QQ3 2025 marked another step in Expedia’s recovery and profitability trajectory, underpinned by resilient leisure travel demand and a favorable mix across its diversified brand portfolio. Reported revenue of $4.412 billion rose 8.7% year over year and 16.5% quarter over quarter, while gross margins remained exceptionally high at roughly 91.5%, reflecting the high-margin nature of OTA services and strong monetization of the platform. Operating income expanded to $1.036 billion, up 35.96% YoY and 113.61% QoQ, driving net income to $0.959 billion and diluted EPS of $7.33 (GAAP), with YoY EPS growth of 47.3% and QoQ growth of 197.3%. EBITDA reached $0.955 billion with an EBITDARatio of approximately 21.6%, signaling durable profitability as the company continues investments in product, marketing, and partnerships.
From a cash-flow perspective, the quarter shows mixed signals. Operating cash flow per share is negative (-$4.02) and free cash flow per share is negative (-$0.82), suggesting working capital dynamics and near-term capital deployment beyond earnings. By contrast, the balance sheet reflects a substantial cash position per share ($61.49) and a relatively modest debt profile (debt ratio about 8%), which provides liquidity flexibility as Expedia scales its Partner Solutions and non-travel offerings. The stock trades at a modest valuation relative to some peers (P/E ≈ 6.9; P/S ≈ 6.0) but with a high price-to-book (~19.8), indicating a perceived premium for book value given the brand equity and intangible assets embedded in the platform.
Note: No earnings-call transcript data were provided in the submitted dataset. As a result, management forward-looking commentary and explicit guidance were not extractable from the transcript, and the forward-looking section relies on the quantitative results and standard industry dynamics. Investors should monitor quarterly free cash flow progression, working capital dynamics, marketing efficiency, and brand mix shifts as Expedia advances its strategic initiatives across leisure and corporate travel.