Expedia Group Reports Third Quarter 2026 Results
SEATTLE, WA – November 4, 2026 – Expedia Group, Inc. (NASDAQ: EXPE) announced financial results today for the third quarter ended September 30, 2026.
• Total Gross Bookings grew 11%, while B2B Gross Bookings grew 19% and B2C Gross Bookings grew 7%.
• GAAP net income increased 7% while Adjusted Net Income grew 19%. Adjusted EBITDA increased 17% with 135 basis points of margin expansion.
• Diluted GAAP earnings per share increased 15% while Adjusted EPS increased 24%.
• Repurchased approximately 2 million shares for $576 million in the third quarter.
• Paid quarterly dividend of $0.48 per share on September 17, 2026 and declared quarterly dividend of $0.48 per share on November 4, 2026.
“We exceeded the high end of our guidance in the quarter, reflecting resilient travel demand and strong execution,” said Ariane Gorin, CEO of Expedia Group. “We continue to deliver traveler value through more personalized and rewarding product experiences, improve supply across our marketplace, and advance our strategy to build the one-stop travel platform for B2B partners. AI is opening further opportunities across our business, enhancing internal productivity and creating new sources of growth. Our progress and the results we delivered demonstrate the differentiation of our platform and reinforce our confidence in our ability to deliver value for all our stakeholders.”
* A reconciliation of non-GAAP financial measures to the most comparable GAAP measures is provided at the end of this release. Page 1 of 14
Metric Full Year 2026 Previous Guidance Current Guidance Gross Bookings +8-9% +10% Revenue +9-10% +11-12% Adjusted EBITDA margin expansion** +1.5 - 1.75pts +1.8 - 2.0pts
** A reconciliation for the Adjusted EBITDA and Adjusted EBITDA margin expansion forecast is not provided because we cannot, without unreasonable effort, predict certain items, including but not limited to, foreign exchange rate gains or losses and minority investment gains or losses, and are unable to address the probable significance of the unavailable information.
Expedia Group’s Executive Committee, acting on behalf of its Board of Directors, has declared a quarterly cash dividend of $0.48 per share of outstanding common stock, payable on December 10, 2026 to stockholders of record as of the close of business on November 18, 2026.
Expedia Group will webcast a conference call to discuss third quarter 2026 financial results and certain forward-looking information on Wednesday, November 4, 2026 at 1:30 p.m. Pacific Time (PT). The webcast will be open to the public and available via ir.expediagroup.com. Expedia Group expects to maintain access to the webcast on the IR website for approximately twelve months subsequent to the initial broadcast. An earnings presentation containing financial and other statistical information supporting the prepared remarks on the call, together with reconciliations of the non-GAAP financial measures used, will be available on the "Investors" section of Expedia Group's website at ir.expediagroup.com beginning at approximately 1:00 p.m. PT on the same date and will remain available following the call.
is the global travel marketplace with one purpose: to help travel ers explore the world, one journey at a time. Expedia Group™ connects travelers, partners, and advertisers through its trusted brands, leading technology, and rich first- party data, delivering predictive, personalized experiences that shape the future of travel.
Expedia Group’s ecosystem includes three flagship consumer brands – Expedia®, Hotels.com®, and Vrbo® – the largest B2B travel business, and a premier advertising network. Guided by an experienced and passionate global team, Expedia Group helps millions of travelers in more than 70 countries explore the world with confidence and ease.
© 2026 Expedia, Inc., an Expedia Group company. All rights reserved. Expedia Group and the Expedia Group logo are trademarks of Expedia, Inc. CST: 2029030-50.
(All figures in millions, except ADR booked) The metrics below are intended to supplement the financial statements in this release and in our filings with the SEC, and do not include adjustments for one- time items, acquisitions, foreign exchange or other adjustments. The definition or methodology of any of our supplemental metrics are subject to change, and such changes could be material. We may also discontinue certain supplemental metrics as our business evolves over time. In the event of any discrepancy between any supplemental metric and our historical financial statements, you should rely on the information included in the financial statements filed with or furnished to the SEC.
(1) Our Advertising & Media business consists of Expedia Group ("EG") Advertising, which is responsible for generating advertising revenue on our global online travel brands, and third-party revenue for trivago, a leading hotel metasearch site. (2) Other revenue primarily includes insurance, car rental, destination services and cruise revenue.
• All trivago revenue is classified as Non-U.S. point of sale. Some numbers may not add due to rounding.
• All percentages throughout this release are calculated on precise, unrounded numbers. Page 3 of 14
(3) See the sections below titled “Non-GAAP Measures” and "Tabular Reconciliations for Non-GAAP Measures” for additional information, including reconciliations to the most directly comparable GAAP measures. (4) Other segment items include total adjusted overhead expenses (see section below titled “Tabular Reconciliations for Non-GAAP Measures – Adjusted Expenses”), as well as the realized foreign currency gains or losses related to the forward contracts hedging a component of our net merchant lodging revenue for our B2C and B2B segments.
Notes: Some numbers may not add due to rounding. All percentages throughout this release are calculated on precise, unrounded numbers. Page 4 of 14
(In millions, except number of shares which are reflected in thousands and par value)
September 30, 2026 December 31, 2025 ────────────────────────────────────────────────────────────────────────────── -Unaudited ASSETS Current assets: Cash and cash $ 5,040 $ 5,413 equivalents Restricted cash and 1,543 1,563 cash equivalents Short-term 527 320 investments Accounts receivable, net of allowance of 5,513 4,166 $105 and $74 Income taxes 52 38 receivable Prepaid expenses and other current 1,516 699 assets Total current assets 14,191 12,199 Property and 2,459 2,447 equipment, net Operating lease 278 296 right-of-use assets Long-term investments and 1,192 1,387 other assets Deferred income 277 432 taxes Intangible assets, 1,112 819 net Goodwill 7,342 6,872 TOTAL ASSETS $ 26,851 $ 24,452 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable, $ 2,466 $ 2,188 merchant Accounts payable, 1,245 1,103 other Deferred merchant 12,579 10,428 bookings Deferred revenue 166 163 Income taxes payable 120 56 Accrued expenses and other current 1,042 1,027 liabilities Current maturities 749 1,692 of long-term debt Total current 18,367 16,657 liabilities Long-term debt, excluding current 4,711 4,469 maturities Deferred income 48 20 taxes Operating lease 226 254 liabilities Other long-term 583 505 liabilities Commitments and contingencies Stockholders’ equity: Common stock: $.0001 par value; — — Authorized shares: 1,600,000 Shares issued: 294,719 and 291,448; Shares outstanding: 113,122 and 116,975 Class B common stock: $.0001 par value; — — Authorized shares: 400,000 Shares issued: 12,800 and 12,800; Shares outstanding: 5,523 and 5,523 Additional paid-in 16,956 16,565 capital Treasury stock - Common stock and Class -18,511 -16,786 B, at cost; Shares 188,874 and 181,749 Retained earnings 3,425 1,696 Accumulated other comprehensive income -218 -191 (loss) Total Expedia Group, Inc. stockholders’ 1,652 1,284 equity Non-redeemable non-controlling 1,264 1,263 interests Total stockholders’ 2,916 2,547 equity TOTAL LIABILITIES AND STOCKHOLDERS’ $ 26,851 $ 24,452 EQUITY
Nine months ended September 30, Operating activities: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 1,902 $ 1,089 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment, including internal-use software 654 635 and website development Amortization of intangible 26 32 assets Amortization of stock-based 337 293 compensation Deferred income taxes 160 102 Foreign exchange (gain) loss on cash, 36 -118 restricted cash and short-term investments, net Realized (gain) loss on foreign currency 178 -163 forwards, net (Gain) loss on minority equity -134 125 investments, net Other, net 44 36 Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable -1,269 -1,289 Prepaid expenses and other -171 -28 assets Accounts payable, merchant 113 50 Accounts payable, other, accrued 207 234 expenses and other liabilities Tax payable/receivable, net 93 9 Deferred merchant bookings 2,076 2,569 Net cash provided by operating 4,252 3,576 activities Investing activities: Capital expenditures, including internal-use software and -625 -585 website development Purchases of investments -930 -518 Sales and maturities of 438 616 investments Proceeds from exchange of cross-currency 692 — interest rate swaps Payments for exchange of cross-currency -692 — interest rate swaps Acquisitions and other, net -727 155 Net cash used in investing -1,844 -332 activities Financing activities: Proceeds from issuance of long-term 986 985 debt, net of issuance costs Payments related to long-term -1,828 -1,044 debt Purchases of treasury stock -1,727 -1,603 Payment of dividends to -173 -151 stockholders Proceeds from exercise of equity awards 47 50 and employee stock purchase plan Other, net -67 16 Net cash used in financing -2,762 -1,747 activities Effect of exchange rate changes on cash, cash equivalents and restricted -39 191 cash and cash equivalents Net increase (decrease) in cash, cash equivalents and restricted cash -393 1,688 and cash equivalents Cash, cash equivalents and restricted cash and cash equivalents at 6,976 5,574 beginning of period Cash, cash equivalents and restricted cash and cash equivalents at $ 6,583 $ 7,262 end of period
Average Daily Rate (ADR) Booked : Represents the average paid rate per booked room night, calculated as total lodging gross bookings divided by booked room nights.
Gross Bookings : Generally represent the total retail value of transactions booked, recorded at the time of booking reflecting the total price due for travel by travelers, including taxes, fees and other charges, adjusted for cancellations and refunds.
Lodging Metrics : Reported on a booked basis except for revenue, which is on a stayed basis. Lodging consists of both merchant and agency model hotel and alternative accommodations.
B2C : The B2C segment provides a full range of travel and advertising services to our worldwide customers through a variety of consumer brands including: Expedia, Hotels.com, Vrbo, Orbitz, Travelocity, Wotif Group, ebookers, Hotwire.com, and CarRentals.com.
B2B : The B2B segment fuels a wide range of travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management and financial institutions, who leverage our leading travel technology and tap into our diverse supply to augment their offerings and market Expedia Group rates and availabilities to their travelers.
trivago : The trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its localized hotel metasearch websites.
Expedia Group reports Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), Adjusted EPS, Free Cash Flow and Adjusted Expenses (non-GAAP cost of revenue, non-GAAP selling and marketing, non-GAAP technology and content and non-GAAP general and administrative), all of which are supplemental measures to GAAP and are defined by the SEC as non-GAAP financial measures. These measures are among the primary metrics by which management evaluates the performance of the business and on which internal budgets are based. Management believes that investors should have access to the same set of tools that management uses to analyze our results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP. Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted EPS have certain limitations in that they do not take into account the impact of certain expenses to our consolidated statements of operations. We endeavor to compensate for the limitation of the non-GAAP measures presented by also providing the most directly comparable GAAP measures and descriptions of the reconciling items and adjustments to derive the non-GAAP measures. Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted EPS also exclude certain items related to transactional tax matters, which may ultimately be settled in cash. We urge investors to review the detailed disclosure regarding these matters in the Management Discussion and Analysis and Legal Proceedings sections, as well as the notes to the financial statements, included in the Company's annual and quarterly reports filed with the Securities and Exchange Commission. The non- GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
(Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization) is defined as net income (loss) attributable to Expedia Group adjusted for:
(4) stock-based compensation expense, including compensation expense related to certain subsidiary equity plans;
(i) amortization of intangible assets and goodwill and intangible asset impairment,
(ii) gains (losses) recognized on changes in the value of contingent consideration arrangements;
(iii) upfront consideration paid to settle employee compensation plans of the acquiree; and
(7) items included in legal reserves, occupancy tax and other, which includes reserves for potential settlement of issues related to transactional taxes (e.g. hotel and excise taxes), related to court decisions and final settlements, and charges incurred, if any, for monies that may be required to be paid in advance of litigation in certain transactional tax proceedings;
(8) that portion of gains (losses) on revenue hedging activities that are included in other, net that relate to revenue recognized in the period; and
The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, or because the amount and timing of these items is unpredictable, not driven by core operating results and renders comparisons with prior periods and competitors less meaningful. We believe Adjusted EBITDA is a useful measure for analysts and investors to evaluate our future on-going performance as this measure allows a more meaningful comparison of our performance and projected cash earnings with our historical results from prior periods and to the results of our competitors. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments. In addition, we believe that by excluding certain items, such as stock-based compensation and acquisition-related impacts, Adjusted EBITDA corresponds more closely to the cash operating income generated from our business and allows investors to gain an understanding of the factors and trends affecting the ongoing cash earnings capabilities of our business, from which capital investments are made and debt is serviced.
Expedia Group includes certain unaudited financial information for the trailing twelve months ("TTM") ended September 30, 2026, which is calculated as the twelve months ended September 30, 2026. This presentation is not in accordance with GAAP. However, we believe that this presentation provides useful information to investors regarding our recent financial performance, and we view this presentation of the four most recently completed fiscal quarters as a key measurement period for investors to assess our historical results.
generally captures all items on the statements of operations that occur in normal course operations and have been, or ultimately will be, settled in cash and is defined as net income (loss) attributable to Expedia Group plus the following items, net of tax (a) :
(1) stock-based compensation expense, including compensation expense related to equity plans of certain subsidiaries and equity-method investments;
(i) amortization of intangible assets, including as part of equity-method investments, and goodwill and intangible asset impairment;
(ii) gains (losses) recognized on changes in the value of contingent consideration arrangements;
(iii) upfront consideration paid to settle employee compensation plans of the acquiree; and
(iv) gains (losses) recognized on non-controlling investment basis adjustments when we acquire or lose controlling interests;
(6) items included in legal reserves, occupancy tax and other, which includes reserves for potential settlement of issues related to transactional taxes (e.g., hotel occupancy and excise taxes), related court decisions and final settlements, and charges incurred, if any, for monies that may be required to be paid in advance of litigation in certain transactional tax proceedings, including as part of equity method investments;
(9) unrealized gains (losses) on revenue hedging activities that are included in other, net.
During the fourth quarter of 2025 and first quarter of 2026, an adjustment for the loss related to the conversion option on our Convertible Notes, including amortization of the debt discount and change in fair value of the embedded derivative, was excluded from net income to calculate Adjusted Net Income.
We believe Adjusted Net Income (Loss) is useful to investors because it represents Expedia Group's combined results, taking into account depreciation, which management believes is an ongoing cost of doing business, but excluding the impact of certain expenses and items not directly tied to the core operations of our businesses.
(a) We use a long-term projected tax rate in the calculation of Adjusted Net Income as we believe this tax rate provides better consistency across reporting periods and produces results that are reflective of Expedia Group’s long-term effective tax rate. This long-term projected tax rate is a total tax rate, and eliminates the effects of non-recurring and period-specific income tax items which can vary in size and frequency. We apply this tax rate to pretax income, as adjusted commensurate with our Adjusted Net Income definition. In 2024 and through the second quarter of 2025, we applied a 21.5% long-term projected tax rate to compute Adjusted Net Income. We adjusted our long-term projected tax rate to 20.0% to consider the net effect of U.S. tax law enacted in the third quarter of 2025.
is defined as Adjusted Net Income (Loss) divided by adjusted weighted average shares outstanding, which, when applicable, include dilution from our convertible debt instruments per the treasury stock method for Adjusted EPS. The treasury stock method assumes we would elect to settle the principal amount of the debt for cash and the conversion premium for shares. If the conversion prices for such instruments exceed our average stock price for the period, the instruments generally would have no impact to adjusted weighted average shares outstanding. This differs from the GAAP method for dilution from our convertible debt instruments, which include them on an if-converted method. We believe Adjusted EPS is useful to investors because it represents, on a per share basis, Expedia Group's consolidated results, taking into account depreciation, which we believe is an ongoing cost of doing business, as well as other items which are not allocated to the operating businesses such as interest expense, taxes, foreign exchange gains or losses, and minority interest, but excluding the effects of certain expenses not directly tied to the core operations of our businesses. Adjusted Net Income (Loss) and Adjusted EPS have similar limitations as Adjusted EBITDA. In addition, Adjusted Net Income (Loss) does not include all items that affect our net income (loss) and net income (loss) per share for the period. Therefore, we think it is important to evaluate these measures along with our consolidated statements of operations.
is defined as net cash flow provided by operating activities less capital expenditures. Management believes Free Cash Flow is useful to investors because it represents the operating cash flow that our operating businesses generate, less capital expenditures but before taking into account other cash movements that are not directly tied to the core operations of our businesses, such as financing activities, foreign exchange or certain investing activities. Free Cash Flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent the residual cash flow for discretionary expenditures. Therefore, it is important to evaluate Free Cash Flow along with the consolidated statements of cash flows.
exclude stock-based compensation related to expenses for stock options, restricted stock units and other equity compensation under applicable stock- based compensation accounting standards. Expedia Group excludes stock-based compensation from these measures primarily because they are non-cash expenses that we do not believe are necessarily reflective of our ongoing cash operating expenses and cash operating income. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use when adopting applicable stock-based compensation accounting standards, management believes that providing non-GAAP financial measures that exclude stock-based compensation allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies, as well as providing management with an important tool for financial operational decision making and for evaluating our own recurring core business operating results over different periods of time. There are certain limitations in using financial measures that do not take into account stock-based compensation, including the fact that stock-based compensation is a recurring expense and a valued part of employees' compensation. Therefore, it is important to Page 10 of 14 evaluate both our GAAP and non-GAAP measures. See the Notes to the Consolidated Statements of Operations for stock-based compensation by line item.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These forward-looking statements are based on assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. The use of words such as “believe,” “estimate,” “expect” and “will,” or the negative of these terms or other similar expressions, among others, generally identify forward-looking statements. However, these words are not the exclusive means of identifying such statements. In addition, any statements that refer to our outlook, expectations, projections or other characterizations of future events or circumstances are forward-looking statements and may include statements relating to future gross bookings; revenues; expenses; margins and margin expansion, including adjusted EBITDA margin expansion; profitability; net income (loss); earnings per share and other measures of results of operations and the prospects for future growth of Expedia Group’s business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others:
• intense competition from online travel agencies, suppliers, search engines, B2B businesses offering competing travel technology solutions and services, and emerging AI-powered platforms;
• declines or disruptions in the travel industry due to economic conditions, geopolitical events, or public health issues;
• dependence on search engines and changes to search algorithms or traffic acquisition costs;
• payment processing risks, fraud, and third-party payment provider dependencies;
• risks from acquisitions, investments, divestitures, and commercial arrangements;
• regulatory risks in alternative accommodations and evolving legal requirements;
• technology system failures, cybersecurity breaches, and data protection compliance;
For more information about risks and uncertainties associated with Expedia Group’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of our most recently filed periodic reports on Form 10-K and Form 10-Q, which are available on our investor relations website at ir.expediagroup.com and on the SEC website at www.sec.gov. All information provided in this release is as of November 4, 2026 . We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in Expedia Group’s expectations unless required by law. Page 11 of 14
(2) Unallocated corporate and other expenses include certain shared expenses such as accounting, human resources and certain information and technology and legal costs. Page 12 of 14 Adjusted Net Income (Loss) & Adjusted EPS
(1) In periods for which we have Adjusted net income, the GAAP diluted average shares and diluted earnings (loss) per share is presented. In addition, we adjusted for our convertible debt instruments, during the period outstanding prior to November 2025, per the treasury stock method.
Adjusted Expenses (Cost of revenue, direct and indirect selling and marketing, technology and content and general and administrative expenses)
(1) Total adjusted overhead expenses is the sum of adjusted expenses for Selling and marketing - indirect, Technology and content, and General and administrative. Page 14 of 14
Full text with the tables
Expedia Group Reports Third Quarter 2026 Results
Exceeded guidance with 11% Gross Bookings and 12% revenue growth y/y
Grew GAAP Net Income 7% and Adjusted EBITDA 17% y/y
Expanded Adj. EBITDA margins y/y
Increases full year guidance
SEATTLE, WA – November 4, 2026 – Expedia Group, Inc. (NASDAQ: EXPE) announced
financial results today for the third quarter ended September 30, 2026.
Third Quarter Highlights
(All comparisons year-over-year)
• Booked Room Nights grew 7%.
• Total Gross Bookings grew 11%, while B2B Gross Bookings grew 19% and B2C Gross
Bookings grew 7%.
• Lodging Gross Bookings grew 10%.
• Revenue grew 12%, driven by B2B, which grew 23%.
• GAAP net income increased 7% while Adjusted Net Income grew 19%. Adjusted
EBITDA increased 17% with 135 basis points of margin expansion.
• Diluted GAAP earnings per share increased 15% while Adjusted EPS increased
24%.
• Repurchased approximately 2 million shares for $576 million in the third
quarter.
• Paid quarterly dividend of $0.48 per share on September 17, 2026 and declared
quarterly dividend of $0.48 per share on November 4, 2026.
“We exceeded the high end of our guidance in the quarter, reflecting resilient
travel demand and strong execution,” said Ariane Gorin, CEO of Expedia Group.
“We continue to deliver traveler value through more personalized and rewarding
product experiences, improve supply across our marketplace, and advance our
strategy to build the one-stop travel platform for B2B partners. AI is opening
further opportunities across our business, enhancing internal productivity and
creating new sources of growth. Our progress and the results we delivered
demonstrate the differentiation of our platform and reinforce our confidence in
our ability to deliver value for all our stakeholders.”
Financial Summary & Operating Metrics
(In millions except per share amounts)
Expedia Group, Inc.
Metric Q3 2026 Q3 2025 Δ Y/Y
Booked Room Nights 115.7 108.2 7%
Gross Bookings $34,008 $30,727 11%
Revenue $4,938 $4,412 12%
Operating income $1,326 $1,036 28%
Net income attributable to
Expedia $1,030 $959 7%
Group, Inc.
Diluted Earnings Per Share $8.42 $7.33 15%
Adjusted EBITDA* $1,689 $1,449 17%
Adjusted EPS* $9.39 $7.57 24%
Net cash provided by (used in)
operating $(1,157) $(497) 133%
activities
Free Cash Flow* $(1,399) $(686) 104%
* A reconciliation of non-GAAP financial measures to the most comparable GAAP
measures is provided at the end of this release.
Page 1 of 14
Business Outlook
Metric Q4 2026
Gross Bookings +3.3-5.2%
Revenue +4.0-5.7%
Adjusted EBITDA** $830 - $880M
Metric Full Year 2026
Previous Guidance Current Guidance
Gross Bookings +8-9% +10%
Revenue +9-10% +11-12%
Adjusted EBITDA margin expansion** +1.5 - 1.75pts +1.8 - 2.0pts
** A reconciliation for the Adjusted EBITDA and Adjusted EBITDA margin expansion
forecast is not provided because we cannot, without unreasonable effort, predict
certain items, including but not limited to, foreign exchange rate gains or
losses and minority investment gains or losses, and are unable to address the
probable significance of the unavailable information.
Quarterly Dividend
Expedia Group’s Executive Committee, acting on behalf of its Board of Directors,
has declared a quarterly cash dividend of $0.48 per share of outstanding common
stock, payable on December 10, 2026 to stockholders of record as of the close of
business on November 18, 2026.
Conference Call
Expedia Group will webcast a conference call to discuss third quarter 2026
financial results and certain forward-looking information on Wednesday, November
4, 2026 at 1:30 p.m. Pacific Time (PT). The webcast will be open to the public
and available via ir.expediagroup.com. Expedia Group expects to maintain access
to the webcast on the IR website for approximately twelve months subsequent to
the initial broadcast. An earnings presentation containing financial and other
statistical information supporting the prepared remarks on the call, together
with reconciliations of the non-GAAP financial measures used, will be available
on the "Investors" section of Expedia Group's website at ir.expediagroup.com
beginning at approximately 1:00 p.m. PT on the same date and will remain
available following the call.
About Expedia Group
Expedia Group, Inc.
is the global travel marketplace with one purpose: to help travel ers explore
the world, one journey at a time. Expedia Group™ connects travelers, partners,
and advertisers through its trusted brands, leading technology, and rich first-
party data, delivering predictive, personalized experiences that shape the
future of travel.
Expedia Group’s ecosystem includes three flagship consumer brands – Expedia®,
Hotels.com®, and Vrbo® – the largest B2B travel business, and a premier
advertising network. Guided by an experienced and passionate global team,
Expedia Group helps millions of travelers in more than 70 countries explore the
world with confidence and ease.
© 2026 Expedia, Inc., an Expedia Group company. All rights reserved. Expedia
Group and the Expedia Group logo are trademarks of Expedia, Inc. CST:
2029030-50.
Contacts
Investor Relations Communications
ir@expediagroup.com press@expediagroup.com
Page 2 of 14
Expedia Group, Inc.
Trended Metrics
(All figures in millions, except ADR booked)
The metrics below are intended to supplement the financial statements in this
release and in our filings with the SEC, and do not include adjustments for one-
time items, acquisitions, foreign exchange or other adjustments. The definition
or methodology of any of our supplemental metrics are subject to change, and
such changes could be material. We may also discontinue certain supplemental
metrics as our business evolves over time. In the event of any discrepancy
between any supplemental metric and our historical financial statements, you
should rely on the information included in the financial statements filed with
or furnished to the SEC.
20… 20… Y…
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Gr…
O…
m…
B…
R… 10… 10… 1… 94… 1… 11… 1… 7 %
N…
A…
D…
R… $2… $2… $… $2… $… $2… $… 2 %
(…
B…
B…
A… 14… 15… 1… 12… 1… 14… 1… -6 %
T…
G…
B…
by
b…
m…
A… $1… $1… $… $1… $… $1… $… 4%
M… 18… 18… 1… 16… 2… 20… 2… 15%
T… $3… $3… $… $2… $… $3… $… 11%
G…
B…
by
p…
L… $2… $2… $… $1… $… $2… $… 10%
N… 8,… 8,… 8… 7,… 9… 9,… 9… 14%
T… $3… $3… $… $2… $… $3… $… 11%
R…
by
p…
L… $2… $3… $… $2… $… $3… $… 11%
A… 107 105 1… 94 1… 91 93 (7…
A…
&
M… 174 182 1… 208 1… 206 2… 7%
-
E…
A…
&
M… 85 98 1… 97 1… 145 1… 20%
-
t…
O… 333 361 3… 329 3… 444 4… 28%
T… $2… $3… $… $3… $… $4… $… 12%
R…
by
g…
U…
p… $1… $2… $… $2… $… $2… $… 12%
of
s…
N…
p… 1,… 1,… 1… 1,… 1… 1,… 2… 12%
of
s…
T… $2… $3… $… $3… $… $4… $… 12%
(1) Our Advertising & Media business consists of Expedia Group ("EG")
Advertising, which is responsible for generating advertising revenue on our
global online travel brands, and third-party revenue for trivago, a leading
hotel metasearch site.
(2) Other revenue primarily includes insurance, car rental, destination services
and cruise revenue.
Notes:
• All trivago revenue is classified as Non-U.S. point of sale. Some numbers may
not add due to rounding.
• All percentages throughout this release are calculated on precise, unrounded
numbers.
Page 3 of 14
Expedia Group, Inc. Segment P&L
(All figures in millions)
y/y
grow…
By Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Q3-26
Seg…
Gro… $31,… $30,… $30,… $27,… $35,… $33,… $34,… 11%
Boo…
B2C $22,… $21,… $21,… $18,… $24,… $23,… $22,… 7%
B2B $8,8… $8,8… $9,3… $8,6… $10,… $10,… $11,… 19%
Rev… $2,9… $3,7… $4,4… $3,5… $3,4… $4,3… $4,9… 12%
B2C $1,9… $2,4… $2,8… $2,1… $2,1… $2,6… $3,0… 6%
B2B $947 $1,2… $1,3… $1,2… $1,1… $1,4… $1,7… 23%
Oth… $85 $98 $137 $97 $125 $145 $165 20%
Rev… 9.5% 12.4% 14.4% 13.1% 9.6% 12.7% 14.5% 16
mar… bps
Adj…
cost $354 $373 $373 $342 $373 $399 $415 11%
of
rev…
% 11.9% 9.8% 8.4% 9.6% 10.9% 9.2% 8.4% (4)
Rev… bps
B2C $312 $340 $347 $307 $324 $346 $377 9%
% 25
B2C 16.0% 13.7% 12.0% 14.2% 15.3% 12.9% 12.3% bps
rev…
B2B $38 $28 $18 $27 $39 $39 $25 36%
% 15
B2B 4.0% 2.3% 1.3% 2.0% 3.3% 2.6% 1.5% bps
rev…
Oth… $4 $5 $8 $8 $10 $14 $13 87%
Sel…
and
mar… $1,7… $1,9… $1,9… $1,6… $1,8… $2,1… $2,1… 10%
-
dir…
% (1)
Gro… 5.6% 6.3% 6.4% 6.3% 5.2% 6.2% 6.4% bps
Boo…
B2C $1,1… $1,0… $1,0… $847 $1,0… $1,1… $1,0… —%
%
B2C 4.9% 5.1% 4.8% 4.6% 4.2% 4.7% 4.5% (34)
Gro… bps
Boo…
B2B $577 $752 $855 $798 $726 $915 $1,0… 23%
Oth… $65 $76 $89 $51 $95 $103 $108 21%
Oth…
seg… $581 $585 $614 $661 $655 $678 $650 6%
ite…
% 19.4% 15.5% 13.9% 18.6% 19.1% 15.7% 13.2% (74)
Rev… bps
B2C $312 $319 $330 $323 $333 $341 $329 —%
% (69)
B2C 16.0% 12.8% 11.4% 15.0% 15.7% 12.8% 10.7% bps
rev…
B2B $116 $98 $117 $161 $149 $170 $165 41%
% 126
B2B 12.3% 8.2% 8.4% 12.4% 12.6% 11.4% 9.6% bps
rev…
Oth… $153 $168 $167 $177 $173 $167 $156 (7)%
Adj… $296 $908 $1,4… $848 $542 $1,1… $1,6… 17%
EBI…
% 9.9% 24.0% 32.9% 23.9% 15.8% 25.9% 34.2% 135
Mar… bps
B2C $217 $728 $1,1… $679 $426 $889 $1,3… 13%
% 11.1% 29.4% 40.7% 31.5% 20.1% 33.2% 43.5% 273
Mar… bps
B2B $216 $331 $402 $308 $269 $369 $470 17%
% 22.8% 27.3% 28.9% 23.9% 22.7% 24.8% 27.5% (134)
Mar… bps
Oth… $(13… $(15… $(12… $(13… $(15… $(13… $(11… (11)%
(1) Other is comprised of trivago, corporate and intercompany eliminations.
(2) Revenue margin is defined as revenue as a percentage of Gross Bookings.
(3) See the sections below titled “Non-GAAP Measures” and "Tabular
Reconciliations for Non-GAAP Measures” for additional information, including
reconciliations to the most directly comparable GAAP measures.
(4) Other segment items include total adjusted overhead expenses (see section
below titled “Tabular Reconciliations for Non-GAAP Measures – Adjusted
Expenses”), as well as the realized foreign currency gains or losses related to
the forward contracts hedging a component of our net merchant lodging revenue
for our B2C and B2B segments.
Notes: Some numbers may not add due to rounding. All percentages throughout this
release are calculated on precise, unrounded numbers.
Page 4 of 14
EXPEDIA GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except share and per share data)
(Unaudited)
Three Nine
months months
ended ended
Septem… Septemb…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Revenue $ 4,938 $ 4,412 $ 12,679 $ 11,186
Costs
and
expens…
Cost of
revenue
(exclu…
of
deprec… 419 376 1,199 1,110
and
amorti…
shown
separa…
below)…
Selling
and
market… 2,184 1,976 6,159 5,653
-
direct
Selling
and
market… 209 211 628 623
-
indire…
Techno…
and 334 310 983 955
conten…
General
and 194 186 594 563
admini…
Deprec…
and 224 225 680 667
amorti…
Legal
reserv…
occupa… 13 86 -45 88
tax and
other
Restru…
and
related 35 6 104 76
reorga…
charge…
Operat… 1,326 1,036 2,377 1,451
income
Other
income
(expen…
Intere… 73 69 206 197
income
Intere… -63 -62 -235 -178
expense
Other, -33 88 7 -133
net
Total
other
income -23 95 -22 -114
(expen…
net
Income
before 1,303 1,131 2,355 1,337
income
taxes
Provis…
for -264 -167 -453 -248
income
taxes
Net 1,039 964 1,902 1,089
income
Net
income
attrib… -9 -5 — —
to
non-co…
intere…
Net
income
attrib…
to $ 1,030 $ 959 $ 1,902 $ 1,089
Expedia
Group,
Inc.
Earnin…
per
share
attrib…
to
Expedia
Group,
Inc.
availa…
to
common
stockh…
Basic $ 8.59 $ 7.76 $ 15.77 $ 8.63
Diluted 8.42 7.33 15.43 8.18
Shares
used in
comput…
earnin…
per
share
(000's…
Basic 119,867 123,699 120,632 126,246
Diluted 122,280 131,014 123,260 133,188
(1)
Includ…
stock-…
compen…
as
follow…
Cost of $ 4 $ 3 $ 12 $ 10
revenue
Selling
and 23 20 65 63
market…
Techno…
and 41 34 119 111
content
General
and 46 33 129 106
admini…
Restru…
and
related 6 — 12 3
reorga…
charges
Page 5 of 14
EXPEDIA GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(In millions, except number of shares which are reflected in thousands and par
value)
September 30,
2026 December 31, 2025
──────────────────────────────────────────────────────────────────────────────
-Unaudited
ASSETS
Current assets:
Cash and cash $ 5,040 $ 5,413
equivalents
Restricted cash and 1,543 1,563
cash equivalents
Short-term 527 320
investments
Accounts receivable,
net of allowance of 5,513 4,166
$105 and $74
Income taxes 52 38
receivable
Prepaid expenses and
other current 1,516 699
assets
Total current assets 14,191 12,199
Property and 2,459 2,447
equipment, net
Operating lease 278 296
right-of-use assets
Long-term
investments and 1,192 1,387
other assets
Deferred income 277 432
taxes
Intangible assets, 1,112 819
net
Goodwill 7,342 6,872
TOTAL ASSETS $ 26,851 $ 24,452
LIABILITIES AND
STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, $ 2,466 $ 2,188
merchant
Accounts payable, 1,245 1,103
other
Deferred merchant 12,579 10,428
bookings
Deferred revenue 166 163
Income taxes payable 120 56
Accrued expenses and
other current 1,042 1,027
liabilities
Current maturities 749 1,692
of long-term debt
Total current 18,367 16,657
liabilities
Long-term debt,
excluding current 4,711 4,469
maturities
Deferred income 48 20
taxes
Operating lease 226 254
liabilities
Other long-term 583 505
liabilities
Commitments and
contingencies
Stockholders’
equity:
Common stock:
$.0001 par value; — —
Authorized shares:
1,600,000
Shares issued:
294,719 and 291,448;
Shares outstanding:
113,122 and 116,975
Class B common
stock:
$.0001 par value; — —
Authorized shares:
400,000
Shares issued:
12,800 and 12,800;
Shares outstanding:
5,523 and 5,523
Additional paid-in 16,956 16,565
capital
Treasury stock -
Common stock and
Class -18,511 -16,786
B, at cost; Shares
188,874 and 181,749
Retained earnings 3,425 1,696
Accumulated other
comprehensive income -218 -191
(loss)
Total Expedia Group,
Inc. stockholders’ 1,652 1,284
equity
Non-redeemable
non-controlling 1,264 1,263
interests
Total stockholders’ 2,916 2,547
equity
TOTAL LIABILITIES
AND STOCKHOLDERS’ $ 26,851 $ 24,452
EQUITY
Page 6 of 14
EXPEDIA GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Nine months ended
September 30,
Operating activities: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 1,902 $ 1,089
Adjustments to reconcile net
income to
net cash provided by operating
activities:
Depreciation of property and
equipment,
including internal-use software 654 635
and
website development
Amortization of intangible 26 32
assets
Amortization of stock-based 337 293
compensation
Deferred income taxes 160 102
Foreign exchange (gain) loss on
cash, 36 -118
restricted cash and short-term
investments, net
Realized (gain) loss on foreign
currency 178 -163
forwards, net
(Gain) loss on minority equity -134 125
investments, net
Other, net 44 36
Changes in operating assets and
liabilities, net of effects
from
acquisitions:
Accounts receivable -1,269 -1,289
Prepaid expenses and other -171 -28
assets
Accounts payable, merchant 113 50
Accounts payable, other,
accrued 207 234
expenses and other liabilities
Tax payable/receivable, net 93 9
Deferred merchant bookings 2,076 2,569
Net cash provided by operating 4,252 3,576
activities
Investing activities:
Capital expenditures, including
internal-use software and -625 -585
website
development
Purchases of investments -930 -518
Sales and maturities of 438 616
investments
Proceeds from exchange of
cross-currency 692 —
interest rate swaps
Payments for exchange of
cross-currency -692 —
interest rate swaps
Acquisitions and other, net -727 155
Net cash used in investing -1,844 -332
activities
Financing activities:
Proceeds from issuance of
long-term 986 985
debt, net of issuance costs
Payments related to long-term -1,828 -1,044
debt
Purchases of treasury stock -1,727 -1,603
Payment of dividends to -173 -151
stockholders
Proceeds from exercise of
equity awards 47 50
and employee stock purchase
plan
Other, net -67 16
Net cash used in financing -2,762 -1,747
activities
Effect of exchange rate changes
on cash,
cash equivalents and restricted -39 191
cash and
cash equivalents
Net increase (decrease) in
cash, cash
equivalents and restricted cash -393 1,688
and cash
equivalents
Cash, cash equivalents and
restricted
cash and cash equivalents at 6,976 5,574
beginning
of period
Cash, cash equivalents and
restricted
cash and cash equivalents at $ 6,583 $ 7,262
end of
period
Page 7 of 14
Notes & Definitions:
Booked Room Nights : Represents booked hotel room nights and property nights.
Booked hotel room nights include both merchant and agency hotel room nights.
Property nights are related to our alternative accommodation business.
Average Daily Rate (ADR) Booked : Represents the average paid rate per booked
room night, calculated as total lodging gross bookings divided by booked room
nights.
Booked Air Tickets : Includes both merchant and agency air bookings.
Gross Bookings : Generally represent the total retail value of transactions
booked, recorded at the time of booking reflecting the total price due for
travel by travelers, including taxes, fees and other charges, adjusted for
cancellations and refunds.
Lodging Metrics : Reported on a booked basis except for revenue, which is on a
stayed basis. Lodging consists of both merchant and agency model hotel and
alternative accommodations.
B2C : The B2C segment provides a full range of travel and advertising services
to our worldwide customers through a variety of consumer brands including:
Expedia, Hotels.com, Vrbo, Orbitz, Travelocity, Wotif Group, ebookers,
Hotwire.com, and CarRentals.com.
B2B : The B2B segment fuels a wide range of travel and non-travel companies
including airlines, offline travel agents, online retailers, corporate travel
management and financial institutions, who leverage our leading travel
technology and tap into our diverse supply to augment their offerings and market
Expedia Group rates and availabilities to their travelers.
trivago : The trivago segment generates advertising revenue primarily from
sending referrals to online travel companies and travel service providers from
its localized hotel metasearch websites.
Non-GAAP Measures
Expedia Group reports Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net
Income (Loss), Adjusted EPS, Free Cash Flow and Adjusted Expenses (non-GAAP cost
of revenue, non-GAAP selling and marketing, non-GAAP technology and content and
non-GAAP general and administrative), all of which are supplemental measures to
GAAP and are defined by the SEC as non-GAAP financial measures. These measures
are among the primary metrics by which management evaluates the performance of
the business and on which internal budgets are based. Management believes that
investors should have access to the same set of tools that management uses to
analyze our results. These non-GAAP measures should be considered in addition to
results prepared in accordance with GAAP, but should not be considered a
substitute for or superior to GAAP. Adjusted EBITDA, Adjusted Net Income (Loss)
and Adjusted EPS have certain limitations in that they do not take into account
the impact of certain expenses to our consolidated statements of operations. We
endeavor to compensate for the limitation of the non-GAAP measures presented by
also providing the most directly comparable GAAP measures and descriptions of
the reconciling items and adjustments to derive the non-GAAP measures. Adjusted
EBITDA, Adjusted Net Income (Loss) and Adjusted EPS also exclude certain items
related to transactional tax matters, which may ultimately be settled in cash.
We urge investors to review the detailed disclosure regarding these matters in
the Management Discussion and Analysis and Legal Proceedings sections, as well
as the notes to the financial statements, included in the Company's annual and
quarterly reports filed with the Securities and Exchange Commission. The non-
GAAP financial measures used by the Company may be calculated differently from,
and therefore may not be comparable to, similarly titled measures used by other
companies.
Adjusted EBITDA
(Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization) is
defined as net income (loss) attributable to Expedia Group adjusted for:
(1) net income (loss) attributable to non-controlling interests;
(2) provision for income taxes;
Page 8 of 14
(3) total other expenses, net;
(4) stock-based compensation expense, including compensation expense related to
certain subsidiary equity plans;
(5) acquisition-related impacts, including
(i) amortization of intangible assets and goodwill and intangible asset
impairment,
(ii) gains (losses) recognized on changes in the value of contingent
consideration arrangements;
(iii) upfront consideration paid to settle employee compensation plans of the
acquiree; and
(iv) related transaction fees;
(6) certain other items, including restructuring;
(7) items included in legal reserves, occupancy tax and other, which includes
reserves for potential settlement of issues related to transactional taxes (e.g.
hotel and excise taxes), related to court decisions and final settlements, and
charges incurred, if any, for monies that may be required to be paid in advance
of litigation in certain transactional tax proceedings;
(8) that portion of gains (losses) on revenue hedging activities that are
included in other, net that relate to revenue recognized in the period; and
(9) depreciation.
The above items are excluded from our Adjusted EBITDA measure because these
items are non-cash in nature, or because the amount and timing of these items is
unpredictable, not driven by core operating results and renders comparisons with
prior periods and competitors less meaningful. We believe Adjusted EBITDA is a
useful measure for analysts and investors to evaluate our future on-going
performance as this measure allows a more meaningful comparison of our
performance and projected cash earnings with our historical results from prior
periods and to the results of our competitors. Moreover, our management uses
this measure internally to evaluate the performance of our business as a whole
and our individual business segments. In addition, we believe that by excluding
certain items, such as stock-based compensation and acquisition-related impacts,
Adjusted EBITDA corresponds more closely to the cash operating income generated
from our business and allows investors to gain an understanding of the factors
and trends affecting the ongoing cash earnings capabilities of our business,
from which capital investments are made and debt is serviced.
Trailing Twelve Month Financial Information.
Expedia Group includes certain unaudited financial information for the trailing
twelve months ("TTM") ended September 30, 2026, which is calculated as the
twelve months ended September 30, 2026. This presentation is not in accordance
with GAAP. However, we believe that this presentation provides useful
information to investors regarding our recent financial performance, and we view
this presentation of the four most recently completed fiscal quarters as a key
measurement period for investors to assess our historical results.
Adjusted Net Income (Loss)
generally captures all items on the statements of operations that occur in
normal course operations and have been, or ultimately will be, settled in cash
and is defined as net income (loss) attributable to Expedia Group plus the
following items, net of tax (a) :
(1) stock-based compensation expense, including compensation expense related to
equity plans of certain subsidiaries and equity-method investments;
(2) acquisition-related impacts, including;
(i) amortization of intangible assets, including as part of equity-method
investments, and goodwill and intangible asset impairment;
(ii) gains (losses) recognized on changes in the value of contingent
consideration arrangements;
(iii) upfront consideration paid to settle employee compensation plans of the
acquiree; and
(iv) gains (losses) recognized on non-controlling investment basis adjustments
when we acquire or lose controlling interests;
(3) currency gains or losses on U.S. dollar denominated cash;
(4) the changes in fair value of equity investments;
(5) certain other items, including restructuring charges;
(6) items included in legal reserves, occupancy tax and other, which includes
reserves for potential settlement of issues related to transactional taxes
(e.g., hotel occupancy and excise taxes), related court decisions and final
settlements, and charges incurred, if any, for monies that may be required to be
paid in advance of litigation in certain transactional tax proceedings,
including as part of equity method investments;
(7) discontinued operations;
Page 9 of 14
(8) the non-controlling interest impact of the aforementioned adjustment items;
and
(9) unrealized gains (losses) on revenue hedging activities that are included in
other, net.
During the fourth quarter of 2025 and first quarter of 2026, an adjustment for
the loss related to the conversion option on our Convertible Notes, including
amortization of the debt discount and change in fair value of the embedded
derivative, was excluded from net income to calculate Adjusted Net Income.
We believe Adjusted Net Income (Loss) is useful to investors because it
represents Expedia Group's combined results, taking into account depreciation,
which management believes is an ongoing cost of doing business, but excluding
the impact of certain expenses and items not directly tied to the core
operations of our businesses.
(a) We use a long-term projected tax rate in the calculation of Adjusted Net
Income as we believe this tax rate provides better consistency across reporting
periods and produces results that are reflective of Expedia Group’s long-term
effective tax rate. This long-term projected tax rate is a total tax rate, and
eliminates the effects of non-recurring and period-specific income tax items
which can vary in size and frequency. We apply this tax rate to pretax income,
as adjusted commensurate with our Adjusted Net Income definition. In 2024 and
through the second quarter of 2025, we applied a 21.5% long-term projected tax
rate to compute Adjusted Net Income. We adjusted our long-term projected tax
rate to 20.0% to consider the net effect of U.S. tax law enacted in the third
quarter of 2025.
Adjusted EPS
is defined as Adjusted Net Income (Loss) divided by adjusted weighted average
shares outstanding, which, when applicable, include dilution from our
convertible debt instruments per the treasury stock method for Adjusted EPS. The
treasury stock method assumes we would elect to settle the principal amount of
the debt for cash and the conversion premium for shares. If the conversion
prices for such instruments exceed our average stock price for the period, the
instruments generally would have no impact to adjusted weighted average shares
outstanding. This differs from the GAAP method for dilution from our convertible
debt instruments, which include them on an if-converted method. We believe
Adjusted EPS is useful to investors because it represents, on a per share basis,
Expedia Group's consolidated results, taking into account depreciation, which we
believe is an ongoing cost of doing business, as well as other items which are
not allocated to the operating businesses such as interest expense, taxes,
foreign exchange gains or losses, and minority interest, but excluding the
effects of certain expenses not directly tied to the core operations of our
businesses. Adjusted Net Income (Loss) and Adjusted EPS have similar limitations
as Adjusted EBITDA. In addition, Adjusted Net Income (Loss) does not include all
items that affect our net income (loss) and net income (loss) per share for the
period. Therefore, we think it is important to evaluate these measures along
with our consolidated statements of operations.
Free Cash Flow
is defined as net cash flow provided by operating activities less capital
expenditures. Management believes Free Cash Flow is useful to investors because
it represents the operating cash flow that our operating businesses generate,
less capital expenditures but before taking into account other cash movements
that are not directly tied to the core operations of our businesses, such as
financing activities, foreign exchange or certain investing activities. Free
Cash Flow has certain limitations in that it does not represent the total
increase or decrease in the cash balance for the period, nor does it represent
the residual cash flow for discretionary expenditures. Therefore, it is
important to evaluate Free Cash Flow along with the consolidated statements of
cash flows.
Adjusted Expenses
exclude stock-based compensation related to expenses for stock options,
restricted stock units and other equity compensation under applicable stock-
based compensation accounting standards. Expedia Group excludes stock-based
compensation from these measures primarily because they are non-cash expenses
that we do not believe are necessarily reflective of our ongoing cash operating
expenses and cash operating income. Moreover, because of varying available
valuation methodologies, subjective assumptions and the variety of award types
that companies can use when adopting applicable stock-based compensation
accounting standards, management believes that providing non-GAAP financial
measures that exclude stock-based compensation allows investors to make
meaningful comparisons between our recurring core business operating results and
those of other companies, as well as providing management with an important tool
for financial operational decision making and for evaluating our own recurring
core business operating results over different periods of time. There are
certain limitations in using financial measures that do not take into account
stock-based compensation, including the fact that stock-based compensation is a
recurring expense and a valued part of employees' compensation. Therefore, it is
important to
Page 10 of 14
evaluate both our GAAP and non-GAAP measures. See the Notes to the Consolidated
Statements of Operations for stock-based compensation by line item.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This release may contain “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995 that involve risks and
uncertainties. These forward-looking statements are based on assumptions that
are inherently subject to uncertainties, risks and changes in circumstances that
are difficult to predict. The use of words such as “believe,” “estimate,”
“expect” and “will,” or the negative of these terms or other similar
expressions, among others, generally identify forward-looking statements.
However, these words are not the exclusive means of identifying such statements.
In addition, any statements that refer to our outlook, expectations, projections
or other characterizations of future events or circumstances are forward-looking
statements and may include statements relating to future gross bookings;
revenues; expenses; margins and margin expansion, including adjusted EBITDA
margin expansion; profitability; net income (loss); earnings per share and other
measures of results of operations and the prospects for future growth of Expedia
Group’s business. Actual results may differ materially from the results
predicted and reported results should not be considered as an indication of
future performance. The potential risks and uncertainties that could cause
actual results to differ from the results predicted include, among others:
• intense competition from online travel agencies, suppliers, search engines,
B2B businesses offering competing travel technology solutions and services, and
emerging AI-powered platforms;
• declines or disruptions in the travel industry due to economic conditions,
geopolitical events, or public health issues;
• dependence on relationships with travel suppliers and other B2B partners;
• dependence on search engines and changes to search algorithms or traffic
acquisition costs;
• costs of maintaining brand awareness and marketing effectiveness;
• payment processing risks, fraud, and third-party payment provider
dependencies;
• reliance on third-party business partners and service providers;
• challenges in international operations and regulatory compliance;
• risks from acquisitions, investments, divestitures, and commercial
arrangements;
• ability to retain and attract qualified personnel and key executives;
• execution risks from strategic initiatives and operational transformations;
• counterparty risks and foreign exchange exposure;
• regulatory risks in alternative accommodations and evolving legal
requirements;
• tax law changes and interpretation uncertainties;
• litigation and unfavorable legal outcomes;
• intellectual property protection and infringement risks;
• technology system failures, cybersecurity breaches, and data protection
compliance;
• privacy regulation compliance across multiple jurisdictions;
• liquidity constraints and limited access to capital markets;
• substantial indebtedness and covenant restrictions;
• concentrated voting control and potential conflicts of interest;
• ESG-related costs, risks, and stakeholder expectations;
• climate change impacts on travel and operations; and
• stock price volatility.
For more information about risks and uncertainties associated with Expedia
Group’s business, please refer to the “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” and “Risk Factors” sections of
our most recently filed periodic reports on Form 10-K and Form 10-Q, which are
available on our investor relations website at ir.expediagroup.com and on the
SEC website at www.sec.gov. All information provided in this release is as of
November 4, 2026 . We undertake no duty to update any forward-looking statement
to conform the statement to actual results or changes in Expedia Group’s
expectations unless required by law.
Page 11 of 14
Tabular Reconciliations for Non-GAAP Measures
Adjusted EBITDA
T… N…
m… m… …
e… e… … …
S… S… … …
2… 3… 2… 2… 3… 2… 2… … 2… …
──────────────────────────────────────────────────────────────────────────────
-$
in
m…
…
…
…
… $ 1… $ 9… $ 1… $ … $ … $ …
…
…
…
…
…
… 9 5 — — 7 7
…
…
…
…
… 2… 1… 4… … … …
…
…
…
…
… 23 -… 22 … … …
…
…
… 1… 1… 2… … … …
…
…
…
…
…
… -… 6 -… … … …
…
…
…
…
…
…
…
… 29 6 92 … … …
…
…
…
…
…
…
… 13 86 -… … … …
…
…
…
… 1… 90 3… … … …
…
…
… 2… 2… 6… … … …
…
… $ 1… $ 1… $ 3… $ … $ … $ …
…
…
… 2… % 2… % 1… % … % … % … %
…
…
… 3… % 3… % 2… % … % … % … %
…
…
…
…
…
… $ 1… $ 1… $ 2… $ … $ … $ …
… 4… 4… 1… … … …
… 19 17 13 6 … …
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… 1… 1… 3… … … …
…
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… -… -… -… … … …
…
…
… $ 1… $ 1… $ 3… $ … $ … $ …
…
(1) Net income and Adjusted EBITDA margins represent net income (loss)
attributable to Expedia Group, Inc. or Adjusted EBITDA divided by revenue.
(2) Unallocated corporate and other expenses include certain shared expenses
such as accounting, human resources and certain information and technology and
legal costs.
Page 12 of 14
Adjusted Net Income (Loss) & Adjusted EPS
Three
mont…
ended
Sept…
30,
2026
(In
mill…
exce… Nine
share mon…
and end…
per Sep…
share 30,
data) 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net
inc…
att…
to $ 1,030 $ 959 $ 1,902 $ 1,0…
Exp…
Gro…
Inc.
Les…
Net
(in…
loss -9 -5 — —
att…
to
non…
int…
Les…
Pro…
for -264 -167 -453 -248
inc…
tax…
Inc…
bef… 1,303 1,131 2,355 1,3…
inc…
tax…
Amo…
of 8 10 26 32
int…
ass…
Sto… 120 90 337 293
com…
Leg…
res…
occ… 13 86 -45 88
tax
and
oth…
Res…
and
rel…
reo… 29 6 92 73
cha…
exc…
sto…
com…
Unr…
(ga…
loss -18 22 -14 26
on
rev…
hed…
(Ga…
loss
on
min… -9 -133 -134 125
equ…
inv…
net
Loss
rel…
to
the
con… 2 — 12 —
opt…
on
con…
not…
Oth… — -4 — -6
adj…
Adj…
inc…
bef… 1,448 1,208 2,629 1,9…
inc…
tax…
GAAP
Pro…
for -264 -167 -453 -248
inc…
tax…
Pro…
for
inc… -26 -74 -73 -157
tax…
for
adj…
Tot…
Adj…
pro… -290 -241 -526 -405
for
inc…
tax…
Tot…
Adj…
inc… 20.0 % 20.0 % 20.0 % 20.6 %
tax
rate
Non… -10 -5 -4 -2
int…
Adj…
net $ 1,148 $ 962 $ 2,099 $ 1,5…
inc…
GAAP
dil…
ear… $ 8.42 $ 7.33 $ 15.43 $ 8.18
per
sha…
Amo…
of 0.07 0.08 0.21 0.24
int…
ass…
Sto… 0.99 0.71 2.74 2.27
com…
Leg…
res…
occ… 0.11 0.67 -0.37 0.68
tax
and
oth…
Res…
and
rel…
reo… 0.23 0.05 0.74 0.57
cha…
exc…
sto…
com…
Unr…
(ga…
loss -0.15 0.17 -0.12 0.20
on
rev…
hed…
(Ga…
loss
on
min… -0.07 -1.05 -1.08 0.96
equ…
inv…
net
Loss
rel…
to
the
con… 0.01 — 0.10 —
opt…
on
con…
not…
Oth… — -0.03 — -0.…
adj…
Inc…
tax
eff… -0.21 -0.59 -0.59 -1.…
and
adj…
Non… -0.02 — -0.05 -0.…
int…
Adj…
to
GAAP — 0.23 — 0.25
dil…
sec…
Adj…
ear… $ 9.39 $ 7.57 $ 17.03 $ 12.…
per
sha…
GAAP
dil…
wei…
ave… 122,… 131,… 123,… 133…
sha…
out…
(00…
Adj…
to
dil… — -3,9… — -3,…
sec…
(00…
Adj…
wei…
ave… 122,… 127,… 123,… 129…
sha…
out…
(00…
(1) In periods for which we have Adjusted net income, the GAAP diluted average
shares and diluted earnings (loss) per share is presented. In addition, we
adjusted for our convertible debt instruments, during the period outstanding
prior to November 2025, per the treasury stock method.
(2) Share and per share numbers may not add due to rounding.
Page 13 of 14
Free Cash Flow
Three
months
ended Nine
September months
30, ended
2026 Septemb…
(In 30,
millions) 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net
cash
provid…
by $ -1,157 $ -497 $ 4,252 $ 3,576
(used
in)
operat…
activi…
Less:
Total -242 -189 -625 -585
capital
expend…
Free
cash $ -1,399 $ -686 $ 3,627 $ 2,991
flow
Adjusted Expenses (Cost of revenue, direct and indirect selling and marketing,
technology and content and general and administrative expenses)
Three
months
ended Nine
September months
30, ended
2026 Septemb…
(In 30,
millions) 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cost of $ 419 $ 376 $ 1,199 $ 1,110
revenue
Less:
stock-… 4 3 12 10
compen…
Adjust…
cost of $ 415 $ 373 $ 1,187 $ 1,100
revenue
Selling
and
market… $ 2,184 $ 1,976 $ 6,159 $ 5,653
-
direct
Selling
and
market… $ 209 $ 211 628 623
-
indire…
Less:
stock-… 23 20 65 63
compen…
Adjust…
selling
and $ 186 $ 191 $ 563 $ 560
market…
-
indire…
Techno…
and $ 334 $ 310 $ 983 $ 955
content
Less:
stock-… 41 34 119 111
compen…
Adjust…
techno… $ 293 $ 276 $ 864 $ 844
and
content
General
and $ 194 $ 186 $ 594 $ 563
admini…
Less:
stock-… 46 33 129 106
compen…
Adjust…
general $ 148 $ 153 $ 465 $ 457
and
admini…
Total
adjust… $ 627 $ 620 $ 1,892 $ 1,861
overhe…
expens…
Note: Some numbers may not add due to rounding.
(1) Total adjusted overhead expenses is the sum of adjusted expenses for Selling
and marketing - indirect, Technology and content, and General and
administrative.
Page 14 of 14