01—Abstract
Summary
Summary of the 10-Q filed October 28, 2025. Cited figures are marked; the original filing is the authoritative source.
Booking Holdings Inc. reported solid financial results for the third quarter and nine months ended September 30, 2025.
Total revenues increased by 12.7% and 12.6% respectively, driven primarily by a significant 23.3% and 25.0% rise in merchant revenues, reflecting the ongoing shift from an agency to a merchant model, particularly at Booking.com. This shift, while beneficial for gross bookings and revenue, contributes to higher operating expenses and potentially lower operating margins. The company also announced a substantial impairment charge of $457 milliona related to its KAYAK reporting unit, specifically impacting goodwill and intangible assets.
This was attributed to reduced forecasted cash flows due to expected increases in customer acquisition costs in the meta-search business. Despite this, overall operating income saw a healthy increase, demonstrating the resilience of the core business. The company continues to actively return capital to shareholders through significant share repurchases and dividend payments.
02—Key points
Key Highlights
- Total revenues grew 12.7% year-over-year to $9.0 billion for the third quarter and 12.6% to $20.6 billion for the nine months ended September 30, 2025.
- Merchant revenues saw a substantial increase of 23.3% and 25.0% for the three and nine months, respectively, driven by the strategic shift towards a merchant booking model.
- Operating income increased to $3.5 billion and $7.0 billion for the three and nine months ended September 30, 2025, respectively.
- A significant impairment charge of $457 million was recognized for the KAYAK reporting unit's goodwill and intangible assets, impacting profitability for the period.
- The company repurchased $4.3 billion of common stock in the first nine months of 2025 and declared a quarterly dividend of $9.60 per share.
- Global room nights increased 8.2% year-over-year for the third quarter and 7.7% for the nine months, indicating continued travel demand.
- Information technology expenses increased by 24.9% for the third quarter, driven by cloud computing costs and software maintenance.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 28, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $9.01B$7.99B | +12.7% |
| Operating Expenses | $5.53B$4.82B | +14.7% |
| Operating Income | $3.48B$3.18B | +9.6% |
| Net Income | $2.75B$2.52B | +9.2% |
| EPS (Basic) | $3.39$3.01 | +12.6% |
| EPS (Diluted) | $3.38$2.97 | +13.5% |
| Shares Outstanding (Basic) | 809.60M835.02M | −3.0% |
| Shares Outstanding (Diluted) | 813.95M846.60M | −3.9% |
05—Questions
Frequently Asked Questions
What is driving the significant increase in merchant revenues?
The significant increase in merchant revenues is primarily driven by Booking.com's ongoing strategic shift from an agency to a merchant booking model. This model allows Booking.com to process transactions directly for travel service providers and offer more payment options to consumers. While this boosts gross bookings and revenue, it also leads to higher associated operating expenses.
What is the reason for the impairment charge related to KAYAK?
Booking Holdings recognized a $457 million impairment charge for its KAYAK reporting unit's goodwill and intangible assets. This was due to a reduction in forecasted cash flows for KAYAK, stemming from anticipated increases in customer acquisition costs within the meta-search business.
How is Booking Holdings returning capital to shareholders?
Booking Holdings is actively returning capital through substantial share repurchase programs, with $4.3 billion in repurchases during the first nine months of 2025 and a remaining authorization of $23.9 billion. Additionally, the company declared a quarterly cash dividend of $9.60 per share.
What is the impact of the Transformation Program?
The company initiated a Transformation Program to improve operating efficiency and agility. It has already resulted in approximately $120 million in savings for the first nine months of 2025. The company has raised its expected annual run-rate savings to a range of $500 to $550 million by the end of 2027.
06—Continue