Expedia Group (EXPE) Q3 2025 earnings summary

Executive summary

• Third quarter results exceeded expectations and guidance, with gross bookings up 12% and revenue up 9% year-over-year, driven by strong B2B and B2C performance, especially in the U.S.

• Net income attributable to shareholders increased 40% year-over-year, with diluted GAAP EPS up 45% and adjusted EPS up 23%.

• US nights growth reached its highest level in over three years, with 108 million room nights booked, up 11% year-over-year.

• Strategic priorities include delivering value to travelers, investing in growth, and driving operating efficiencies, supported by AI integration.

• Share repurchases totaled $451 million in the quarter, with a $0.40 per share dividend declared.

Financial highlights

• Gross bookings reached $30.7 billion, up 12% year-over-year, with a 1-point benefit from foreign exchange.

• Revenue grew 9% to $4.41 billion, with a 2.5-point FX benefit.

• Adjusted EBITDA rose 16% to $1.45 billion, with margin expanding by 208 basis points to 32.9%.

• Adjusted EPS climbed 23% to $7.57, outpacing EBITDA growth due to share repurchases.

• Free cash flow (TTM) was $3 billion; unrestricted cash and short-term investments totaled $6.2 billion at quarter end.

Outlook and guidance

• Q4 guidance: gross bookings and revenue growth of 6%-8%, with 2 points of margin expansion; FX expected to benefit both metrics.

• Full-year 2025: gross bookings up 7%, revenue up 6%-8%, EBITDA margin up 2 points versus last year.

• 2026 expected to see further, but more moderate, margin expansion as cost-out efforts and growth investments continue.

• Quarterly dividend of $0.40 per share declared, payable December 11, 2025.