a $132 million increase in marketing spend, driven by higher paid growth marketing initiatives in emerging markets and partnerships, and a $48 million increase in payroll-related expenses driven by higher average headcount, partially offset by a decrease in third-party service provider expenses incurred to support the expansion and optimization of Airbnb Experiences and Services supply. Six Months Ended June 30, 2026 Compared with the Same Period in 2025 Sales and marketing expense increased $372 million, or 30%, primarily due to a $258 million increase in marketing spend, driven by higher paid growth marketing initiatives in emerging markets and partnerships, a $90 million increase in payroll-related expenses driven by higher average headcount, and a $10 million increase in third-party service provider expenses incurred to support the expansion and optimization of Airbnb Experiences and Services supply. General and Administrative Three Months Ended June 30, Six Months Ended June 30, 2025 2026 % Change 2025 2026 % Change (in millions, except percentages) General and administrative $ 307 $ 309 1 % $ 601 $ 605 1 % Percentage of revenue 10 % 9 % 11 % 10 % Three Months Ended June 30, 2026 Compared with the Same Period in 2025 General and administrative expense increased by $2 million, or 1%. The increase was primarily due to a $32 million increase in payroll-related expenses driven by higher average headcount, largely offset by a $28 million decrease in non-income taxes. Six Months Ended June 30, 2026 Compared with the Same Period in 2025 General and administrative expense increased by $4 million, or 1%. The increase was primarily due to a $38 million increase in payroll-related expenses driven by higher average headcount, and a $4 million increase in various fees and penalties, largely offset by a $38 million decrease in non-income taxes. Interest Income Three Months Ended June 30, Six Months Ended June 30, 2025 2026 % Change 2025 2026 % Change (in millions, except percentages) Interest income $ 190 $ 183 (4) % $ 363 $ 338 (7) % Three and Six Months Ended June 30, 2026 Compared with the Same Periods in 2025 Interest income decreased by $7 million, or 4%, and $25 million, or 7%, respectively, primarily due to lower interest earned on our investment portfolio, driven by lower interest rates, partially offset by a slight increase in interest income on operating cash. 30 Table of Contents Interest Expense Three Months Ended June 30, Six Months Ended June 30, 2025 2026 % Change 2025 2026 % Change (in millions, except percentages) Interest expense $ (6) $ (37) 517 % $ (11) $ (58) 427 % Three and Six Months Ended June 30, 2026 Compared with the Same Periods in 2025 Interest expense increased by $31 million and $47 million, respectively, primarily due to interest on our new long-term notes issued in March 2026. Other Income (Expense), Net Three Months Ended June 30, Six Months Ended June 30, 2025 2026 % Change 2025 2026 % Change (in millions, except percentages) Other income (expense), net $ (17) $ (7) 59 % $ (50) $ 54 208 % Three Months Ended June 30, 2026 Compared with the Same Period in 2025 Other income (expense), net changed $10 million, or 59%. The net change was primarily due to a $6 million favorable change in net realized and unrealized foreign currency remeasurement. Six Months Ended June 30, 2026 Compared with the Same Period in 2025 Other income (expense), net changed $104 million, or 208%. The net change was primarily due to a $71 million realized gain on an equity investment and a $29 million favorable impact from the decrease of impairment losses recorded in 2026 compared to 2025. Provision for Income Taxes Three Months Ended June 30, Six Months Ended June 30, 2025 2026 % Change 2025 2026 % Change (in millions, except percentages) Provision for income taxes $ 137 $ 81 (41) % $ 156 $ 202 29 % Effective tax rate 18 % 9 % 16 % 17 % Three Months Ended June 30, 2026 Compared with the Same Period in 2025 The provision for income taxes decreased by $56 million, or 41%. The decrease was primarily due to a $77 million benefit in the quarter related to recently published guidance impacting prior year taxes, partially offset by a $9 million increase in current and deferred tax on U.S. and foreign earnings in line with profitability growth. See Note 10, Income Taxes, to our unaudited condensed consolidated financial statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for additional information. Six Months Ended June 30, 2026 Compared with the Same Period in 2025 The provision for income taxes increased by $46 million, or 29%. The increase was primarily due to a $29 million increase in current and deferred tax on U.S. and foreign earnings in line with profitability growth and $16 million from decreased excess tax benefits on stock-based compensation. 31 Table of Contents Liquidity and Capital Resources Sources and Conditions of Liquidity As of June 30, 2026, our principal sources of liquidity were cash, cash equivalents, and short-term investments totaling $12.1 billion. As of June 30, 2026, cash and cash equivalents totaled $6.8 billion, which included $3.3 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, 2026, short-term investments totaled $5.2 billion. Short-term investments primarily consist of highly-liquid investment grade corporate debt securities, time deposits, mortgage-backed and asset-backed securities, U.S. government and government agency debt securities (“government bonds”), certificates of deposit, and commercial paper. These short-term investments do not include funds of $12.2 billion as of June 30, 2026, that were held for bookings in advance of guests completing check-ins, which are recorded 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. In March 2026, we issued $2.5 billion aggregate principal amount of Senior Notes, consisting of $850 million of 4.40% senior notes due March 2029, $850 million of 4.65% senior notes due March 2031, and $800 million of 5.25% senior notes due March 2036. We utilized $2.0 billion of the net proceeds to fully repay our outstanding 2026 Notes upon their maturity. The remaining net proceeds of approximately $500 million (less underwriting discounts and offering expenses) were retained for general corporate purposes. See Note 7, Debt, to our unaudited condensed consolidated financial statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for additional information. 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, 2026, no amounts were drawn under our 2022 Credit Facility and outstanding letters of credit totaled $20 million. See Note 7, Debt, to our unaudited condensed consolidated financial statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for additional information. Our cash and cash equivalents are generally held at large global systemically important banks 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. Material Cash Requirements Our principal contractual obligations and commitments consist primarily of our long-term debt and the associated ongoing semi-annual interest payments. On March 16, 2026, we issued $2.5 billion aggregate principal amount of Senior Notes and utilized a portion of the net proceeds to fully repay the outstanding aggregate principal amount of our $2.0 billion convertible senior notes due 2026 (“2026 Notes”). The Senior Notes bear fixed interest rates that will materially increase our ongoing semi-annual cash interest obligations. See Note 7, Debt, to our unaudited condensed consolidated financial statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for additional information. In August 2025, our board of directors approved a new share repurchase program with an authorization to purchase up to $6.0 billion of our Class A common stock. Share repurchases under the share repurchase program 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 program does not obligate us to repurchase any specific number of shares and may be modified, suspended, or terminated at any time at our discretion. During the three and six months ended June 30, 2026, we repurchased 7.9 million and 16.0 million shares of Class A common stock for $1.1 billion and $2.1 billion, respectively, through our share repurchase program. As of June 30, 2026, we had $3.4 billion available to repurchase shares of Class A common stock under our share repurchase program. Cash Flows The following table summarizes our cash flows (in millions): Six Months Ended June 30, 2025 2026 Net cash provided by operating activities $ 2,764 $ 2,978 Net cash used in investing activities (242) (810) Net cash provided by financing activities 2,473 3,541 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 689 (146) Net increase in cash, cash equivalents, and restricted cash $ 5,684 $ 5,563 Net cash provided by operating activities for the six months ended June 30, 2026 was $3.0 billion. This was primarily due to net income of $976 million and $819 million provided by net working capital items, reflecting growth in unearned fees, partially offset by an increase in prepaid assets, both driven by growth in bookings. Additionally, we had adjustments for non-cash operating expenses primarily consisting of $897 million of stock-based compensation. 32 Table of Contents While we experienced growth in bookings during the six months ended June 30, 2026, net cash provided by operating activities slightly improved compared to the $2.8 billion generated during the same period in the prior year. This reflected unearned fees growing at a rate less than the GBV growth rate during the six months ended June 30, 2026, compared to the same period in the prior year, which was primarily due to the increased guest adoption of our flexible payment options, which allow guests to pay closer to check-in dates rather than at time of booking, shifting the timing of cash collection and its recognition in operating activities. For example, under our RNPL option, payment is collected closer to check-in rather than at booking. Accordingly, unearned fees are not recorded, and operating cash flows are not generated until payment is received. Net cash used in investing activities for the six months ended June 30, 2026 was $810 million. This was primarily driven by purchases of short-term investments, partially offset by proceeds from the sale and maturity of our short-term and equity investments. Net cash provided by financing activities for the six months ended June 30, 2026 was $3.5 billion. This was primarily driven by a $5.4 billion increase in funds payable and amounts payable to customers resulting from the growth in GBV, $2.5 billion in net proceeds from the issuance of our new Senior Notes, which were partially offset by share repurchases of $2.1 billion, repayment of $2.0 billion of our 2026 Notes, and taxes paid related to tax on equity awards of $305 million. The effect of exchange rate changes on cash, cash equivalents, and restricted cash on our unaudited condensed consolidated statements of cash flows relates to certain 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, 2026, we recorded a reduction of $146 million in cash, cash equivalents, and restricted cash, primarily due to the strengthening of the U.S. dollar against major currencies, mainly the Euro and British Pound. 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. We assess our liquidity in terms of our ability to generate cash to fund our short- and long-term cash requirements. As such, we believe that the cash flows generated from operating activities will meet our anticipated cash requirements in the short-term. In addition to normal working capital requirements, we anticipate that our short- and long-term cash requirements will include share repurchases, introduction of new products and offerings, timing and extent of spending to support our efforts to develop our platform, debt repayments, and expansion of sales and marketing activities. Our future capital requirements, however, will depend on many factors, including, but not limited to, our growth, headcount, and ability to attract and retain customers on our platform. Additionally, we may in the future raise additional capital or incur additional indebtedness to continue to fund our strategic initiatives. On a long-term basis, we plan to rely on either our access to the capital markets or our credit facility for any long-term funding not provided by operating cash flows and cash on hand. In the event that additional financing is required from outside sources, we may seek to raise additional funds at any time through equity, equity-linked arrangements, and/or debt, which may not be available on favorable terms, or at all. If we are unable to raise additional capital when desired and at reasonable rates, our business, results of operations, and financial condition could be materially adversely affected. Our liquidity is subject to various risks including the risks identified in Item 3. "Quantitative and Qualitative Disclosures About Market Risk" of Part I of this Quarterly Report on Form 10-Q. Critical Accounting Estimates Our discussion and analysis of our financial condition and results of operations are based upon our unaudited condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these unaudited condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. See Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2025 Annual Report for a discussion of the assumptions and judgments involved in our critical accounting estimates. On an ongoing basis, we evaluate our estimates and assumptions. Our actual results may differ from these estimates under different assumptions or conditions. Recent Accounting Pronouncements See Note 2, Significant Accounting Policies, to our unaudited condensed consolidated financial statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for a description of recently adopted accounting pronouncements and recently issued accounting pronouncements not yet adopted. 33 Table of Contents