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Expedia Group Q3 Earnings & Revenues Beat Estimates, Rise Y/Y
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Key Takeaways
Expedia Group's Q3 adjusted EPS rose 24% to $9.39, while revenues climbed 12% to $4.94 billion.
B2B revenues surged 23% to $1.71 billion, while adjusted EBITDA margin expanded 135 basis points to 34.2%.
Expedia Group raised 2026 revenue guidance to $16.37-$16.43B and bookings growth expectations to about 10%.
Expedia Group (EXPE - Free Report) reported third-quarter 2026 adjusted earnings of $9.39 per share, which increased 24% year over year. The figure beat the Zacks consensus Estimate by 7.07%. The increase reflected 19% growth in adjusted net income and a 4% reduction in adjusted weighted average shares outstanding from buybacks. Diluted GAAP earnings were $8.42 per share, which rose 15% year over year.
Revenues increased 12% year over year to $4.94 billion, which came above management's guided range of $4.65-$4.75 billion and beat the consensus mark by 4.41%. Results were driven by stronger-than-expected travel demand, continued B2B momentum, improved consumer marketing returns and ongoing cost discipline. Foreign exchange added 1 percentage point to revenue growth.
Expedia Group, Inc. Price, Consensus and EPS Surprise
In the third quarter, total gross bookings rose 11% year over year to $34.01 billion, surpassing the guided range of $32.2-$32.8 billion. Growth came mainly from 7% room night growth and 3% FX-neutral ADR growth, while foreign exchange was a 0.5-point headwind. Bookings also benefited from moving the fall sale earlier, so more of it fell in the third quarter. The September sale was Expedia Group's third consecutive sales event to exceed $1 billion in bookings.
Lodging gross bookings increased 10% to $24.88 billion, while non-lodging gross bookings advanced 14% to $9.13 billion. Merchant gross bookings grew 15% to $21.65 billion, ahead of the 4% increase in agency gross bookings to $12.36 billion.
Booked room nights rose 7% to 115.7 million. They grew in the mid-single digits in the United States, in the low single digits in EMEA and in the mid-teens in the rest of the world. Average daily rate booked increased 2% to $215.00, slowing from 5% growth in the second quarter. Booked air tickets declined 6% to 13.6 million, though higher average ticket prices supported air bookings.
Expedia Group's Revenue Mix Favors B2B
In the third quarter, B2B revenues surged 23% year over year to $1.71 billion. B2B gross bookings increased 19% to $11.15 billion, with double-digit growth across all regions. Management credited wallet-share gains with existing partners, product enhancements and investments in a one-stop B2B offering, including the CarTrawler and Tiqets acquisitions. The B2B business now works with 75,000 partners.
B2C revenues rose 6% to $3.07 billion, while B2C gross bookings increased 7% and accelerated in the United States. Expedia remained the company's fastest-growing brand, and active loyalty members grew in the low single digits. Management noted that two-thirds of bookings come direct.
trivago revenues grew 20% to $165 million. Lodging revenues increased 11% to $3.99 billion. Expedia Group advertising revenues rose 7% to $206 million, slowing from 13% growth in the second quarter as the company rolled out product changes to its advertising platform.
EXPE Improves Profitability and Cost Leverage
Third-quarter adjusted EBITDA increased 17% year over year to $1.69 billion, which came above the guided range of $1.51-$1.56 billion. The adjusted EBITDA margin expanded 135 basis points to a record 34.2%, driven by higher-than-expected revenue growth, consumer marketing leverage and overhead discipline. Operating income jumped 28% to $1.33 billion, while GAAP net income rose 7% to $1.03 billion.
B2C adjusted EBITDA rose 13% to $1.33 billion, with margin expanding 273 basis points to 43.5%. B2B adjusted EBITDA increased 17% to $470 million, though margin contracted 134 basis points to 27.5%. The B2B decline reflected partner mix, as growing partners moved into higher tiers, and, to a lesser extent, investments in the one-stop B2B offering.
Expedia Group Controls Core Operating Costs
In the reported quarter, adjusted cost of revenues increased 11% to $415 million. As a percentage of revenues, it was 8.4%, down 4 basis points.
Direct selling and marketing expenses rose 10% to $2.18 billion. B2C direct marketing costs were flat at $1.03 billion and declined 34 basis points as a percentage of B2C gross bookings to 4.5%. B2B direct selling and marketing expenses rose 23% to $1.05 billion, in line with B2B revenue growth. Total adjusted overhead expenses increased only 1% to $627 million.
EXPE's Q3 Balance Sheet & Cash Flow Details
As of Sept. 30, 2026, cash and cash equivalents and short-term investments were $5.57 billion, down from $7.13 billion as of June 30, 2026.
Total debt was $5.46 billion as of Sept. 30, 2026, unchanged from June 30. It comprised $4.71 billion of long-term debt and $749 million of current maturities.
The company repurchased approximately 2 million shares for $576 million during the quarter, bringing year-to-date repurchases to approximately $1.5 billion.
Expedia Group paid a quarterly dividend of 48 cents per share on Sept. 17, 2026. It declared another quarterly cash dividend of 48 cents per share, payable Dec. 10, 2026, to stockholders of record as of Nov. 18, 2026.
Net cash used in operating activities was $1.16 billion in the quarter compared with $497 million used in the year-ago quarter. Free cash flow was negative $1.40 billion compared with negative $686 million a year ago, as deferred merchant bookings declined to $12.58 billion from $15.43 billion as of June 30. For the first nine months of 2026, operating cash flow rose 19% to $4.25 billion and free cash flow grew 21% to $3.63 billion. On a trailing 12-month basis, free cash flow reached $3.7 billion, up 25%.
Expedia Group's Key Q3 Developments
Expedia Group closed its acquisition of CarTrawler, an Ireland-based B2B platform for car rental, ground transport and insurtech, on Sept. 1, 2026. Because the deal closed near the end of the quarter, its third-quarter impact was minor, and it is reported within the B2B segment. The company also launched its activities API. In addition, Qantas became the first partner to use its new B2B agentic template, which combines Expedia Group's B2B technology, supply and servicing with a customizable user interface.
On the AI front, Expedia Group partnered with Google in AI Mode and announced an integration with Meta's Muse, which was expected to go live in the United States on the day of the earnings call. AI-powered recommendations drove record third-quarter attach rates on Expedia.
The Vrbo agentic voice experience resolved more than 15% of inbound contacts in its first two months, with higher satisfaction scores at lower cost. A new autonomous hotel onboarding agent was built in less than a quarter. Travelers who used the new activity agent were twice as likely to book an activity within seven days.
Expedia Group also launched Reserve Now, Pay Later across all of its brands and a new dynamic package search experience. It changed Vrbo's commission fee, which it does not expect to affect its overall take rate.
EXPE's Q4 & Raised 2026 Guidance
For the fourth quarter of 2026, Expedia Group expects gross bookings between $27.9 billion and $28.4 billion, suggesting growth of 3.3-5.2%. This includes a foreign exchange headwind of about 0.5 points. Revenues are projected between $3.69 billion and $3.75 billion, implying growth of 4.0-5.7%.
Adjusted EBITDA is expected between $830 million and $880 million, implying a margin of 22.5-23.5%. Management attributed the expected slowdown to a softer operating environment linked to the U.S. election cycle and geopolitical disruption in the Middle East and Europe. It also cited the lapping of heavy B2B partner promotional activity in the prior-year quarter and the earlier timing of the fall sale. The EBITDA outlook further reflects costs from recent acquisitions and other strategic investments.
Expedia Group raised its 2026 gross bookings forecast to $131.4-$131.9 billion from $129.5-$130.8 billion, which represents projected growth of about 10%, up from 8-9% previously. The company now anticipates revenues of $16.37-$16.43 billion, up from $16.05-$16.22 billion, implying growth of 11-12%. Adjusted EBITDA margin expansion is now expected to be 1.8-2.0 percentage points, up from 1.5-1.75 points. The guidance assumes foreign exchange tailwinds of about 1 point for gross bookings and 2 points for revenues. Management expects to beat the top end of its start-of-year ranges for bookings, revenues and margin expansion.
EXPE’s Zacks Rank & Stocks to Consider
Expedia Group currently carries a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
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Expedia Group Q3 Earnings & Revenues Beat Estimates, Rise Y/Y
Key Takeaways
Expedia Group (EXPE - Free Report) reported third-quarter 2026 adjusted earnings of $9.39 per share, which increased 24% year over year. The figure beat the Zacks consensus Estimate by 7.07%. The increase reflected 19% growth in adjusted net income and a 4% reduction in adjusted weighted average shares outstanding from buybacks. Diluted GAAP earnings were $8.42 per share, which rose 15% year over year.
Revenues increased 12% year over year to $4.94 billion, which came above management's guided range of $4.65-$4.75 billion and beat the consensus mark by 4.41%. Results were driven by stronger-than-expected travel demand, continued B2B momentum, improved consumer marketing returns and ongoing cost discipline. Foreign exchange added 1 percentage point to revenue growth.
Expedia Group, Inc. Price, Consensus and EPS Surprise
Expedia Group, Inc. price-consensus-eps-surprise-chart | Expedia Group, Inc. Quote
EXPE's Q3 Bookings Gain Across Business Lines
In the third quarter, total gross bookings rose 11% year over year to $34.01 billion, surpassing the guided range of $32.2-$32.8 billion. Growth came mainly from 7% room night growth and 3% FX-neutral ADR growth, while foreign exchange was a 0.5-point headwind. Bookings also benefited from moving the fall sale earlier, so more of it fell in the third quarter. The September sale was Expedia Group's third consecutive sales event to exceed $1 billion in bookings.
Lodging gross bookings increased 10% to $24.88 billion, while non-lodging gross bookings advanced 14% to $9.13 billion. Merchant gross bookings grew 15% to $21.65 billion, ahead of the 4% increase in agency gross bookings to $12.36 billion.
Booked room nights rose 7% to 115.7 million. They grew in the mid-single digits in the United States, in the low single digits in EMEA and in the mid-teens in the rest of the world. Average daily rate booked increased 2% to $215.00, slowing from 5% growth in the second quarter. Booked air tickets declined 6% to 13.6 million, though higher average ticket prices supported air bookings.
Expedia Group's Revenue Mix Favors B2B
In the third quarter, B2B revenues surged 23% year over year to $1.71 billion. B2B gross bookings increased 19% to $11.15 billion, with double-digit growth across all regions. Management credited wallet-share gains with existing partners, product enhancements and investments in a one-stop B2B offering, including the CarTrawler and Tiqets acquisitions. The B2B business now works with 75,000 partners.
B2C revenues rose 6% to $3.07 billion, while B2C gross bookings increased 7% and accelerated in the United States. Expedia remained the company's fastest-growing brand, and active loyalty members grew in the low single digits. Management noted that two-thirds of bookings come direct.
trivago revenues grew 20% to $165 million. Lodging revenues increased 11% to $3.99 billion. Expedia Group advertising revenues rose 7% to $206 million, slowing from 13% growth in the second quarter as the company rolled out product changes to its advertising platform.
EXPE Improves Profitability and Cost Leverage
Third-quarter adjusted EBITDA increased 17% year over year to $1.69 billion, which came above the guided range of $1.51-$1.56 billion. The adjusted EBITDA margin expanded 135 basis points to a record 34.2%, driven by higher-than-expected revenue growth, consumer marketing leverage and overhead discipline. Operating income jumped 28% to $1.33 billion, while GAAP net income rose 7% to $1.03 billion.
B2C adjusted EBITDA rose 13% to $1.33 billion, with margin expanding 273 basis points to 43.5%. B2B adjusted EBITDA increased 17% to $470 million, though margin contracted 134 basis points to 27.5%. The B2B decline reflected partner mix, as growing partners moved into higher tiers, and, to a lesser extent, investments in the one-stop B2B offering.
Expedia Group Controls Core Operating Costs
In the reported quarter, adjusted cost of revenues increased 11% to $415 million. As a percentage of revenues, it was 8.4%, down 4 basis points.
Direct selling and marketing expenses rose 10% to $2.18 billion. B2C direct marketing costs were flat at $1.03 billion and declined 34 basis points as a percentage of B2C gross bookings to 4.5%. B2B direct selling and marketing expenses rose 23% to $1.05 billion, in line with B2B revenue growth. Total adjusted overhead expenses increased only 1% to $627 million.
EXPE's Q3 Balance Sheet & Cash Flow Details
As of Sept. 30, 2026, cash and cash equivalents and short-term investments were $5.57 billion, down from $7.13 billion as of June 30, 2026.
Total debt was $5.46 billion as of Sept. 30, 2026, unchanged from June 30. It comprised $4.71 billion of long-term debt and $749 million of current maturities.
The company repurchased approximately 2 million shares for $576 million during the quarter, bringing year-to-date repurchases to approximately $1.5 billion.
Expedia Group paid a quarterly dividend of 48 cents per share on Sept. 17, 2026. It declared another quarterly cash dividend of 48 cents per share, payable Dec. 10, 2026, to stockholders of record as of Nov. 18, 2026.
Net cash used in operating activities was $1.16 billion in the quarter compared with $497 million used in the year-ago quarter. Free cash flow was negative $1.40 billion compared with negative $686 million a year ago, as deferred merchant bookings declined to $12.58 billion from $15.43 billion as of June 30. For the first nine months of 2026, operating cash flow rose 19% to $4.25 billion and free cash flow grew 21% to $3.63 billion. On a trailing 12-month basis, free cash flow reached $3.7 billion, up 25%.
Expedia Group's Key Q3 Developments
Expedia Group closed its acquisition of CarTrawler, an Ireland-based B2B platform for car rental, ground transport and insurtech, on Sept. 1, 2026. Because the deal closed near the end of the quarter, its third-quarter impact was minor, and it is reported within the B2B segment. The company also launched its activities API. In addition, Qantas became the first partner to use its new B2B agentic template, which combines Expedia Group's B2B technology, supply and servicing with a customizable user interface.
On the AI front, Expedia Group partnered with Google in AI Mode and announced an integration with Meta's Muse, which was expected to go live in the United States on the day of the earnings call. AI-powered recommendations drove record third-quarter attach rates on Expedia.
The Vrbo agentic voice experience resolved more than 15% of inbound contacts in its first two months, with higher satisfaction scores at lower cost. A new autonomous hotel onboarding agent was built in less than a quarter. Travelers who used the new activity agent were twice as likely to book an activity within seven days.
Expedia Group also launched Reserve Now, Pay Later across all of its brands and a new dynamic package search experience. It changed Vrbo's commission fee, which it does not expect to affect its overall take rate.
EXPE's Q4 & Raised 2026 Guidance
For the fourth quarter of 2026, Expedia Group expects gross bookings between $27.9 billion and $28.4 billion, suggesting growth of 3.3-5.2%. This includes a foreign exchange headwind of about 0.5 points. Revenues are projected between $3.69 billion and $3.75 billion, implying growth of 4.0-5.7%.
Adjusted EBITDA is expected between $830 million and $880 million, implying a margin of 22.5-23.5%. Management attributed the expected slowdown to a softer operating environment linked to the U.S. election cycle and geopolitical disruption in the Middle East and Europe. It also cited the lapping of heavy B2B partner promotional activity in the prior-year quarter and the earlier timing of the fall sale. The EBITDA outlook further reflects costs from recent acquisitions and other strategic investments.
Expedia Group raised its 2026 gross bookings forecast to $131.4-$131.9 billion from $129.5-$130.8 billion, which represents projected growth of about 10%, up from 8-9% previously. The company now anticipates revenues of $16.37-$16.43 billion, up from $16.05-$16.22 billion, implying growth of 11-12%. Adjusted EBITDA margin expansion is now expected to be 1.8-2.0 percentage points, up from 1.5-1.75 points. The guidance assumes foreign exchange tailwinds of about 1 point for gross bookings and 2 points for revenues. Management expects to beat the top end of its start-of-year ranges for bookings, revenues and margin expansion.
EXPE’s Zacks Rank & Stocks to Consider
Expedia Group currently carries a Zacks Rank #3 (Hold).
American Public Education (APEI - Free Report) , Angel Studios, Inc. (ANGX - Free Report) and Amer Sports, Inc. (AS - Free Report) are among the better-ranked stocks that investors can consider in the broader Zacks Consumer Discretionary sector. Currently, American Public Education, Angel Studios and Amer Sports carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Public Education’s shares have gained 12.1% year to date. APEI is set to report its third-quarter 2026 results on Nov. 9.
Angel Studios shares have plunged 21.4% year to date. ANGX is set to report its third-quarter 2026 results on Nov. 10.
Amer Sports shares have lost 14.2% year to date. AS is set to report its third-quarter 2026 results on Nov. 17.