Expedia Group EXPE reported third-quarter 2025 adjusted earnings of $7.57 per share, which surpassed the Zacks Consensus Estimate by 4.99%. The figure increased 23.5% year over year.
Revenues of $4.41 billion rose 8.7% year over year. The figure beat the Zacks Consensus Estimate by 2.61%.
B2B revenues increased 18.2% year over year to $1.39 billion. B2C increased 3.7% year over year to $2.88 billion.
Advertising revenues jumped 16% year over year.
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 $30.73 billion, which increased 12% year over year, including a 1-point benefit from foreign exchange. B2C gross bookings grew 7% and B2B gross bookings rose 26% year over year, delivering the 17th consecutive quarter of double-digit growth.
Lodging gross bookings grew 13% year over year to $22.71 billion, with hotel bookings climbing 15%, driven by resilience at B2B and Expedia.
Strength in booked room nights, which rose 11% from the year-ago quarter to 108.2 million, reflecting the strongest U.S. growth in over three years and sequential acceleration across all major regions and core brands.
EXPE’s Operating Details
Adjusted EBITDA was $1.45 billion in the reported quarter, up 15.9% year over year, representing an adjusted EBITDA margin of 32.8%, which expanded 210 basis points (bps).
Direct sales and marketing expenses were $1.98 billion, representing 44.8% of revenues, up 6.5% year over year.
Overhead expenses were $620 million, representing 14.1% of revenues, up 3% year over year.
Adjusted EBIT increased 27.1% year over year to $1.13 billion. Adjusted EBIT margin improved 370 bps year over year to 25.7%.
EXPE’s Balance Sheet
As of Sept. 30, 2025, cash and cash equivalents and short-term investments were $6.17 billion, down from $6.67 billion as of June 30, 2025.
Long-term debt was $4.468 billion as of Sept. 30, 2025, compared with $4.466 billion as of June 30, 2025. The gross leverage ratio stands at 1.9x, representing adjusted debt divided by TTM Adjusted EBITDA.
Net cash provided by operating activities was negative $497 million in the reported quarter, while free cash flow stood at a negative $686 million, reflecting continued cash outflows during the period.
Expedia Initiates Q4 & Raises 2025 Guidance
EXPE expects gross bookings to be in the 6-8% range for the fourth quarter of 2025. Revenue growth is expected to be in the band of 6-8%.
It expects fourth-quarter adjusted EBITDA margins to increase 2% year over year.
For 2025, Expedia now expects gross bookings to grow around 7%, up from its prior guidance of 3%-5%. Revenue growth is also projected at 6%-7%, compared with the earlier outlook of 3%-5%.
Expedia expects adjusted EBITDA margin to expand by approximately 2% (200 basis points) year over year, doubling its earlier projection of 1% (100 basis points) growth.
Expedia’s Zacks Rank & Other Stocks to Consider
Currently, EXPE carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Retail-Wholesale sector are Home Depot HD, Walmart WMT and JD.com JD, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of HD have fallen 5.1% year to date. It is set to report third-quarter fiscal 2025 results on Nov. 18.
Shares of WMT have gained 12.6% year to date. It is set to report third-quarter fiscal 2026 results on Nov. 20.
Shares of JD have declined 7.9% year to date. It is set to report third-quarter 2025 results on Nov. 13.
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