Expedia 2025 Q3 Earnings Strong Performance as Net Income Surges 40.9%

Expedia (EXPE) reported robust third-quarter 2025 earnings, exceeding expectations with revenue growth of 8.7% and a 47% rise in EPS. The company raised its full-year guidance, reflecting confidence in sustained demand and strategic execution.

Revenue

Expedia’s total revenue reached $4.41 billion in Q3 2025, driven by strong performance across segments. B2C revenue amounted to $2.88 billion, supported by resilient consumer demand, while the B2B segment surged 18.2% year-over-year to $1.39 billion. Other revenue streams, including Trivago, contributed $194 million, and corporate adjustments totaled $-57 million. International markets outperformed the U.S., with Asia seeing over 20% growth in room nights.

Earnings/Net Income

Expedia’s EPS increased 47% to $7.76, while net income rose 40.9% to $964 million. This reflects disciplined cost management and margin expansion, with adjusted EBITDA growth underscoring operational efficiency. The earnings trajectory highlights the company’s ability to capitalize on recovery trends in global travel.

Post-Earnings Price Action Review

The stock price of Expedia surged 4.55% in the latest trading day, 17.39% for the week, and 21.58% month-to-date. A backtest of buying shares on earnings release dates and holding for 30 days yielded a 38.5% cumulative return over three years, outpacing the 13.5% buy-and-hold strategy. This momentum suggests that Expedia’s positive post-earnings performance could attract strategic trading activity, particularly in a market favoring high-growth stocks.

Additional News

1. B2B Expansion: Expedia’s B2B segment bookings rose 26% to $9.38 billion, driven by corporate travel demand and partnerships with financial institutions.

2. AI Integration: The company launched AI-powered tools, including a conversational trip planner and enhanced advertising solutions, to improve customer experience and partner engagement.

3. Regional Momentum: Asia led global growth with over 20% year-over-year room night increases, while U.S. demand hit a three-year high.

CEO Commentary

CEO Ariane Gorin emphasized the “improved demand environment and disciplined execution” as key drivers of performance. She highlighted the B2B segment’s 17th consecutive quarter of double-digit growth and AI advancements in customer service, which resolved 50% of inquiries via virtual agents.

Guidance

Expedia raised 2025 revenue growth guidance to 6-7% from 3-5%, reflecting confidence in B2B momentum and margin expansion. The company anticipates continued international recovery and strategic investments in technology to sustain long-term growth.