Expedia’s (NASDAQ:EXPE) Q3: Beats On Revenue

Core Insights - Expedia reported Q3 CY2025 revenue of $4.41 billion, exceeding Wall Street expectations by 2.9% with an 8.7% year-on-year growth [1][5][8] - The company provided a positive revenue guidance for Q4 CY2025 at $3.41 billion, which is 4.2% above analyst estimates [1][5][8] - Non-GAAP profit per share was $7.57, surpassing analysts' consensus by 9% [1][8] Company Overview - Expedia, originally part of Microsoft, is recognized as one of the leading online travel agencies globally [3] Revenue Growth - Over the last three years, Expedia's sales grew at a compounded annual growth rate of 8.3%, which is below the benchmark for the consumer internet sector [4] - The current quarter's revenue growth of 8.7% is a positive sign, but future projections indicate a slowdown, with analysts expecting a 4.5% revenue growth over the next 12 months [5] Financial Performance - Adjusted EBITDA for the quarter was $1.45 billion, with a margin of 32.8%, exceeding analyst expectations [8] - Operating margin improved to 23.5%, up from 18.8% in the same quarter last year [8] - Free cash flow was reported at -$686 million, a decline from $921 million in the previous quarter [8] Booking Growth - Revenue generation is driven by increasing the number of stays booked and the commissions charged on those bookings [9]