AI Takeaway
Airbnb delivered strong Q1 FY2026 revenue growth of 17.9% to $2.68B, with operating income more than doubling YoY to $86M, though net income grew only modestly to $160M amid elevated R&D spending and increased investing outflows.
Revenue
$2.68B
++17.87% YoY
Operating Income
$86M
++126.32% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 17.9% YoY to $2.68B in Q1 FY2026 (vs. $2.27B in Q1 FY2025), reflecting continued demand strength across Airbnb's platform and expansion of its guest and host base globally.
Source: Source: 10-Q Income Statement
Operating income surged 126.3% YoY to $86M, pushing operating margin from 1.67% to 3.21%, indicating that revenue growth is beginning to outpace cost growth and drive meaningful operating leverage.
Source: Source: 10-Q Income Statement
R&D expenses rose 12.3% YoY to $638M in Q1 FY2026, representing a substantial portion of revenue (~23.8%), signaling continued heavy investment in product development and platform innovation.
Source: Source: 10-Q Income Statement
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Upgrade to unlockCash and equivalents fell 7.4% YoY to $7.04B while total liabilities increased 12.1% YoY to $19.19B. This divergence, combined with a debt-to-equity ratio of 2.51, warrants monitoring of Airbnb's balance sheet flexibility.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockReported EPS of $0.26 versus the $0.30 analyst consensus — a -11.9% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.68B | $2.27B | +17.87% |
Cost of Revenue | $581M | $506M | +14.82% |
Operating Income | $86M | $38M | +126.32% |
Net Income | $160M | $154M | +3.90% |
R&D Expense | $638M | $568M | +12.32% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $26.83B | $25.06B | +7.07% |
Current Assets | $23.6B | $21.3B | +10.83% |
Total Liabilities | $19.19B | $17.12B | +12.11% |
Current Liabilities | $16.36B | $16.73B | -2.19% |
Stockholders' Equity | $7.64B | $7.94B | -3.79% |
Cash & Equivalents | $7.04B | $7.6B | -7.41% |
Long-Term Debt | $2.48B | — | — |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.71B | $1.79B | -4.53% |
Investing Cash Flow | $-461M | $-151M | -205.30% |
Financing Cash Flow | $2.97B | $2.15B | +38.46% |
Share Buybacks | $1.09B | $807M | +34.82% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 3.2% | 1.7% | +1.54% |
Net Margin | 6.0% | — | — |
ROE | 2.1% | — | — |
ROA | 0.6% | — | — |
Current Ratio | $1.442 | — | — |
Debt to Equity | $2.513 | — | — |
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Airbnb reported Q1 FY2026 revenue of $2.68B, up 17.9% YoY, with operating income surging 126.3% to $86M. Net income grew a more modest 3.9% to $160M, as elevated R&D spending of $638M weighed on the bottom line.
Yes, Airbnb grew revenue 17.9% YoY to $2.68B in Q1 FY2026, compared to $2.27B in the same period last year. Cost of revenue grew at a slower 14.8%, indicating improving gross economics.
Airbnb maintains a current ratio of 1.44 and holds $7.04B in cash, suggesting adequate near-term liquidity. However, total liabilities of $19.19B and a debt-to-equity ratio of 2.51 indicate meaningful leverage that investors should monitor.
Airbnb repurchased $1.09B in shares during Q1 FY2026, a 34.8% increase from $807M in Q1 FY2025. This aggressive buyback pace reflects management's confidence but also contributed to a 3.8% YoY decline in stockholders' equity.
Key risks include rising total liabilities (up 12.1% YoY to $19.19B), a declining cash position (down 7.4% to $7.04B), and very high R&D spending at ~23.8% of revenue ($638M) with uncertain near-term returns. Additionally, investing cash outflows surged 205.3% YoY to -$461M, signaling accelerating capital deployment.