Airbnb (NASDAQ: ABNB) raises its outlook and authorizes up to $12 billion more buybacks

What happened

Airbnb, Inc. (NASDAQ: ABNB) grew third-quarter revenue 19% to $4.9 billion and turned more of it into profit.

Adjusted EBITDA rose 22% to $2.5 billion from $2.1 billion in Q3 2025. The margin widened to 52% from 50%, a gain of 2.0 percentage points by OptimistFi's calculation.

In the same Nov. 5 shareholder letter, Airbnb raised its full-year 2026 outlook. It now expects revenue growth in the high teens and an Adjusted EBITDA Margin of approximately 36%.

It also announced a new program to buy back up to an additional $12 billion of Class A common stock. That comes on top of the $2.7 billion it was still allowed to buy as of Sept. 30.

Key numbers

Metric	Latest	Change	Source
Q3 2026 revenue	$4.9 billion	+19%	SEC 8-K, Exhibit 99.1
Q3 2026 Adjusted EBITDA	$2.5 billion	from $2.1 billion, +22%	SEC 8-K, Exhibit 99.1
Adjusted EBITDA margin	52%	from 50%, +2.0 percentage points	Calculated from SEC 8-K
Q3 2026 free cash flow	$1.4 billion		SEC 8-K, Exhibit 99.1
New buyback authorization	up to an additional $12 billion		SEC 8-K, Exhibit 99.1
Q4 2026 revenue guidance	$3.22 billion to $3.28 billion	+16% to +18%	SEC 8-K, Exhibit 99.1

Read more: Airbnb (ABNB) company research

Where the growth came from

Booking volume led the quarter. Nights and Seats Booked rose 16% to 155.0 million, faster than in Q2. Gross Booking Value rose 21% to $27.7 billion, a five-percentage-point sequential acceleration. Average daily rate rose 4% to $179.

Growth was broad. North America posted low-double-digit growth in nights and seats, the highest in four years. EMEA grew at a mid-teens rate. Latin America and Asia Pacific both grew more than 20%.

New customers and the app helped. First-time bookers grew 13%, the highest since early 2022. The app accounted for 66% of nights booked, up from 62% a year earlier. Active listings grew at a high-single-digit rate, slower than nights booked.

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Profit, cash and the take rate

Net income was $1.9 billion, a 39% margin versus 34% in Q3 2025. Part of the jump is a tax item. The provision for income taxes fell $135 million because the prior year included a $213 million valuation allowance against deferred tax assets for Corporate Alternative Minimum Tax credits.

Free cash flow rose year over year to $1.4 billion, a 29% margin, with net cash from operating activities at $1.5 billion. Working-capital outflows from Reserve Now, Pay Later and a July purchase of property in New York partly offset the gain from higher net income.

Revenue grew more slowly than Gross Booking Value because the implied take rate, revenue divided by booking value, fell to 17.6%. Airbnb blames mainly Reserve Now, Pay Later. It has guests booking further ahead and lifts booking value before revenue is recognized.

To a lesser extent, Airbnb cites higher incentives and credits tied to new business initiatives.

Costs moved the other way. Customer support cost per booking fell more than 17%, driven in large part by the AI assistant. About 40% of support issues were resolved without a human agent, up from a third in Q2.

What the buyback adds

Airbnb repurchased $0.7 billion of Class A stock in Q3. Since repurchases began in Q3 2022, the fully diluted share count has fallen approximately 10%. Buybacks and cash used for employee tax obligations total over $17 billion.

The new authorization is a cap on purchases, not money spent. Airbnb ended Sept. 30 with $12.6 billion of cash, cash equivalents, short-term investments and restricted cash, plus $7.4 billion of funds held on behalf of customers.

On Oct. 30 it entered a new five-year, $1.0 billion unsecured revolving credit facility that replaces its 2022 facility.

Why it matters

OptimistFi has argued that Airbnb compounds if its host network keeps supplying non-hotel stays while the marketplace holds high margins and cash conversion. This quarter supports that view. Booking growth accelerated, the adjusted margin widened and free cash flow rose.

Hotels remain a single-digit percentage of total nights booked. Airbnb says about 35% of guests whose first booking was a hotel came back to book a home within 365 days. The hotel push is feeding the homes business rather than replacing it.

Two details cut the other way. Airbnb expects Q4 Adjusted EBITDA Margin to be down slightly from Q4 2025, partly because of the timing of marketing spend. And the lower take rate means faster booking growth is not turning into revenue one for one.

What's next

For Q4, Airbnb expects revenue of $3.22 billion to $3.28 billion, up 16% to 18% year over year. That includes a foreign-exchange tailwind of about two percentage points after hedging. It expects Gross Booking Value growth in the mid-teens and Adjusted EBITDA to increase.

Management discusses the results on a webcast at 2:00 p.m. PT on Nov. 5. The Q4 2026 earnings release is the next test. Revenue inside the guided range with margin near plan would back the case. Softer booking growth would weaken it.

Airbnb also plans to start rolling out its own AI agent for planning and booking trips to guests in the first half of 2027.

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