Expedia Group(US:EXPE)2025-11-06 22:36Financial Performance - Revenue for Q3 2025 was $4,412 million, a 8.7% increase from $4,060 million in Q3 2024[8] - Operating income for the nine months ended September 30, 2025, reached $1,451 million, up 31.6% from $1,103 million in the same period of 2024[8] - Net income attributable to Expedia Group, Inc. for Q3 2025 was $959 million, compared to $684 million in Q3 2024, representing an increase of 40.4%[10] - Basic earnings per share for Q3 2025 was $7.76, up 47% from $5.28 in Q3 2024[8] - Comprehensive income for Q3 2025 was $957 million, compared to $717 million in Q3 2024, reflecting a 33.5% increase[10] - Net income for the nine months ended September 30, 2025, was $1,089 million, an increase from $923 million in the same period of 2024, representing a growth of 18.0%[20] - Total revenue for the nine months ended September 30, 2025, was $11,186 million, a 6.4% increase from $10,507 million in the same period of 2024[95] - Adjusted EBITDA for the nine months ended September 30, 2025, was $2,653 million, compared to $2,291 million for the same period in 2024, reflecting a 15.8% increase[95] Assets and Liabilities - Total assets as of September 30, 2025, were $25,108 million, an increase from $22,388 million as of December 31, 2024[14] - Cash and cash equivalents increased to $5,826 million as of September 30, 2025, compared to $4,183 million at the end of 2024[14] - The company reported a total current liabilities of $17,262 million as of September 30, 2025, compared to $13,611 million at the end of 2024[14] - The total stockholders' equity decreased to $2,593 million as of September 30, 2025, down from $2,799 million at the end of 2024[14] - Total outstanding debt as of September 30, 2025, was $6.216 billion, a slight decrease from $6.266 billion as of December 31, 2024[55] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2025, was $3,576 million, compared to $2,887 million for the same period in 2024, indicating a 24.0% increase[20] - Cash, cash equivalents, and restricted cash at the end of the period were $7,262 million, up from $6,046 million at the end of September 2024, representing a 20.1% increase[20] - The company experienced a net increase in cash, cash equivalents, and restricted cash of $1,688 million for the nine months ended September 30, 2025, compared to an increase of $385 million in 2024[20] - For the nine months ended September 30, 2025, net cash used in investing activities was $332 million, a decrease from $901 million in the prior year period[185] Shareholder Activities - The company paid dividends to stockholders totaling $151 million for the nine months ended September 30, 2025, compared to no dividends paid in the same period of 2024[20] - The company repurchased treasury stock amounting to $1,603 million during the nine months ended September 30, 2025, compared to $1,641 million in 2024[20] - The company repurchased 7.9 million shares for a total cost of $1.4 billion under the 2023 Share Repurchase Program, with an average repurchase price of $179.05 per share[68] Revenue Segments - Lodging accounted for 82% of total worldwide revenue in Q3 2025, with room nights booked growing by 11% compared to 9% in 2024[111] - The B2B segment generated $1,392 million in revenue for Q3 2025, up from $1,178 million in Q3 2024, marking a 17.9% increase[93][94] - The trivago segment generated $137 million in revenue for Q3 2025, an increase from $102 million in Q3 2024, representing a 34.3% growth[93][94] - Merchant revenue model generated $7,766 million for the nine months ended September 30, 2025, compared to $7,228 million in 2024, indicating a 7.4% increase[99] Tax and Legal Matters - The company recorded a reserve of $107 million for potential settlement of Italian VAT obligations for the years 2016 to 2022, with an additional payment of $71 million made in November 2024[82] - A tax audit report from the Guardia di Finanza proposed unpaid withholding tax of €150 million ($175 million) for the years 2017 through 2023, with a reserve of $90 million recorded as of September 30, 2025[84][85] Market Conditions and Risks - The company experienced weaker than expected travel demand in the U.S. during the first half of 2025, but conditions improved in the third quarter[106] - The online travel market remains highly competitive, with emerging markets presenting attractive growth opportunities despite increased competition from various players[109] - The company is facing potential risks from new taxes and aggressive enforcement of existing tax laws, which could impact liquidity[107]