10-QPeriod: Q2 FY2025

Expedia Group, Inc. Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 8, 2025For Securities:EXPE

Summary

Expedia Group, Inc. reported its financial results for the second quarter and the first half of 2025. For the three months ended June 30, 2025, revenue increased by 6% to $3.79 billion compared to the prior year period. This growth was primarily driven by a 15% increase in B2B segment revenue, while the B2C segment saw a more modest 2% increase. Advertising and media revenue also showed strong growth. For the six months ended June 30, 2025, total revenue grew 5% to $6.77 billion, with the B2B segment again being the key driver of growth. Net income attributable to Expedia Group, Inc. for the second quarter was $330 million, a decrease from $386 million in the prior year, resulting in diluted earnings per share of $2.48, down from $2.80. For the first half of 2025, net income was $130 million, significantly lower than $251 million in the prior year, with diluted EPS at $0.96 compared to $1.79. The decline in profitability appears to be influenced by increased restructuring charges, higher selling and marketing expenses, and a significant unrealized loss on minority equity investments impacting "Other, net" for the six-month period. Despite the decrease in net income, the company's cash flow from operations remained robust, and the company has actively managed its debt and returned capital to shareholders through share repurchases and dividends.

Financial Highlights

51 data points
Beta

Revenue

$3.79B

Net Income

$330.00M

8.7% Net Margin

EPS (Diluted)

$2.48

Total Assets

$26.98B

Cash & Equivalents

$8.46B

Free Cash Flow

$921.00M

Financial Statements
Beta
Revenue$3.79B
Operating Income$485.00M
Net Income$330.00M
EPS (Basic)$2.61
EPS (Diluted)$2.48
Shares Outstanding (Basic)126.45M
Shares Outstanding (Diluted)132.81M

Key Highlights

  • 1Total revenue for Q2 2025 increased 6% year-over-year to $3.79 billion, driven by strong performance in the B2B segment and advertising/media revenues.
  • 2Net income attributable to Expedia Group for Q2 2025 decreased to $330 million ($2.48 diluted EPS) from $386 million ($2.80 diluted EPS) in Q2 2024, impacted by higher operating expenses and significant losses in "Other, net".
  • 3For the six months ended June 30, 2025, revenue grew 5% to $6.77 billion, but net income attributable to Expedia Group declined to $130 million ($0.96 diluted EPS) from $251 million ($1.79 diluted EPS) in the prior year.
  • 4The B2B segment continues to be a strong growth engine, with revenue up 15% for both the quarter and the first half of the year.
  • 5The company redeemed $1 billion in 6.25% senior notes in February 2025 and issued $1 billion in new 5.4% senior notes, reflecting active debt management.
  • 6Expedia Group reinstated its quarterly common stock dividend in Q1 2025 and continued share repurchases under its authorized program, spending $957 million in the first half of 2025.
  • 7Cash flow from operating activities for the first six months of 2025 was $4.07 billion, a slight decrease from $4.38 billion in the prior year, primarily due to lower working capital benefits.

Frequently Asked Questions

The decrease in net income for the second quarter of 2025 was primarily due to a combination of factors including increased selling and marketing expenses, higher restructuring and related reorganization charges, and a significant negative impact from "Other, net," which included substantial unrealized losses on minority equity investments. While revenue grew, these increased costs and non-operating losses outweighed the top-line gains.

The B2B segment is significantly outperforming the B2C segment. For the second quarter and the first half of 2025, B2B revenue grew by 15%, driven by increased lodging revenue and strong international exposure. In contrast, the B2C segment experienced more modest revenue growth of 2% for the quarter and was flat for the first half, indicating a continued strategic advantage and growth trajectory for the B2B business.

Expedia Group is actively managing its capital structure. In February 2025, they redeemed $1 billion in senior notes and issued $1 billion in new notes at a lower interest rate. The company also reinstated its quarterly dividend in Q1 2025, paying out $102 million in the first half of the year. Furthermore, they continued significant share repurchases, spending $957 million in the first half of 2025 under their $5 billion program, with $2.3 billion remaining authorized, indicating a commitment to returning capital to shareholders.

The company continues to face global macroeconomic pressures and potential geopolitical issues that could impact travel demand. Additionally, there are ongoing inquiries and audits with various tax authorities, including significant past adjustments related to transfer pricing. While the company believes it does not owe the taxes claimed in certain occupancy tax lawsuits, and has established reserves, there is inherent uncertainty in litigation. An Italian VAT settlement of $71 million was paid in 2024, and an additional $33 million was paid in July 2025. These matters, particularly any 'pay-to-play' requirements, could impact liquidity if adverse outcomes occur, although management does not currently expect them to have a material adverse effect on financial results.