Exceeded fourth quarter guidance with double-digit gross bookings and revenue growth y/y
Room nights up 9% y/y, driven by sustained strength internationally and in the U.S.
Expanded Adjusted EBITDA margins y/y
SEATTLE--(BUSINESS WIRE)--Expedia Group, Inc. (NASDAQ: EXPE) announced financial results today for the fourth quarter and full year ended December 31, 2025.
Key Highlights (All comparisons year-over-year)
- Booked room nights grew 9% in the fourth quarter.
- Total gross bookings and revenue both grew 11% in the fourth quarter and 8% for the full year, driven by strong execution and sustained market momentum.
- B2C and B2B gross bookings grew 5% and 24%, respectively, in the fourth quarter.
- Lodging gross bookings grew 13% in the fourth quarter.
- Fourth quarter GAAP net income decreased 31% while Adjusted net income grew 52%. Adjusted EBITDA increased 32% with EBITDA margin of 23.9% expanding 368 basis points in the fourth quarter.
- Strong cash position, ending the year with $5.7 billion of unrestricted cash and short-term investments.
- Repurchased approximately 9 million shares for $1.7 billion in 2025.
- Paid quarterly dividend of $0.40 per share on December 11, 2025. We are raising our dividend by 20% and declared a quarterly dividend of $0.48 per share on February 12, 2025.
“We delivered a strong finish to a great year and expect our positive momentum to continue in 2026,” said Ariane Gorin, CEO of Expedia Group. "Our fourth quarter results exceeded both top and bottom-line expectations, reflecting disciplined execution of our strategic priorities in a healthy demand environment with double-digit growth in bookings and revenue. We are confident in our ability to maximize the power of our brands to deliver increased value to travelers, partners and shareholders."
Financial Summary & Operating Metrics (In millions, except per share amounts) | ||||||
Metric | Q4 2025 | Q4 2024 | Δ Y/Y | 2025 | 2024 | Δ Y/Y |
Booked room night | 94.0 | 86.4 | 9% | 415.4 | 383.9 | 8% |
Gross bookings | $27,003 | $24,422 | 11% | $119,590 | $110,921 | 8% |
Revenue | $3,547 | $3,184 | 11% | $14,733 | $13,691 | 8% |
Operating income | $420 | $216 | 94% | $1,871 | $1,319 | 42% |
Net income attributable to Expedia Group, Inc. | $205 | $299 | (31)% | $1,294 | $1,234 | 5% |
Diluted earnings per share | $1.60 | $2.20 | (27)% | $9.81 | $8.95 | 10% |
Adjusted EBITDA* | $848 | $643 | 32% | $3,501 | $2,934 | 19% |
Adjusted EPS* | $3.78 | $2.39 | 58% | $15.86 | $12.11 | 31% |
Net cash provided by operating activities | $304 | $198 | 53% | $3,880 | $3,085 | 26% |
Free cash flow* | $119 | $7 | NM | $3,110 | $2,329 | 34% |
* A reconciliation of non-GAAP financial measures to the most comparable GAAP measures is provided at the end of this release. | ||||||
Business Outlook | |||
Metric | Q1 2026 | Full Year 2026 | |
Gross bookings | $34.6 - $35.2B +10 - 12% | $127 - $129B +6 - 8% | |
Revenue | $3.32 - $3.37B +11 - 13% | $15.6 - $16.0B +6 - 9% | |
Adjusted EBITDA margin expansion** | +3 - 4pts | +1 - 1.25pts | |
** A reconciliation for the adjusted EBITDA margin expansion forecast is not provided because we cannot, without unreasonable effort, predict certain items, including but not limited to, foreign exchange rate gains or losses and minority investment gains or losses, and are unable to address the probable significance of the unavailable information. |
Quarterly Dividend
The Executive Committee of Expedia Group’s Board of Directors has declared a quarterly dividend payment of $0.48 per common share, payable on March 26, 2026 to stockholders on record as of the close of business on March 5, 2026.
Conference Call
Expedia Group, Inc. will webcast a conference call to discuss fourth quarter 2025 financial results and certain forward-looking information on Thursday, February 12, 2026 at 1:30 p.m. Pacific Time (PT). The webcast will be open to the public and available via ir.expediagroup.com. Expedia Group expects to maintain access to the webcast on the IR website for approximately twelve months subsequent to the initial broadcast.
About Expedia Group
Expedia Group, Inc. is the global travel marketplace with one purpose: to help travelers explore the world, one journey at a time. Expedia Group™ connects travelers, partners, and advertisers through its trusted brands, leading technology, and rich first-party data, delivering predictive, personalized experiences that shape the future of travel.
Expedia Group’s ecosystem includes three flagship consumer brands – Expedia®, Hotels.com®, and Vrbo® – the largest B2B travel business, and a premier advertising network. Guided by an experienced and passionate global team, Expedia Group helps millions of travelers in more than 70 countries explore the world with confidence and ease.
© 2026 Expedia, Inc., an Expedia Group company. All rights reserved. Expedia Group and the Expedia Group logo are trademarks of Expedia, Inc. CST: 2029030-50.
Expedia Group, Inc. Trended Metrics (All figures in millions, except ADR booked) | |||||||||||||||||||||||||||||||||
The metrics below are intended to supplement the financial statements in this release and in our filings with the SEC, and do not include adjustments for one-time items, acquisitions, foreign exchange or other adjustments. The definition or methodology of any of our supplemental metrics are subject to change, and such changes could be material. We may also discontinue certain supplemental metrics as our business evolves over time. In the event of any discrepancy between any supplemental metric and our historical financial statements, you should rely on the information included in the financial statements filed with or furnished to the SEC. | |||||||||||||||||||||||||||||||||
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Units sold |
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Booked room nights |
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| 101.2 | 98.9 | 97.4 | 86.4 |
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| 107.7 | 105.5 | 108.2 | 94.0 |
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| 383.9 | 415.4 |
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| 9% | 8% |
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Average Daily Rate (“ADR") Booked |
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| $216.5 | $209.8 | $205.5 | $198.5 |
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| $213.9 | $209.3 | $209.8 | $207.0 |
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| $207.9 | $210.1 |
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| 4% | 1% |
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Booked air tickets |
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| 14.2 | 14.5 | 13.8 | 12.6 |
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| 14.8 | 15.0 | 14.4 | 12.8 |
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| 55.1 | 57.0 |
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| 2% | 3% |
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Gross bookings by business model |
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Agency |
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| $13,301 | $12,578 | $11,379 | $10,376 |
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| $13,239 | $12,376 | $11,875 | $10,517 |
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| $47,634 | $48,007 |
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| 1% | 1% |
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Merchant |
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| 16,863 | 16,259 | 16,119 | 14,046 |
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| 18,212 | 18,033 | 18,852 | 16,486 |
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| 63,287 | 71,583 |
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| 17% | 13% |
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Total |
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| $30,164 | $28,837 | $27,498 | $24,422 |
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| $31,451 | $30,409 | $30,727 | $27,003 |
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| $110,921 | $119,590 |
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| 11% | 8% |
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Gross bookings by product |
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Lodging |
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| $21,903 | $20,749 | $20,027 | $17,152 |
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| $23,032 | $22,073 | $22,705 | $19,455 |
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| $79,831 | $87,265 |
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| 13% | 9% |
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Non-lodging |
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| $8,261 | $8,088 | $7,471 | $7,270 |
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| $8,419 | $8,336 | $8,022 | $7,548 |
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| $31,090 | $32,325 |
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| 4% | 4% |
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Total |
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| $30,164 | $28,837 | $27,498 | $24,422 |
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| $31,451 | $30,409 | $30,727 | $27,003 |
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| $110,921 | $119,590 |
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| 11% | 8% |
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Revenue by product |
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Lodging |
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| $2,228 | $2,862 | $3,317 | $2,543 |
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| $2,289 | $3,040 | $3,604 | $2,819 |
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| $10,950 | $11,752 |
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| 11% | 7% |
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Air |
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| 115 | 111 | 104 | 98 |
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| 107 | 105 | 101 | 94 |
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| 428 | 407 |
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| (3)% | (5)% |
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Advertising and media – EG(1) |
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| 145 | 152 | 167 | 175 |
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| 174 | 182 | 194 | 208 |
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| 639 | 758 |
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| 19% | 19% |
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Advertising and media – trivago(1) |
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| 70 | 77 | 102 | 66 |
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| 85 | 98 | 137 | 97 |
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| 315 | 417 |
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| 47% | 33% |
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Other(2) |
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| 331 | 356 | 370 | 302 |
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| 333 | 361 | 376 | 329 |
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| 1,359 | 1,399 |
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| 9% | 3% |
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Total |
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| $2,889 | $3,558 | $4,060 | $3,184 |
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| $2,988 | $3,786 | $4,412 | $3,547 |
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| $13,691 | $14,733 |
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| 11% | 8% |
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Revenue by geography |
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U.S. points of sale |
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| $1,793 | $2,246 | $2,435 | $1,898 |
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| $1,831 | $2,303 | $2,537 | $2,039 |
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| $8,372 | $8,710 |
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| 7% | 4% |
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Non-U.S. points of sale |
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| 1,096 | 1,312 | 1,625 | 1,286 |
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| 1,157 | 1,483 | 1,875 | 1,508 |
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| 5,319 | 6,023 |
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| 17% | 13% |
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Total |
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| $2,889 | $3,558 | $4,060 | $3,184 |
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| $2,988 | $3,786 | $4,412 | $3,547 |
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| $13,691 | $14,733 |
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| 11% | 8% |
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(1) Our advertising and media business consists of Expedia Group (“EG") Advertising, which is responsible for generating advertising revenue on our global online travel brands, and third-party revenue for trivago, a leading hotel metasearch site. (2) Other revenue primarily includes insurance, car rental, destination services and cruise revenue.
Notes:
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Expedia Group, Inc. Segment P&L (All figures in millions) | |||||||||||||||||||||||||||||||||||
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| y/y growth | |||||||||||||||||
By Segment |
| Q1-24 |
| Q2-24 |
| Q3-24 |
| Q4-24 |
| Q1-25 |
| Q2-25 |
| Q3-25 |
| Q4-25 |
| Q4-25 | |||||||||||||||||
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Gross bookings |
| $ | 30,164 |
| $ | 28,837 |
| $ | 27,498 |
| $ | 24,422 |
| $ | 31,451 |
| $ | 30,409 |
| $ | 30,727 |
| $ | 27,003 |
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| 11 | % | |||||||
B2C |
| $ | 22,397 |
| $ | 21,290 |
| $ | 20,026 |
| $ | 17,436 |
| $ | 22,615 |
| $ | 21,565 |
| $ | 21,343 |
| $ | 18,344 |
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| 5 | % | |||||||
B2B |
| $ | 7,767 |
| $ | 7,547 |
| $ | 7,472 |
| $ | 6,986 |
| $ | 8,836 |
| $ | 8,844 |
| $ | 9,384 |
| $ | 8,659 |
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| 24 | % | |||||||
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Revenue |
| $ | 2,889 |
| $ | 3,558 |
| $ | 4,060 |
| $ | 3,184 |
| $ | 2,988 |
| $ | 3,786 |
| $ | 4,412 |
| $ | 3,547 |
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| 11 | % | |||||||
B2C |
| $ | 1,986 |
| $ | 2,432 |
| $ | 2,780 |
| $ | 2,076 |
| $ | 1,956 |
| $ | 2,479 |
| $ | 2,883 |
| $ | 2,156 |
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| 4 | % | |||||||
B2B |
| $ | 833 |
| $ | 1,049 |
| $ | 1,178 |
| $ | 1,042 |
| $ | 947 |
| $ | 1,209 |
| $ | 1,392 |
| $ | 1,294 |
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| 24 | % | |||||||
Other (1) |
| $ | 70 |
| $ | 77 |
| $ | 102 |
| $ | 66 |
| $ | 85 |
| $ | 98 |
| $ | 137 |
| $ | 97 |
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| 47 | % | |||||||
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Revenue margin (2) |
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| 9.6 | % |
| 12.3 | % |
| 14.8 | % |
| 13.0 | % |
| 9.5 | % |
| 12.4 | % |
| 14.4 | % |
| 13.1 | % |
| 10 bps | ||||||||
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Adjusted cost of revenue (3) |
| $ | 356 |
| $ | 358 |
| $ | 385 |
| $ | 332 |
| $ | 354 |
| $ | 373 |
| $ | 373 |
| $ | 342 |
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| 3 | % | |||||||
% Revenue |
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| 12.3 | % |
| 10.1 | % |
| 9.5 | % |
| 10.4 | % |
| 11.9 | % |
| 9.8 | % |
| 8.4 | % |
| 9.6 | % |
| (77) bps | ||||||||
B2C |
| $ | 312 |
| $ | 326 |
| $ | 359 |
| $ | 299 |
| $ | 312 |
| $ | 340 |
| $ | 347 |
| $ | 307 |
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| 3 | % | |||||||
% B2C revenue |
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| 15.7 | % |
| 13.5 | % |
| 12.9 | % |
| 14.4 | % |
| 16.0 | % |
| 13.7 | % |
| 12.0 | % |
| 14.2 | % |
| (11) bps | ||||||||
B2B |
| $ | 39 |
| $ | 27 |
| $ | 21 |
| $ | 30 |
| $ | 38 |
| $ | 28 |
| $ | 18 |
| $ | 27 |
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| (11 | )% | |||||||
% B2B revenue |
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| 4.7 | % |
| 2.6 | % |
| 1.8 | % |
| 2.9 | % |
| 4.0 | % |
| 2.3 | % |
| 1.3 | % |
| 2.0 | % |
| (81) bps | ||||||||
Other (1) |
| $ | 5 |
| $ | 5 |
| $ | 5 |
| $ | 3 |
| $ | 4 |
| $ | 5 |
| $ | 8 |
| $ | 8 |
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| 127 | % | |||||||
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Selling and marketing – direct |
| $ | 1,650 |
| $ | 1,793 |
| $ | 1,855 |
| $ | 1,548 |
| $ | 1,757 |
| $ | 1,920 |
| $ | 1,976 |
| $ | 1,696 |
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| 10 | % | |||||||
% Gross bookings |
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| 5.5 | % |
| 6.2 | % |
| 6.7 | % |
| 6.3 | % |
| 5.6 | % |
| 6.3 | % |
| 6.4 | % |
| 6.3 | % |
| (5) bps | ||||||||
B2C |
| $ | 1,096 |
| $ | 1,101 |
| $ | 1,072 |
| $ | 888 |
| $ | 1,115 |
| $ | 1,092 |
| $ | 1,032 |
| $ | 847 |
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| (5 | )% | |||||||
% B2C gross bookings |
|
| 4.9 | % |
| 5.2 | % |
| 5.4 | % |
| 5.1 | % |
| 4.9 | % |
| 5.1 | % |
| 4.8 | % |
| 4.6 | % |
| (48) bps | ||||||||
B2B |
| $ | 501 |
| $ | 637 |
| $ | 721 |
| $ | 630 |
| $ | 577 |
| $ | 752 |
| $ | 855 |
| $ | 798 |
|
| 27 | % | |||||||
Other (1) |
| $ | 53 |
| $ | 55 |
| $ | 62 |
| $ | 30 |
| $ | 65 |
| $ | 76 |
| $ | 89 |
| $ | 51 |
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| 68 | % | |||||||
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Other segment items (4) |
| $ | 628 |
| $ | 621 |
| $ | 570 |
| $ | 661 |
| $ | 581 |
| $ | 585 |
| $ | 614 |
| $ | 661 |
|
| — | % | |||||||
% Revenue |
|
| 21.7 | % |
| 17.5 | % |
| 14.1 | % |
| 20.8 | % |
| 19.4 | % |
| 15.5 | % |
| 13.9 | % |
| 18.6 | % |
| (212) bps | ||||||||
B2C |
| $ | 363 |
| $ | 351 |
| $ | 321 |
| $ | 352 |
| $ | 312 |
| $ | 319 |
| $ | 330 |
| $ | 323 |
|
| (8 | )% | |||||||
% B2C revenue |
|
| 18.2 | % |
| 14.4 | % |
| 11.5 | % |
| 17.0 | % |
| 16.0 | % |
| 12.8 | % |
| 11.4 | % |
| 15.0 | % |
| (199) bps | ||||||||
B2B |
| $ | 121 |
| $ | 122 |
| $ | 98 |
| $ | 127 |
| $ | 116 |
| $ | 98 |
| $ | 117 |
| $ | 161 |
|
| 25 | % | |||||||
% B2B revenue |
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| 14.4 | % |
| 11.6 | % |
| 8.3 | % |
| 12.3 | % |
| 12.3 | % |
| 8.2 | % |
| 8.4 | % |
| 12.4 | % |
| 9 bps | ||||||||
Other (1) |
| $ | 144 |
| $ | 148 |
| $ | 151 |
| $ | 182 |
| $ | 153 |
| $ | 168 |
| $ | 167 |
| $ | 177 |
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| (1 | )% | |||||||
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Adjusted EBITDA (3) |
| $ | 255 |
| $ | 786 |
| $ | 1,250 |
| $ | 643 |
| $ | 296 |
| $ | 908 |
| $ | 1,449 |
| $ | 848 |
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| 32 | % | |||||||
% Margin |
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| 8.8 | % |
| 22.1 | % |
| 30.8 | % |
| 20.2 | % |
| 9.9 | % |
| 24.0 | % |
| 32.9 | % |
| 23.9 | % |
| 368 bps | ||||||||
B2C |
| $ | 215 |
| $ | 654 |
| $ | 1,028 |
| $ | 537 |
| $ | 217 |
| $ | 728 |
| $ | 1,174 |
| $ | 679 |
|
| 26 | % | |||||||
% Margin |
|
| 10.9 | % |
| 26.8 | % |
| 37.0 | % |
| 25.9 | % |
| 11.1 | % |
| 29.4 | % |
| 40.7 | % |
| 31.5 | % |
| 561 bps | ||||||||
B2B |
| $ | 172 |
| $ | 263 |
| $ | 338 |
| $ | 255 |
| $ | 216 |
| $ | 331 |
| $ | 402 |
| $ | 308 |
|
| 21 | % | |||||||
% Margin |
|
| 20.6 | % |
| 25.1 | % |
| 28.7 | % |
| 24.5 | % |
| 22.8 | % |
| 27.3 | % |
| 28.9 | % |
| 23.9 | % |
| (59) bps | ||||||||
Other (1) |
| $ | (132 | ) | $ | (131 | ) | $ | (116 | ) | $ | (149 | ) | $ | (137 | ) | $ | (151 | ) | $ | (127 | ) | $ | (139 | ) |
| (6 | )% | |||||||
(1) | Other is comprised of trivago, corporate and intercompany eliminations. | ||||
(2) | Revenue margin is defined as revenue as a percentage of gross bookings. | ||||
(3) | See the sections below titled “Non-GAAP Measures” and “Tabular Reconciliations for Non-GAAP Measures” for additional information, including reconciliations to the most directly comparable GAAP measures. | ||||
(4) | Other segment items include total adjusted overhead expenses (see section below titled “Tabular Reconciliations for Non-GAAP Measures – Adjusted Expenses”), as well as the realized foreign currency gains or losses related to the forward contracts hedging a component of our net merchant lodging revenue for our B2C and B2B segments. | ||||
Notes: Some numbers may not add due to rounding. All percentages throughout this release are calculated on precise, unrounded numbers. | |||||
EXPEDIA GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except share and per share data) (Unaudited) | |||||||||||||||
|
|
|
| ||||||||||||
| Three months ended December 31, |
| Year ended December 31, | ||||||||||||
| 2025 |
| 2024 |
| 2025 |
| 2024 | ||||||||
|
|
|
|
|
|
|
| ||||||||
Revenue | $ | 3,547 |
|
| $ | 3,184 |
|
| $ | 14,733 |
|
| $ | 13,691 |
|
Costs and expenses: |
|
|
|
|
|
|
| ||||||||
Cost of revenue (exclusive of depreciation and amortization shown separately below) (1) |
| 346 |
|
|
| 335 |
|
|
| 1,456 |
|
|
| 1,443 |
|
Selling and marketing – direct |
| 1,696 |
|
|
| 1,548 |
|
|
| 7,349 |
|
|
| 6,846 |
|
Selling and marketing – indirect (1) |
| 213 |
|
|
| 201 |
|
|
| 836 |
|
|
| 781 |
|
Technology and content (1) |
| 322 |
|
|
| 322 |
|
|
| 1,277 |
|
|
| 1,314 |
|
General and administrative (1) |
| 202 |
|
|
| 210 |
|
|
| 765 |
|
|
| 805 |
|
Depreciation and amortization |
| 220 |
|
|
| 212 |
|
|
| 887 |
|
|
| 838 |
|
Impairment of intangible assets |
| — |
|
|
| 114 |
|
|
| — |
|
|
| 147 |
|
Legal reserves, occupancy tax and other |
| 97 |
|
|
| 18 |
|
|
| 185 |
|
|
| 118 |
|
Restructuring and related reorganization charges (1) |
| 31 |
|
|
| 8 |
|
|
| 107 |
|
|
| 80 |
|
Operating income |
| 420 |
|
|
| 216 |
|
|
| 1,871 |
|
|
| 1,319 |
|
Other income (expense): |
|
|
|
|
|
|
| ||||||||
Interest income |
| 58 |
|
|
| 50 |
|
|
| 255 |
|
|
| 235 |
|
Interest expense |
| (121 | ) |
|
| (62 | ) |
|
| (299 | ) |
|
| (246 | ) |
Other, net |
| (103 | ) |
|
| 131 |
|
|
| (236 | ) |
|
| 234 |
|
Total other income (expense), net |
| (166 | ) |
|
| 119 |
|
|
| (280 | ) |
|
| 223 |
|
Income before income taxes |
| 254 |
|
|
| 335 |
|
|
| 1,591 |
|
|
| 1,542 |
|
Provision for income taxes |
| (42 | ) |
|
| (34 | ) |
|
| (290 | ) |
|
| (318 | ) |
Net income |
| 212 |
|
|
| 301 |
|
|
| 1,301 |
|
|
| 1,224 |
|
Net (income) loss attributable to non-controlling interests |
| (7 | ) |
|
| (2 | ) |
|
| (7 | ) |
|
| 10 |
|
Net income attributable to Expedia Group, Inc. | $ | 205 |
|
| $ | 299 |
|
| $ | 1,294 |
|
| $ | 1,234 |
|
|
|
|
|
|
|
|
| ||||||||
Earnings per share attributable to Expedia Group, Inc. available to common stockholders: |
|
|
|
|
|
|
| ||||||||
Basic | $ | 1.67 |
|
| $ | 2.32 |
|
| $ | 10.32 |
|
| $ | 9.39 |
|
Diluted |
| 1.60 |
|
|
| 2.20 |
|
|
| 9.81 |
|
|
| 8.95 |
|
Shares used in computing earnings per share (000’s): |
|
|
|
|
|
|
| ||||||||
Basic |
| 122,743 |
|
|
| 128,569 |
|
|
| 125,363 |
|
|
| 131,432 |
|
Diluted |
| 128,239 |
|
|
| 135,732 |
|
|
| 131,943 |
|
|
| 137,919 |
|
|
|
|
|
|
|
|
| ||||||||
(1) Includes stock-based compensation as follows: |
|
|
|
|
|
|
| ||||||||
Cost of revenue | $ | 4 |
|
| $ | 3 |
|
| $ | 14 |
|
| $ | 12 |
|
Selling and marketing |
| 20 |
|
|
| 20 |
|
|
| 83 |
|
|
| 81 |
|
Technology and content |
| 36 |
|
|
| 34 |
|
|
| 147 |
|
|
| 154 |
|
General and administrative |
| 41 |
|
|
| 36 |
|
|
| 147 |
|
|
| 203 |
|
Restructuring and related reorganization charges |
| 4 |
|
|
| — |
|
|
| 7 |
|
|
| 8 |
|
EXPEDIA GROUP, INC. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) | |||||||
|
|
|
| ||||
| December 31, 2025 |
| December 31, 2024 | ||||
| (unaudited) |
|
| ||||
ASSETS | |||||||
Current assets: |
|
|
| ||||
Cash and cash equivalents | $ | 5,413 |
|
| $ | 4,183 |
|
Restricted cash and cash equivalents |
| 1,563 |
|
|
| 1,391 |
|
Short-term investments |
| 320 |
|
|
| 300 |
|
Accounts receivable, net of allowance of $74 and $55 |
| 4,166 |
|
|
| 3,213 |
|
Income taxes receivable |
| 38 |
|
|
| 39 |
|
Prepaid expenses and other current assets |
| 699 |
|
|
| 689 |
|
Total current assets |
| 12,199 |
|
|
| 9,815 |
|
Property and equipment, net |
| 2,447 |
|
|
| 2,413 |
|
Operating lease right-of-use assets |
| 296 |
|
|
| 305 |
|
Long-term investments and other assets |
| 1,387 |
|
|
| 1,698 |
|
Deferred income taxes |
| 432 |
|
|
| 496 |
|
Intangible assets, net |
| 819 |
|
|
| 817 |
|
Goodwill |
| 6,872 |
|
|
| 6,844 |
|
TOTAL ASSETS | $ | 24,452 |
|
| $ | 22,388 |
|
|
|
|
| ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: |
|
|
| ||||
Accounts payable, merchant | $ | 2,188 |
|
| $ | 2,031 |
|
Accounts payable, other |
| 1,103 |
|
|
| 1,039 |
|
Deferred merchant bookings |
| 10,428 |
|
|
| 8,517 |
|
Deferred revenue |
| 163 |
|
|
| 164 |
|
Income taxes payable |
| 56 |
|
|
| 51 |
|
Accrued expenses and other current liabilities |
| 1,027 |
|
|
| 766 |
|
Current maturities of long-term debt |
| 1,692 |
|
|
| 1,043 |
|
Total current liabilities |
| 16,657 |
|
|
| 13,611 |
|
Long-term debt |
| 4,469 |
|
|
| 5,223 |
|
Deferred income taxes |
| 20 |
|
|
| 19 |
|
Operating lease liabilities |
| 254 |
|
|
| 265 |
|
Other long-term liabilities |
| 505 |
|
|
| 471 |
|
Commitments and contingencies |
|
|
| ||||
Stockholders’ equity: |
|
|
| ||||
Common stock: $.0001 par value; Authorized shares: 1,600,000 |
| — |
|
|
| — |
|
Shares issued: 291,448 and 287,509; Shares outstanding: 116,975 and 123,271 |
|
|
| ||||
Class B common stock: $.0001 par value; Authorized shares: 400,000 |
| — |
|
|
| — |
|
Shares issued: 12,800 and 12,800; Shares outstanding: 5,523 and 5,523 |
|
|
| ||||
Additional paid-in capital |
| 16,565 |
|
|
| 16,043 |
|
Treasury stock - Common stock and Class B, at cost; Shares 181,749 and 171,515 |
| (16,786 | ) |
|
| (14,856 | ) |
Retained earnings (deficit) |
| 1,696 |
|
|
| 602 |
|
Accumulated other comprehensive income (loss) |
| (191 | ) |
|
| (232 | ) |
Total Expedia Group, Inc. stockholders’ equity |
| 1,284 |
|
|
| 1,557 |
|
Non-redeemable non-controlling interest |
| 1,263 |
|
|
| 1,242 |
|
Total stockholders’ equity |
| 2,547 |
|
|
| 2,799 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 24,452 |
|
| $ | 22,388 |
|
EXPEDIA GROUP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) | |||||||
| Year ended December 31, | ||||||
| 2025 |
| 2024 | ||||
Operating activities: |
|
|
| ||||
Net income | $ | 1,301 |
|
| $ | 1,224 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
| ||||
Depreciation of property and equipment, including internal-use software and website development |
| 847 |
|
|
| 781 |
|
Amortization of stock-based compensation |
| 398 |
|
|
| 458 |
|
Amortization of intangible assets |
| 40 |
|
|
| 57 |
|
Impairment of intangible assets |
| — |
|
|
| 147 |
|
Deferred income taxes |
| 78 |
|
|
| 74 |
|
Foreign exchange (gain) loss on cash, restricted cash and short-term investments, net |
| (120 | ) |
|
| 95 |
|
Realized (gain) loss on foreign currency forwards, net |
| (128 | ) |
|
| 40 |
|
(Gain) loss on minority equity investments, net |
| 167 |
|
|
| (289 | ) |
Other |
| 124 |
|
|
| 79 |
|
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: |
|
|
| ||||
Accounts receivable |
| (983 | ) |
|
| (467 | ) |
Prepaid expenses and other assets |
| (3 | ) |
|
| 67 |
|
Accounts payable, merchant |
| 155 |
|
|
| (10 | ) |
Accounts payable, other, accrued expenses and other liabilities |
| 163 |
|
|
| (11 | ) |
Tax payable/receivable, net |
| (17 | ) |
|
| 46 |
|
Deferred merchant bookings |
| 1,858 |
|
|
| 794 |
|
Net cash provided by operating activities |
| 3,880 |
|
|
| 3,085 |
|
Investing activities: |
|
|
| ||||
Capital expenditures, including internal-use software and website development |
| (770 | ) |
|
| (756 | ) |
Purchases of investments |
| (628 | ) |
|
| (549 | ) |
Sales and maturities of investments |
| 747 |
|
|
| 78 |
|
Other, net |
| 120 |
|
|
| (35 | ) |
Net cash used in investing activities |
| (531 | ) |
|
| (1,262 | ) |
Financing activities: |
|
|
| ||||
Proceeds from issuance of long-term debt, net of issuance costs |
| 985 |
|
|
| — |
|
Payment of long-term debt |
| (1,044 | ) |
|
| — |
|
Purchases of treasury stock |
| (1,930 | ) |
|
| (1,839 | ) |
Payment of dividends to preferred stockholders |
| (200 | ) |
|
| — |
|
Proceeds from exercise of equity awards and employee stock purchase plan |
| 50 |
|
|
| 116 |
|
Other, net |
| 3 |
|
|
| (22 | ) |
Net cash used in financing activities |
| (2,136 | ) |
|
| (1,745 | ) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents |
| 189 |
|
|
| (165 | ) |
Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents |
| 1,402 |
|
|
| (87 | ) |
Cash, cash equivalents and restricted cash and cash equivalents at beginning of year |
| 5,574 |
|
|
| 5,661 |
|
Cash, cash equivalents and restricted cash and cash equivalents at end of year | $ | 6,976 |
|
| $ | 5,574 |
|
Notes & Definitions:
Booked Room Nights: Represents booked hotel room nights and property nights for our B2C reportable segment and booked hotel room nights for our B2B reportable segment. Booked hotel room nights include both merchant and agency hotel room nights. Property nights are related to our alternative accommodation business.
Booked Air Tickets: Includes both merchant and agency air bookings.
Gross Bookings: Generally represent the total retail value of transactions booked, recorded at the time of booking reflecting the total price due for travel by travelers, including taxes, fees and other charges, adjusted for cancellations and refunds.
Lodging Metrics: Reported on a booked basis except for revenue, which is on a stayed basis. Lodging consists of both merchant and agency model hotel and alternative accommodations.
B2C: The B2C segment provides a full range of travel and advertising services to our worldwide customers through a variety of consumer brands including: Expedia, Hotels.com, Vrbo, Orbitz, Travelocity, Wotif Group, ebookers, Hotwire.com, and CarRentals.com.
B2B: The B2B segment fuels a wide range of travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management and financial institutions, who leverage our leading travel technology and tap into our diverse supply to augment their offerings and market Expedia Group rates and availabilities to their travelers.
trivago: The trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its localized hotel metasearch websites.
Corporate: Includes unallocated corporate expenses.
NON-GAAP MEASURES
Expedia Group reports Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), Adjusted EPS, Free Cash Flow and Adjusted Expenses (non-GAAP cost of revenue, non-GAAP selling and marketing, non-GAAP technology and content and non-GAAP general and administrative), all of which are supplemental measures to GAAP and are defined by the SEC as non-GAAP financial measures. These measures are among the primary metrics by which management evaluates the performance of the business and on which internal budgets are based. Management believes that investors should have access to the same set of tools that management uses to analyze our results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP. Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted EPS have certain limitations in that they do not take into account the impact of certain expenses to our consolidated statements of operations. We endeavor to compensate for the limitation of the non-GAAP measures presented by also providing the most directly comparable GAAP measures and descriptions of the reconciling items and adjustments to derive the non-GAAP measures. Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted EPS also exclude certain items related to transactional tax matters, which may ultimately be settled in cash. We urge investors to review the detailed disclosure regarding these matters in the Management Discussion and Analysis and Legal Proceedings sections, as well as the notes to the financial statements, included in the Company's annual and quarterly reports filed with the Securities and Exchange Commission. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
Adjusted EBITDA is defined as net income (loss) attributable to Expedia Group adjusted for:
(1) net income (loss) attributable to non-controlling interests;
(2) provision for income taxes;
(3) total other expenses, net;
(4) stock-based compensation expense, including compensation expense related to certain subsidiary equity plans;
(5) acquisition-related impacts, including
(i) amortization of intangible assets and goodwill and intangible asset impairment,
(ii) gains (losses) recognized on changes in the value of contingent consideration arrangements;
(iii) upfront consideration paid to settle employee compensation plans of the acquiree; and
(iv) related transaction fees;
(6) certain other items, including restructuring;
(7) items included in legal reserves, occupancy tax and other, which includes reserves for potential settlement of issues related to transactional taxes (e.
Contacts
Investor Relations
ir@expediagroup.com
Communications
press@expediagroup.com
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