Expedia Group Inc. reported fourth‑quarter 2025 results that included revenue of $3.55 billion, up 11% year‑over‑year, and adjusted earnings per share of $3.78, a 58% increase from the prior year. Adjusted EBITDA rose to $848 million, a 32% jump, while gross bookings reached $27 billion, reflecting a robust demand environment across the company’s travel portfolio.
The company’s two main business segments delivered the bulk of the growth. B2C revenue climbed 4% to $2.16 billion, driven by a 5% rise in bookings, while B2B revenue increased 24% to $1.29 billion, supported by a 24% jump in B2B bookings. The adjusted EBITDA margin expanded to 23.9%, an increase of 368 basis points, as higher mix and cost‑control initiatives offset modest price pressure in some legacy channels.
Margin expansion was largely a result of disciplined cost management and the continued success of Expedia’s unified technology platform, which has improved pricing power and marketing efficiencies. The company also leveraged AI‑driven personalization to boost conversion rates, contributing to the higher margin profile across both B2C and B2B segments.
For the first quarter of 2026, Expedia guided revenue to $3.32–$3.37 billion and gross bookings to $34.6–$35.2 billion, with an adjusted EBITDA margin expansion of 3–4 percentage points. Full‑year 2026 guidance projects revenue growth of 6–9% and an adjusted EBITDA margin expansion of 100–125 basis points. The company also confirmed a quarterly dividend of $0.48 per share, payable March 26, 2026.
CEO Ariane Gorin said, "We delivered a strong finish to a great year and expect our positive momentum to continue in 2026." CFO Scott Schenkel added, "Our guidance reflects strong bookings momentum as we enter Q1 while remaining appropriately cautious, given ongoing macro uncertainty."
The adjusted EPS beat consensus estimates of $3.37 by $0.41, a 12.2% overrun, while revenue surpassed the $3.40 billion estimate by $0.15, a 4.4% beat. Market reaction was mixed, with some investors cautious about macro‑economic uncertainty despite the strong earnings beat.
Expedia’s results underscore the resilience of its B2B platform and the effectiveness of its AI‑enabled marketing strategy. The company’s ability to expand margins while growing revenue signals strong execution, though macro‑economic headwinds remain a concern for the full‑year outlook.
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