Key Highlights

  • Revenue was USD 4.94 billion against USD 4.73 billion estimated, with adjusted EPS of USD 9.39 against USD 8.85.
  • GAAP diluted EPS was USD 8.42 against USD 7.33 a year earlier, with Net Income of USD 1,030 million.
  • B2B gross bookings grew 19% and Revenue 23%, while B2C gross bookings grew 7% and revenue 6%.
  • Full-year revenue guidance rose to USD 16.37 billion to USD 16.43 billion, from USD 16.05 billion to USD 16.22 billion.

Expedia Group, Inc. (NASDAQ:EXPE) built its third quarter around two stated priorities: more personalized, rewarding product experiences for travelers and a one-stop travel platform for Business partners. The CEO also pointed to AI as a source of internal productivity and new growth. Revenue was USD 4.94 billion against an estimate of USD 4.73 billion, and adjusted EPS was USD 9.39 against an estimate of USD 8.85.

Strategy in Practice: B2B Growth and the Marketplace

Management said the quarter was above the high end of its guidance and attributed the results to resilient travel Demand and execution. Booked room nights were 115.7 million, up 7%, and average daily rate booked was USD 215.0, up 2%.

The B2B segment led growth. B2B gross bookings were USD 11,146 million, up 19%, and B2B revenue was USD 1,708 million, up 23%. B2C gross bookings were USD 22,862 million, up 7%, with B2C revenue of USD 3,065 million, up 6%. Total gross bookings were USD 34,008 million, up 11%.

Financial Results in Detail

Revenue grew 12% to USD 4,938 million from USD 4,412 million. Operating Income was USD 1,326 million against USD 1,036 million. Net income attributable to Expedia Group was USD 1,030 million against USD 959 million, and GAAP diluted EPS was USD 8.42 against USD 7.33. Adjusted EPS of USD 9.39 compares with USD 7.57 a year earlier.

Adjusted EBITDA was USD 1,689 million, up 17%, with a Margin of 34.2% against 32.9%, a 135 basis point expansion.

Operating cash flow was an outflow of USD 1,157 million against an outflow of USD 497 million, and free cash flow was negative USD 1,399 million against negative USD 686 million. Nine-month free cash flow was USD 3,627 million against USD 2,991 million.

Capital Returns, Balance Sheet and Guidance

The company repurchased about 2 million shares for USD 576 million in the quarter. It paid a Dividend of USD 0.48 per share on September 17 and declared another USD 0.48 per share, payable December 10, 2026 to holders of record on November 18. Cash and cash equivalents were USD 5,040 million, with USD 527 million of short-term investments. Current maturities of long-term Debt were USD 749 million and long-term debt was USD 4,711 million.

For the fourth quarter, guidance is gross bookings of USD 27.9 billion to USD 28.4 billion, revenue of USD 3.69 billion to USD 3.75 billion and Adjusted EBITDA of USD 830 million to USD 880 million. Full-year gross bookings guidance moved to USD 131.4 billion to USD 131.9 billion from USD 129.5 billion to USD 130.8 billion. Adjusted EBITDA margin expansion is guided at 1.8 to 2.0 points, from 1.5 to 1.75 points.

Quarter in Numbers

Revenue of USD 4.94 billion sits alongside Adjusted EBITDA of USD 1,689 million, adjusted EPS of USD 9.39 and share repurchases of USD 576 million. Full-year revenue guidance stands at USD 16.37 billion to USD 16.43 billion.

Management listed its priorities as personalized and rewarding traveler experiences, better Supply across the marketplace, a one-stop platform for B2B partners and the use of AI in internal productivity and new products. It also named the December 10 dividend payment.