Expedia Group Surges 18% After Q2 Earnings Beat Estimates

Expedia Group reported Q2 revenue of $3.79 bln, up 6% YoY, beating the consensus estimate of $3.70 bln. Earnings per share of $4.24 also beat the consensus estimate of $3.90. The company's shares jumped 17.7% in pre-market trading. Other stocks moving in pre-market trading include MEDIROM Healthcare Technologies, Oriental Rise Holdings, and Click Holdings, which gained 75%, 71%, and 32.3% respectively.

Expedia Group, Inc. (EXPE) reported its second-quarter 2025 results, showcasing robust financial performance that exceeded market expectations. The company's adjusted earnings per share (EPS) of $4.24 surpassed the Zacks Consensus Estimate by 2.42%, representing a 20.8% year-over-year (YoY) increase [1][2]. Revenue for the quarter reached $3.79 billion, a 6.4% YoY rise that exceeded the consensus estimate of $3.70 billion by 1.94% [1][2].

Key highlights of the quarter include a 15% YoY increase in B2B revenues to $1.21 billion and a 2% YoY increase in B2C revenues to $2.48 billion. Advertising revenues jumped 19% YoY, while total gross bookings rose 5% to $30.4 billion, driven by a 17% increase in B2B gross bookings and a 1% increase in B2C gross bookings [1][2]. Lodging gross bookings grew 6% to $22.07 billion, with hotel bookings climbing 8%, driven by resilience in B2B and Brand Expedia segments [1][2].

Operating details reveal that adjusted EBITDA was $908 million, up 15.5% YoY, with an adjusted EBITDA margin of 24% expanding by 190 basis points (bps). Direct sales and marketing expenses were $1.92 billion, representing 50.7% of revenues, up 7.1% YoY, while overhead expenses were $637 million, representing 16.8% of revenues, up 5.1% YoY. Adjusted EBIT increased 22.7% YoY to $583 million, with an adjusted EBIT margin improving by 200 bps to 15.4% [1][2].

As of June 30, 2025, Expedia's cash and cash equivalents and short-term investments stood at $6.7 billion, up from $6.1 billion as of March 31, 2025. Long-term debt remained at $4.466 billion, with a gross leverage ratio of 2x, matching the target and maintaining an investment-grade rating. Net cash provided by operating activities was $1.12 billion, and free cash flow was $921 million [1][2].

Expedia raised its Q3 and 2025 guidance, expecting gross bookings to be in the 5-7% range for the third quarter and revenue growth of 4-6%. For 2025, the company expects gross bookings and revenue growth in the 3% to 5% range, with adjusted EBITDA margin expansion of more than 100 bps YoY [1][2].

Expedia's stock price responded positively to the news, climbing 17.7% in pre-market trading. Other notable movements in pre-market trading included MEDIROM Healthcare Technologies, Oriental Rise Holdings, and Click Holdings, which gained 75%, 71%, and 32.3%, respectively [3].

References:
[1] https://finance.yahoo.com/news/expedia-q2-earnings-revenues-beat-153500172.html
[2] https://www.nasdaq.com/articles/expedia-q2-earnings-revenues-beat-estimates-q3-guidance-raised
[3] https://finance.yahoo.com/news/expedia-stock-soars-14-better-132915811.html