Expedia (EXPE) reports Record EPS in Q3 2025
Key Points
- EPS: $7.33 GAAP; Adjusted EPS: $7.57 (↑23% YoY)
- Revenue: $4.41 B (↑9% YoY), exceeding guidance of $4.26 B
- Net Income: $959 M (↑40% YoY)
- Adjusted EBITDA: $1.45 B (↑16%), with 208 bps margin expansion
- Gross Bookings: $30.7 B (↑12%), led by B2B +26% and B2C +7%
- Room Nights: 108.2 M (↑11%), fastest U.S. growth in over three years
- Dividend: $0.40 /share declared, payable Dec 11, 2025
- Share Repurchases: $451 M in Q3 (2.3 M shares)
Quarter Highlights
- Lodging bookings up 13%; hotel bookings up 15%, driven by B2B and Expedia brands.
- B2B revenue surged 18%, marking the 17th straight quarter of double-digit growth.
- U.S. revenue grew 4%, while non-U.S. sales rose 15%, showing strong international recovery.
- Free cash flow was $(686) M, narrowing from $(1.7) B YoY due to working capital swings.
CEO Statement & Outlook
CEO Ariane Gorin highlighted improved demand, disciplined execution, and continued progress on strategic priorities. She noted that Expedia’s “two-sided marketplace” and technology platform continue to drive growth for both travelers and partners.
For FY 2025, Expedia raised guidance:
- Gross bookings: now 6–8% (prior 3–5%)
- Revenue: 6–8% (prior 3–5%)
- Adj. EBITDA margin expansion: 2% (prior 1%)
Financial Summary
| Metric | Q3 2025 | Q3 2024 | YoY |
|---|---|---|---|
| Revenue | $4.41 B | $4.06 B | +9% |
| Operating Income | $1.04 B | $762 M | +36% |
| Net Income | $959 M | $684 M | +40% |
| GAAP EPS | $7.33 | $5.04 | +45% |
| Adj. EPS | $7.57 | $6.13 | +23% |
| Adj. EBITDA | $1.45 B | $1.25 B | +16% |
Capital Return
- Buybacks: $1.4 B YTD (7.9 M shares)
- Quarterly Dividend: $0.40 per share
Key Takeaways
Expedia delivered a solid beat on both revenue and earnings, with robust B2B momentum and record room-night growth. Margin expansion and upgraded full-year guidance underscore operational leverage. The company’s capital return program remains strong, supported by healthy cash flow and balance sheet flexibility.