We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Expedia Q4 Earnings & Revenues Beat Estimates, Both Increase Y/Y
Read MoreHide Full Article
Key Takeaways
EXPE Q4 EPS rose 58% to $3.78, topping estimates as revenues climbed 11%.
B2B revenues surged 24%, lifting gross bookings 11% to $27B and room nights 9%.
EXPE sees Q1 bookings up 10-12% and 2026 EBITDA margin expanding 100-125 bps.
Expedia Group (EXPE - Free Report) reported fourth-quarter 2025 adjusted earnings of $3.78 per share, which surpassed the Zacks Consensus Estimate by 9.29%. The figure increased 58% year over year.
Revenues of $3.55 billion rose 11.4% year over year. The figure beat the Zacks Consensus Estimate by 4.22%.
B2B revenues increased 24% year over year to $1.29 billion. B2C revenues increased 4% year over year to $2.16 billion.
Advertising revenues jumped 19% year over year to $208 million.
Expedia Group, Inc. Price, Consensus and EPS Surprise
Total gross bookings were $27 billion, which increased 11% year over year. B2C gross bookings grew 5% to $18.34 billion and B2B gross bookings rose 24% to $8.66 billion year over year.
Lodging gross bookings grew 13% year over year to $19.46 billion, with hotel bookings climbing 15%, driven by resilience at B2B and Expedia.
Strength in booked room nights, which rose 9% from the year-ago quarter to 94.0 million, reflecting high single-digit growth in the United States and low double-digit growth in EMEA and the rest of the regions in the world.
EXPE’s Operating Details
Adjusted EBITDA was $848 million in the reported quarter, up 32% year over year, representing an adjusted EBITDA margin of 23.9%. The metric expanded 368 basis points (bps) from the prior-year quarter.
Direct sales and marketing expenses were $1.7 billion, representing 47.8% of revenues, up 10% year over year. However, B2C direct marketing expenses declined 5% year over year to $847 million and leveraged 48 bps as a percentage of B2C gross bookings to 4.6% from 5.1%.
Overhead expenses were $640 million, representing 18.1% of revenues, essentially flat year over year, while leveraging more than 200 bps as a percentage of revenues from 20.2% in the prior-year quarter.
Adjusted cost of revenues was $342 million, up 3% year over year, representing 9.6% of revenues, leveraging 77 bps driven by continued efficiencies in payments and customer service.
EXPE’s Balance Sheet
As of Dec. 31, 2025, cash and cash equivalents and short-term investments were $5.71 billion, down from $6.17 billion as of Sept. 30, 2025.
Long-term debt was $4.47 billion as of Dec. 31, 2025, compared with $4.47 billion as of Sept. 30, 2025.
Net cash provided by operating activities was $304 million in the reported quarter against a negative $497 million in the third quarter of 2025. Free cash flow was $119 million against a negative $686 million in the third quarter of 2025.
Expedia Provides Q1 & Full-Year 2026 Guidance
EXPE expects gross bookings to be in the range of $34.6-$35.2 billion for the first quarter of 2026, representing growth of 10-12% year over year, including 3 percentage points of foreign exchange tailwind.
Revenue growth is expected to be in the range of $3.32-$3.37 billion, representing growth of 11-13% year over year, including 4 percentage points of foreign exchange tailwind.
Expedia expects first-quarter adjusted EBITDA margins to increase 3-4 percentage points year over year.
For the year 2026, Expedia expects gross bookings to grow in the range of 6-8%, including 1 percentage point of foreign exchange tailwind. Revenue growth is also projected in the range of 6-9%, including 2 percentage points of foreign exchange tailwind.
Expedia expects adjusted EBITDA margin to expand 100-125 bps year over year for the year 2026.
View the Zacks #1 Rank List
Image: Bigstock
Expedia Q4 Earnings & Revenues Beat Estimates, Both Increase Y/Y
Key Takeaways
Expedia Group (EXPE - Free Report) reported fourth-quarter 2025 adjusted earnings of $3.78 per share, which surpassed the Zacks Consensus Estimate by 9.29%. The figure increased 58% year over year.
Revenues of $3.55 billion rose 11.4% year over year. The figure beat the Zacks Consensus Estimate by 4.22%.
B2B revenues increased 24% year over year to $1.29 billion. B2C revenues increased 4% year over year to $2.16 billion.
Advertising revenues jumped 19% year over year to $208 million.
Expedia Group, Inc. Price, Consensus and EPS Surprise
Expedia Group, Inc. price-consensus-eps-surprise-chart | Expedia Group, Inc. Quote
EXPE's Gross Bookings Rise Y/Y
Total gross bookings were $27 billion, which increased 11% year over year. B2C gross bookings grew 5% to $18.34 billion and B2B gross bookings rose 24% to $8.66 billion year over year.
Lodging gross bookings grew 13% year over year to $19.46 billion, with hotel bookings climbing 15%, driven by resilience at B2B and Expedia.
Strength in booked room nights, which rose 9% from the year-ago quarter to 94.0 million, reflecting high single-digit growth in the United States and low double-digit growth in EMEA and the rest of the regions in the world.
EXPE’s Operating Details
Adjusted EBITDA was $848 million in the reported quarter, up 32% year over year, representing an adjusted EBITDA margin of 23.9%. The metric expanded 368 basis points (bps) from the prior-year quarter.
Direct sales and marketing expenses were $1.7 billion, representing 47.8% of revenues, up 10% year over year. However, B2C direct marketing expenses declined 5% year over year to $847 million and leveraged 48 bps as a percentage of B2C gross bookings to 4.6% from 5.1%.
Overhead expenses were $640 million, representing 18.1% of revenues, essentially flat year over year, while leveraging more than 200 bps as a percentage of revenues from 20.2% in the prior-year quarter.
Adjusted cost of revenues was $342 million, up 3% year over year, representing 9.6% of revenues, leveraging 77 bps driven by continued efficiencies in payments and customer service.
EXPE’s Balance Sheet
As of Dec. 31, 2025, cash and cash equivalents and short-term investments were $5.71 billion, down from $6.17 billion as of Sept. 30, 2025.
Long-term debt was $4.47 billion as of Dec. 31, 2025, compared with $4.47 billion as of Sept. 30, 2025.
Net cash provided by operating activities was $304 million in the reported quarter against a negative $497 million in the third quarter of 2025. Free cash flow was $119 million against a negative $686 million in the third quarter of 2025.
Expedia Provides Q1 & Full-Year 2026 Guidance
EXPE expects gross bookings to be in the range of $34.6-$35.2 billion for the first quarter of 2026, representing growth of 10-12% year over year, including 3 percentage points of foreign exchange tailwind.
Revenue growth is expected to be in the range of $3.32-$3.37 billion, representing growth of 11-13% year over year, including 4 percentage points of foreign exchange tailwind.
Expedia expects first-quarter adjusted EBITDA margins to increase 3-4 percentage points year over year.
For the year 2026, Expedia expects gross bookings to grow in the range of 6-8%, including 1 percentage point of foreign exchange tailwind. Revenue growth is also projected in the range of 6-9%, including 2 percentage points of foreign exchange tailwind.
Expedia expects adjusted EBITDA margin to expand 100-125 bps year over year for the year 2026.
Zacks Rank & Other Stocks to Consider
Expedia currently carries a Zacks Rank #2 (Buy).
FIGS (FIGS - Free Report) , Globale Online (GLBE - Free Report) and Carrefour (CRRFY - Free Report) are some other top-ranked stocks that investors can consider in the broader Retail-Wholesale sector.
FIGS currently sports a Zacks Rank #1(Strong Buy) while Globale Online and Carrefour carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Globale Online and Carrefour are slated to report their upcoming results on Feb. 18.
FIGS is slated to report its upcoming results on Feb. 26.