Beats guidance on bottom line with EBITDA margin expansion
Repurchases $330 million of shares in the first quarter
SEATTLE, WA – May 8, 2025 – Expedia Group, Inc. (NASDAQ: EXPE) announced financial results today for the first quarter ended March 31, 2025.
First Quarter Highlights
•Booked room nights grew 6% in the first quarter year-over-year amid softened travel demand within and into the U.S.
•Total gross bookings grew 4% in the first quarter. B2C gross bookings grew 1% and B2B gross bookings grew 14% given the segment’s greater international exposure.
•Lodging gross bookings grew 5% year-over-year in the first quarter; hotel bookings were up 6%, driven by resilience at B2B and Brand Expedia.
•Revenue grew 3% in the quarter, led by our B2B and Advertising businesses, which grew 14% and 20%, respectively.
•First quarter net loss increased 49% while adjusted net income grew 81%, year-over-year. Adjusted EBITDA increased 16% with 105 basis points of margin expansion, and adjusted EBIT loss decreased 65% with 136 bps of margin expansion.
•Diluted loss per share was ($1.56) in the quarter while Adjusted EPS was $0.40 and grew 90% versus the prior year.
•Repurchased approximately 1.7 million shares for $330 million in the first quarter.
•Paid quarterly dividend of $0.40 per share on March 27, 2025.
“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," said Ariane Gorin, CEO of Expedia Group.
Financial Summary & Operating Metrics (In millions except per share amounts)
Expedia Group, Inc.
Metric
Q1 2025
Q1 2024
Δ Y/Y
Booked room nights
107.7
101.2
6%
Gross bookings
$31,451
$30,164
4%
Revenue
$2,988
$2,889
3%
Operating loss
$(70)
$(110)
(36)%
Net loss attributable to Expedia Group, Inc.
$(200)
$(135)
49%
Diluted loss per share
$(1.56)
$(0.99)
57%
Adjusted EBITDA*
$296
$255
16%
Adjusted EBIT*
$(21)
$(59)
(65)%
Adjusted net income*
$53
$29
81%
Adjusted EPS*
$0.40
$0.21
90%
Net cash provided by operating activities
$2,952
$2,879
3%
Free cash flow*
$2,756
$2,702
2%
* A reconciliation of non-GAAP financial measures to the most comparable GAAP measures is provided at the end of this release.
Page 1 of 16
Conference Call
Expedia Group, Inc. will webcast a conference call to discuss first quarter 2025 financial results and certain forward-looking information on Thursday, May 8, 2025 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.
About Expedia Group
Expedia Group, Inc. brands power travel for everyone, everywhere through our global platform. Driven by the core belief that travel is a force for good, we help people experience the world in new ways and build lasting connections. We provide industry-leading technology solutions to fuel partner growth and success, while facilitating memorable experiences for travelers.
Expedia Group’s three flagship consumer brands are: Expedia®, Hotels.com®, and Vrbo®. One Key™ is our comprehensive loyalty program, which unifies Expedia, Hotels.com and Vrbo into one simple, flexible travel rewards experience. To enroll in One Key, download Expedia, Hotels.com or Vrbo mobile apps for free on iOS and Android devices. One Key is currently available in the U.S. and U.K.
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.
2023
2024
2025
Y/Y
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Growth
Operating metrics
Booked room nights
94.5
89.7
89.3
77.4
101.2
98.9
97.4
86.4
107.7
6
%
Average Daily Rate ("ADR") Booked
$222.7
$213.8
$207.3
$197.0
$216.5
$209.8
$205.5
$198.5
$213.9
(1)
%
Booked air tickets
14.0
13.6
12.8
11.4
14.2
14.5
13.8
12.6
14.8
4
%
Gross bookings by business model
Agency
$13,425
$12,370
$10,927
$9,439
$13,301
$12,578
$11,379
$10,376
$13,239
—%
Merchant
15,976
14,951
14,758
12,233
16,863
16,259
16,119
14,046
18,212
8%
Total
$29,401
$27,321
$25,685
$21,672
$30,164
$28,837
$27,498
$24,422
$31,451
4%
Gross bookings by product
Lodging
$21,055
$19,167
$18,513
$15,253
$21,903
$20,749
$20,027
$17,152
$23,032
5%
Non-lodging
8,346
8,154
7,172
6,419
8,261
8,088
7,471
7,270
8,419
2%
Total
$29,401
$27,321
$25,685
$21,672
$30,164
$28,837
$27,498
$24,422
$31,451
4%
Revenue by product
Lodging
$2,029
$2,698
$3,233
$2,304
$2,228
$2,862
$3,317
$2,543
$2,289
3%
Air
113
111
100
86
115
111
104
98
107
(7)%
Advertising and media - EG(1)
99
119
125
140
145
152
167
175
174
20%
Advertising and media - trivago(1)
76
82
115
65
70
77
102
66
85
22%
Other(2)
348
348
356
292
331
356
370
302
333
1%
Total
$2,665
$3,358
$3,929
$2,887
$2,889
$3,558
$4,060
$3,184
$2,988
3%
Revenue by geography
U.S. points of sale
$1,748
$2,172
$2,440
$1,787
$1,793
$2,246
$2,435
$1,898
$1,831
2%
Non-U.S. points of sale
917
1,186
1,489
1,100
1,096
1,312
1,625
1,286
1,157
6%
Total
$2,665
$3,358
$3,929
$2,887
$2,889
$3,558
$4,060
$3,184
$2,988
3%
(1) Our advertising and media business consists of Expedia Group ("EG") Media Solutions, 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 16
Expedia Group, Inc. Segment P&L
(All figures in millions)
y/y growth
By Segment
Q1-24
Q2-24
Q3-24
Q4-24
Q1-25
Q1-25
Gross bookings
$
30,164
$
28,837
$
27,498
$
24,422
$
31,451
4
%
B2C
$
22,397
$
21,290
$
20,026
$
17,436
$
22,615
1
%
B2B
$
7,767
$
7,547
$
7,472
$
6,986
$
8,836
14
%
Revenue
$
2,889
$
3,558
$
4,060
$
3,184
$
2,988
3
%
B2C
$
1,986
$
2,432
$
2,780
$
2,076
$
1,956
(2)
%
B2B
$
833
$
1,049
$
1,178
$
1,042
$
947
14
%
Other (1)
$
70
$
77
$
102
$
66
$
85
22
%
Revenue margin (2)
9.6
%
12.3
%
14.8
%
13.0
%
9.5
%
(8) bps
Adjusted cost of revenue (3)
$
356
$
358
$
385
$
332
$
354
—
%
% Revenue
12.3
%
10.1
%
9.5
%
10.4
%
11.9
%
(44) bps
B2C
$
312
$
326
$
359
$
299
$
312
—
%
% B2C revenue
15.7
%
13.5
%
12.9
%
14.4
%
16.0
%
24 bps
B2B
$
39
$
27
$
21
$
30
$
38
(2)
%
% B2B revenue
4.7
%
2.6
%
1.8
%
2.9
%
4.0
%
(65) bps
Other (1)
$
5
$
5
$
5
$
3
$
4
(4)
%
Selling and marketing - direct
$
1,650
$
1,793
$
1,855
$
1,548
$
1,757
6
%
% Gross bookings
5.5
%
6.2
%
6.7
%
6.3
%
5.6
%
11 bps
B2C
$
1,096
$
1,101
$
1,072
$
888
$
1,115
2
%
% B2C gross bookings
4.9
%
5.2
%
5.4
%
5.1
%
4.9
%
4 bps
B2B
$
501
$
637
$
721
$
630
$
577
15
%
Other (1)
$
53
$
55
$
62
$
30
$
65
24
%
Other segment items (4)
$
628
$
621
$
570
$
661
$
581
(7)
%
% Revenue
21.7
%
17.5
%
14.1
%
20.8
%
19.4
%
(228) bps
B2C
$
363
$
351
$
321
$
352
$
312
(14)
%
% B2C revenue
18.2
%
14.4
%
11.5
%
17.0
%
16.0
%
(225) bps
B2B
$
121
$
122
$
98
$
127
$
116
(4)
%
% B2B revenue
14.4
%
11.6
%
8.3
%
12.3
%
12.3
%
(220) bps
Other (1)
$
144
$
148
$
151
$
182
$
153
5
%
Adjusted EBITDA (3)
$
255
$
786
$
1,250
$
643
$
296
16
%
% Margin
8.8
%
22.1
%
30.8
%
20.2
%
9.9
%
105 bps
B2C
$
215
$
654
$
1,028
$
537
$
217
—
%
% Margin
10.9
%
26.8
%
37.0
%
25.9
%
11.1
%
20 bps
B2B
$
172
$
263
$
338
$
255
$
216
26
%
% Margin
20.6
%
25.1
%
28.7
%
24.5
%
22.8
%
219 bps
Other (1)
$
(132)
$
(131)
$
(116)
$
(149)
$
(137)
3
%
(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 16
EXPEDIA GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except share and per share data)
(Unaudited)
Three months ended March 31,
2025
2024
Revenue
$
2,988
$
2,889
Costs and expenses:
Cost of revenue (exclusive of depreciation and amortization shown separately below) (1)
357
358
Selling and marketing - direct
1,757
1,650
Selling and marketing - indirect (1)
199
186
Technology and content (1)
320
341
General and administrative (1)
180
186
Depreciation and amortization
219
210
Legal reserves, occupancy tax and other
—
20
Restructuring and related reorganization charges
26
48
Operating loss
(70)
(110)
Other income (expense):
Interest income
54
51
Interest expense
(58)
(62)
Other, net
(143)
(34)
Total other expense, net
(147)
(45)
Loss before income taxes
(217)
(155)
Provision for income taxes
20
19
Net loss
(197)
(136)
Net (income) loss attributable to non-controlling interests
(3)
1
Net loss attributable to Expedia Group, Inc.
$
(200)
$
(135)
Loss per share attributable to Expedia Group, Inc. available to common stockholders:
Basic
$
(1.56)
$
(0.99)
Diluted
(1.56)
(0.99)
Shares used in computing earnings (loss) per share (000's):
Basic
128,641
135,501
Diluted
128,641
135,501
(1) Includes stock-based compensation as follows:
Cost of revenue
$
3
$
2
Selling and marketing
20
19
Technology and content
38
40
General and administrative
37
43
Page 5 of 16
EXPEDIA GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(In millions, except number of shares which are reflected in thousands and par value)
March 31, 2025
December 31, 2024
March 31, 2024
(Unaudited)
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
5,715
$
4,183
$
5,686
Restricted cash and cash equivalents
2,019
1,391
1,936
Short-term investments
411
300
26
Accounts receivable, net of allowance of $58, $55 and $52
4,449
3,213
3,750
Income taxes receivable
63
39
56
Prepaid expenses and other current assets
930
689
894
Total current assets
13,587
9,815
12,348
Property and equipment, net
2,422
2,413
2,353
Operating lease right-of-use assets
301
305
341
Long-term investments and other assets
1,608
1,698
1,245
Deferred income taxes
541
496
621
Intangible assets, net
808
817
1,006
Goodwill
6,847
6,844
6,847
TOTAL ASSETS
$
26,114
$
22,388
$
24,761
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, merchant
$
1,812
$
2,031
$
1,948
Accounts payable, other
1,126
1,039
1,207
Deferred merchant bookings
12,915
8,517
11,392
Deferred revenue
176
164
177
Income taxes payable
32
51
25
Accrued expenses and other current liabilities
766
766
816
Current maturities of long-term debt
1,746
1,043
—
Total current liabilities
18,573
13,611
15,565
Long-term debt, excluding current maturities
4,465
5,223
6,256
Deferred income taxes
20
19
31
Operating lease liabilities
256
265
301
Other long-term liabilities
479
471
472
Commitments and contingencies
Stockholders’ equity:
Common stock: $.0001 par value; Authorized shares: 1,600,000
Class B common stock: $.0001 par value; Authorized shares: 400,000
—
—
—
Shares issued: 12,800; Shares outstanding: 5,523
Additional paid-in capital
16,184
16,043
15,550
Treasury stock - Common stock and Class B, at cost; Shares 173,534, 171,515 and 162,495
(15,243)
(14,856)
(13,671)
Retained earnings (deficit)
351
602
(767)
Accumulated other comprehensive income (loss)
(220)
(232)
(222)
Total Expedia Group, Inc. stockholders’ equity
1,072
1,557
890
Non-redeemable non-controlling interests
1,249
1,242
1,246
Total stockholders’ equity
2,321
2,799
2,136
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
26,114
$
22,388
$
24,761
Page 6 of 16
EXPEDIA GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three months ended March 31,
2025
2024
Operating activities:
Net loss
$
(197)
$
(136)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation of property and equipment, including internal-use software and website development
208
195
Amortization of intangible assets
11
15
Amortization of stock-based compensation
98
104
Deferred income taxes
(46)
(38)
Foreign exchange (gain) loss on cash, restricted cash and short-term investments, net
(37)
30
Realized (gain) loss on foreign currency forwards, net
(20)
41
Loss on minority equity investments, net
156
9
Other, net
9
10
Changes in operating assets and liabilities:
Accounts receivable
(1,241)
(974)
Prepaid expenses and other assets
(221)
(171)
Accounts payable, merchant
(219)
(93)
Accounts payable, other, accrued expenses and other liabilities
85
219
Tax payable/receivable, net
(31)
(1)
Deferred merchant bookings
4,397
3,669
Net cash provided by operating activities
2,952
2,879
Investing activities:
Capital expenditures, including internal-use software and website development
(196)
(177)
Purchases of investments
(329)
(69)
Sales and maturities of investments
118
43
Other, net
23
(37)
Net cash used in investing activities
(384)
(240)
Financing activities:
Proceeds from issuance of long-term debt, net of issuance costs
985
—
Payment of long-term debt
(1,044)
—
Purchases of treasury stock
(384)
(643)
Payment of dividends to stockholders
(51)
—
Proceeds from exercise of equity awards and employee stock purchase plan
25
32
Other, net
—
(20)
Net cash used in financing activities
(469)
(631)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents
61
(47)
Net increase in cash, cash equivalents and restricted cash and cash equivalents
2,160
1,961
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period
5,574
5,661
Cash, cash equivalents and restricted cash and cash equivalents at end of period
$
7,734
$
7,622
Supplemental cash flow information
Cash paid for interest
$
99
$
82
Income tax payments, net
47
26
Page 7 of 16
Notes & Definitions:
Booked Room Nights: Represents booked hotel room nights and property nights for our B2C reportable segment and booked hotel room nights for our B2B reportable segment. 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 room nights booked.
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.
Corporate: Includes unallocated corporate expenses.
Page 8 of 16
Non-GAAP Measures
Expedia Group reports Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBIT, Adjusted EBIT Margin, Leverage Ratio, 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 EBIT, 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;
(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; and
(iii) upfront consideration paid to settle employee compensation plans of the acquiree;
(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.
Page 9 of 16
Adjusted EBIT (Adjusted Earnings Before Interest & Taxes) 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;
(3) total other expenses, net;
(4) acquisition-related impacts, including
(i) goodwill and intangible asset impairment,
(ii) gains (losses) recognized on changes in the value of contingent consideration arrangements; and
(iii) upfront consideration paid to settle employee compensation plans of the acquiree;
(5) certain other items, including restructuring;
(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 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; and
(7) that portion of gains (losses) on revenue hedging activities that are included in other, net that relate to revenue recognized in the period.
The above items are excluded from our Adjusted EBIT measure 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 EBIT is a useful measure for analysts and investors to evaluate our future on-going performance as this measure allows a more comprehensive comparison of our performance 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 it allows investors to gain an understanding of the factors and trends affecting profitability, including the ongoing costs to operating our business, which we believe are inclusive of non-cash items such as stock-based compensation.
Trailing Twelve Month Financial Information
Expedia Group includes certain unaudited financial information for the trailing twelve months ("TTM") ended March 31, 2025, which is calculated as the three months ended March 31, 2025 plus the year ended December 31, 2024 less the three months ended March 31, 2024. This presentation is not in accordance with GAAP. However, we believe that this presentation provides useful information to investors regarding its recent financial performance, and it views this presentation of the four most recently completed fiscal quarters as a key measurement period for investors to assess its 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;
(8) the non-controlling interest impact of the aforementioned adjustment items; and
Page 10 of 16
(9) unrealized gains (losses) on revenue hedging activities that are included in other, net.
Adjusted Net Income (Loss) includes preferred share dividends. 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 projected effective 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. Based on our long-term projections, in 2024 and 2025 we are applying a 21.5% effective tax rate to compute Adjusted Net Income.
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 (cost of revenue, direct and indirect selling and marketing, technology and content and general and administrative 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 evaluate both our GAAP and non-GAAP measures. See the Notes to the Consolidated Statements of Operations for stock-based compensation by line item.
Expedia Group, Inc. (excluding trivago). In order to provide increased transparency on the transaction-based component of the business, Expedia Group is reporting results both in total and excluding trivago.
Page 11 of 16
Tabular Reconciliations for Non-GAAP Measures
Adjusted EBITDA by Segment(1)
Three months ended March 31, 2025
B2C
B2B
trivago
Corporate & Eliminations
Total
(In millions)
Operating income (loss)
$
67
$
164
$
(6)
$
(295)
$
(70)
Realized gain (loss) on revenue hedges
15
8
—
—
23
Restructuring and related reorganization charges
—
—
—
26
26
Stock-based compensation
—
—
—
98
98
Amortization of intangible assets
—
—
—
11
11
Depreciation
135
44
1
28
208
Adjusted EBITDA(1)
$
217
$
216
$
(5)
$
(132)
$
296
Three months ended March 31, 2024
B2C
B2B
trivago
Corporate & Eliminations
Total
(In millions)
Operating income (loss)
$
95
$
142
$
(10)
$
(337)
$
(110)
Realized gain (loss) on revenue hedges
(13)
(4)
—
—
(17)
Restructuring and related reorganization charges
—
—
—
48
48
Legal reserves, occupancy tax and other
—
—
—
20
20
Stock-based compensation
—
—
—
104
104
Amortization of intangible assets
—
—
—
15
15
Depreciation
133
34
1
27
195
Adjusted EBITDA(1)
$
215
$
172
$
(9)
$
(123)
$
255
(1) Adjusted EBITDA for our B2C and B2B segments includes allocations of certain expenses, primarily cost of revenue and facilities, the total costs of our global travel supply organizations, the majority of product and technology costs, and the realized foreign currency gains or losses related to the forward contracts hedging a component of our net merchant lodging revenue. We base the allocations primarily on transaction volumes and other usage metrics. We do not allocate certain shared expenses such as accounting, human resources, certain information technology and legal to our reportable segments. We include these expenses in Corporate and Eliminations. Our allocation methodology is periodically evaluated and may change.
Page 12 of 16
Adjusted EBIT and Adjusted EBITDA
Three months ended March 31,
Year Ended December 31,
TTM March 31,
2025
2024
2024
2025
($ in millions)
Net income (loss) attributable to Expedia Group, Inc.
$
(200)
$
(135)
$
1,234
$
1,169
Net income (loss) attributable to non-controlling interests
3
(1)
(10)
$
(6)
Provision for income taxes
(20)
(19)
318
$
317
Total other (income) expense, net
147
45
(223)
$
(121)
Operating income (loss)
(70)
(110)
1,319
$
1,359
Gain (loss) on revenue hedges related to revenue recognized
23
(17)
(18)
$
22
Restructuring and related reorganization charges, including stock-based compensation
26
48
80
$
58
Legal reserves, occupancy tax and other
—
20
118
$
98
Impairment of intangible assets
—
—
147
$
147
Adjusted EBIT
(21)
(59)
1,646
$
1,684
Stock-based compensation, excluding restructuring and related reorganization charges
98
104
450
$
444
Depreciation and amortization
219
210
838
$
847
Adjusted EBITDA
$
296
$
255
$
2,934
$
2,975
Net income margin(1)
(6.7)
%
(4.7)
%
9.0
%
8.5
%
Adjusted EBIT margin(1)
(0.7)
%
(2.1)
%
12.0
%
12.2
%
Adjusted EBITDA margin(1)
9.9
%
8.8
%
21.4
%
21.6
%
Long-term debt, including current maturities
$
6,211
Long-term debt to net income ratio
5.3
Long-term debt, including current maturities
$
6,211
Unamortized discounts and debt issuance costs
39
Adjusted debt
$
6,250
Leverage ratio(2)
2.1
(1) Net income, Adjusted EBIT and Adjusted EBITDA margins represent net income (loss) attributable to Expedia Group, Inc., Adjusted EBIT or Adjusted EBITDA divided by revenue.
(2) Leverage ratio represents adjusted debt divided by TTM Adjusted EBITDA.
Page 13 of 16
Adjusted Net Income (Loss) & Adjusted EPS
Three months ended March 31,
2025
2024
(In millions, except share and per share data)
Net loss attributable to Expedia Group, Inc.
$
(200)
$
(135)
Less: Net (income) loss attributable to non-controlling interests
(3)
1
Less: Provision for income taxes
20
19
Loss before income taxes
(217)
(155)
Amortization of intangible assets
11
15
Stock-based compensation
98
104
Legal reserves, occupancy tax and other
—
20
Restructuring and related reorganization charges, excluding stock-based compensation
26
48
Unrealized (gain) loss on revenue hedges
1
(1)
(Gain) loss on minority equity investments, net
156
9
Loss on debt extinguishment
1
—
Gain on sale of businesses
(3)
(3)
Adjusted income before income taxes
73
37
GAAP Provision for income taxes
20
19
Provision for income taxes for adjustments
(36)
(27)
Total Adjusted provision for income taxes
(16)
(8)
Total Adjusted income tax rate
21.5
%
21.5
%
Non-controlling interests
(4)
—
Adjusted net income attributable to Expedia Group, Inc.
$
53
$
29
GAAP diluted loss per share
$
(1.56)
$
(0.99)
Amortization of intangible assets
0.09
0.11
Stock-based compensation
0.74
0.75
Legal reserves, occupancy tax and other
—
0.14
Restructuring and related reorganization charges
0.20
0.34
Unrealized (gain) loss on revenue hedges
—
(0.01)
Loss on minority equity investments, net
1.18
0.06
Loss on debt extinguishment
0.01
—
Gain on sale of businesses
(0.02)
(0.02)
Income tax effects and adjustments
(0.27)
(0.20)
Non-controlling interests
(0.01)
—
Adjustment to GAAP dilutive securities (1)
0.04
0.02
Adjusted earnings per share(2)
$
0.40
$
0.21
GAAP diluted weighted average shares outstanding (000's)
128,641
135,501
Adjustment to dilutive securities (000's)(1)
3,230
3,008
Adjusted weighted average shares outstanding (000's) (2)
131,871
138,509
Ex-trivago Adjusted Net Income and Adjusted EPS
Adjusted net income attributable to Expedia Group, Inc.
$
53
$
29
Less: Adjusted net income (loss) attributable to trivago
(9)
(7)
Adjusted net income excluding trivago
$
62
$
36
Page 14 of 16
Adjusted earnings per share
$
0.40
$
0.21
Less: Adjusted loss per share attributable to trivago
(0.07)
(0.05)
Adjusted earnings per share excluding trivago(2)
$
0.47
$
0.26
(1) In periods for which we have Adjusted net income, the GAAP diluted average shares and diluted earnings (loss) per share is presented adjusted for our convertible debt instruments per the treasury stock method.
(2) Share and per share numbers may not add due to rounding.
Free Cash Flow
Three months ended March 31,
2025
2024
(In millions)
Net cash provided by operating activities
$
2,952
$
2,879
Less: Total capital expenditures
(196)
(177)
Free cash flow
$
2,756
$
2,702
Adjusted Expenses (Cost of revenue, direct and indirect selling and marketing, technology and content and general and administrative expenses)
Three months ended March 31,
2025
2024
(In millions)
Cost of revenue
$
357
$
358
Less: stock-based compensation
3
2
Adjusted cost of revenue
$
354
$
356
Less: trivago cost of revenue(1)
4
4
Adjusted cost of revenue excluding trivago
$
350
$
352
Selling and marketing - direct
$
1,757
$
1,650
Less: trivago selling and marketing - direct(2)
65
53
Adjusted selling and marketing excluding trivago - direct
$
1,692
$
1,597
Selling and marketing - indirect
$
199
$
186
Less: stock-based compensation
20
19
Adjusted selling and marketing - indirect
$
179
$
167
Less: trivago selling and marketing - indirect(1)
3
3
Adjusted selling and marketing excluding trivago - indirect
$
176
$
164
Technology and content
$
320
$
341
Less: stock-based compensation
38
40
Adjusted technology and content
$
282
$
301
Less: trivago technology and content(1)
12
12
Adjusted technology and content excluding trivago
$
270
$
289
General and administrative
$
180
$
186
Less: stock-based compensation
37
43
Adjusted general and administrative
$
143
$
143
Less: trivago general and administrative(1)
6
8
Adjusted general and administrative excluding trivago
$
137
$
135
Total adjusted overhead expenses(3)
$
604
$
611
Page 15 of 16
Note: Some numbers may not add due to rounding.
(1) trivago amounts presented without stock-based compensation as those are included with the consolidated totals above.
(2) Selling and marketing expense adjusted to add back B2C direct marketing spend on trivago eliminated in consolidation.
(3) Total adjusted overhead expenses is the sum of adjusted expenses for Selling and marketing - indirect, Technology and content, and General and administrative.
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 expectations, projections or other characterizations of future events or circumstances are forward-looking statements and may include statements relating to future revenues, expenses, margins, profitability, net income (loss), earnings per share and other measures of results of operations and the prospects for future growth of Expedia Group, Inc.’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, those described in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” 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 May 8, 2025. Undue reliance should not be placed on forward-looking statements in this release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.
