Booking Faces Buyback Backlash as Strong Growth Meets Debt Worries

Booking Holdings is facing criticism from investor CMF Capital, which says the company’s large share buyback program has made its balance sheet riskier.

CMF Capital’s main concern is not that Booking’s business is weak. The concern is that the company has returned too much cash to shareholders through buybacks instead of using more of that money to reduce debt and strengthen its financial position.

The investor argues that this could leave Booking more exposed if travel demand slows or another crisis hits the sector.

The business is still performing strongly

The criticism comes even though Booking reported strong results for 2025.

Revenue rose 13 percent to $26.9 billion, gross bookings increased 12 percent to $186.1 billion, and free cash flow reached $9.1 billion.

Booking remains one of the biggest players in online travel with brands like Booking.com, Priceline, Agoda, KAYAK, and OpenTable.

Why the investor is worried

CMF Capital says Booking’s buybacks have pushed shareholder equity into negative territory and made the company more reliant on debt.

Booking’s annual report showed $34.8 billion in liabilities and $29.3 billion in assets at the end of 2025, resulting in a stockholders’ deficit of $5.6 billion. The company also reported $16.9 billion in long-term debt and $1.9 billion in short-term debt.

The investor’s point is simple: Booking may look financially comfortable today, but the balance sheet could become a bigger problem if market conditions worsen.

Strong liquidity helps Booking defend its capital return strategy

Booking’s strategy reflects a broader pattern in online travel.

OTAs usually operate with asset-light business models, which means they do not have to spend heavily on aircraft, hotels, or other physical infrastructure. That allows them to generate strong cash flow and return a large part of it to shareholders.

Booking has also said its liquidity and cash generation support this approach. The company ended 2025 with about $4 billion in cash and cash equivalents and access to additional liquidity through its credit facility.

Booking shows no sign of changing course

So far, there is no sign that Booking plans to change course. After its February earnings release, the company reaffirmed its 2026 outlook, raised its dividend, and kept its buyback program in place.

The debate over Booking’s balance sheet comes at a time when the company is also trying to position itself for the next phase of online travel growth. That broader strategy includes a bigger push into AI, which Booking executives say could help bring more travelers into digital booking channels

Photo by Roberto Nickson on Unsplash