Expedia Q4 Earnings & Revenues Beat Estimates, Both Increase Y/Y

Expedia Group EXPE reported fourth-quarter 2025 adjusted earnings of $3.78 per share, which surpassed the Zacks Consensus Estimate by 9.29%. The figure increased 58% year over year.

Revenues of $3.55 billion rose 11.4% year over year. The figure beat the Zacks Consensus Estimate by 4.22%. 

B2B revenues increased 24% year over year to $1.29 billion. B2C revenues increased 4% year over year to $2.16 billion.

Advertising revenues jumped 19% year over year to $208 million.

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 $27 billion, which increased 11% year over year. B2C gross bookings grew 5% to $18.34 billion and B2B gross bookings rose 24% to $8.66 billion year over year.

Lodging gross bookings grew 13% year over year to $19.46 billion, with hotel bookings climbing 15%, driven by resilience at B2B and Expedia.

Strength in booked room nights, which rose 9% from the year-ago quarter to 94.0 million, reflecting high single-digit growth in the United States and low double-digit growth in EMEA and the rest of the regions in the world.

EXPE’s Operating Details

Adjusted EBITDA was $848 million in the reported quarter, up 32% year over year, representing an adjusted EBITDA margin of 23.9%. The metric expanded 368 basis points (bps) from the prior-year quarter.

Direct sales and marketing expenses were $1.7 billion, representing 47.8% of revenues, up 10% year over year. However, B2C direct marketing expenses declined 5% year over year to $847 million and leveraged 48 bps as a percentage of B2C gross bookings to 4.6% from 5.1%.

Overhead expenses were $640 million, representing 18.1% of revenues, essentially flat year over year, while leveraging more than 200 bps as a percentage of revenues from 20.2% in the prior-year quarter.

Adjusted cost of revenues was $342 million, up 3% year over year, representing 9.6% of revenues, leveraging 77 bps driven by continued efficiencies in payments and customer service.

EXPE’s Balance Sheet

As of Dec. 31, 2025, cash and cash equivalents and short-term investments were $5.71 billion, down from $6.17 billion as of Sept. 30, 2025.

Long-term debt was $4.47 billion as of Dec. 31, 2025, compared with $4.47 billion as of Sept. 30, 2025.

Net cash provided by operating activities was $304 million in the reported quarter against a negative $497 million in the third quarter of 2025. Free cash flow was $119 million against a negative $686 million in the third quarter of 2025.

Expedia Provides Q1 & Full-Year 2026 Guidance

EXPE expects gross bookings to be in the range of $34.6-$35.2 billion for the first quarter of 2026, representing growth of 10-12% year over year, including 3 percentage points of foreign exchange tailwind.

Revenue growth is expected to be in the range of $3.32-$3.37 billion, representing growth of 11-13% year over year, including 4 percentage points of foreign exchange tailwind.

Expedia expects first-quarter adjusted EBITDA margins to increase 3-4 percentage points year over year.

For the year 2026, Expedia expects gross bookings to grow in the range of 6-8%, including 1 percentage point of foreign exchange tailwind. Revenue growth is also projected in the range of 6-9%, including 2 percentage points of foreign exchange tailwind.

Expedia expects adjusted EBITDA margin to expand 100-125 bps year over year for the year 2026.

Zacks Rank & Other Stocks to Consider

Expedia currently carries a Zacks Rank #2 (Buy).

FIGS FIGS, Globale Online GLBE and Carrefour CRRFY are some other top-ranked stocks that investors can consider in the broader Retail-Wholesale sector.

FIGS currently sports a Zacks Rank #1(Strong Buy) while Globale Online and Carrefour carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Globale Online and Carrefour are slated to report their upcoming results on Feb. 18.

FIGS is slated to report its upcoming results on Feb. 26. 

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

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