Expedia Group reported third‑quarter 2025 results that surpassed analyst expectations, with revenue of $4.412 billion—up 9 % from $4.06 billion in Q3 2024—and adjusted earnings per share of $7.57, a 23 % increase over the prior year. The adjusted EPS beat the consensus estimate of $7.21 by $0.36, while revenue exceeded the $4.30 billion forecast by $0.112 billion.
Gross bookings climbed 12 % to $30.73 billion, driven by a 26 % jump in B2B bookings and a 7 % rise in consumer bookings. B2B revenue reached $1.39 billion, up 18 % YoY, while B2C revenue grew 3.7 % to $2.88 billion, underscoring the company’s dual‑channel strategy.
Adjusted EBITDA margin expanded 208 basis points to 33 % from 31 % in the same quarter last year, and adjusted EBIT margin grew 373 basis points. The lift reflects disciplined cost control, higher average daily rates, and the continued deployment of AI‑driven efficiencies that have reduced marketing spend per booking and improved partner content quality.
Management raised full‑year guidance, projecting revenue growth of 6 % to 8 % and an adjusted EBITDA margin expansion of 2 % to 4 %. CEO Ariane Gorin highlighted the “improved demand environment, disciplined execution and progress on our strategic priorities,” noting that B2B had “another fantastic quarter” and that AI integration is “injecting AI into our partner experiences… improving content and targeting.”
The quarter also saw Expedia repurchase $451 million of shares and declare a quarterly dividend of $0.40 per share, reinforcing its commitment to shareholder returns. The results reinforce Expedia’s competitive position against peers such as Booking Holdings and Airbnb, as the company’s B2B engine continues to deliver double‑digit growth while consumer demand rebounds in the U.S.
Overall, the earnings beat, margin expansion, and upward guidance signal that Expedia’s focus on cost discipline, AI investment, and B2B growth is translating into stronger financial performance, positioning the company for continued resilience in a recovering travel market.
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