Expedia Group, Inc. (NASDAQ: EXPE) announced its financial results for the first quarter ended March 31, 2025, demonstrating resilience and strategic execution amid softened travel demand, especially within the U.S. The Seattle-based global travel platform reported 4% year-over-year growth in total gross bookings and 3% growth in revenue, meeting top-line guidance despite current economic uncertainties and fluctuating travel trends.
Who: Expedia Group, a leading global travel technology company operating renowned brands such as Expedia®, Hotels.com®, and Vrbo®.
What: Delivered strong operational and financial performance in Q1 2025, highlighted by significant bookings, revenue growth, and bottom-line improvements.
When: Results announced on May 8, 2025, for the first fiscal quarter ending March 31, 2025.
Where: Headquartered in Seattle, WA; performance reflects both U.S. and international markets.
Booked room nights increased 6% year-over-year to 107.7 million, demonstrating pent-up travel demand despite challenges.
Total gross bookings grew 4% to $31.45 billion, driven by 14% growth in the Business-to-Business (B2B) segment and 1% in the Business-to-Consumer (B2C) segment, reflecting Expedia’s strong international exposure and diversified business model.
Revenue rose 3% to $2.99 billion, led by an impressive 14% rise in B2B revenue and 20% growth in advertising revenue, highlighting a successful expansion in digital marketing capabilities.
Adjusted EBITDA soared 16% year-over-year to $296 million, with a margin expansion of 105 basis points, indicating operational efficiency and cost control.
Adjusted net income increased 81% to \(53 million, while adjusted EPS nearly doubled to \)0.40, showcasing robust profitability and shareholder value creation.
Expedia repurchased approximately 1.7 million shares for $330 million in Q1, underscoring confidence in its long-term growth and capital allocation strategy.
Quarterly dividend was maintained at $0.40 per share, reinforcing commitment to shareholder returns.
Expedia’s balance sheet remains strong with \(5.7 billion in cash and cash equivalents as of March 31, 2025, and manageable long-term debt of \)6.2 billion, yielding a leverage ratio of 2.1x when measured against trailing twelve months’ adjusted EBITDA of approximately \(2.975 billion. Free cash flow stood robust at \)2.76 billion, slightly up from the previous year.
The operational cash flow of $2.95 billion in Q1 reflects the company’s strong cash-generating capabilities, which supports ongoing investments and shareholder returns. The adjusted EBIT loss narrowed by 65%, signaling a turn toward operational profitability despite net losses reported on a GAAP basis, which were chiefly influenced by non-cash expenses like stock-based compensation and restructuring charges.
CEO Ariane Gorin emphasized, “We posted first quarter bookings and revenue within our guidance range despite weaker than expected demand in the US, drove bottom-line meaningfully above our guidance, and made significant progress against our strategic priorities. Looking ahead, we are committed to continuing to deliver margin expansion while growing our top-line.”
This commentary aligns with Expedia’s previous earnings calls where management underscored strategic focus on B2B growth, leveraging international market exposure, and enhancing advertising platforms as catalysts for revenue diversification and margin improvement.
Expedia Group’s Q1 2025 earnings report confirms a resilient rebound in travel demand, supported by strong B2B and advertising revenue growth. The company’s effective share repurchase program and sustained dividend payments reinforce its financial discipline and shareholder orientation. Despite macroeconomic uncertainties and softer domestic travel, Expedia’s diversified business model and operational efficiencies provide a confident outlook for sustained growth and improved profitability.
For full details, review the source 8-K document: Expedia Group Q1 2025 Earnings Release.
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