Expedia Q2 Earnings & Revenues Beat Estimates, Q3 Guidance Raised

Expedia Group EXPE reported second-quarter 2025 adjusted earnings of $4.24 per share, which surpassed the Zacks Consensus Estimate by 2.42%. The figure increased 20.8% year over year.

Revenues of $3.79 billion rose 6.4% year over year. The figure beat the Zacks Consensus Estimate by 1.94%.

B2B revenues increased 15% year over year to $1.21 billion. B2C increased 2% year over year to $2.48 billion. 

Advertising revenues jumped 19% year over year.

Expedia Group, Inc. Price, Consensus and EPS Surprise

Expedia Group, Inc. price-consensus-eps-surprise-chart | Expedia Group, Inc. Quote

EXPE’s Gross Bookings Rise Y/Y

Total gross bookings were $30.4 billion, which increased 5% year over year. B2C gross bookings grew 1% and B2B gross bookings rose 17%, delivering the 16th consecutive quarter of double-digit growth.

Lodging gross bookings grew 6% year over year to $22.07 billion, with hotel bookings climbing 8%, driven by resilience at B2B and Brand Expedia.

Strength in booked room nights, which rose 7% from the year-ago quarter to 105.5 million, was positive.

EXPE’s Operating Details

Adjusted EBITDA was $908 million in the reported quarter, up 15.5% year over year, representing an adjusted EBITDA margin of 24%, which expanded 190 basis points (bps).

Direct sales and marketing expenses were $1.92 billion, representing 50.7% of revenues, up 7.1% year over year.

Overhead expenses were $637 million, representing 16.8% of revenues, up 5.1% year over year.

Adjusted EBIT increased 22.7% year over year to $583 million. Adjusted EBIT margin improved 200 bps year over year to 15.4%.

EXPE’s Balance Sheet

As of June 30, 2025, cash and cash equivalents and short-term investments were $6.7 billion, up from $6.1 billion as of March 31, 2025.

Long-term debt was $4.466 billion as of June 30, 2025, compared with $4.465 billion as of March 31, 2025.

The gross leverage ratio stands at 2x, matching the target, with debt levels maintained to uphold an investment-grade rating.

Net cash provided by operating activities was $1.12 billion in the reported quarter, and Expedia’s free cash flow was $921 million.

Expedia Raises Q3 & 2025 Guidance

EXPE expects gross bookings to be in the 5-7% range for the third quarter of 2025. Revenue growth is expected to be in the band of 4-6%.

It expects third-quarter adjusted EBITDA margins to increase 50-100 basis points (bps) year over year.

For 2025, EXPE expects gross bookings and revenue growth in the 3% to 5% range. Revenue growth is expected to be 3-5%.

Expedia expects adjusted EBITDA margin expansion of more than 100 bps year over year.

Expedia’s Zacks Rank & Stocks to Consider

Currently, EXPE carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Retail-Wholesale sector are Performance Food Group PFGC, Worksport WKSP and WilliamsSonoma WSM, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of PFGC have appreciated 16.2% year to date. It is set to report fourth-quarter fiscal 2025 results on Aug. 13.

Shares of WKSP have declined 62% year to date. It is set to report second-quarter 2025 results on Aug. 13.

Shares of WSM have returned 7.8% year to date. It is set to report second-quarter 2025 results on Aug. 28.

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This article originally published on Zacks Investment Research (zacks.com).

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