Airbnb Inc (ABNB) 2025 Q4 法說會逐字稿

Good afternoon, and thank you for joining Airbnb's earnings call conference call for the fourth quarter of 2025. As a reminder, this conference call is being recorded and will be available for replay from the Investor Relations section of Airbnb's website following this call.

I will now hand the call over to Andrew Slabin, Vice President of Investor Relations. Please go ahead.

Good afternoon, and welcome to Airbnb's fourth quarter of 2025 earnings call. Thank you for joining us today. On the call, we have Airbnb's Co-Founder and CEO, Brian Chesky; and our Chief Financial Officer, Ellie Mertz.

Earlier today, we issued a shareholder letter with our financial results and commentary for our fourth quarter of 2025. These items were also posted on the Investor Relations section of Airbnb's website. During the call, we'll provide some brief opening remarks and then spend the remainder of time on Q&A.

Before I turn it over to Brian, I'd like to remind everyone that we'll be making forward-looking statements on this call that involve a number of risks and uncertainties. Actual results may differ materially from those expressed or implied in the forward-looking statements due to a variety of factors. These factors are described under forward-looking statements in our shareholder letter and in our most recent filings with the Securities and Exchange Commission.

We urge you to consider these factors and remind you that we undertake no obligation to update the information contained on this call to reflect subsequent events or circumstances. You should be aware that these statements should be considered estimates only and are not a guarantee of future performance.

Also during this call, we will discuss some non-GAAP financial measures. We provided reconciliations to the most directly comparable GAAP financial measures in the shareholder letter posted to our Investor Relations website. These non-GAAP measures are not intended to be a substitute for our GAAP results.

And with that, I'm pleased to turn the call over to Brian.

Brian CheskyExecutive

All right. Thank you, Andrew, and good afternoon, everyone. Thanks for joining. I'm going to start with a quick recap of our Q4 results. And then I'm going to spend a little more time on what's driving them because that's really where the story is.

Now in Q4, we delivered strong results across the board. Revenue grew 12% year over year to $2.8 billion, exceeding the high end of our guidance. Gross booking value grew 16% year over year to $20.4 billion. This was our highest growth quarter in more than two years. Nights and seats books grew 10%, our strongest quarter of the year.

But what matters most is the momentum that we're gaining. In a marketplace, reaccelerating growth isn't as simple as stepping on the gas pedal. It's more like turning to cruise ship. It takes time and discipline, and you don't always see it from one quarter to the next. The acceleration that you're seeing didn't happen by accident. It's a result of a deliberate path that we've been on for the past few years. So let me walk you through it.

Airbnb grew incredibly quickly in the years leading up to our IPO, faster than we've ever imagined. We were like a company built to be a two story house. But when went public, we want to keep building, but you can't add 10 floors to a house that wasn't designed for it. You need a stronger foundation. So we rebuild our tech platform. We built the app cab by cab. And over the last few years, we improved nearly every part of the guest in host experience.

But rebuilding the foundation wasn't enough. We also need to innovate faster. Now, when I look back and what drove Army's early success, it wasn't just the idea. It was how we worked. In the early days, Joe, Nate and I would say in our apartment and obsess over every detail.

We shift something, learn quickly and double down on what works. That cycle, focus, shift, learn, scale is what compounded our initial growth. As companies grow, they often lose that speed and focus. So two years ago, we made a deliberate decision. We are going to recreate the same innovation formula inside Airbnb, but at a global scale. We called it Project Why.

We created a small lead team and gave them a really clear mandate make it easier to find and book a home on Airbnb. We start with the little things that make booking hard than it needed to be, simple improvements like better search filters and small tweaks to the booking flow. When those changes work, we went bigger. We improved how we convert high intent visitors to long-term users using simple web promise to drive more app downloads. We made search more flexible, helping guests discover homes they wouldn't have seen before.

That drove an even greater impact. Eventually, we tackle bigger opportunities like completely redesigning the checkout flow to make bookings simpler and more intuitive. Now these are just a few of the hundreds of improvements the team shipped driving hundreds of millions of dollars in revenue in 2025 alone. And we believe Project Why will deliver hundreds of millions more this year.

Now once we saw this blueprint work, we began applying it across the company. So what I want to do is highlight four areas where the Why innovation model is driving growth. The first is pricing, hidden fees at one of the biggest friction points in travel. We created the pricing team with a clear goal make pricing simple and more transparent. The first major step was showing the total price upfront to guests. In the U.S., we are the first major travel platform to do this. When price transparency was just the beginning.

We launched dozens more updates for more flexible cancellation policies to better pricing tools for host. These changes stacked. Then we made the biggest move of all. Reserve now pay later. For the first time, guests in the US could book eligible stays paying zero dollars upfront. The response was immediate driving booking ancillaries in Q4, especially for larger high-priced homes. We're now expanding this to new markets and is a key part of the strength we're seeing in Q1.

Now we believe that pricing initiatives will drive as much revenue this year is Why and will remain a strong tailwind for years to come. Next up, supply. Most of our supply growth is organic with host coming directly cut, but we also build a supply engine that lets us feed surgical about where we grow. And the best example is how we lean into large events.

For example, in Paris, we added over 40,000 listings for the 2024 Summer Olympics. Now we're repeating that same playbook for the biggest event on Earth, the 2026 FIFA World Cup across 16 cities in North America. At the same time, we're also improving quality. We've removed over 0.5 million low-quality listings, while Guest Favorites, the very best listings in Airbnb grew 30% in 2025 compared to 2024. And in Q4, Guest Favorites made up nearly half of all bookings on Airbnb.

We also apply the Why model in international growth. Airbnb operates in nearly every country in the world, but roughly 70% of our revenue comes from just five countries. Now that's a massive opportunity, and we're unlocking it by going deep in a small number of priority countries. And Brazil is a great example.

A few years ago, Brazil was a smaller market for us, so we put a focused team on it. We introduced features that we know matter to the Brazilian market like interest repayments or local payment methods, and we lead at the cultural moments like Carnival. We also invested in local campaigns to build relevant. The results have been incredible. Brazil moved from a top 10 market to a top 5 market on Airbnb.

In Q4, it was our second largest contributor to first-time bookers behind only the US. This shows what happens when you pair global scale with local execution, and we're applying the same playbook to our highest priority countries in every region.

Finally, we're applying the Why model to new businesses. We launched services experiences globally in May, but to better scale them, we're taking a city-by-city approach. We're going deep in one place, reaching product market fit and expanding from there. We started with Paris for experiences and LA for services, and we're really seeing great results. We're also starting to test new services like grocery delivery and airport pickups to make each trip better from the very beginning.

And to capture even more trips, we're bringing fatigue and independent hotels onto the platform. so that no matter what kind of stay a guest wants, they can always find it on Airbnb. Now it's still early, but the opportunity in hotels is massive, and we plan to share more about our approach later this year.

But the big idea here isn't just building a bunch of stand-alone businesses. These are all part of a much larger vision, the Airbnb trip. We are one app and one brand where every part of the trip makes the other parts stronger. There are multiple entry points in the Airbnb. In multiple ways to drive more bookings against might book a service or experience then discover a home for the trip or they might book a hotel for a business trip, then come back to it on me to book a home for a family vacation.

Each part of the trip reinforces the others. The final piece that accelerates everything we do is AI. Now we've taken a really intentional path here. While other companies rush to both chat bots into the existing apps, we started by solving the hardest problem, customer support. We built a custom AI agent trained on millions of our support interaction. It's already resolving a one-third of the support issues without needing a live specialist.

And resolution times are significantly faster. It's live across North America, and we're planning to roll it out globally. But that's just the beginning. Because we're building an AI native experience where the app doesn't just search for you. It knows you. It will help guests plan their entire trip, help us better run their businesses and help the company operate more efficiently at scale.

That's the big reason we brought in Ahmad Al-Dahle as our CEO. Ahmad is one of the world's leading AI expert. He spent 16 years at Apple most recently led the generative AI team at Meta that built that Llama model. Even expert appear in massive technical scale with world-class design, which is exactly how we're going to transform the Airbnb experience.

This approach is also our strongest defense against dis-remediation. A chatbot can give you a lift of home, but it can't give you the unique point you find an Airbnb. At chatbot doesn't have or 200 million verified identities. Or our 500 million proprietary reviews. And it can't message the host, which 90% of our guests do. They can't provide global payment processing, customer support or insurance. By layering AI over the entire event experience. We believe we're building something that's impossible to replicate.

So you can see why we're so excited about the year ahead, and our guidance reflects that. We expect revenue growth to accelerate to at least low double digits in 2026. We expect adjusted EBITDA margin to be stable year over year. It will do all of this without investing billions or tens of billions of dollars. We don't need massive capital investment to grow.

We don't own homes. We don't operate experiences, and we're not building data centers. What we're doing is finding small wins and scaling those profitably. That's why we've been able to generate free cash flow at nearly 40% of revenue and nearly $19 billion of cumulative free cash flow since our IPO. It gives us the ability to reinvest back in our business while strengthening our balance sheet and maintaining healthy margins.

Now as you look ahead to 2026, we can't predict every quarter with precision. Travel is influenced by everything from currency to macroeconomic conditions to global events. But what we can control is the speed of our innovation. In the long run, that's what leads to more growth.

So in summary, we rebuilt major parts of the company. We adopted a new blueprint for innovation. And now we're seeing increased momentum. That doesn't happen by accident. It's a result of an incredible team rowing in the same direction at global scale. So to everyone the Airbnb team is listening, thank you. The business is stronger because of you.

With that, I'll turn it over to Ellie to walk through the financials in more detail.

Thanks, Brian, and good afternoon, everyone. As Brian just shared, we're seeing increased momentum in our business. I'll start with Q4 financial results, and then I'll cover our outlook for Q1 and the full year 2026. Q4 was a great quarter for Airbnb. Gross booking value grew 16% year over year to $20.4 billion, driven by strong growth in both bookings and price. Night and seats booked increased 10% year over year and acceleration from Q3, with strength seen across all regions.

By region, Latin America grew in the high teens, Asia Pacific grows to mid-teens, EMEA accelerated in the high single digits and North America grew in the mid-single digits. Now going into the quarter, we expected a tough comp given the particularly strong Q4 in 2024. And as the quarter played out, we saw a slightly better macroeconomic environment than anticipated.

But more importantly, our product road map delivered a material lift to the business. As Brian shared, we've been selling making it easier to find a book of home on Airbnb. In Q4, a few updates in particular helped drive our acceleration. The launch of reserves now pay later, updates to our cancellation policies and the beginning of our migration to a simplified fee structure.

Reserve now pay later, saw significant adoption among eligible guests in Q4. It's also led to longer booking lead times and it may shift towards larger and higher home especially those with four or more bedrooms contributing to the increase in ADR. And as Brian mentioned, given the positive results, we've decided to roll it out to more guests globally into cross-border states in the US.

Our updated cancellation policies and simplified fees also contributed to both night and GDP growth in the quarter. As a reminder, Beginning in October, we started simplifying our fee structure, which we believe will help our host price more competitively. We began migrating our API host to a single service fee and now plan to migrate more host in 2026.

Host on a single service fee can adjust their prices to maintain the same net earnings, while guests continue to see the full price outcome. In total, we estimate these three features delivered over 200 basis points of growth in nice book and roughly 300 basis points of growth in GBV in Q4. In 2026, we'll continue iterating to simplify pricing, improve transparency and help our hosts stay competitive.

Now turning to our Q4 financials. Revenue was $2.8 billion, up 12% year over year and exceeded our guidance driven by the impact of our product update. In terms of profitability, we generated $786 million of adjusted EBITDA, representing a 28% adjusted EBITDA margin, also exceeding guidance.

Finally, net income was $341 million, and was negatively impacted by roughly $90 million of onetime non-income tax. For 2025, our full year effective tax rate was 20% and including onetime discrete items that increased our provision for income taxes in Q3. Starting in 2026, we expect the One Big Beautiful Bill act to materially reduce our effective tax rate to the mid- to high teens primarily due to how foreign earnings are taxed, which will benefit our consolidated earnings.

Next, to our balance sheet and cash flow. We continue to generate significant cash in Q4, delivering $520 million of free cash flow. In 2025, we generated $4.6 billion, representing a free cash flow margin of 38%. At the end of Q4, we had $11 billion of corporate cash and investments as well as a $7 billion of funds held on behalf of our guests. Our strong balance sheet allowed us to repurchase $1.1 billion of our common stock in Q4, up from $857 million in Q3.

And in 2025, we repurchased $3.8 billion of our common stock, using over 80% of our free cash flow. Returning capital to shareholders remains a key component of our capital allocation strategy. Since introducing our share repurchase program in 2022, we've reduced our fully diluted share count by about 9%.

Now let's shift to our Q1 and full year 2026 outlook. We're encouraged by the momentum we've seen so far this year and excited about our road map to drive growth in 2026. In Q1, we expect to generate revenue of $2.59 billion to $2.63 billion, representing year over year growth of 14% to 16%. This includes an approximate 3 point FX tailwind after factoring in our hedging program. We expect gross booking value to increase in the low teens year over year, driven by high single-digit growth in licenses book and a moderate increase in ADR to price appreciation and FX.

On profitability, we expect Q1 adjusted EBITDA margin to be approximately flat year over year. And for the full year 2026, we expect year over year revenue growth to accelerate to low double digits with an ambition to grow even faster than that. While FX tailwinds should fade as the year progresses, we're encouraged by healthy demand and execution across our growth initiatives.

We're also excited about major events this year, including the Winter Olympics happening now in Milan and the FIFA World Cup coming this summer. Cities continues to look to Airbnb to help meet demand around large events. And our global supply positions us well to support that demand.

Overall, we believe continued progress against our product optimization, pilots and new offerings, together with broader macro conditions will support incremental growth in 2026. And finally, across the full P&L, we're continuing to drive efficiencies in our platform. We plan to reinvest most of these efficiencies into marketing, product and technology to support our growth. As a result, we expect our 2026 adjusted EBITDA margin to be stable year over year.

At the close, 2025 was an exciting year, and I'm incredibly proud of what the team delivered. We're carrying that momentum into 2026 with an ambitious set of goals. We'll continue strengthening our core business while accelerating innovation to drive growth.

And with that, I will open it up to Q&A.

(Operator Instructions)

Richard Clarke, Bernstein.

I guess, AI is the topic du jour, and you gave some helpful remarks about why the bots today can't match what Airbnb do, but given the sort of speed of innovations going on, why do you think those AI platforms couldn't launch a short-term rental platform over time?

And maybe secondly, do you see any risk that you'll have to share your economics with an AI platform at some point going forward? Or do you expect you'll be able to retain the same level of direct traffic you have today in an AI world?

Yeah. I mean it's a great question. Let me start by saying this. The vast majority of what is Airbnb is not the app that you see. First of all, we have a whole host staff, which is really critical, and we build this over 18 years. We handled more than $100 billion in payments through the platform. Customer service is one of the most difficult problems in Airbnb. We don't have SKU people, we need to adjudicate between people speaking different languages. We provide insurance and protection for everyone.

We do a lot of verifications. 90% of people who book in Airbnb send a message, you can't send a message to verify ID. We have 200 million verified IDs, which is more than US passport in circulation. The vast majority of our homes in our unique inventory is only on Airbnb. We're adding more offerings over time. And we think people are going to want to put them together into an itinerary that they could bring on -- in their phone with them when they're traveling.

I think these chatbot platforms are going to be very similar to search. They're going to be really good top of funnel discoveries. And in fact, what we've seen is I think they're going to be positive for Airbnb. And I'm very, very deep in this space. And what we see is that traffic that comes from chatbots convert at a higher rate than traffic that comes from Google.

But the other thing to know, and this is the most important point, is that these models are not proprietary. The model ChatGPT, the models in Gemini, the models in Claude, the models like QE are available in every single company. And so pretty soon, every company becomes an AI platform if they make the shift. We will be able to do everything everyone else will have if we use their models. And we believe specialization will win in travel.

Because if somebody wants to find an Airbnb or have a trip, we can take their model, the same model they use that we can post train and tune it based on our milling interactions. We can connect it to our customer support agents. We can connect it to our host. And that's fundamentally what we think. It's why we've hired Ahmad Al-Dahle, one of the foremost leading experts in AI. Ahmad Al-Dahle in fact, build one of the model. He built the Llama model. And we want to build a team to make our company much more of an AI native company.

So I think that for chatbots or AI companies to win we don't need to live in a world where everyone else has to lose. I don't think that one company is going to own everything. I think we're going to be able to work together. And these companies will be very helpful, top of funnel traffic generators for Airbnb just like Google.

John Colantuoni, Jefferies.

I wanted to ask one on Asia region. Nights growth was still strong at the mid-teens at mid-teens, but did moderate from recent quarters. I know it's your smallest region, but I was hoping you could talk to what drove the slowdown and how you think about the growth opportunity in Asia Pacific over time?

And second, I was curious on the services and experiences, have you seen any signs that they're helping you acquire new customers that you can convert to accommodations given that over half of your experiences weren't attached to an accommodation bookings?

Let me start with the Asia question. So when we look at our performance on APAC from a destination perspective. Overall growth has been, I would say, relatively stable over the course of 2025. That being said, we see a tremendous amount of opportunity in terms of future growth for the region.

What I would say in terms of APAC is that, obviously, there is different pockets in terms of where we have seen substantial growth. As you're probably aware, we have relatively high levels of penetration in Australia, which factor into that number, whereas we're relatively nascent in some of the, I would say, continental countries in particular, places like India, Southeast Asia, Korea, et cetera.

What we shared in the letter is that we're seeing Night's performance in those markets that we have begun focusing on. So in particular, what I would call out is domestic Japan. That's a marketing segment that we began our expansion playbook back in Q4 of '24, and it seems some Night's results. Second, I would call out India, which we mentioned in the letter, huge market where we are seeing really substantial growth. So 50% growth in the last quarter.

Very strong, and we see opportunities to accelerate that growth in '26. So the broad story in APAC, it is stable. We are seeing some very positive signs in particular markets that we're meeting into and it's the focus of our international market expansion strategy going forward.

Second question. Yeah. I mean what we called out in terms of the dynamics of where we are finding the experience booking. The call out in the letter that we provided is about 50% of our experienced bookings today come from guests that are unattached to a home booking, meaning they are not already staying with us in a home and therefore, attached to the trip, an incremental experience. They maybe staying in a hotel in that market. They maybe not traveling at all.

And what I would say there is it's a very saying opportunity for us in a couple of forms. One is it provides a new segment of guests that we can, in the future, convert to home guests. It also gives us signs that with these new products and offerings, we have the opportunity to have a higher frequency of guest usage beyond just a day trip. So for example, something that we see in Paris is that there's been a really nice uptick in terms of, in particular, our Airbnb original experiences by local Parisian, which tells us that category of inventory, albeit highly differentiated is a great opportunity for us to attract local craft to our app.

Yeah. I think One of the things that I called out in my opening remarks is -- so we're seeing a lot of momentum about getting new offerings off the ground and piloted. And our basic idea is -- it's not dissimilar from Amazon in the late '90s where they started to both retailer. The unifying idea of Amazon though, probably was the cardboard box. In other words, everything that you could send in a cardboard box, and so you could send all these different things and they added one category after the other.

I think its giving a fine idea if there is the trip. We take a very -- by the way, broad definition of the trip, including 30-day stay even longer, but there are so many different components that we can offer. And the basic idea is we want every new offering to be strong out to stand-alone, the better together.

And so the hotel is a great example. There are some people that only stay in Airbnb. There are some people that only stand hotels. Most people are willing to stay in both. And some trips are better in Airbnb and then some trips, if you need a last minute stay, you're traveling for business, you're doing one night, it's really good for hotels. So we think that all these components can make the overall offering better. There's a lot of synergies.

Lee Horowitz, Deutsche Bank.

I guess can you give us a sense of how reserve now pay later cancellations have been pacing relative to your expectations perhaps particularly in the face of weather disruptions in 1Q and how you're thinking about baking in cancellation expectations to full year adjusted EBITDA guide?

And then secondly, in the past, you've talked about how AI search will preclude your deployment of sponsored ads. Can you maybe just unpack that a bit more and explain how AI search particularly may help you bring sponsored ads to it a bit more quickly?

So first, on the question of reserve now pay later and the impact of cancellations. If we back up for a moment, before we launched reserve now pay later the US back in summer of 2025, we excessively tested the product to ensure that by the time of cohorts opting into the product had reached their check-in date that it was not beneficial to the business, meaning that the growth lift in bookings was larger than the net increase in the cancellations to be more check in. We're doing that level of testing as incremental segments. We are considering expanding reserve now pay later out to ensure that the net benefit is obviously positive for the business.

What I should say is that in the segment that we have launched this offering, the cancellation curves have been very close to what we saw from a tested perspective. And so we feel frankly quite good about the progress and the performance of that offering.

In terms of its impact over the full year, obviously, there is a bit of a pull forward in terms of when people make their bookings, but we are already absorbing the elevated level of cancellations from that product. I think One piece of perspective is that -- in terms of the aggregate nominal increase in cancellations, right, it's approximately 1%. So an average of maybe 16% cancellation rates historically going to [17%]. It's obviously higher within the cohort that chooses that product, but it's not a hugely material relative to the bladder cancellations on the platform.

Final thing I would just add on with reserve now pay later as we've called out, is length in lead times, which I think is good from a competitive perspective. And second, it has a modestly positive impact in terms of increasing ADR as consumers who don't need to extended a huge purchase on their credit cards are more likely to choose probably nice listing.

Yeah. And then on the AI search now past sponsor listings. I've been asked quite a few earnings calls about sponsor listings. And one of the things to being really clear with the -- after the launch of ChatGPT was that traditional search was going to become essentially a conversational AI search. And that what we wanted to do is really design AI search really see how that works. And then if we are going to do sponsored listings, we designed that ad unit in that form factor.

So we're focused, first and foremost, on the most perishable opportunity, which is AI search. Actually, funny enough, we are doing tests as we speak. So AI search is live to a very small percent of traffic right now. We're doing a lot of experimentation. The way we do things with AI is much more rapid iteration, not big launches. And over time, we're going to be experimenting with making AI search more conversational, integrating it into more the trip. And eventually, we will be looking at sponsoring as a result of that. But we want to first nail AI search.

Brian Nowak, Morgan Stanley.

Brian, maybe to go back to that last question on AI search. I just ask sort of another bigger picture one. As you sort of sit here in early 2026, if we're sitting here a year from now, what are the areas you're most focused on? You're seeing improvements to the platform using AI this year? That's one.

And then two, maybe One just on the P&L impact. Any help at all on how you're thinking about the impact on gross margins from increased AI investment this year versus last year?

Yeah. I can answer a answer both of them. And I'll start with the second one. I think one of the great things about Airbnb is that we have a very, very cost-efficient innovation model. So unlike other companies, we're not building models. We do not have a huge CapEx cost base. So our investment in AI will not affect the P&L. I don't think you'll see it in the P&L. That's number one.

Number two, it's a year from now. If we're successful AI would have be seen, I think three or four things. Number one, let's start with customer service. Right now, nearly 30% of tickets in North America, there English-based, are handled by an AI agent. A year from now, if we're successful, significantly more than 30% of tickets will be handled by a customer service agent in many more languages, in all the languages where we have live agents.

And AI customer service will not only be chat, it will be voice, you can actually call and talk to an AI agent. We think this is going to be massive because not only does this reduce the cost base even customer service. But the kind of quality of service is going to be a huge step change. Not only can you get a response in a second, but the agents using AI are going to be significantly more productive. That's number one.

Number two, it's going to make our engineers and everyone arm be significantly more efficient. More than 80% of engineers are now using AI tools. That will be 100%. But of course, that metric is a bit of a van metric.

The real question is what's the culture of the company? Are you at start-up? Are you highly adaptable to the changing currency of AI? And I think Airbnb certainly within our space, is the most adaptable. We are designed to adapt to not move like a cruise it, but to move very nimbly. So that's partly why we hired Ahmad Al-Dahle. We wanted to be on the frontier of AI, at least for the non-native AI companies. And I think you're going to see a lot more productivity and a lot more innovation velocity.

The third is you're going to start to see AI through the booking experience and the listing experience. AI search will eventually -- I can't put a timeline on it because AI is obviously highly unpredictable. But we want to be -- we would love to be the first company in e-commerce that really nails AI, search, conversational search. I think it's really hard not just in travel, but all e-commerce.

One of the reasons that chatbots are real hard for commerce is because they're very visual, their photo forward. They need to be able to compare. You need to be able to open different tabs. So a tax forward chatbot interface is not the ideal so we have to actually innovate on the user interface. We're also using AI across the board, like being able to lister space much more easily.

So if we are successful one year from now, in summary, AI customer service will be voice and chat across all languages. It will penetrate many more ticket types that it will be massively accelerate our innovation, and we'll be as an as any other company in our space or more. And then finally, the experience for guests and hosts will be materially better.

Doug Anmuth, JPMorgan.

This is Dae Lee on for Doug. I have two. First of all, looking at the 2025 revenue acceleration guide, could you help us think through the acceleration drivers across the core markets, expansion market services and perhaps any tailwinds from major events like the World Cup and Olympics? And are you anticipating any top line benefits from some of these AI innovations that you discussed?

Certainly. So when we think about the growth outlook for 2026, we are certainly taking into account the momentum that we've seen coming off the launches that we've mentioned driving the Q4 results. We anticipate those will continue to benefit the top line in the beginning of '26, and we're obviously looking to expand upon.

Beyond those that I mentioned, we're obviously continuing to invest in several other growth levers. In particular, we're investing in incremental supply. We're investing in our expansion markets and several other key initiatives. In terms of the back half of the year, we'll obviously be comping some of the launches that we had in Q4. So we'll lap those, but intend to have incremental growth levers throughout the year to support that. You asked just about the major events.

Obviously, the Milan Olympics is happening right now, and we're looking forward to FIFA this summer. I would say those two events, in particular, they are large events on the platform, but in scale are very small portions of the overall business. So we're looking forward to them. They will be additive in the quarters that they hit. But I would say on the larger events, the benefit of those events is not just the bookings during the period of the event instead of the benefits we get from increasing overall awareness of the brand, driving incremental supply in those markets and more broadly, the brand halo we get from connecting our brand with such beloved global events.

What we've seen actually for the current Olympics and the past Olympics is that guests who know of the brand partnership between Airbnb and the Olympics have a more favorable impression of the brand. So many reasons that we do those only one is the in-period impact to the business. And then in terms of the contribution from AI, I would say, as Brian shared, we will be -- we are currently piloting AI search. We have nothing baked into our outlook in terms of the benefit from that deployment.

Lloyd Walmsley, Mizuho.

Two, if I can. First, just on hotel. When we talk to hotels and connectivity partners, we hear like an enthusiastic response on working with you guys, but there's also -- it sounds like a lot of friction with the connectivity APIs and sort of supporting multiple rates. It seems like there's a lot of friction today. Just wondering, are you sort of committed to building or rebuilding those connectivity layers? And what other things are you guys doing to sort of build foundations on hotel?

And then second question, just stepping back, opening up the aperture of inventory, whether that's more mainstream hotel or experiences, it would seem like you could unlock significant TAM by just going a bit more mainstream. Brian, how do you feel about having more of that type of content on the site and the trade-off between sort of keeping things unique versus addressing bigger and bigger portions of the market? Would love to just hear how you think about that.

Yeah. It's a great question. Again, I've gone back to Amazon as a pretty good reference point for us. They started with one category books. They became synonymous with that single category and eventually, they rebuilt their platform to expand in many categories. That's our strategy. And so the answer to your question, yes, we are opening the aperture. We're opening the aperture and accommodations. We're opening the aperture beyond accommodations and beyond places to stay.

One of the reasons we are able to do this is AI allows us to personalize. Some people come to Airbnb and all they want to see our unique homes. And before AI, like personalization was a little more primitive. So if they saw a hotel, it might be jarring.

Now we can really personalize. So people who just want to see Airbnbs can see Airbnbs. People just want to see hotels, we can eventually personalize, they can just see hotels. If people want to see both, we can know if you're booking last minute, night, then we're going to show you a hotel. If you're booking a family of five in Italy, we're going to show you a home.

So it really goes back to personalization. The more personalized we are, the more types of inventory we can offer. So this then, I think, goes to our broader strategy. What is our strategy for hotels? Our strategy for hotels used to be that we thought of them as filling in network guests when a home is booked and when homes are high occupancy, you can get a hotel.

What we've now evolved to is a much bigger strategy, a much more expansive strategy. It turns out, obviously, as we spend a lot of time with our guests that a lot of guests love to book homes and hotels. And we ran an ad campaign, some trips are better on Airbnb, but it also means some trips are better in hotels. And so if you're booking last minute, if you're booking 1 night, if you're booking for business, if you're staying for a conference, this might be a really good reason for the hotel.

But also, we're really focusing on boutiques and independence and a large percent of the inventory hotel inventory in the world are boutique and independent. They're providing threat hospitality. I mean these hotels really fit the ethos of the Airbnb brand. And these are not niche. This is a huge percentage of the hotels in the world.

And as we spoke to these affiliates, they've been very, very enthusiastic. They want to list on their channel. They like their local mission. They love the merchandising. We love the type of travel work we have. So we think that as we add more offerings, as we add more category, it strengthens all the other businesses. So we think as we get more graft hotels, not only did it open up the aperture to a huge TAM of hotels have actually strengthened home.

Stephen Ju, UBS.

Great. So Brian, can we revisit the halo effect that you might have seen following the Paris Olympics and how that might have helped you from either an awareness or greater user, I guess, experience or comfort perspective and how that might go through after the World Cup here in the United States. And Ellie, even at the low end of your revenue guidance to keep margins flat, you have to figure out a way to spend some $800 million more year over year. So -- just wondering where the larger spend buckets are going to be for this year.

All right. So let's start with the Paris Olympics and how it may -- what it might portend for the World Cup. Compares to Olympics was massive for our business, not just in tariffs, but really all over France and globally. One of the things that happened was events are likely the very best way for us to add new supply. And one of the great things about adding supply for events is it's usually everyday people listing homes that are often exclusive to Airbnb.

So this is really, really compelling. And in fact, now we start Airbnb. As many of you know the founding story, we started to provide housing for events. And we designed and built our platform for them during the very beginning. The great thing about events in Airbnb is a lot of people have no intention of becoming a host.

They have no intention in doing this year around. But an event come to town and they want to make money one week, and they list their place and they introduced the concept hosting and they realize they like it and they continue hosting. 40,000 people who list their homes in Paris have continued hosting, and that's been really, really powerful for us.

So the other value is really powerful from a policy standpoint. I think everybody goes from sometimes a problem cities have to deal with to a solution to the problem. And what we know is these large events, hotels can't accommodate everyone. So it's a bit of a reset moment where we can actually come into all cities that we and we actually can be a solution to your challenge. And it is just a great way to experience Airbnb because it's a great way to bring cultures together.

And the thing about the World Cup that's so powerful is obviously, as you know, it's in three countries, and so it allows us to handle really important markets. Not only important markets in the United States, but like Toronto and Mexico City, two of our most important markets in the world. So I think the World Cup will be massive. We have the Milan Olympics happening right now. The Milan Olympics was not only great for Milan, not only great for Northern Italy, but was great for our relationship with the Italian government.

And I think that we don't just need the World Cup. We don't just need the Olympics. We actually can work with smaller events, like Lollapalooza. We can work with really local event. So the event strategy scales from big global events, down to local events, and we think they're one of the best ways to recruit supply, and that's what we're going to do to grow our supply in Airbnb.

Let me answer the second question about EBITDA. As we look at the construction of the '26 P&L relative to 25, obviously, the top of our P&L in terms of cost of revenue and option support will scale. If somewhat lately, we'll have some efficiencies there, but they will be overly with -- obviously, the growth in revenue. Where you will see some incremental investment to drive growth is obviously in sales and marketing. This is both in the form of percentage, but more so in terms of our go-to-market efforts, what this means is of our efforts around acquiring supply, not just homes but obviously also for experienced services and hotels. And then we will also continue to grow our investments in product development. to allow for a greater accelerated pace of innovation.

I would say more broadly talking about the '26 P&L. Hopefully, it was clear in our opening remarks as well as in the letter. Our ambition needs to accelerate the top line, and we're giving ourselves the flexibility within the stable margin compared to last year to invest to achieve that acceleration. We're quite proud of the level of profitability that we have achieved historically. And the focus right now is, again, accelerating growth within those very strong stable margins.

Justin Post, Bank of America.

Brian, in your prepared remarks, you talked about app improvements and obviously moving supply. Are you seeing any improvement in repeat rates or customer service scores? Or what kind of feedback are you getting on that? And then Ellie, maybe you could talk about the US room net growth. It definitely has got back to mid-singles. What's your outlook for that as we look forward?

Yeah. I mean I can start with one of the things we noticed is the repeat rate of Airbnb is pretty much you can simplify it down to the satisfaction of the gap. The gap satisfaction to guests first and foremost is attach to home. And then if something goes wrong, the satisfaction of customer service. That's why we focus first and foremost on just quality.

Now that guest favorites are approximately half of our bookings. The quality -- the trip quality, which is the score we look at, has gone up significantly. That means satisfaction has gone up. That means satisfaction has gone up. That means that repeat use is stronger. It's really strong. And I think that explains a bunch of our re-acceleration.

And customer service is better than ever. We track NPS and it's the strongest it's been since pandemic by far, and it's accelerating. And I think, again, it's not just the hard work the team is doing -- but again, I think the quality of the management of our marketplace, all the supply management we do. We think it's unprecedented in our category, what we do. We're moving more than 500,000 listings, you have Guest Favorites.

We're really, really tight on quality control and then the customer service that we have, which is best in class, we think, in our category and with AI supporting it, I think it's going to continue to improve. So yes, it's been a huge tailwind for us.

US or more broadly North America, certainly, at the beginning of '25, so Q1 and Q2, the growth in that region was quite modest low single digits. We're excited to be able to accelerate that in Q3 and then once again in Q4. That is a byproduct, I think one of a slightly stronger macro, but more importantly, the product changes that we have discussed in the letter and on the call. I would say heading into '26, we continue to see great momentum for North America at large. And it is one of the underpinnings of our opportunities around like this.

Mark Mahaney, Evercore ISI.

Two questions, please. When do you think -- what's a realistic expectation for when hotels will be big enough to actually start moving the needle in terms of that revenue growth acceleration? Or do you think that, that is one of the factors behind the revenue growth acceleration this year?

And then secondly, could you just talk about the take rate dynamics in Q1 what's embedded in your guidance, your revenue growth is sort of accelerating versus Q4, but your room night growth seems like it's slightly decelerating or similar growth and your bookings growth ex FX is slightly decelerating. So is there something that's boosting take rate in Q1 that caused that revenue growth to accelerate?

Sure. In terms of hotels, just to size hotels today. So as of Q4, hotels was a single-digit percentage of total Night's book. but growing nearly double that of the overall platform. So it will take some time for that business to scale them a meaningful contribution to growth, but the current momentum is quite strong. What we -- as Brian share period they will be expanding the hotel supply over the course of the year. And intend to exit '26 with hotels being a meaningfully larger percent of the overall business going forward.

In terms of the take rate expansion in Q1 and what's going on with the, I would say, high level of growth in Q1 relative to Q4. A couple of dynamics. First is the impact of ADR and FX. As we called out in the letter, the realized tailwind of FX in Q1 will be quite strong at nearly 3 percentage-points. We're also getting the benefit of earlier lead times of bookings in Q4 that will realize in states and hit revenue in Q1.

And then in terms of the implied take rate it should be modestly above where we were in Q1 of last year, mostly due to some timing consideration. One other small components to give you both. The laundry list is Easter this year is on the kind of -- in the middle, effectively is on April 5. So you don't see as big a quarterly swing as we have seen in prior years when Easter moved materially in and out of Q1, but we anticipate it will support about 50 basis points of incremental revenue in Q1 and 50 basis points less revenue in Q2.

Jed Kelly, Oppenheimer.

Great. Just, I guess, going back to hotels. And I get how the company was built unique supply, but can you just talk about like why not lean into more brand hotels just because it could give the user and open up more supply and potentially bring in more new users to the platform?

Yeah. I mean we're a large percent of hotels are boutiques and independent. And we want to just start there. We're not saying what we will we not do in the future, but we think that we want to like just start with a huge number of boutiques and independents that are typically paying a higher commission in the chain and have been really aggressive with us reaching a saying that they would love to have another channel. So that's our starting place.

We're not saying where we're eventually going, but this is where we're focused right now. So we're focused on our top markets in the world where there's a proliferation of great fatigue, great independent. We had more than 100 hotels in New York with more than 20,000 rooms available on the site, just New York City alone.

Kevin Kopelman, TD Cowen.

Great. I wanted to ask about the new all-in commission structure for PMS connected host or some of the benefits you're seeing from that change? And could you see Airbnb moving all of its host over to that structure longer term?

So I think you're probably aware of our historical structure. The business was set up with a dual structure where there was a 3% host fee and then a variable debt fee on top of that. What we found over time is that, that dual key structure makes it difficult for house to effectively price their listing. It's frankly a little bit complicated. And in particular, for those lists that are cross-listed and property managers, it often leads to incorrect pricing, meaning what they get fees is not what the host intend. And in many cases, that means that listing can sometimes be more expensive on Airbnb, but it's crosses somewhere else.

So for the migration that we completed back in October, which was to migrate all of our API connected post to the single-service fee, we've seen great results. Number one is we obviously very delicately manage the communication with our host to ensure that they did not perceive this as a fee increase. And in making the migration, what we found is that many of the host did not take up their rates instead the effected ADR to guests came down modestly, which, obviously, you can conclude is really great from an affordability perspective as well as elasticity. And that is the reason our contributor to growth in Q4.

We are currently piloting in certain countries, a further migration for our individual homes. Again, from the July structure to the single service game we think a more expansive migration, number one, allows it to be easier for the host to understand what they should price it allows us to make sure that we are pricing all of our listings contently. And we also think it's a foundational move that will allow us to one being more dynamic with our pricing tools as well as our fees.

Ken Gawrelski, Wells Fargo.

Two if I may, please. First, with on loyalty. Brian, could you talk a little bit about -- you on past calls, have talked a little bit about a different approach to loyalty. It really hasn't come up as much, I don't think, on this call. and I apologize if I missed it. But could you talk a little bit about your vision for loyalty and how that spans across the different products and services that you aspire to offer on the platform?

And the second thing is maybe referring back to the shareholder letter, where you talk about the speed -- and I think you called out the Project Why in terms of the speed of decision-making and new product releases, will this impact at all the way you think about -- you've been on a biannual, every 6-month cadence for new product releases, consumer, either to the consumer or to the host, could you talk a little bit about how you may be what you've learned or the experience you've had with this new more efficient decision-making has -- could inform the product release going forward?

Yeah, sure. Maybe I'll start with the second question and then with the first. So we're scoping to do final product release moments, but our methodology is going to be a little bit different. Last May was kind of a once a onetime like build in the platform, we had to basically rebuild our app from a home platform to a platform you can focus any part of the trim hence total nation more need more than Airbnb basically, every caveat change.

What we're now doing is we're not waiting for a release to ship. We're shipping every minute and every hour of every day. So the teams are shipping. We still will have a release where we'll showcase the stuff we're doing, but we're not holding back when they're ready, we will ship them and we used may a bit more to showcase of what the product improvements are you can affect this summer. So that makes sense.

It's more of a potentially marketing showcase, a product marketing showcase versus us holding back features. But we still do think telling a story a couple of times a year to our guest, our host and our shareholders and not the improvement innovation we make. It's a really good thing. I think releases are a really good way to tell the story. But again, why it means that we don't wait for release to ship. We shipped a moment it's ready. And especially in each of AI, giant moments aren't the way to do it. You want to iterate it consistently.

I think the second question was on loyalty, right? That was the first question. So yes, so we -- and I think the thing that I would like to point out is the results we've had without loyalty without sponsor listing. So I think that with loyalty, we think that to be a massive accelerant for our company. We are absolutely looking at this. I've said before that if we do a loyalty perk, you wouldn't want to do an out-of-shopping program. We want to do something much more unique. And we are actually testing a lot of different tracks.

So we're attempting different benefits that could be in a loyalty program. And based on results of those tests will eventually package them and release a loyalty program. But right now, we are investing. So I think that was the last question. I think now we can go to closing remarks. So we are out of time. I just want to thank everyone for joining us today. I also -- I'm incredibly proud of what our team here we delivered in 2025. We developed the blueprint innovation that we're now using across the company, and you are starting to see that in our results. As this momentum builds, we believe the opportunity ahead is even bigger than what you're seeing today. I look forward to seeing you next quarter. Thank you.

This concludes today's conference call. Thank you for your participation. You may now disconnect.