10-QPeriod: Q3 FY2025

Expedia Group, Inc. Quarterly Report for Q3 Ended Sep 30, 2025

Filed November 7, 2025For Securities:EXPE

Summary

Expedia Group, Inc. reported strong financial performance for the nine months ended September 30, 2025, with total revenue increasing by 6% to $11.186 billion, driven primarily by growth in its B2B and trivago segments. Net income attributable to Expedia Group, Inc. rose to $1.089 billion for the same period, a significant increase from $935 million in the prior year. The company demonstrated robust operational efficiency, with Adjusted EBITDA growing by 16% to $2.653 billion year-to-date. This growth was supported by increased gross bookings across its B2C and B2B segments, with B2B showing particularly strong expansion. Financially, Expedia has strengthened its balance sheet through proactive debt management, including the redemption of $1 billion in senior notes and the issuance of $1 billion in new senior notes with a lower interest rate. The company also reinstated its quarterly dividend and continued its share repurchase program, reflecting confidence in its financial health and commitment to returning value to shareholders. Despite some headwinds, such as global macroeconomic pressures, Expedia Group's strategic initiatives, including its unified technology platform and the One Key loyalty program, position it for continued growth and operational improvement.

Financial Highlights

51 data points
Beta

Revenue

$4.41B

Net Income

$959.00M

21.7% Net Margin

EPS (Diluted)

$7.33

Total Assets

$25.11B

Cash & Equivalents

$7.26B

Free Cash Flow

-$686.00M

Financial Statements
Beta
Revenue$4.41B
Operating Income$1.04B
Net Income$959.00M
EPS (Basic)$7.76
EPS (Diluted)$7.33
Shares Outstanding (Basic)123.70M
Shares Outstanding (Diluted)131.01M

Key Highlights

  • 1Revenue increased 6% year-over-year to $11.186 billion for the nine months ended September 30, 2025.
  • 2Net income attributable to Expedia Group, Inc. grew to $1.089 billion for the nine months ended September 30, 2025, up from $935 million in the prior year.
  • 3Adjusted EBITDA increased by 16% to $2.653 billion for the nine months ended September 30, 2025, indicating strong operational performance.
  • 4Gross bookings saw a 12% increase for the three months ended September 30, 2025, and a 7% increase for the nine months ended September 30, 2025.
  • 5B2B segment revenue grew 16% and trivago segment revenue increased by 29% for the nine months ended September 30, 2025.
  • 6The company redeemed $1 billion of 6.25% senior notes and issued $1 billion of 5.4% senior notes in February 2025, optimizing its debt structure.
  • 7Expedia reinstated its quarterly dividend and continued its share repurchase program, demonstrating a commitment to shareholder returns.

Frequently Asked Questions

The primary driver of revenue growth in the nine months ended September 30, 2025, was a combination of strong performance in the B2B segment, which saw an 18% increase in revenue for the third quarter and 16% for the year-to-date period, and significant growth in the trivago segment, with revenue up 34% for the third quarter and 29% year-to-date. Lodging revenue also saw a healthy increase of 9% and 6% for the respective periods.

Expedia Group has proactively managed its debt by redeeming $1 billion of its 6.25% senior notes in February 2025 and subsequently issuing $1 billion of new senior notes at a lower interest rate of 5.4% due in February 2035. This strategic move has helped to optimize its debt profile and reduce interest expense for the nine-month period.

Expedia Group has demonstrated a commitment to returning capital to shareholders. They reinstated quarterly common stock dividends in the first quarter of 2025 and paid out $151 million in dividends during the first nine months. Additionally, the company continued its share repurchase program, buying back approximately $1.4 billion worth of shares in the first nine months of 2025 under its $5 billion authorization, with $1.8 billion remaining authorized for repurchase.

Expedia Group is involved in ongoing discussions and audits with tax authorities in various jurisdictions. Notably, they have established reserves for potential settlements related to Italian VAT and withholding taxes, totaling $90 million for the Italian withholding tax matter as of September 30, 2025. While the company believes it is in compliance with applicable tax laws, these matters and potential 'pay-to-play' requirements could impact liquidity and financial performance.