Booking Holdings (BKNG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 8% year-over-year to $4.76 billion, exceeding guidance, driven by strong payment revenues and stable travel demand, with room nights up 7% to 319 million and gross bookings up 7% to $46.7 billion.

• Adjusted EBITDA rose 21% to $1.1 billion, 28% above guidance, while free cash flow increased 23% to $3.2 billion.

• Net income declined to $333 million, impacted by mark-to-market, FX adjustments, higher interest expense, and a one-time pension fund adjustment.

• Strategic priorities advanced, including AI integration, alternative accommodations, Connected Trip vision, and organizational transformation.

• Stable global leisure travel demand observed at the start of Q2, despite geopolitical and macroeconomic uncertainties.

Financial highlights

• Gross bookings reached $46.7 billion, up 7% year-over-year; room nights grew 7% to 319 million; revenue up 8% to $4.76 billion.

• Adjusted EPS increased 22% to $24.81; GAAP net income was $333 million, with diluted EPS at $10.07, both down over 55% year-over-year.

• Free cash flow was $3.2 billion, benefiting from $1.9 billion in working capital changes.

• Adjusted EBITDA margin (TTM) was 35.3%; net income margin (TTM) was 22.6%.

• Operating margin improved to 22.3%; effective tax rate was 15.8%, aided by the Netherlands Innovation Box Tax.

Outlook and guidance

• Q2 2025 guidance: room nights up 4–6%, gross bookings and revenue up 10–12%, adjusted EBITDA up 13–16% year-over-year.

• Full-year 2025: constant currency gross bookings and revenue expected to grow mid- to high-single digits, adjusted EPS in low- to mid-teens.

• Transformation Program expected to deliver $400–$450 million in annual run rate savings over three years.

• Guidance range widened due to increased uncertainty in the geopolitical and macroeconomic environment.