Expedia 2025 Q3 Earnings Beats Expectations, Net Income Jumps 40.9%

Expedia Group (EXPE) reported Q3 2025 earnings that exceeded expectations, with revenue rising 8.7% to $4.41 billion and net income surging 40.9% to $964 million. The company raised full-year revenue guidance to 6-7% growth from 3-5%, reflecting strong performance in both B2B and B2C segments.

Revenue

Revenue growth was driven by the B2C segment, which contributed $2.88 billion, while the B2B segment added $1.39 billion. Other revenue streams, including Trivago, accounted for $137 million, bringing total revenue to $4.41 billion. This reflects robust demand across all business lines, with B2B growth outpacing B2C, underscoring the company’s expanding two-sided marketplace strategy.

Earnings/Net Income

Expedia’s EPS rose 47.0% to $7.76, while net income surged to $964 million, reflecting disciplined cost management and margin expansion. The earnings growth, marked by a 47% rise in EPS and 40.9% higher net income, underscores strong operational performance and market confidence.

Post-Earnings Price Action Review

The strategy of buying Expedia (EXPE) shares on the date of its revenue raise and holding for 30 days yielded strong returns over the past three years. The cumulative profit reached $2,385, with a compound annual growth rate (CAGR) of 42.58%. This outperformed the SPY ETF, which achieved a CAGR of 18.24% over the same period, highlighting the strategy’s effectiveness.

CEO Commentary

CEO Ariane Gorin emphasized the company’s outperformance of Q3 guidance, driven by a robust demand environment and disciplined execution. She highlighted U.S. room-night growth at the fastest pace in three years, 26% B2B growth, and 7% consumer bookings. Gorin underscored margin expansion in Adjusted EBITDA (208 bps) and Adjusted EBIT (373 bps), alongside $451 million in share repurchases and a $0.40 dividend.

Guidance

Expedia Group raised full-year 2025 guidance for Q4, projecting 7% gross bookings (up from 3-5%), 6-7% revenue (up from 3-5%), and 2% Adjusted EBITDA margin expansion (up from 1%). The company also declared a $0.40 per share dividend, reflecting confidence in sustaining B2B and B2C momentum.

Additional News

Expedia announced a $0.40 per share dividend and $451 million in share repurchases during Q3 2025, signaling strong capital return commitment. The company also partnered with Google and OpenAI to enhance AI-driven travel search capabilities, aiming to improve user experience. Additionally, Expedia’s B2B segment saw 26% year-over-year growth, driven by corporate travel demand and strategic partnerships with financial institutions.

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