01—Abstract
Summary
Summary of the 10-Q filed May 8, 2026. Cited figures are marked; the original filing is the authoritative source.
Expedia Group, Inc. reported its first quarter 2026 results, demonstrating a significant rebound in profitability and revenue growth compared to the prior year.
Total revenue increased by 15% year-over-year to $3.426 billiona, driven primarily by a 14% increase in lodging revenue, which benefited from higher room nights and average daily rates. The company also saw robust growth in its B2B segment, with revenue up 25% and gross bookings up 22%, indicating strong performance in its business-to-business travel services. Profitability improved dramatically, with operating income turning positive at $251 million in Q1 2026, a substantial improvement from an operating loss of $70 million in Q1 2025.
This was further reflected in Adjusted EBITDA, which surged 83% to $542 millionb. The company also managed its expenses effectively, with cost of revenue as a percentage of revenue decreasing and selling and marketing costs showing leverage, particularly in the B2C segment. Financially, Expedia Group strengthened its balance sheet by repaying significant debt obligations, including its 5.0% senior notes and 0% convertible senior notes, totaling over $1.8 billion in February 2026.
The company also entered into a new $2.5 billionc revolving credit facility in March 2026, maintaining ample liquidity. In a subsequent event, Expedia issued $1 billion in new senior unsecured notes in April 2026.
Shareholder returns were supported by a consistent dividend payout and an active share repurchase program, with $700 milliond repurchased in Q1 2026 under the existing authorization, and a new $5 billion repurchase program announced in May 2026. Overall, the quarter indicates a positive operational and financial trajectory for Expedia Group.
02—Key points
Key Highlights
- Total revenue grew 15% year-over-year to $3.426 billion, driven by strong performance in lodging and B2B segments.
- Operating income swung to a positive $251 million from a loss of $70 million in the prior year, indicating significant operational leverage.
- Adjusted EBITDA increased by 83% to $542 million, highlighting improved profitability.
- B2B segment revenue surged 25% and gross bookings increased 22%, underscoring the strength of this business line.
- Expedia Group repaid over $1.8 billion in debt obligations, including senior and convertible notes, strengthening its financial structure.
- The company entered into a new $2.5 billion revolving credit facility, ensuring robust liquidity.
- Shareholder returns continued with dividend payments and $700 million in share repurchases during the quarter, with a new $5 billion repurchase program authorized.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 8, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $3.43B$2.99B | +14.7% |
| Operating Income | $251.00M-$70.00M | +458.6% |
| Net Income | -$6.00M-$200.00M | +97.0% |
| EPS (Basic) | $-0.05$-1.56 | +96.8% |
| EPS (Diluted) | $-0.05$-1.56 | +96.8% |
| Shares Outstanding (Basic) | 121.83M128.64M | −5.3% |
| Shares Outstanding (Diluted) | 121.83M128.64M | −5.3% |
05—Questions
Frequently Asked Questions
What were the key drivers of revenue growth in Q1 2026?
Revenue growth of 15% to $3.426 billion was primarily driven by a 14% increase in lodging revenue, fueled by higher room nights and average daily rates. The B2B segment also contributed significantly with a 25% revenue increase, and advertising revenue (both EG Advertising and trivago) showed strong growth of 13% and 47%, respectively.
How has Expedia Group's profitability changed compared to last year?
Profitability has significantly improved. Operating income turned positive at $251 million in Q1 2026, a substantial turnaround from an operating loss of $70 million in Q1 2025. Adjusted EBITDA also saw a substantial increase of 83% year-over-year, reaching $542 million.
What is the company's debt management strategy and current liquidity position?
Expedia Group actively managed its debt, repaying over $1.8 billion in senior and convertible notes in February 2026. The company also secured a new $2.5 billion revolving credit facility in March 2026, ensuring ample liquidity. As of March 31, 2026, cash and cash equivalents and short-term investments stood at $5.8 billion. In April 2026, $1 billion in new senior unsecured notes were issued to fund general corporate purposes.
What is the outlook for the B2B segment?
The B2B segment demonstrated strong momentum, with revenue up 25% and gross bookings up 22% in Q1 2026. Management views this segment as a key growth area, benefiting from the company's technology and supply base, and it is expected to continue contributing significantly to overall performance.
06—Continue