Expedia Group (EXPE) Q1 2025 earnings summary

Executive summary

• Achieved 4% year-over-year gross bookings growth and 3% revenue growth to $2.99–$3.0 billion, meeting top-line guidance despite softer U.S. travel demand.

• Adjusted EBITDA rose 16% year-over-year to $296 million, with margin expanding to 9.9% (up 105 basis points); adjusted EPS increased 90% to $0.40.

• B2B and advertising segments led growth, offsetting softer B2C/U.S. performance.

• Repurchased $330 million in shares and paid a $0.40 per share dividend, signaling confidence in liquidity and capital position.

• Continued progress on strategic priorities, including product innovation, operational efficiency, and margin expansion.

Financial highlights

• Gross bookings reached $31.5 billion, up 4% year-over-year, with booked room nights up 6% to 107.7 million.

• Revenue was $2.99–$3.0 billion, up 3% year-over-year, with a one-point headwind from Easter timing and three-point FX headwind.

• Adjusted EBITDA was $296 million (16% growth), with a 9.9% margin (up 105 bps); adjusted EPS was $0.40, up 90%.

• Free cash flow totaled $2.38–$2.76 billion for the trailing twelve months.

• Net loss widened to $200 million, while adjusted net income grew 81% to $53 million.

Outlook and guidance

• Q2 guidance: gross bookings growth of 2–4%, revenue growth of 3–5%, and 75–100 basis points of EBITDA margin expansion.

• Full-year guidance: gross bookings and revenue growth of 2–4%, with 75–100 basis points of EBITDA margin expansion; FX expected to be a one-point headwind.

• Management remains focused on margin expansion and top-line growth despite ongoing U.S. demand softness and macro/geopolitical uncertainty.

• Approximately $40 million in additional restructuring charges anticipated for the remainder of 2025, mostly in Q2.