Expedia Group, Inc. operates as a leading online travel company, serving customers both within the United States and across international markets. The ...
Expedia Group, Inc. is a global travel technology company that operates a vast portfolio of brands and platforms, connecting travelers with a wide range of travel products and services. Founded in 1996 as a division of Microsoft, the company was spun off as a public entity in 1999 and has ...Expedia Group, Inc. is a global travel technology company that operates a vast portfolio of brands and platforms, connecting travelers with a wide range of travel products and services. Founded in 1996 as a division of Microsoft, the company was spun off as a public entity in 1999 and has since grown through organic expansion and strategic acquisitions to become one of the world's largest online travel agencies. The company's mission is to power global travel through trusted brands, leading technology, and a global marketplace.
Business Segments and Products: Expedia Group organizes its operations into three primary divisions: Retail, B2B, and Trivago. The Retail segment includes consumer-facing brands such as Expedia, Hotels.com, Vrbo, Orbitz, Travelocity, Hotwire, Ebookers, CheapTickets, CarRentals.com, Classic Vacations, and Expedia Cruises. These platforms offer a wide array of travel services, including flight and hotel bookings, vacation rentals, car rentals, cruise bookings, and vacation packages. The B2B segment, through Expedia Partner Solutions, provides travel and non-travel services to corporate clients, including travel management companies, airlines, travel agents, and financial institutions. Egencia, another B2B brand, focuses on corporate travel management. Trivago is a hotel metasearch engine that aggregates hotel deals from various booking sites, earning revenue through referral fees. Additionally, the company offers loyalty programs, advertising and media services, and a suite of technology solutions for partners.
Financial Overview: As of the latest data, Expedia Group has a market capitalization of approximately $35.57 billion, with its stock trading at around $310.68. The company generates significant revenue, with a trailing-twelve-month revenue per share of $129.72. Profitability metrics indicate a net profit margin of 13%, and a strong EBITDA margin of 25%. The company's financial leverage is notable, with a debt-to-equity ratio of 4.70, but it also maintains a high operating cash flow, evidenced by an operating cash flow ratio of 0.583. Expedia pays dividends, with a last dividend of $1.76 per share and a payout ratio of 13.4%. The company's enterprise value is approximately $34.58 billion, with an EV/EBITDA multiple of 8.81, suggesting reasonable valuation relative to earnings.
Key People and Leadership: The company is led by CEO Ariane Gorin, who assumed the role in May 2024, succeeding Peter Kern. Barry Diller serves as Chairman and Senior Executive. The founder, Rich Barton, is a prominent figure in the tech industry and also founded Zillow. Under this leadership, Expedia Group continues to innovate, recently expanding its B2B platform with new APIs and launching generative AI tools to enhance the travel booking experience.
Global Reach and Workforce: Expedia Group operates in over 70 countries and serves customers worldwide. The company employs approximately 16,000 full-time employees, with headquarters in Seattle, Washington. Its diverse workforce supports a range of functions, from technology development to customer service, and the company emphasizes a culture of innovation and collaboration.
Market Position and Future Outlook: Expedia Group faces intense competition from other online travel agencies like Booking Holdings and Airbnb, as well as direct booking by hotels and airlines. To stay competitive, the company is investing heavily in technology, including AI and machine learning, to personalize travel recommendations and streamline booking processes. It is also expanding its B2B offerings and advertising solutions to diversify revenue streams. With a strong brand portfolio and a focus on technological advancement, Expedia Group aims to maintain its position as a leading travel marketplace and drive long-term growth in the evolving travel industry.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$14.7B
+7.6%
+25.9%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$1.3B
+4.9%
+14733.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+90.1%
+0.7%
+1.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+14.7%
+52.4%
+236.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+8.8%
-2.6%
+11718.5%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$3.1B
+33.5%
-65.9%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+21.1%
+24.1%
-72.9%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
519.4%
+23.8%
-42.4%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.73x
+1.6%
+9.6%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, everyone. Welcome to the Expedia Group Q2 2026 financial results teleconference. My name is Holly. I will be the operator for today's call. If you wish to ask a question at the end of the presentation, please press star followed by the number one on your telephone keypad. If you change your mind, please press star followed by one again to cancel your request. For opening remarks, I will now turn the call over to VP Investor Relations, Rob Bevegni. Rob Bevegni, please go ahead.
Rob Bevegni: Good afternoon. Welcome to Expedia Group's second quarter 2026 earnings call. I'm pleased to be joined on today's call by our CEO, Ariane Gorin, and our CFO, Derek Andersen. As a reminder, our commentary today will include references to certain non-GAAP measures. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are included in our earnings release. Unless otherwise stated, all growth rates are on a year-over-year basis. Any reference to expenses exclude stock-based compensation. We'll also be making forward-looking statements during the call, which are predictions, projections, and other statements about future events. These statements are based on current expectations and assumptions, which are subject to risks and uncertainties that are difficult to predict. Actual results could materially differ due to factors discussed during this call and in our most recent Forms 10-Q, Forms 10-K, and other filings with the SEC. Except as required by law, we do not undertake any responsibility to update these forward-looking statements. This call is being webcast on the investor relations section of our website at ir.expediagroup.com. A replay will be archived on our site. A slide presentation containing financial highlights has also been posted to our website. Starting this quarter, we expanded the presentation to provide additional context on our performance. For today's call, Ariane Gorin will begin with a review of our second quarter results. Derek Andersen will then provide additional detail on our financial performance, as well as our third quarter and full-year guidance. After our prepared remarks, we will turn the call over to the operator to begin the Q&A portion of our call. With that, let me turn the call over to Ariane Gorin.
Ariane Gorin: Thanks, Rob Bevegni. Good afternoon, everyone. We had a solid second quarter, delivering strong financial results while making tangible progress on our strategic priorities. We exceeded the high end of both our top and bottom-line expectations for the fifth quarter in a row, growing bookings 12%, revenue 14%, and adjusted EBITDA 23%. We delivered new product experiences, expanded supply across our marketplace, and took an important step in building our one-stop B2B travel shop. Based on our first half results and the ongoing trends we're seeing, we're raising our full-year guidance. Derek Andersen will cover that shortly. Turning back to the second quarter, consumer …
