10-QPeriod: Q2 FY2025

Booking Holdings Inc. Quarterly Report for Q2 Ended Jun 30, 2025

Filed July 29, 2025For Securities:BKNG

Summary

Booking Holdings Inc. reported solid financial results for the quarter and six months ended June 30, 2025. Total revenues increased by 16.0% year-over-year to $6.8 billion for the quarter and 12.5% to $11.6 billion for the six-month period, driven by a significant increase in merchant revenues which grew 29.3% and 26.4% respectively. This growth reflects a continued strategic shift from an agency to a merchant model, particularly at Booking.com. The company experienced strong growth in room nights, up 7.7% for the quarter and 7.4% for the six months, indicating robust travel demand. While average daily rates (ADRs) saw a slight decrease of 1% on a constant currency basis for the quarter due to regional mix shifts and lower rates in Asia and the U.S., overall gross bookings increased by 12.8% for the quarter to $46.7 billion. The company also highlighted progress in its 'Connected Trip' vision, aiming for a seamless traveler experience. Financially, the company maintained a strong liquidity position with $18.2 billion in cash, cash equivalents, and investments. However, operating expenses increased, notably marketing expenses rose 10.3% to support demand. The company is also undertaking a 'Transformation Program' to improve efficiency and expects significant annual savings over the next three years, though it also incurs transformation costs in the interim. Legal and regulatory matters, particularly concerning competition and consumer protection reviews in various jurisdictions, continue to be monitored closely.

Financial Highlights

49 data points
Beta

Revenue

$6.80B

Net Income

$895.00M

13.2% Net Margin

EPS (Diluted)

$1.10

Total Assets

$30.68B

Cash & Equivalents

$17.64B

Free Cash Flow

$3.14B

Financial Statements
Beta
Revenue$6.80B
Operating Expenses$4.55B
Operating Income$2.25B
Net Income$895.00M
EPS (Basic)$1.10
EPS (Diluted)$1.10
Shares Outstanding (Basic)812.35M
Shares Outstanding (Diluted)815.48M

Key Highlights

  • 1Total revenues for Q2 2025 increased 16.0% YoY to $6.8 billion, with merchant revenues up 29.3% due to the ongoing shift to the merchant model.
  • 2Global room nights booked increased 7.7% YoY in Q2 2025, indicating strong travel demand, particularly in Europe and Asia.
  • 3Total gross bookings grew 12.8% YoY in Q2 2025 to $46.7 billion, driven by merchant bookings and increased flight reservations, despite a slight dip in ADRs.
  • 4The company continues to execute its 'Transformation Program,' aiming for $400-$450 million in annual run-rate savings over three years, having already achieved $50 million in savings in H1 2025.
  • 5Booking Holdings maintained a strong liquidity position with $18.2 billion in cash, cash equivalents, and investments as of June 30, 2025.
  • 6Marketing expenses increased by 10.3% YoY to $2.1 billion in Q2 2025 to support demand and gross bookings.
  • 7The company continues to navigate various legal and regulatory challenges across multiple jurisdictions, with several investigations and appeals ongoing.

Frequently Asked Questions

The primary driver of revenue growth is the ongoing shift from an agency to a merchant revenue model, particularly evident at Booking.com. This is reflected in the substantial increase in merchant revenues, which grew by 29.3% year-over-year for the quarter.

Global ADRs on a constant currency basis were approximately 1% lower than the prior year in the second quarter of 2025. This was primarily influenced by lower ADRs in the U.S. and Asia, as well as a higher mix of room nights from Asia (a lower ADR region) and a lower mix from the U.S. (a higher ADR region).

The 'Transformation Program' is an organizational initiative aimed at improving operating expense efficiency, increasing agility, and reinvesting resources to enhance offerings. The company expects this program to deliver $400-$450 million in annual run-rate savings over the next three years compared to its 2024 expense base.

Booking Holdings maintains a strong liquidity position, reporting $18.2 billion in cash, cash equivalents, and investments as of June 30, 2025. Approximately $13.7 billion of this amount is held by its international subsidiaries.

Yes, Booking Holdings is involved in several ongoing investigations and legal proceedings related to competition law, consumer protection, and tax matters in various jurisdictions, including Spain, Switzerland, Italy, and others. These can lead to potential fines, restrictions on business practices, and ongoing appeals.