Expedia reported strong Q4 2025 results, with bookings and revenue up 11%, driven by robust B2B growth (+24%) and advertising (+19%), alongside marketing-driven margin expansion. Management provided an upbeat Q1 2026 outlook with continued double-digit growth, but a more cautious full-year guide due to macro uncertainty. Q4 bookings and revenue grew 11% YoY, with adjusted EBITDA margin up nearly 4 points to 24%.
Expedia reported strong Q4 2025 results, with bookings and revenue up 11%, driven by robust B2B growth (+24%) and advertising (+19%), alongside marketing-driven margin expansion. Management provided an upbeat Q1 2026 outlook with continued double-digit growth, but a more cautious full-year guide due to macro uncertainty. Q4 bookings and revenue grew 11% YoY, with adjusted EBITDA margin up nearly 4 points to 24%.
Management expressed confidence in the momentum across all strategic priorities, with strong Q4 results and forward guidance, while acknowledging macro uncertainty but maintaining a positive outlook for 2026.
Guidance · revenue to 12%
Direct bookings grow faster than indirect, two-thirds of bookings direct. Management expressed confidence in the momentum across all strategic priorities, with strong Q4 results and forward guidance, while acknowledging macro uncertainty but maintaining a positive outlook for…
Management guided Q1 2026 bookings growth of 10-12% and EBITDA margin expansion of 3-4 points.
Management highlighted AI as a key growth opportunity, with efforts to integrate with major GenAI platforms and agentic browsers, and to use AI for personalization, supply onboarding, and internal efficiencies. They noted AI search opens new possibilities to reach travelers and improve conversion, while experimenting aggressively with third-party AI experiences.
Direct bookings grow faster than indirect, two-thirds of bookings direct. Management expressed confidence in the momentum across all strategic priorities, with strong Q4 results and forward guidance, while acknowledging macro uncertainty but maintaining a positive outlook for 2026.
Capex is expected to be roughly in line with 2025, with no material change anticipated. Management emphasized optimizing cloud spend through technology improvements and a disciplined cloud operating model, while continuing to invest in AI and machine learning talent.
Management expressed confidence in the momentum across all strategic priorities, with strong Q4 results and forward guidance, while acknowledging macro uncertainty but maintaining a positive outlook for 2026.
“As we have stated previously, we will continue to prioritize investments to support future growth, which may modestly weigh on near-term margins.”
“We've leveraged about 50 basis points as a percentage of GBV in B2C... by improving efficiency, by holding the teams accountable and having a strong point of view about return levels, incrementality...”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Gross margin | FY2026 | 1%–1.25% | 1.125% | GUIDED |
| Gross margin | FY2026 Q1 | 3%–4% | 3.5% | GUIDED |
| Revenue | FY2026 Q1 | 11%–13% | 12% | GUIDED |
| Revenue | FY2026 | 6%–9% | 7.5% | GUIDED |
| Issued | Metric | Target | Guide | Actual | Outcome |
|---|---|---|---|---|---|
| FY2026 Q1 | Op margin | FY2026 Q2 | 0.5%–1% | 18.73% | Met / beat |
Expedia added Southwest and Ryanair as supply partners in the prior year, which supports its growth outlook and improves its flight inventory offering.
“Obviously last year we added Southwest, we added Ryanair, so that gives me a lot of confidence in growth.”
Hey, great. Thanks for taking my question, and good job. I guess, Ariane, I mean, since you've been here or taken over, you know, you've really done a nice job making the business a pretty consistent EBITDA compounder, and you consider to generate consistent margin growth. And I don't want to take you too far out, but can you just give us a vision on where you potentially see that, like, the margin trajectory of this business could go over the medium term? Thank you.
Well, thank you Jed. All I will tell you is there is more to come and obviously you can see in our full year guide that we see more margin expansion and it's not only executing more effectively. It's our marketing executing more effectively. It's us being able to deliver more from the teams that we have. And of course, the beauty of this business is as we grow, as we get more scale, I think the margins will come. So I would just say my confidence in the growth comes from the fact that we've got a lot of potential on B2C, like I just talked about. B2B, there's always more opportunity to get more partners. We're making investments in new lines of business, which again, positions us even better to be the one-stop shop for our partners. There's more supply. We grew the number of lodging properties in the fourth quarter by 10%, and there's still a lot to go. There are some geographies where we don't have the coverage that we would like. We can get more promotions. Obviously last year we added Southwest, we added Ryanair, so that gives me a lot of confidence in growth. And then the ads business. I see a lot of potential, especially in using AI to make those ads even more effective. So again, I see growth on the horizon. I'm excited about the opportunities and AI just gives me even more confidence.