Expedia Group (NASDAQ:EXPE) Issues Quarterly Earnings Results

Key Points

• Expedia beat quarterly estimates: Earnings were $9.39 per share versus $8.85 expected, while revenue reached $4.94 billion, up 11.9% year over year and above the $4.73 billion consensus.
• The company raised its full-year outlook for bookings and revenue and expects adjusted EBITDA margin expansion of 180–200 basis points. However, it forecast slower Q4 growth, with bookings up 3.3%–5.2% and revenue up 4%–5.7%.
• Trailing 12-month free cash flow increased 25% to $3.7 billion; Expedia repurchased about $576 million of shares in Q3 and roughly $1.5 billion year to date.

Expedia Group (NASDAQ:EXPE - Get Free Report) announced its quarterly earnings results on Wednesday. The online travel company reported $9.39 earnings per share for the quarter, topping the consensus estimate of $8.85 by $0.54, FiscalAI reports. The company had revenue of $4.94 billion for the quarter, compared to the consensus estimate of $4.73 billion. Expedia Group had a return on equity of 87.32% and a net margin of 12.97%. The firm's revenue for the quarter was up 11.9% compared to the same quarter last year. During the same period last year, the firm earned $7.57 EPS.

Here are the key takeaways from Expedia Group's conference call:

• Expedia reported a strong third quarter, with gross bookings up 11%, revenue up 12%, and adjusted EBITDA margin expanding more than one percentage point. The company raised its full-year bookings and revenue outlook and now expects 180–200 basis points of adjusted EBITDA margin expansion.
• Management expects Q4 growth to moderate: gross bookings are forecast to rise 3.3%–5.2% and revenue 4%–5.7%, with adjusted EBITDA margin of 22.5%–23.5%. The outlook reflects softer demand, geopolitical disruptions, lapping prior-year B2B promotions, and the fall sale shifting into Q3.
• B2B bookings grew 19%, with double-digit growth across regions, and the company cited opportunities to expand with existing partners and add services such as car rentals and activities. Recent acquisitions and partner mix are putting some near-term pressure on B2B margins.
• Expedia said efficiency initiatives and AI are supporting margins: its Vrbo voice agent resolved more than 15% of inbound contacts in its first two months, while AI tools are improving marketing and product-development productivity. The company expects continued, though potentially slower, progress on cost efficiencies.
• Trailing 12-month free cash flow rose 25% to $3.7 billion, supporting shareholder returns. Expedia repurchased about $576 million of shares in Q3 and approximately $1.5 billion year to date.

Expedia Group Price Performance

EXPE stock traded up $30.11 during mid-day trading on Wednesday, reaching $315.88. 4,346,424 shares of the company's stock were exchanged, compared to its average volume of 1,493,151. The company has a market cap of $37.91 billion, a price-to-earnings ratio of 17.40, a price-to-earnings-growth ratio of 0.69 and a beta of 1.39. The stock's 50 day moving average is $284.21 and its 200 day moving average is $259.60. The company has a debt-to-equity ratio of 2.21, a current ratio of 0.80 and a quick ratio of 0.80. Expedia Group has a 12-month low of $185.34 and a 12-month high of $342.00.

Analyst Ratings Changes

Several analysts recently commented on the company. UBS Group dropped their target price on Expedia Group from $351.00 to $328.00 and set a "neutral" rating on the stock in a report on Tuesday. Stifel Nicolaus set a $204.00 price target on Expedia Group in a report on Tuesday. BMO Capital Markets reissued a "market perform" rating and issued a $285.00 price target on shares of Expedia Group in a report on Friday, August 7th. Evercore set a $430.00 price objective on Expedia Group in a research report on Monday, August 24th. Finally, Citigroup reaffirmed a "neutral" rating on shares of Expedia Group in a research note on Wednesday, August 12th. Eighteen analysts have rated the stock with a Buy rating, twenty have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $312.61.

Insider Activity

In other news, insider Robert Dzielak sold 1,004 shares of the company's stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $335.00, for a total transaction of $336,340.00. Following the completion of the transaction, the insider directly owned 104,331 shares of the company's stock, valued at $34,950,885. This represents a 0.95% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Craig Jacobson sold 3,133 shares of the company's stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $328.52, for a total value of $1,029,253.16. Following the transaction, the director directly owned 29,832 shares of the company's stock, valued at approximately $9,800,408.64. The trade was a 9.50% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 11,950 shares of company stock worth $3,881,995 over the last three months. 5.20% of the stock is currently owned by corporate insiders.

Key Expedia Group News

Here are the key news stories impacting Expedia Group this week:

• Positive Sentiment: Expedia raised its 2026 revenue forecast to $16.37 billion–$16.43 billion from $16.05 billion–$16.22 billion, citing resilient demand. Reuters report
• Positive Sentiment: Third-quarter adjusted earnings were $9.39 per share, above the $8.85 consensus cited in the company results, while revenue of $4.94 billion topped estimates of $4.73 billion and grew 11.9% year over year. The earnings beat and higher sales indicate solid operating performance. MarketBeat earnings report
• Neutral Sentiment: CEO Ariane Gorin said travelers use AI agents increasingly for trip discovery, but still prefer booking with trusted travel brands. This points to a potential new customer-acquisition channel, though AI-driven planning has not yet translated into substantial bookings through those agents. PYMNTS article
• Negative Sentiment: Before the earnings release, UBS lowered its price target to $328 from $351 and maintained a neutral rating, signaling a more cautious analyst view. UBS rating update

Expedia Group Company Profile

Expedia Group, Inc is an online travel company that connects travelers with a broad range of travel products and services. Its offerings include hotel and vacation-rental accommodations, flights, car rentals, cruises, activities, and travel packages. The company serves consumers through its online travel brands and also provides technology, distribution, and marketing solutions to travel suppliers and other business partners.

Expedia Group's consumer brands include Expedia, Hotels.com, Vrbo, Orbitz, Travelocity, Wotif, ebookers, CheapTickets, Abritel, and FeWo-direkt, among others.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.