TLDR
- Expedia reported Q4 revenue of $3.55 billion, up 11% year-over-year, surpassing analyst expectations of $3.42 billion
- B2B segment surged 24% in gross bookings and now represents 38% of total revenue, up from 33% last year
- Adjusted EPS reached $3.78, beating estimates of $3.35, while booked room nights increased 9%
- Company raised quarterly dividend 20% to $0.48 per share and repurchased $255 million in stock during Q4
- Full-year 2026 guidance projects gross bookings growth of 6-8% and revenue growth of 6-9%
Expedia delivered fourth-quarter results that exceeded Wall Street expectations. Revenue climbed 11% to $3.55 billion, beating the $3.42 billion analyst consensus.
The company’s B2B division stole the spotlight with gross bookings jumping 24% to $8.7 billion. That growth crushed the 5% increase seen in consumer bookings.
CEO Ariane Gorin said corporate travel customers, airlines and banks are flocking to Expedia’s platform. The B2B segment now accounts for 38% of total revenue, up from 33% in the prior-year quarter.
Adjusted earnings came in at $3.78 per share, topping estimates of $3.35. Net income dropped to $205 million, or $1.60 per share, from $299 million, or $2.20 per share, a year earlier.
Consumer Brands Make Comeback
Hotels.com and Vrbo returned to growth in Q4 after declining throughout 2024. Total booked room nights rose 9% during the quarter. Gross bookings increased 11% to $27 billion.
The B2C segment posted gross bookings growth of 5% to $18.3 billion. B2C revenue climbed 4% to $2.2 billion. B2C EBITDA margins expanded to 31.5%, up roughly six percentage points year-over-year.
Advertising revenue jumped 19% in the quarter. The company ended 2025 with a record number of active advertising partners.
CFO Scott Schenkel noted that foreign exchange added slightly over one point to bookings growth. Geopolitical issues in Asia impacted growth in the rest-of-world segment.
Product Enhancements and AI Investment
Expedia’s sites and apps are 30% faster than a year ago. The company upgraded checkout processes and expanded payment options.
AI-powered recommendation models drove record fourth-quarter attach rates at Brand Expedia. The company launched as an app within ChatGPT, allowing users to book travel directly through the chatbot.
Lodging property count increased more than 10% compared to 2024. AI tools accelerated property onboarding by 70%. Partner-funded promotions represented over 30% of Q4 bookings, up more than 10 percentage points from Q3.
Shareholder Returns and 2026 Outlook
Expedia repurchased $255 million of stock in Q4, buying back 1.1 million shares. The board raised the quarterly dividend 20% to $0.48 per share.
Free cash flow for 2025 totaled $3.1 billion. The company ended the quarter with $5.7 billion in unrestricted cash and short-term investments.
Adjusted EBITDA reached $848 million in Q4, representing a 24% margin. Cost of revenue improved as a percentage of revenue due to efficiencies in payments and customer service.
For Q1 2026, Expedia expects gross bookings growth of 10-12% and revenue growth of 11-13%. Foreign exchange should provide tailwinds of roughly three points to bookings growth and four points to revenue growth.
Full-year 2026 guidance calls for gross bookings growth of 6-8% and revenue growth of 6-9%. EBITDA margins are expected to expand 100 to 125 basis points for the year.
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