Expedia 2025 Q2 Earnings Guidance Raised Amid Revenue Growth and EPS Decline

Expedia (EXPE) reported its Q2 2025 earnings on August 8, 2025, showing a 6.4% year-over-year revenue increase but a decline in EPS and net income. The company raised full-year guidance amid strong first-half performance and positive trends.

Revenue
Expedia's total revenue climbed to $3.79 billion in Q2 2025, driven by robust performance across its business segments. The B2C segment contributed $2.48 billion, followed by the B2B segment with $1.21 billion, and additional revenue of $98 million from other sources. The growth was fueled by strong demand in B2B and advertising, underscoring the company’s diversified revenue base.

Earnings/Net Income
Despite revenue growth, Expedia’s net income dropped to $322 million in Q2 2025, a 14.1% decline year-over-year, while EPS fell to $2.61, down 10.6%. The dip in profitability highlights pressure from rising costs or operational challenges, despite the strong top-line performance.

Price Action
Following the earnings report, Expedia’s stock dropped 7.72% on the latest trading day. However, the stock rebounded with a 9.66% gain over the previous full trading week and a 10.89% rise month-to-date, indicating mixed investor sentiment in the short term.

Post-Earnings Price Action Review
A strategy of buying Expedia shares after its revenue beat expectations and holding for 30 days has historically delivered strong returns. Over the past three years, the strategy achieved an impressive 91.28% overall return, outpacing the benchmark by 43.37%. With a 24.46% CAGR and no maximum drawdown, the approach underscores the effectiveness of capitalizing on revenue-driven momentum.

CEO Commentary
Ariane Gorin, CEO of Expedia Group, described the quarter as "solid," noting the company outperformed both revenue and profit expectations. Gorin emphasized progress in leveraging brands, supply chains, and technology to support travelers and business partners, expressing confidence in the company’s strategic direction.

Guidance
Expedia raised its full-year 2025 guidance, increasing gross bookings expectations to a 5-7% growth range from the previous 2-4%. The company also lifted revenue guidance to a 4-6% increase range, up from 2-4%. Additionally, EBITDA margin expansion is now projected to widen by 100 basis points, compared to prior guidance of 75-100 basis points. The company also announced a quarterly dividend of $0.40 per share, payable on September 18, 2025.

Additional News
Within the three weeks following Expedia’s earnings report, several notable non-earnings-related news stories emerged. In the tech sector, OpenAI officially launched GPT-5, marking a major advancement in AI capabilities. In corporate governance, the CEO of a major Chinese tech firm announced a restructuring plan, impacting thousands of employees. In the real estate market, Beijing introduced a new housing policy allowing eligible families to purchase unlimited homes outside the fifth ring road, aiming to boost demand in outer suburbs.