Summary
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 million 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.
Financial Highlights
49 data points| Revenue | $9.01B |
| Operating Expenses | $5.53B |
| Operating Income | $3.48B |
| Net Income | $2.75B |
| EPS (Basic) | $84.86 |
| EPS (Diluted) | $84.41 |
| Shares Outstanding (Basic) | 32.38M |
| Shares Outstanding (Diluted) | 32.56M |
Key Highlights
- 1Total 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.
- 2Merchant 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.
- 3Operating income increased to $3.5 billion and $7.0 billion for the three and nine months ended September 30, 2025, respectively.
- 4A significant impairment charge of $457 million was recognized for the KAYAK reporting unit's goodwill and intangible assets, impacting profitability for the period.
- 5The 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.
- 6Global room nights increased 8.2% year-over-year for the third quarter and 7.7% for the nine months, indicating continued travel demand.
- 7Information technology expenses increased by 24.9% for the third quarter, driven by cloud computing costs and software maintenance.