Expedia Group Inc (EXPE)
Description
Expedia Group Inc is a global online travel company operating a portfolio of consumer and B2B brands that provide lodging, airline bookings, vacation rentals, car rentals and advertising services worldwide.
Historical Reports
Financial Information
- Report Date
- 2025-05-08
- Report Period
- Q1 2025
- Debt
- $6.211 billion
- Debt History
- Debt decreased by 0.9% from $6.266 B at December 2024 to $6.211 B at March 2025
- Debt Trend
- Decreasing
Profit Information
- Profit
- –$197 million (net loss)
- Profit History
- Net loss widened by 45% from a $136 M loss in Q1 2024 to a $197 M loss in Q1 2025
- Profit Trend
- Decreasing
Detailed Report
Expedia Group Inc Q1 2025 Financial Analysis
Report Date: 2025-05-08
Period Covered: Quarter ended March 31, 2025
Key Financials
| Metric | Q1 2025 | Q1 2024 | % Change |
|---|---|---|---|
| Revenue | $2.988 B | $2.889 B | +3.4% |
| Net Loss | –$197 M | –$136 M | –45% |
| Adjusted EBITDA | $296 M | $255 M | +16% |
| Total Debt | $6.211 B | $6.266 B | –0.9% |
| Operating Cash Flow | $2.952 B | $2.879 B | +2.5% |
Profit/Loss Analysis
- Net Loss Drivers:
- Marketing & sales investment rose $107 M YoY to $1.757 B to support brand expansion.
- Increased legal reserve for occupancy-tax contingencies and pay-to-play liabilities.
- Higher headcount and technology overhead in indirect marketing and content.
- Offsetting Factors:
- Strong B2B segment growth (+14% revenue) and margin expansion.
- Higher interest income on cash and short-term investments ($3 M increase).
- Cost-optimization in cloud and platform services led to a $21 M reduction in technology expense.
Debt & Liquidity Profile
- Total Debt: $6.211 B (–0.9% QoQ)
- Current Maturities: $1.746 B ; Long-Term: $4.465 B
- Recent Activity:
- Early redemption of $1 B of 6.25% notes due May 2025.
- Issued $1 B of 5.40% notes due Feb 2035 (net proceeds $985 M).
- Cash & Investments: $7.734 B combined cash, equivalents and short-term investments.
- Operating Cash Flow: $2.952 B; Free Cash Flow remains strong after capex of $196 M.
Pros and Cons
Pros:
- Reinstated dividend at $0.04/share and $29 B remaining in share-repurchase authorization.
- Diversified revenue streams: B2C, B2B, and advertising via trivago.
- Expansion in B2B partnerships driving higher yield and lower capital intensity.
- Robust liquidity and $2.5 B unused on revolver; maintain investment-grade ratings.
Cons:
- Wider net loss due to elevated marketing spend and tax/legal reserves.
- Q1 seasonality is weakest quarter in travel; earnings skew to Q3.
- Heightened regulatory and tax scrutiny (digital service taxes, VAT exposures).
- Competitive pressure from direct distribution by airlines, hotels and AI-powered platforms.
Statistics Breakdown
Segment Revenue & Adjusted EBITDA (millions)
| Segment | Revenue Q1 2025 | Adj. EBITDA Q1 2025 | Revenue Q1 2024 | Adj. EBITDA Q1 2024 |
|---|---|---|---|---|
| B2C | $1,956 | $217 | $1,986 | $215 |
| B2B | $947 | $216 | $833 | $172 |
| trivago | $133 | –$132 | $110 | –$123 |
| Total | $2,988 | $296 | $2,889 | $255 |
Revenue by Business Model (Q1 2025): merchant $2,046 M, agency $652 M, advertising $290 M
Revenue by Service Type (Q1 2025): lodging $2,289 M, air $107 M, advertising medium $174 M, trivago ads $333 M
Company Direction Insights
Expedia’s Q1 results underscore the resilience of its diversified model. The B2B unit continues to outpace peers with double-digit growth, while marketing investments position core brands for international expansion. Despite a wider net loss driven by seasonally heavy spend and tax/legal reserves, the company’s strong operating cash flow ($2.95 B) and conservative debt maturity profile support ongoing buybacks, dividend reinstatement and future M&A/investments. Challenges include first-quarter seasonality, rising competition from direct suppliers and AI-enabled disruptors, and evolving tax regimes. Looking ahead, margin leverage in B2B, cost efficiency in technology, and continued innovation in loyalty and platform services should drive improved profitability in H2 2025.