Expedia Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue grew 12% year-over-year (y/y) to $4,938 million in Q3 2026, compared to $4,412 million in Q3 2025.
• Total Gross Bookings increased 11% y/y to $34,008 million, driven by a 19% growth in B2B Gross Bookings and 7% growth in B2C Gross Bookings.
• Lodging Gross Bookings grew 10% y/y to $24,875 million.
• GAAP Net Income attributable to Expedia Group increased 7% y/y to $1,030 million.
• Adjusted Net Income grew 19% y/y to $1,148 million.
• Adjusted EBITDA increased 17% y/y to $1,689 million, with Adjusted EBITDA margins expanding 135 basis points to 34.2%.
• Diluted GAAP EPS increased 15% y/y to $8.42, while Adjusted EPS rose 24% y/y to $9.39.
• Operating income increased 28% y/y to $1,326 million.
• Net cash provided by operating activities was $(1,157) million for the quarter, compared to $(497) million in the prior year period.
• Free Cash Flow was $(1,399) million for the quarter, compared to $(686) million in the prior year period.
• Deferred merchant bookings increased to $12,579 million at September 30, 2026, from $10,428 million at December 31, 2025.
• Total debt (current and long-term) stood at $5,460 million at September 30, 2026.

Guidance and Future Outlook:

• Expedia Group increased its full-year 2026 guidance.
• Full-year Gross Bookings guidance raised to $131.4 - $131.9 billion (10% growth), up from previous guidance of $129.5 - $130.8 billion (8-9% growth).
• Full-year Revenue guidance raised to $16.37 - $16.43 billion (11-12% growth), up from previous guidance of $16.05 - $16.22 billion (9-10% growth).
• Full-year Adjusted EBITDA margin expansion guidance raised to +1.8 - 2.0 percentage points, up from +1.5 - 1.75 percentage points.
• Q4 2026 Gross Bookings guidance is $27.9 - $28.4 billion (+3.3-5.2% growth).
• Q4 2026 Revenue guidance is $3.69 - $3.75 billion (+4.0-5.7% growth).
• Q4 2026 Adjusted EBITDA guidance is $830 - $880 million.

Business Segments and Product Lines:

• B2B Revenue grew 23% y/y to $1,708 million, while B2C Revenue grew 6% y/y to $3,065 million.
• B2B Adjusted EBITDA grew 17% y/y to $470 million.
• B2C Adjusted EBITDA grew 13% y/y to $1,331 million.
• trivago Adjusted EBITDA grew 12% y/y to $19 million.
• Booked Room Nights grew 7% y/y to 115.7 million.
• Average Daily Rate (ADR) Booked increased 2% y/y to $215.0.
• Booked Air Tickets decreased 6% y/y to 13.6 million.
• Advertising & Media revenue (EG) grew 7% y/y to $206 million.
• Advertising & Media revenue (trivago) grew 20% y/y to $165 million.
• Other revenue (insurance, car rental, destination services, cruise) grew 28% y/y to $483 million.

Market and Competitive Landscape:

• Management cited resilient travel demand as a key driver for exceeding guidance.
• The company is advancing its strategy to build a one-stop travel platform for B2B partners.
• AI is being leveraged to enhance internal productivity and create new sources of growth.
• The company focuses on delivering traveler value through personalized product experiences and improved supply.

Risks and Challenges:

• Forward-looking statements identify risks including intense competition from OTAs, suppliers, search engines, and AI-powered platforms.
• Potential disruptions in the travel industry due to economic conditions, geopolitical events, or public health issues.
• Dependence on relationships with travel suppliers and B2B partners.
• Reliance on search engines and changes to search algorithms or traffic acquisition costs.
• Regulatory risks in alternative accommodations and evolving legal requirements.
• Technology system failures, cybersecurity breaches, and data protection compliance.
• Substantial indebtedness and covenant restrictions.
• Foreign exchange exposure and counterparty risks.

Management Commentary and Tone:

• Ariane Gorin, CEO, stated the company "exceeded the high end of our guidance in the quarter," reflecting strong execution and resilient demand.
• Management expressed confidence in the platform's differentiation and ability to deliver value for stakeholders.
• The tone was positive, highlighting progress in AI integration and B2B platform development.

Other Key Points:

• The company repurchased approximately 2 million shares for $576 million in the third quarter.
• A quarterly cash dividend of $0.48 per share was paid on September 17, 2026.
• A quarterly cash dividend of $0.48 per share was declared on November 4, 2026, payable on December 10, 2026, to stockholders of record as of November 18, 2026.
• Conference call to discuss results was held on November 4, 2026, at 1:30 p.m. PT.
• The company's ecosystem includes three flagship consumer brands (Expedia, Hotels.com, Vrbo), the largest B2B travel business, and a premier advertising network.