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Airbnb's Reserve Now, Pay Later Coverage Expansion to Extend Tailwinds Into 2027, B. Riley Says

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Airbnb's Reserve Now, Pay Later Coverage Expansion to Extend Tailwinds Into 2027, B. Riley Says

Airbnb's (ABNB) decision to expand Reserve Now, Pay Later coverage to additional listing types is expected to extend demand tailwinds into next year, B. Riley Securities said Friday.

Late Thursday, the vacation rental company's second-quarter results topped Wall Street's estimates amid robust demand fueled by the FIFA World Cup. Airbnb recently expanded the types of bookings eligible for Reserve Now, Pay Later, or RNPL, amid strong results, Chief Financial Officer Ellie Mertz said during an earnings call, according to a FactSet transcript.

"Now, beyond the immediate uplift in nights booked, we believe this provides a longer-term competitive benefit, enabling hosts to lock in earlier calendar share and better aligning our payment options with guest preferences," Mertz told analysts.

The company launched the RNPL feature in the US in August 2025 before expanding the payment option globally in February.

"While the demand environment for (Airbnb) remains quite healthy, rollout of (RNPL) is an added tailwind, and (the management's) recent move to expand coverage to more listing types extends the tailwinds into 2027," B. Riley analyst Naved Khan said in a note to clients Friday. "This, coupled with the addition of hotel inventory, platform improvements, consumer-friendly tweaks to cancellation policy, and international expansion, should continue to drive strong growth over the near/medium term."

RNPL contributed 150 basis points to nights growth in the second quarter, following 200 basis points in the previous quarter, according to the note.

"As RNPL contributes to longer lead times, higher (average daily rates) and conversions, we expect booked nights and bookings to benefit," Khan said.

The brokerage raised its price target on Airbnb's stock to $210 from $180 while reiterating its buy rating, saying it continues to find the stock's risk/reward profile "attractive."

Airbnb shares were up 14% in Friday afternoon trade, bringing its year-to-date gains to about 29%.

Price: $174.80, Change: $+23.16, Percent Change: +15.27%

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