Expedia Group, Inc. FY25 revenue $14.73B (+8%); op income $1.98B (+50%); NI $1.29B (+5%); EPS $9.81 (+10%). FCF $3.11B (+34%). Q4 B2C gross bookings $18.3B (+5%); B2C revenue $2.2B (+4%). Q4 B2B gross bookings $8.7B (+24%); B2B revenue $1.3B (+24%); B2B EBITDA margin 24% (-1pp); double-digit growth across all regions. Vrbo + Hotels.com returned to growth. AI personalization + faster sites + broadened inventory + enhanced help center / servicing. Advertising reaccelerated. Operating margins expanded over 2 points. Newly initiated dividend ($200M FY25). Buyback $1.93B (+5%). Total capital return $2.13B. FY26 guide: Q1 gross bookings +10-12%; Q1 revenue +11-13%; Q1 EBITDA margins +3-4 points; full year gross bookings +6-8%; full year revenue +6-9% (including FX tailwind); full-year margins to expand 100-125 bp. Risks: OTA competitive landscape (Booking, Airbnb, Google, Trip.com), macro travel cycle, B2B customer concentration, FX, AI search disruption, EU regulation.

Expedia 2025-26: B2B +24%, Vrbo Reignited, FY26 Margins +100-125bp

FY25 revenue $14.73B (+8%); op income $1.98B (+50%); NI $1.29B (+5%); EPS $9.81 (+10%). FCF $3.11B (+34%). Q4 B2C gross bookings $18.3B (+5%); B2C revenue $2.2B (+4%). Q4 B2B gross bookings $8.7B (+24%); B2B revenue $1.3B (+24%); B2B EBITDA margin 24% (-1pp). Vrbo + Hotels.com returned to growth. AI personalization + faster sites + broadened inventory + enhanced servicing. Advertising reaccelerated revenue growth. Operating margins expanded over 2 points. Dividend newly initiated FY25 ($-200M). Buyback $-1.93B (+5%). FY26 guide: Q1 gross bookings +10-12%; Q1 revenue +11-13%; Q1 EBITDA margins +3-4 points; full year gross bookings +6-8%; full year revenue +6-9% (including FX tailwind); full year margins to expand 100-125 bp.

Key takeaways

B2B +24% gross bookings + +24% revenue — fastest-growing OTA segment globally. Q4 FY25 B2B (Expedia Group's white-label / partner-platform business) gross bookings grew +24% to $8.7B and revenue grew +24% to $1.3B. Continued double-digit growth across all regions. The B2B segment serves airlines, banks (loyalty + travel), corporate travel platforms, and others using Expedia's supply + technology infrastructure. This is the cleanest growth pillar in the OTA space — competitors like Booking + Trip.com don't have comparable B2B exposure. Multi-year secular tailwinds from corporate travel digitization + bank loyalty travel + airline ancillary monetization all support sustained B2B growth.
Vrbo + Hotels.com returned to growth — multi-year repositioning paying off. Two of Expedia's portfolio brands that struggled post-COVID — Vrbo (vacation rentals) and Hotels.com (hotel-focused brand) — both returned to growth in FY25. This validates Ariane Gorin's repositioning strategy (CEO since May 2024): focused brand investments, marketing efficiency improvements, technology platform unification, and ad-tech reacceleration. The Vrbo recovery in particular is meaningful because vacation rental is one of the highest-margin booking categories.
FY26 margins +100-125bp full-year (+3-4 points Q1) — multi-year operating leverage. Management guided FY26 full-year EBITDA margins to expand 100-125 basis points YoY, with Q1 expanding +3-4 points. Combined with FY25 margin expansion of 2+ points, this is a multi-year margin expansion trajectory driven by (a) operational discipline + volume leverage, (b) AI deployment internally for productivity, (c) advertising reacceleration (high-margin), (d) B2B mix shift. Margin expansion + revenue growth = compounding earnings leverage.
AI for personalization + servicing + internal productivity — multi-year platform upgrade. Management explicitly highlighted AI deployment for: (a) personalization (recommendations, ranking, dynamic merchandising), (b) sites + apps acceleration (faster page loads = higher conversion), (c) help center + servicing (chatbots, agent assist, automated resolution), (d) internal operations (productivity, code generation, customer support automation). The breadth of AI deployment across customer-facing + operational applications creates structural cost + revenue advantages relative to peers.
FY25 capital return $2.13B ($1.93B buyback + $200M newly initiated dividend) + FCF $3.11B (+34%) — strong capital return discipline. Total capital return $2.13B FY25 vs $1.84B FY24 (+16%). Newly initiated dividend ($200M FY25) is a meaningful shift toward balanced capital return — historically Expedia returned capital exclusively via buyback. FCF $3.11B (+34%) supports continued aggressive return + balance sheet flexibility. Buyback continues at $1.93B run-rate. Multi-year capital return trajectory.

Business

Expedia Group, Inc. is one of the world's largest online travel agencies (OTA) with a multi-brand + multi-segment portfolio:

B2C (~65% of revenue): Direct-to-consumer travel booking via Expedia.com, Hotels.com, Vrbo (vacation rentals), Orbitz, Travelocity, Wotif, eBookers, CheapTickets, Hotwire. Q4 gross bookings $18.3B (+5%); revenue $2.2B (+4%).
B2B (~35% of revenue, fastest growing): White-label travel platform serving airlines, banks (loyalty travel), corporate travel managers, others. Q4 gross bookings $8.7B (+24%); revenue $1.3B (+24%); EBITDA margin 24%.
trivago (separately listed) + Advertising: trivago meta-search; Expedia Group advertising platform (advertising business reaccelerated FY25).

Strategic moves FY25:

B2B +24% gross bookings + revenue; double-digit across all regions
Vrbo + Hotels.com returned to growth
Operating margins expanded over 2 points
AI deployment for personalization + servicing + internal productivity
Sites + apps speed improvements (conversion lift)
Help center + servicing capability enhancements
Inventory broadened
Newly initiated dividend ($200M FY25)
Buyback $1.93B (+5% YoY)
Ariane Gorin (CEO since May 2024) multi-year repositioning continuing

FY25 financial performance

Metric (FY)	2022	2023	2024	2025
Revenue ($B)	11.67	12.84	13.69	14.73
Revenue YoY	n/a	+10%	+7%	+8%
Op income ($M)	1,085	1,033	1,319	1,978
Op margin	9.3%	8.0%	9.6%	13.4%
Net income ($M)	352	797	1,234	1,294
Diluted EPS ($)	2.18	5.31	8.95	9.81
FCF ($B)	2.78	1.84	2.33	3.11
Capex ($M)	-662	-846	-756	-770
Total debt ($B)	6.55	6.57	6.53	6.67
Buyback ($M)	-607	-2,137	-1,839	-1,930
Dividends ($M)	0	0	0	-200

The earnings progression: revenue growth has been steady at high-single digits (FY23 +10% post-pandemic recovery; FY24-25 +7-8% normalized). Operating margin expanded materially: 8.0% (FY23) → 9.6% (FY24) → 13.4% (FY25) — meaningful operating leverage flowing through. EPS $9.81 (+10%) with 1.98B operating income (+50% YoY) — operating leverage especially evident.

FCF $3.11B (+34% YoY) — strong cash generation. Total debt $6.67B (+2%) — stable. Newly initiated dividend $200M FY25 marks a shift to balanced capital return (vs buyback-only historically).

Capital allocation

Capex: $-770M FY25 (+2% YoY).
Dividends: $-200M FY25 (newly initiated; balanced capital return).
Buybacks: $-1.93B FY25 (+5% YoY).
Total capital return FY25: ~$2.13B.
Total debt: $6.67B (+2% YoY).
FCF: $3.11B FY25 (+34% YoY).

FY26 outlook (per Q4 2025 call, 2026-02-12)

FY26 framework	Detail
Q1 gross bookings growth	+10% to +12%
Q1 revenue growth	+11% to +13%
Q1 EBITDA margins	+3 to +4 points
Full-year gross bookings growth	+6% to +8%
Full-year revenue growth	+6% to +9% (including FX tailwind)
Full-year EBITDA margin expansion	+100 to +125 bp
B2B	Continued double-digit
Vrbo + Hotels.com	Continued growth

Management noted Q1 momentum carrying forward, B2B double-digit across all regions, Vrbo + Hotels.com sustained growth, AI productivity / personalization, advertising reaccelerated, and operational discipline + volume leverage.

Key risks

OTA competitive landscape — Booking, Airbnb, Google, Trip.com. Booking Holdings dominates international hotel + accommodation; Airbnb in vacation rentals; Google in metasearch + flight aggregation; Trip.com in Asia. Multi-region competitive pressures + advertising spend dynamics + commission model pressure are ongoing.

Macro travel demand cycle. Travel demand sensitive to consumer spending, employment, FX, fuel prices, geopolitical events. FY25 strong leisure demand may normalize.

B2B customer concentration. B2B partners include large airlines + banks + corporate travel platforms. Any major partner relationship change (e.g., partner switching to in-house or competitor) creates revenue impact.

Vrbo + vacation rental competitive landscape. Airbnb dominates vacation rental discovery + booking globally. Vrbo recovery in FY25 is positive but multi-year competitive pressure persists.

FX volatility. Multi-region operations expose Expedia to translation impact. Strong USD impacts reported metrics.

AI search disruption (Google AI Overviews / OpenAI / Perplexity). AI-powered search + travel agents may disintermediate traditional OTA discovery models. Expedia's AI deployment is partly defensive against this dynamic.

Hotel + airline pricing dynamics. OTA economics depend on supply prices + commission terms. Multi-region hotel chain dynamics + airline distribution changes affect take rates.

EU regulation (Digital Markets Act). EU regulatory environment for online platforms creates ongoing compliance costs.

Cybersecurity + data breach. Multi-region traveler data + payment processing creates cybersecurity risk surface.

Labor + customer service. Multi-region customer service operations + agents matter for service quality + retention.

Partner negotiations (loyalty / banks). Bank + loyalty partnerships require ongoing negotiations + commercial terms.

Geopolitical + travel advisories. Wars, political unrest, pandemics all affect cross-border travel.

Vrbo / vacation rental supply. Local regulations on short-term rentals (NYC, Barcelona, Amsterdam, etc.) constrain Vrbo growth in select markets.

M&A / portfolio dynamics. Future portfolio rationalization (trivago + others) creates strategic + financial risks.

Bottom line

Expedia Group FY25 is the multi-segment growth + margin expansion + B2B acceleration year: revenue $14.73B (+8%); op income $1.98B (+50%); NI $1.29B (+5%); EPS $9.81 (+10%). FCF $3.11B (+34%). Q4 B2C gross bookings $18.3B (+5%); B2B gross bookings $8.7B (+24%) — fastest-growing OTA segment globally. B2B revenue $1.3B (+24%); EBITDA margin 24%. Vrbo + Hotels.com returned to growth. Operating margins expanded over 2 points. AI personalization + servicing + internal productivity. Advertising reaccelerated. Newly initiated dividend $200M; buyback $1.93B (+5%). Total capital return $2.13B.

FY26 guide: Q1 gross bookings +10-12%; Q1 revenue +11-13%; Q1 EBITDA margins +3-4 points. Full-year gross bookings +6-8%; revenue +6-9% (incl FX); margins expand 100-125 bp.

The risks are real — OTA competitive landscape (Booking, Airbnb, Google, Trip.com), macro travel demand cycle, B2B customer concentration, Vrbo vs Airbnb, FX volatility, AI search disruption, hotel + airline pricing dynamics, EU Digital Markets Act, cybersecurity + data breach, labor + customer service, partner negotiations, geopolitical + travel advisories, vacation rental supply regulation, M&A / portfolio dynamics.

But the structural thesis (large global OTA platform + multi-brand portfolio (Expedia, Hotels.com, Vrbo, Orbitz, Travelocity, Wotif, eBookers, CheapTickets, Hotwire) + B2B fastest-growing segment +24% Q4 + Vrbo + Hotels.com reignited + 13.4% op margin (up from 9.6% FY24) + FY26 +100-125bp margin expansion + AI personalization + servicing + advertising reacceleration + newly initiated dividend + multi-year capital return + Ariane Gorin repositioning track record) is intact and FY25 confirms.

Quality global online travel compounder mid-cycle, with multi-segment platform + B2B growth pillar + brand portfolio reignition + AI optimization + margin expansion trajectory + capital return acceleration. The FY25 +8% revenue + +50% op income + 13.4% margins + B2B +24% + Vrbo + Hotels.com return to growth + advertising reacceleration + AI deployment + newly initiated dividend + $1.93B buyback + FY26 margins +100-125 bp + Q1 margins +3-4 points creates one of the cleaner OTA + multi-brand compounding setups for investors seeking exposure to global travel demand + B2B platform secular growth + AI productivity + multi-brand portfolio + capital return discipline. The conservative FY26 framework + multi-year B2B trajectory + Vrbo recovery + AI deployment + margin expansion runway provides multiple paths to outperformance over a multi-year horizon. OTA competitive dynamics + macro travel cycle + AI search disruption + EU regulation remain ongoing risks, but the multi-segment diversification + B2B growth + AI advantages + capital return support continued compounding through cycles.

Citations

Expedia Group, Inc. FY25 Form 10-K (filed February 2026, SEC EDGAR).
EXPE Q4 2025 earnings call, 2026-02-12 — B2C gross bookings $18.3B (+5%); B2C revenue $2.2B (+4%); B2B gross bookings $8.7B (+24%); B2B revenue $1.3B (+24%); B2B EBITDA margins 24% (-1pp); Vrbo + Hotels.com returned to growth; faster sites + apps; AI personalization; enhanced help center + servicing; broadened inventory; B2B double-digit growth across all regions; advertising reaccelerated revenue growth; expanded margins from operational discipline + volume leverage; AI deployed internally; Q1 gross bookings +10-12%; Q1 revenue +11-13%; Q1 EBITDA margins +3-4 points; full-year gross bookings +6-8%; full-year revenue +6-9% (including FX tailwind); full-year margins +100-125 bp.
EXPE Q3 / Q2 / Q1 2025 earnings calls — supporting B2B trajectory + Vrbo recovery + advertising reacceleration progression.
Internal financial_statements view (consolidated annual + cash flow + capital structure).

[EXPE] Expedia Thesis 2026: B2B Platform and Vrbo Revival Define Dual-Engine Recovery