Expedia Group’s QQ2 2025 results reflect a resilient travel demand environment with a meaningful sequential rebound and solid year-over-year growth, anchored by a high-margin booking platform and a robust cash generation engine. Revenue for the quarter stood at $3.786 billion, up 6.4% year over year and 26.7% quarter over quarter, underscoring the momentum coming out of a seasonally stronger travel period. Despite the top-line strength, the company delivered a net income of $330 million and an earnings per share of $2.61, supported by a healthy operating margin of 12.8% and an EBITDA of $704 million.
Expedia’s business mix continues to support profitability, with a gross margin of approximately 90% driven by a high contribution from hotel and accommodations referrals and a broad integration of its brand portfolio (Expedia, Hotels.com, Vrbo, Orbitz, Travelocity, and others). The company generated $1.121 billion of operating cash flow and free cash flow of about $921 million for the quarter, contributing to a cash position of roughly $8.46 billion at period-end. Notably, management has steered substantial capital allocation toward share repurchases (about $688 million in the quarter) while maintaining a modest dividend payout (~$51 million) and investing in growth initiatives.
The balance sheet shows currency implications and leverage characteristics that warrant close monitoring: current assets of $14.733 billion versus current liabilities of $19.614 billion yield a current ratio of 0.75, indicating working capital pressures in the near term. The company carries a total debt load of $6.48 billion with net debt around $1.78 billion, and an equity base of $0.836 billion, highlighting a highly leveraged financial position. However, liquidity remains strong due to substantial cash reserves and scalable cash flow generation. Key balance sheet drivers include a large deferred revenue balance of $13.582 billion, which reflects revenue recognition on future bookings and provides visibility into near-term revenue streams.
Overall, Expedia remains well-positioned to benefit from a continued rebound in travel demand, leveraged by a diversified brand ecosystem and a high-margin core marketplace. The primary risks stem from macroeconomic sensitivity to travel spend, competitive dynamics, and the sustainability of leverage. Management commentary (where available) emphasizes ongoing focus on monetization efficiency, marketing optimization, and international expansion as levers for continued profitability and cash generation.