Double-Digit Growth in Bookings and Revenue Highlights Expedia Group’s Strong 2025

Operational Strength Across Core Segments Drives Record Performance

Expedia Group wrapped up 2025 with a strong performance, exceeding guidance and delivering double-digit growth in both gross bookings and revenue for the fourth quarter. The company reported fourth quarter gross bookings of $27.0 billion, up 11% year-over-year, while revenue climbed by the same percentage to $3.55 billion. Full-year results echoed this momentum with 8% growth in both gross bookings ($119.6 billion) and revenue ($14.7 billion).

Key drivers included a 9% increase in booked room nights and notable expansion in lodging gross bookings (+13% in Q4). B2B gross bookings surged 24%, outpacing the 5% growth in B2C—reflecting Expedia's success in powering travel solutions for partners globally.

Margin Expansion, Cash Flow, and Growing Shareholder Returns Stand Out

Margin performance was a particular highlight: adjusted EBITDA margin expanded to 23.9% in Q4, up 368 basis points, with annual expansion nearly 240 basis points to 23.8%. Operating income nearly doubled in the quarter, indicating heightened efficiency and disciplined cost control despite greater investment in technology and direct marketing.

Expedia boosted its free cash flow by 34% to $3.11 billion for the full year and ended 2025 with a robust cash and short-term investments position of $5.7 billion. Shareholder returns accelerated with $1.7 billion spent on share repurchases and a 20% dividend increase announced for 2026, underscoring confidence in future prospects.

B2B Outperformance and Geographic Growth Fuel Revenue Mix Shift

While B2C delivered steady gains, B2B became a catalyst for growth, contributing 24% gross bookings growth in Q4 and 24% revenue growth. Expedia's ability to grow both directly with consumers and through its partners demonstrates the resilience—and scalability—of its platform.

International momentum was also evident. Non-U.S. point-of-sale revenue grew 13% for the year versus 4% in the U.S., highlighting strength in key global markets.

Profitability Metrics Show Solid Execution Amid Net Income Dip

Although GAAP net income declined 31% to $205 million in Q4 (and diluted EPS dropped to $1.60 from $2.20), this was more than offset by a 52% surge in adjusted net income and a 58% rise in adjusted EPS, reaching $3.78 for the quarter and $15.86 for the year. The company’s focus on non-GAAP profitability and free cash flow may be more indicative of its underlying momentum given ongoing transformational and legal expenses.

2026 Outlook Signals Further Growth and Margin Expansion

Management provided a bullish outlook for the year ahead, forecasting gross bookings to increase 6–8% for the full year to between $127 and $129 billion. Revenue is expected to continue growing at 6–9% annually, with further adjusted EBITDA margin expansion of up to 1.25 points. This forward guidance, combined with a rising dividend, signals Expedia’s intent to continue growing—and rewarding its shareholders.

Key Takeaway: Strategic Execution and International Momentum Shape 2026 Trajectory

Expedia Group’s 2025 results deliver a clear message: operational execution is driving broad-based growth, expanding margins, and creating value for both travelers and shareholders. The outsized contributions from B2B and international segments set up the company for continued momentum, even as it navigates legal and restructuring costs typical for a platform of its scale. Investors will be watching closely to see if the company delivers on its bullish 2026 outlook while maintaining its balance of growth, margin expansion, and shareholder returns.

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