Expedia Group, Inc. (NASDAQ: EXPE) has announced impressive financial results for the third quarter ending September 30, 2025. The results demonstrate a solid recovery trajectory for the company, reflecting strong demand across its various business segments, particularly in lodging and business-to-business (B2B) operations.

1. Third Quarter Highlights

Growth in Key Metrics

Booked Room Nights: Increased by 11%, buoyed by the fastest growth in the U.S. market over the past three years and sustained international demand.

Total Gross Bookings: Rose by 12%, primarily driven by a remarkable 26% growth in B2B bookings, while business-to-consumer (B2C) bookings grew by 7%.

Lodging Gross Bookings: Grew by 13%, with hotel bookings alone increasing by 15%, once again influenced by robust B2B and Expedia segments.

Financial Performance

Revenue: Increased by 9% to $4.41 billion, significantly attributed to an 18% growth in B2B revenue.

Net Income: Reported a 40% year-over-year increase, reaching $959 million, while adjusted net income saw a 19% rise to $962 million.

Earnings Per Share (EPS): Diluted GAAP EPS surged by 45% to $7.33, and adjusted EPS increased by 23% to $7.57.

Margin Improvements

Adjusted EBITDA: Rose by 16%, reaching $1.45 billion, with a margin expansion of 208 basis points.

Adjusted EBIT: Increased by 27%, achieving $1.13 billion, with margin expansion of 373 basis points.

2. Share Buyback and Dividends

In a move to return capital to shareholders, Expedia repurchased approximately 2.3 million shares for $451 million in the third quarter. In total, the company has repurchased 7.9 million shares for $1.4 billion in the first nine months of 2025. Additionally, the company declared a quarterly cash dividend of $0.40 per share, payable on December 11, 2025.

3. Strategic Insights

Ariane Gorin, CEO of Expedia Group, expressed confidence in the company's performance, stating, “Our strong third quarter results exceeded both our top and bottom-line expectations, reflecting an improved demand environment, disciplined execution, and tangible progress on our strategic priorities.” Gorin highlighted the rapid growth in U.S. room nights and the company's continued success in the B2B space, reaffirming the effectiveness of their two-sided marketplace strategy in driving value for travelers and partners alike.

4. Business Outlook

Looking ahead, Expedia has updated its guidance for the fiscal year 2025:

Gross Bookings Growth: Revised to a range of 6-8%.

Revenue Growth: Expected to fall within the same 6-8% range.

Adjusted EBITDA Margin Expansion: Optimistic about achieving a 2% margin expansion.

5. Conclusion

Expedia Group's impressive third-quarter results showcase its resilience and adaptability in a recovering travel landscape. With strong growth metrics, improved profitability, and a strategic focus on both B2B and B2C segments, the company is positioning itself for continued success in the future. The market will be keenly watching how these trends develop as the company moves into the final quarter of 2025.

Original press release