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EXPE's advertising revenues rose 19% as active partners hit a record high.
Expedia Group (EXPE - Free Report) reported fourth-quarter 2025 adjusted EPS of $3.78, which beat the Zacks Consensus Estimate by 9.29% and increased 58% year over year.
Revenues of $3.55 billion beat the consensus mark by 4.22% and increased 11.4% year over year.
The company ended the quarter with 94 million booked room nights, up 9% from 86.4 million in the prior-year period. Gross bookings increased 11% to $27 billion, driven by sustained strength in the U.S. and internationally.
B2B delivered a standout performance, with gross bookings surging 24% to $8.66 billion. B2B revenues climbed 24% to $1.29 billion, exceeding the Zacks Consensus Estimate by 7.64%.
Adjusted EBITDA for B2B reached $308 million, surpassing the Zacks Consensus Estimate by 1.27%, with a margin of 23.9%, down 60 bps year over year as the company prioritized investments in new product lines and partner capabilities.
The business benefited from double-digit growth across all regions, with Rapid Application Programming Interface being the largest contributor. Several of Expedia's largest B2B partners increased their marketing activities during the quarter, driving additional demand. The Travel Agent Affiliate Program (TAAP) showed strong performance, with more active travel agents than in any prior fourth quarter.
Advertising continued scaling rapidly, with revenues rising 19% to $305 million, beating the Zacks Consensus Estimate by 16.36%, as the company reached a record number of active advertising partners. Expedia Group Advertising revenues grew 19% to $208 million, while trivago advertising revenues increased 47% to $97 million. The expansion of new ad formats, including video ads on search results and homepages, contributed to the strong performance.
Regional Mix Shift as B2B Outpaces B2C, Asia Headwinds Weigh
While Expedia's B2C segment delivered solid results that beat estimates, growth dynamics shifted notably in the quarter. B2C gross bookings grew 5% to $18.34 billion, a more modest pace compared to B2B's 24% surge. B2C revenues grew 4% to $2.16 billion, beating the Zacks Consensus Estimate by 1.91%.
Regional performance varied significantly as geopolitical issues in Asia weighed on the rest of world segment in multiple quarters. The U.S. delivered high single-digit room night growth, and EMEA accelerated to low double digits, but Asia-Pacific headwinds created regional imbalances.
Despite the geographic challenges, B2C delivered impressive margin expansion. B2C Adjusted EBITDA reached $679 million, surpassing the Zacks Consensus Estimate by 13.23%, with a margin of 31.5%, up 560 basis points year over year. The margin improvement was driven by significant marketing leverage, with direct sales and marketing expenses down 5% and leveraging 50 basis points as a percentage of B2C gross bookings.
Lodging revenues grew 11% to $2.82 billion, beating the Zacks Consensus Estimate by 4.48%, while air revenues declined 3% to $94 million, missing estimates by 13.27%.
View the Zacks #1 Rank List
Image: Bigstock
EXPE Q4 Earnings Beat on Strong B2B and Advertising Growth
Key Takeaways
Expedia Group (EXPE - Free Report) reported fourth-quarter 2025 adjusted EPS of $3.78, which beat the Zacks Consensus Estimate by 9.29% and increased 58% year over year.
Revenues of $3.55 billion beat the consensus mark by 4.22% and increased 11.4% year over year.
The company ended the quarter with 94 million booked room nights, up 9% from 86.4 million in the prior-year period. Gross bookings increased 11% to $27 billion, driven by sustained strength in the U.S. and internationally.
Expedia Group, Inc. Revenue (TTM)
Expedia Group, Inc. revenue-ttm | Expedia Group, Inc. Quote
B2B and Advertising Momentum Drive Results
B2B delivered a standout performance, with gross bookings surging 24% to $8.66 billion. B2B revenues climbed 24% to $1.29 billion, exceeding the Zacks Consensus Estimate by 7.64%.
Adjusted EBITDA for B2B reached $308 million, surpassing the Zacks Consensus Estimate by 1.27%, with a margin of 23.9%, down 60 bps year over year as the company prioritized investments in new product lines and partner capabilities.
The business benefited from double-digit growth across all regions, with Rapid Application Programming Interface being the largest contributor. Several of Expedia's largest B2B partners increased their marketing activities during the quarter, driving additional demand. The Travel Agent Affiliate Program (TAAP) showed strong performance, with more active travel agents than in any prior fourth quarter.
Advertising continued scaling rapidly, with revenues rising 19% to $305 million, beating the Zacks Consensus Estimate by 16.36%, as the company reached a record number of active advertising partners. Expedia Group Advertising revenues grew 19% to $208 million, while trivago advertising revenues increased 47% to $97 million. The expansion of new ad formats, including video ads on search results and homepages, contributed to the strong performance.
Regional Mix Shift as B2B Outpaces B2C, Asia Headwinds Weigh
While Expedia's B2C segment delivered solid results that beat estimates, growth dynamics shifted notably in the quarter. B2C gross bookings grew 5% to $18.34 billion, a more modest pace compared to B2B's 24% surge. B2C revenues grew 4% to $2.16 billion, beating the Zacks Consensus Estimate by 1.91%.
Regional performance varied significantly as geopolitical issues in Asia weighed on the rest of world segment in multiple quarters. The U.S. delivered high single-digit room night growth, and EMEA accelerated to low double digits, but Asia-Pacific headwinds created regional imbalances.
Despite the geographic challenges, B2C delivered impressive margin expansion. B2C Adjusted EBITDA reached $679 million, surpassing the Zacks Consensus Estimate by 13.23%, with a margin of 31.5%, up 560 basis points year over year. The margin improvement was driven by significant marketing leverage, with direct sales and marketing expenses down 5% and leveraging 50 basis points as a percentage of B2C gross bookings.
Lodging revenues grew 11% to $2.82 billion, beating the Zacks Consensus Estimate by 4.48%, while air revenues declined 3% to $94 million, missing estimates by 13.27%.
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.