Expedia Group, Inc.
EXPE · Nasdaq
Next quarter
Reports Nov 5, 2026.
Consensus is $8.11 EPS for Sep 2026 across 7 estimates, ranging $6.97 to $10.55.
EXPE Jun 2026
- 4.81%
- -4.09%
- $4.78
- $5.01
- —
- $4.32B
Reported results
- $4.32B
- $800.00M
- 18.54%
- $878.00M
- $7.16
Highlights
- Guidance beat: Q2 gross bookings grew 12% year over year to $33.9 billion and revenue rose 14% to $4.32 billion, above the company’s guidance range.
- Earnings upside: Supplied reported EPS of $5.01 exceeded the $4.78 consensus by 4.81%; GAAP diluted EPS was $7.16 versus $2.48 a year ago, while adjusted EPS rose 36% to $5.76.
- B2B momentum: B2B gross bookings increased 21% to $10.7 billion and revenue grew 23% to $1.49 billion, led by continued growth in Rapid API.
- Lodging-led growth: Booked room nights rose 6% to 111.5 million, while booked ADR increased 5% to $220.60; lodging gross bookings grew 11% and lodging revenue increased 13% to $3.43 billion.
- Margin expansion: Adjusted EBITDA increased 23% to $1.12 billion, with margin expanding 196 basis points to 25.9%; GAAP operating income rose 65% to $800 million.
- Consumer improvement: B2C gross bookings grew 8% to $23.2 billion, revenue rose 8% to $2.68 billion and segment adjusted EBITDA increased 22% to $889 million, lifting margin by 380 basis points to 33.2%.
- Cash generation: Operating cash flow increased 32% to $1.48 billion and free cash flow rose 39% to $1.28 billion in the quarter.
- Higher outlook: Full-year gross bookings guidance increased to $129.5 billion-$130.8 billion from $127 billion-$129 billion, revenue guidance rose to $16.05 billion-$16.22 billion from $15.6 billion-$16.0 billion, and expected adjusted EBITDA margin expansion increased to 1.5-1.75 points.
- Capital returns: Expedia repurchased approximately 880,000 shares for $200 million in Q2, paid a $0.48 quarterly dividend and retained $5.7 billion of repurchase authorization.
Analysis
Expedia’s second quarter was a guidance-beating, lodging-led growth quarter with particular strength in B2B and a sharp recovery from the seasonally weaker first quarter. Revenue was $4.32 billion, up 14% from $3.79 billion a year ago and 26% from $3.43 billion in Q1. GAAP operating income reached $800 million, versus $485 million a year ago and $251 million in Q1, while GAAP net income attributable to Expedia was $878 million, compared with $330 million a year ago and a $6 million loss in Q1. GAAP diluted EPS was $7.16 versus $2.48 a year ago and negative $0.05 in Q1; the supplied consensus comparison shows reported EPS of $5.01 against $4.78 expected, a 4.81% beat.
The print was defined by 12% gross-bookings growth, 23% B2B revenue growth and expanding profitability. Adjusted EBITDA rose 23% to $1.12 billion and margin expanded 196 basis points to 25.9%, supported by B2C leverage and disciplined costs, although B2B investment moderated its margin. GAAP net income also benefited from a $280 million gain on minority equity investments, while the lower 14.8% tax rate reflected nontaxable mark-to-market gains. Management raised full-year guidance across bookings, revenue and margin expansion.
Bookings and lodging
Travel demand remained healthy despite macroeconomic and geopolitical pressure, with growth concentrated in lodging and higher-value transactions. Revenue margin improved to 12.7% from 12.4% a year ago, reflecting a 5% increase in booked ADR alongside 6% room-night growth.
- Gross bookings: Total gross bookings increased 12% to $33.9 billion, with B2C up 8% to $23.2 billion and B2B up 21% to $10.7 billion.
- Lodging: Lodging gross bookings rose 11% to $24.6 billion, booked room nights increased to 111.5 million from 105.5 million, and booked ADR rose to $220.60 from $209.30.
- Product mix: Lodging revenue increased 13% to $3.43 billion and represented 79% of total revenue. Air revenue fell 13% to $91 million as booked air tickets declined 5% to 14.2 million, while higher-value other revenue rose 23% to $444 million.
B2B acceleration
B2B was the clearest growth engine in the quarter. Management attributed the momentum to broad global growth and continued strength in Rapid API, while spending more to support future expansion. B2B’s faster growth also lifted consolidated revenue relative to bookings.
- Scale: B2B gross bookings rose 21% to $10.74 billion and revenue increased 23% to $1.49 billion.
- Profitability: B2B adjusted EBITDA increased 12% to $369 million, but margin declined 258 basis points to 24.8% as the company prioritized investments and direct selling and marketing expense rose 22% to $915 million.
- Consumer brands: B2C gross bookings grew 8% to $23.19 billion, revenue rose 8% to $2.68 billion and adjusted EBITDA increased 22% to $889 million. B2C margin expanded 380 basis points to 33.2%, helped by revenue growth and cost discipline.
Margins and earnings
Operating leverage was a major feature of the quarter. Revenue grew faster than operating costs, while payment efficiencies lowered cost of revenue as a percentage of sales and B2C marketing showed leverage. Adjusted results provide a cleaner view of the underlying improvement than GAAP net income.
- Operating leverage: GAAP operating income increased 65% to $800 million, lifting operating margin to 18.6% from 12.8% a year ago.
- Adjusted profitability: Adjusted EBITDA rose 23% to $1.12 billion, and adjusted EBITDA margin expanded to 25.9% from 24.0%. Adjusted net income increased 29% to $706 million.
- GAAP volatility: Other, net included a $280 million gain on the company’s GBTG investment, compared with a $102 million loss a year ago. The 14.8% effective tax rate also benefited from nontaxable mark-to-market gains, versus 23.9% a year ago.
Cash and capital allocation
The seasonal booking cycle produced substantial working-capital cash, particularly through higher deferred merchant bookings. Expedia used that liquidity to continue buybacks and dividends while refinancing and repaying near-term debt maturities.
- Cash flow: Q2 operating cash flow was $1.48 billion, up from $1.12 billion a year ago, and free cash flow was $1.28 billion versus $921 million.
- Balance sheet: Cash and cash equivalents were $6.68 billion at June 30, 2026, with total cash, restricted cash and cash equivalents of $9.08 billion. Total debt was $5.46 billion, versus $6.16 billion at year-end 2025.
- Shareholder returns: The company repurchased 880,000 shares for $200 million in Q2 and paid $58 million in dividends. It authorized an additional $5 billion repurchase program in May, leaving $5.7 billion available across the two programs.
Raised full-year outlook
Management raised its full-year targets after exceeding the high end of prior guidance. The new outlook implies continued growth but a slower third-quarter pace than the second quarter, consistent with the company’s seasonal pattern and the pressure on air capacity and European demand.
- Full year: Gross bookings guidance increased to $129.5 billion-$130.8 billion, or 8%-9% growth, from $127 billion-$129 billion. Revenue guidance increased to $16.05 billion-$16.22 billion, or 9%-10% growth, from $15.6 billion-$16.0 billion.
- Profitability: Expected adjusted EBITDA margin expansion increased to 1.5-1.75 points from 1-1.25 points.
- Q3: The company expects gross bookings of $32.2 billion-$32.8 billion, revenue of $4.65 billion-$4.75 billion and adjusted EBITDA of $1.51 billion-$1.56 billion.
