Expedia Group, Inc.

Second quarter gross bookings increased 12% year over year, driven by 6% room night growth and 5% ADR growth on an FX-neutral basis. Revenue increased 14% year over year, with FX contributing nearly half a point to bookings growth and four points to revenue growth. Adjusted EBITDA was $1.1 billion, or 25.9% margin, up nearly two points versus last year, and adjusted EPS grew 36% year over year. Trailing 12-month free cash flow reached $4.5 billion. For Q3, Expedia expects gross bookings of $32.2 billion-$32.8 billion, revenue of $4.65 billion-$4.75 billion, and adjusted EBITDA of $1.51 billion-$1.56 billion with a 32.5%-32.8% margin. For the full year, the company raised guidance to gross bookings of $129.5 billion-$130.8 billion, revenue of $16.05 billion-$16.22 billion, and adjusted EBITDA margin expansion of 150-175 basis points versus last year.

Ariane Gorin framed the quarter as evidence that Expedia is making progress on its three priorities: delivering more value to travelers, investing in the biggest growth opportunities, and expanding operating efficiency. She highlighted AI-driven product improvements, broader supply, and the push toward a one-stop B2B travel shop, saying the company is seeing immediate conversion benefits in some AI uses and longer-term learning benefits in others. Her tone was confident and constructive, emphasizing that consumer travel demand remains healthy and that Expedia is positioned to capture it across brands and geographies.

Derek Andersen emphasized that the quarter exceeded expectations because of healthy macro conditions, continued B2B strength, better consumer marketing returns, and cost discipline. He cited Q2 gross bookings up 12%, revenue up 14%, adjusted EBITDA of $1.1 billion at 25.9% margin, and adjusted EPS up 36%; he also noted $4.5 billion of trailing 12-month free cash flow and $200 million of share repurchases in the quarter, bringing year-to-date buybacks to $900 million. On guidance, he said Q3 margin expansion should moderate because of tougher comparisons, B2B investment, and FX headwinds, but full-year EBITDA margin expansion was raised to 150-175 basis points. He reiterated capital allocation priorities: organic investment, disciplined M&A, dividends, and opportunistic buybacks.

Analysts focused on AI traffic and monetization, B2B competition and margin pressure, search/SEO trends, ADR and room-night dynamics, and the contribution of newer partnerships. Management said AI is already improving recommendations, ranking, and personalization in the core business, while newer conversational tools are mainly helping collect richer traveler intent today; they also see early opportunities to appear in external AI channels, but said it is still early. On B2B, management stressed that competition is longstanding, the addressable market is large, and Expedia’s edge is supply, technology, servicing, and a broader one-stop-shop offering; they also explained that margin pressure reflects partner mix, Tiqets integration, and FX hedging. On search, Ariane Gorin said organic traffic is stable to slightly up, with AEO growing fast and SEO stabilizing.