Airbnb, Inc.

Good afternoon, and thank you for joining Airbnb's earnings 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 Slavin, Vice President of Investor Relations. Please call 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 Chesney, 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 are 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 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.

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 gross quarter in more than two years. Nice and sweet books grew 10%. our strongest quarter of the year. But what matters most is the momentum that we're gaining. In a marketplace, re-accelerating growth isn't as simple as stepping on the gas pedal. It's more like turning a 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 significantly incredibly quickly in the years leading up to our IPO. Faster than we ever imagined. We were like a company built to be a two-story house. But when we went public, we wanted 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 rebuilt our tech platform. We rebuilt the app tab by tab. And over the last few years, we improved nearly every part of the guest and host experience. But rebuilding the foundation wasn't enough. We also need to innovate faster. Now, when I look back at what drove Airbnb's early success, it wasn't just the idea. It was how we worked. In the early days, Joe, Nate, and I would sit in our apartment obsessed over every detail. We'd shift something, learn quickly, and double down on what worked. 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 were going to recreate the same innovation formula inside Airbnb, but at a global scale. We called it Project Y. 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 started with the little things that made booking harder than it needed to be. Simple improvements like better search filters and small tweaks to the booking flow. When those changes worked, we went bigger. We improved how we convert high-intent visitors into long-term users, using simple web prompts 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 tackled bigger opportunities, like completely redesigning the checkout flow to make booking 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 Hawaii 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 Hawaii innovation model is driving growth. The first is pricing. Hidden fees are one of the biggest friction points in travel. So we created a pricing team with a clear goal. Make pricing simple and more transparent. The first major step was showing the total price up front to guests. In the U.S., we're the first major travel platform to do this. When price transparency was just the beginning, we launched dozens more updates, from more flexible cancellation policies to better pricing tools for hosts. These changes stacked. Then we made the biggest move of all, reserve now, pay later. For the first time, guests in the U.S. could book eligible stays paying $0 up front. The response is immediate, driving booking acceleration in Q4, especially for larger, high-priced homes. We're now expanding this to new markets, and it's a key part of the strength we're seeing in Q1. Now, we believe that pricing initiatives will drive as much revenue this year as wide and will remain a strong tailwind for years to come. Next up, supply. Most of our supply growth is organic, with hosts coming directly to us. But we've also built a supply engine that lets us be 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 removed over half a 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 applied the volume model international growth. You know, 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 and local payment methods, and we leaned at the cultural moments like Carnival. We also invested in local campaigns to build relevance. The results have been incredible. Brazil moved from a top-ten market to a top-five market on Airbnb. In Q4, it was our second largest contributor to first-time bookers, behind only the U.S. 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 Hawaii 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 in LA for services, and we're really seeing great results. We're also starting to test new services like grocery delivery and airport pickup to make each trip better for the very beginning. And to capture even more trips, we're bringing the Tegan 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 with hotels is massive. We plan to share more about our approach later this year. But the big idea here isn't just building a bunch of standalone 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 part stronger. There are multiple entry points in Airbnb and multiple ways to drive more bookings. A guest 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 here for me to book a home for a family vacation. Each part of the trip reinforces the other. The final piece that celebrates everything we do is AI. Now, we've taken a really intentional path here. While other companies rushed to bolt chatbots into their existing apps, we started by solving the hardest problem, customer support. We built a custom AI agent trained on millions of our support interactions. It's already resolving a 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 those better run their businesses, and help the company operate more efficiently on scale. That's a big reason we brought in Amin Al-Hali as our CTO. Amin is one of the world's leading AI experts. He spent 16 years at Apple and most recently led the generative AI team at Meta that built the Lama models. He's an expert at pairing 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 disremediation. A chatbot can give you a list of homes. But it can't give you the unique points you find on Airbnb. A chatbot doesn't have our 200 million verified identities or our 500 million proprietary reviews. And it can't message the host, which 90% of our guests do. It can't provide global payment processing, customer support, or insurance. By relaying AI over the entire Airbnb 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 margins to be stable year over year. And we'll 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 them profitably. That's why I've been able to generate free cash flow at nearly 40% of revenue and nearly $19 billion of cumulative free cash flow sent to our ITO. It gives us the ability to reinvest back in our business while strengthening our balance sheet and maintaining healthy margins. Now, if 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 in the Airbnb team who's listening, Thank you. The business is stronger because of you. With that, I'll turn it over to Ellie to walk you through the financials in more detail.