Expedia Group Q2 Earnings & Revenues Beat Estimates, Increase Y/Y

EXPE's Q2 Bookings Gain Across Business Lines

In the second quarter, total gross bookings climbed 12% year over year to $33.93 billion. Lodging gross bookings increased 11% to $24.60 billion, while non-lodging gross bookings advanced 12% to $9.33 billion.

Merchant gross bookings grew 14% to $20.61 billion, outpacing an 8% increase in agency gross bookings to $13.32 billion. Average daily rate booked rose 5% to $220.60, partly supporting the higher booking value. Booked air tickets, however, declined 5% to 14.2 million. Booked room nights rose 6% to 111.5 million.

Expedia Group's Revenue Mix Favors B2B

In the second quarter, B2B revenues surged 23% year over year to $1.49 billion, supported by double-digit growth across all regions and elevated marketing activity from some large partners. B2B gross bookings increased 21% to $10.74 billion.

B2C revenues rose 8% to $2.68 billion, while gross bookings increased 8% to $23.19 billion. Management noted that the consumer business benefited from sustained U.S. momentum, with the market growing at its strongest pace in 15 quarters.

EXPE Improves Profitability and Cost Leverage

Second-quarter adjusted EBITDA increased 23% year over year to $1.12 billion. The adjusted EBITDA margin expanded 196 basis points to 25.9%, reflecting disciplined cost management, favorable revenue mix and marketing leverage.

B2C adjusted EBITDA rose 22% to $889 million, with margin expanding 380 basis points to 33.2%. B2B adjusted EBITDA increased 12% to $369 million, though margin contracted 258 basis points to 24.8% because of partner mix and acquisition consolidation.

Expedia Group Controls Core Operating Costs

In the reported quarter, adjusted cost of revenues increased 7% to $399 million but declined 61 basis points as a percentage of revenues to 9.2%. The improvement reflected continued efficiencies in payments.

Direct selling and marketing expenses rose 10% to $2.12 billion. B2C direct marketing costs increased only 1% to $1.10 billion and declined 31 basis points as a percentage of B2C gross bookings to 4.7%, indicating improved returns across marketing channels.

EXPE’s Q2 Balance Sheet & Cash Flow Details

As of June 30, 2026, cash and cash equivalents and short-term investments were $7.13 billion, up from $5.79 billion as of March 31, 2026.

Long-term debt was $5.46 billion as of June 30, 2026, up from $4.47 billion as of March 31, 2026.

The company repurchased approximately 880,000 shares for $200 million during the quarter. Through the first six months of 2026, purchases of treasury stock totaled $1.06 billion.

Expedia Group also declared a quarterly cash dividend of 48 cents per share, payable Sept. 17, 2026.

Net cash provided by operating activities rose 32% to $1.48 billion in the quarter. Free cash flow grew 39% to $1.28 billion, underscoring the company’s ability to convert improved operating performance into cash.

EXPE’s Q3 & Raised 2026 Guidance

For the third quarter of 2026, Expedia Group expects gross bookings between $32.2 billion and $32.8 billion, representing growth of 5-7%. Revenues are projected in the range of $4.65 billion to $4.75 billion, implying growth of 5-8%.

Adjusted EBITDA is expected between $1.51 billion and $1.56 billion. The outlook factors in slower top-line growth than in the second quarter, while maintaining a strong level of adjusted profitability.

Expedia Group raised its 2026 gross bookings forecast to $129.5-$130.8 billion from $127-$129 billion. The revised range represents projected growth of 8-9%, compared with the prior expectation of 6-8%.

The company now anticipates revenues of $16.05-$16.22 billion, up from its earlier range of $15.6-$16 billion. Adjusted EBITDA margin expansion is expected to reach 1.5-1.75 percentage points, compared with the prior outlook of 1-1.25 points.

EXPE’s Zacks Rank & Stocks to Consider

Expedia Group currently carries a Zacks Rank #3 (Hold).

Take-Two Interactive TTWO, Newsmax Inc. NMAX and American Public Education APEI are some better-ranked stocks that investors can consider in the broader Consumer Discretionary sector.

Take-Two Interactive sports a Zacks Rank #1 (Strong Buy), while Newsmax and American Public Education carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Take-Two Interactive is scheduled to report its first-quarter fiscal 2027 results on Aug. 7, 2026. Meanwhile, Newsmax is set to announce its second-quarter 2026 earnings on Aug. 13, followed by American Public Education, which will report its second-quarter 2026 results on Aug. 10.

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