Confidential - Do not distribute Q4 2025 Earnings Presentation February 18, 2026 Disclosure Regarding Forward-Looking Statements This presentation contains forward-looking statements including regarding our outlook. These forward-looking statements reflect the views of Booking Holdings Inc.'s (the "Company" or "Booking Holdings") management regarding current expectations and projections about future events and conditions and are based on currently available information and current foreign currency exchange ...

The online travel agency said room nights increased 9% and gross bookings were up 16%. ...

Core Insights - Booking Holdings (BKNG) is set to report its fourth-quarter 2025 results on February 18, with revenue estimates at $6.11 billion, reflecting an 11.73% year-over-year growth, and earnings per share (EPS) estimated at $48.23, indicating a 16.08% increase from the previous year [1][2] Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for revenues is $6.11 billion, suggesting an 11.73% growth from the same quarter last year [1] - The consensus estimate for earnings is $48.23 per share, indicating a 16.08% increase year-over-year, with a recent upward revision of 5 cents in the past 30 days [1] - The company has consistently beaten earnings estimates in the last four quarters, with an average beat of 18.21% [2] Group 2: Operational Momentum and Strategic Initiatives - Booking Holdings is expected to have entered Q4 2025 with strengthening operational momentum, driven by strategic initiatives in loyalty and multi-vertical expansion [3] - The Genius loyalty program is anticipated to show robust engagement, with higher conversion rates and repeat booking behavior from travelers in Levels 2 and 3 [3] - The direct channel mix is projected to be in the mid-60% range, contributing to marketing efficiency and reduced customer acquisition costs [3] Group 3: Market Trends and Growth Projections - The Connected Trip vision is gaining momentum, with multi-vertical booking behavior accelerating, particularly in flight tickets and attractions, which are growing faster than accommodation bookings [4] - Room night growth is expected to moderate between 4% and 6% due to normalization of the booking window, indicating a slowdown in growth [5] - Revenue growth is projected between 10% and 12%, facing challenges from a higher mix of lower-margin flight and attractions bookings, which may pressure overall take rates and margins [5] Group 4: Earnings ESP and Stock Outlook - According to the Zacks model, Booking Holdings has an Earnings ESP of +1.01% and a Zacks Rank of 3 (Hold), which suggests a moderate likelihood of an earnings beat [6] - The company is positioned within a competitive landscape, with other stocks like Nutrien and Analog Devices also showing favorable earnings outlooks [7][9]

Core Viewpoint - The article highlights the challenges faced during the Spring Festival travel rush in China, particularly the issue of ticket scarcity exacerbated by third-party ticketing platforms that exploit consumer anxiety for profit [1][3]. Group 1: Ticket Demand and Supply - The predicted cross-regional movement during the Spring Festival is expected to reach 9.5 billion trips, with railway passenger volume hitting 540 million [1]. - The surge in demand leads to a situation where tickets are quickly sold out, creating a perception of scarcity despite the advanced transportation infrastructure [1]. Group 2: Third-Party Ticketing Platforms - Third-party platforms are accused of using aggressive marketing tactics to sell services that do not effectively improve ticket acquisition chances, instead worsening the situation by increasing traffic to official platforms [1][2]. - These platforms often mislead consumers with false promises of priority access and ticket monitoring, while the actual ticket availability is tightly controlled by official channels [3]. Group 3: Regulatory Response - The Beijing Municipal Market Supervision Administration has held discussions with 12 major platforms involved in online train ticket sales, addressing significant consumer complaints regarding misleading practices [4]. - Four compliance requirements were outlined for these platforms, including the prohibition of misleading advertising and the need for transparent pricing of additional services [5][6]. Group 4: Industry Challenges and Recommendations - The article suggests that regulatory measures have been ineffective due to low penalties for non-compliance, leading platforms to prioritize profit over consumer fairness [7]. - A collaborative effort among regulators, platforms, and consumers is necessary to restore integrity in the ticketing industry and ensure a fair purchasing experience [7].

Core Insights - The article highlights strong performance driven by sustained market strength and disciplined execution, resulting in 11% growth in bookings and revenue [1] Group 1: B2B Segment Performance - The B2B segment is identified as a primary growth engine, achieving a 24% increase through market share gains with existing partners and enhanced marketing activities from large-scale partners [1] Group 2: Consumer Brand Recovery - Recovery in consumer brands was achieved by refining brand positioning and improving site speed by 30%, which led to enhanced traveler conversion and marketing efficiency [1] Group 3: Strategic Supply Expansion - Strategic supply expansion focused on high-value inventory, with lodging property counts growing by over 10% and partner-funded promotions increasing to over 30% of bookings [1] Group 4: Operational Efficiency - Operational efficiency improved through the use of AI, which shortened product development cycles and accelerated inventory onboarding by 70% [1] Group 5: Marketing Strategy - Marketing leverage was achieved by reallocating spending from low-performing channels to high-incrementality areas, supported by refined measurement capabilities [1] Group 6: Competitive Advantage - Direct engagement remains a core competitive advantage, with two-thirds of bookings originating directly from Expedia's branded platforms [1]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported gross bookings of $27 billion and revenue of $3.5 billion, both reflecting an 11% year-over-year growth [15][16] - Adjusted EBITDA for Q4 was $848 million, with a margin of 24%, representing nearly four points of margin expansion [19] - Adjusted EPS grew 58% to $3.78, driven by share repurchases and a lower tax rate [19] Business Line Data and Key Metrics Changes - B2C gross bookings reached $18.3 billion, growing 5%, while B2C revenue was $2.2 billion, up 4% [16] - B2B gross bookings surged 24% to $8.7 billion, with revenue also increasing by 24% to $1.3 billion [17] - Booked room nights increased by 9%, with strong performance in the U.S. and EMEA regions [15][16] Market Data and Key Metrics Changes - The company experienced high single-digit growth in the U.S. and low double-digit growth in EMEA and the rest of the world [5] - Consumer spending remained robust, with longer booking windows and lengths of stay compared to 2024 [5] - The company noted a slowdown in growth in the rest of the world due to geopolitical issues in Asia [15] Company Strategy and Development Direction - The company aims to enhance traveler value through improved product offerings, faster site performance, and personalized experiences using AI [6][10] - Strategic priorities include investing in growth opportunities, particularly in B2B and advertising, while maintaining operational efficiencies [8][11] - The company is focused on expanding its inventory and enhancing customer service capabilities to drive satisfaction and loyalty [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and ability to execute, anticipating continued growth and margin expansion in 2026 [14][24] - The company is cautious about macroeconomic uncertainties but expects strong bookings momentum entering Q1 2026 [21][22] - Management highlighted the importance of AI in capturing traveler demand and enhancing product offerings [10][71] Other Important Information - The company ended Q4 with $5.7 billion in unrestricted cash and short-term investments, maintaining a commitment to return capital to shareholders [19][21] - A quarterly dividend increase of 20% to $0.48 per share was announced [21] Q&A Session Summary Question: Enhancements in Travel Planning Process - Management emphasized the importance of personalized marketing and product features to capture travelers earlier in the planning process [26][27] Question: B2C Marketing Leverage - Management discussed achieving about 50 basis points of leverage in B2C marketing through improved targeting and efficiency [30][31] Question: Competitive Positioning of Consumer Brands - Management expressed confidence in the positioning of their brands, highlighting recent improvements and growth potential [36][38] Question: Margin Trajectory Outlook - Management indicated confidence in future margin expansion driven by effective execution and growth in B2C and B2B segments [41][43] Question: Supply Growth and Market Dynamics - Management noted a 10% growth in lodging properties and emphasized ongoing efforts to enhance supply and partnerships [49][51] Question: Traffic Changes from Google AI Features - Management reported no material changes in traffic but is actively experimenting with AI to enhance visibility and conversion [55][57] Question: B2B Growth Drivers and Margin Outlook - Management highlighted strong double-digit growth in B2B and ongoing investments that may temporarily pressure margins [64][66]

Group 1 - Expedia forecasts a higher first-quarter adjusted core profit margin, driven by one-time gains and strong demand from business clients, but remains cautious on the full-year outlook [1][2] - The company expects adjusted core profit margin to grow by 3 to 4 percentage points in Q1 2026, compared to a rise of 1.05 percentage points in 2025, but anticipates a slowdown for the full year to a rise of 1 to 1.25 percentage points [3] - Despite a weak margin forecast, Expedia's full-year gross bookings projection of $127 billion to $129 billion exceeds analysts' average estimate of $125.95 billion [4] Group 2 - The B2B segment has seen a 24% increase in gross bookings in Q4, significantly outperforming the 5% growth in the direct-to-consumer unit [4] - Online travel agencies are benefiting from cost-conscious travelers, with a notable increase in partners participating in promotional sales, leading to 30% of Q4 bookings coming from discounted inventory [5] - Expedia's adjusted profit for Q4 was $3.78 per share, up from $2.39 per share a year earlier, surpassing analysts' expectations of $3.36 [6]

Core Viewpoint - Expedia forecasts 2026 gross bookings and revenue to exceed Wall Street expectations, driven by strong demand from business clients [1] Group 1: Financial Projections - Gross bookings for 2026 are expected to be between $127 billion and $129 billion, surpassing analysts' average estimate of $125.95 billion [1] - Annual revenue is projected to be in the range of $15.6 billion to $16 billion, with the midpoint exceeding analysts' estimate of $15.69 billion [1] Group 2: Business Segment Performance - The business-to-business (B2B) segment has seen growth due to new client additions, including airlines and offline travel agents [1] - Gross bookings in the B2B division increased by 24% in the fourth quarter, compared to a 5% increase in the direct-to-consumer unit [1] Group 3: Market Trends and Consumer Behavior - Cost-conscious travelers are driving demand for online travel agencies, seeking value through deals and discounts [1] - Expedia reported a 70% increase in partners participating in Black Friday sales, with 30% of fourth-quarter bookings coming from discounted inventory [1] Group 4: Financial Performance - Adjusted profit for the fourth quarter was $3.78 per share, up from $2.39 per share a year earlier [1] - Total revenue for the fourth quarter rose by 11.4% to $3.54 billion [1]

Core Insights - Expedia's B2B segment has been identified as a significant driver of growth for the company, indicating strong performance in its business-to-business operations [1] Group 1 - The B2B arm of Expedia has shown robust growth, contributing positively to the overall financial performance of the company [1]

This presentation includes certain non- GAAP measures. Reconciliations of the measures to the nearest comparable GAAP measures are included in the appendix at the end of this presentation. Notes and Definitions Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 This presentation contains "forward-looking statements" about Expedia Group's financial performance, operating results, and guidance, which may include, but are not limited to, statements relating to future gross booking ...