Expedia Grows Bookings in Q4 2025 As Room Nights Rise, 2026 Outlook Stays Solid

Expedia Group said it outperformed its own guidance, driven by steady demand internationally and in the US. The company reported booked room nights up 9 percent, and both gross bookings and revenue up 11 percent year over year.

Expedia’s results for the fourth quarter of 2025 and the full year cover travel booked through its consumer brands and its B2B platform.

The core numbers: growth is broad, but “gross bookings” is not revenue

Expedia’s top-line story is easier to follow if you separate the two measures. “Gross bookings” is the total value of travel sold on Expedia’s platforms, while revenue is what Expedia recognizes after considering how each booking is sold (merchant vs. agency), plus advertising and other travel services.

In the fourth quarter of 2025, Expedia reported $27.003 billion in gross bookings (up 11 percent year over year) and $3.547 billion in revenue (also up 11 percent), with 94.0 million booked room nights (up 9 percent).

For full-year 2025, Expedia reported $119.590 billion in gross bookings and $14.733 billion in revenue, both up 8 percent year over year, and 415.4 million booked room nights (up 8 percent).

Profit picture: operating income jumped, adjusted margins widened

Expedia’s profitability story is a “two-track” message. On a GAAP basis, net income attributable to Expedia fell 31 percent in Q4 to $205 million, and diluted EPS declined 27 percent year over year. But on operating performance and adjusted measures, results improved meaningfully: operating income rose 94 percent to $420 million, and adjusted EBITDA increased 32 percent to $848 million.

Expedia said the adjusted EBITDA margin expanded to 23.9 percent, up 368 basis points year over year.

For the full year 2025, the picture is more consistently positive. Expedia reported operating income of $1.871 billion (up 42 percent) and GAAP net income attributable to Expedia of $1.294 billion (up 5 percent). Diluted EPS rose to $9.81 (up 10 percent).

On an adjusted basis, adjusted EBITDA increased to $3.501 billion (up 19 percent), and the full-year adjusted EBITDA margin was 23.8 percent, up from 21.4 percent in 2024 (about 240 basis points of expansion).

The company also emphasized capital returns and liquidity: $5.7 billion of unrestricted cash and short-term investments at year-end, $1.7 billion of share repurchases in 2025, and a $0.48 quarterly dividend payable March 26, 2026—signals that management believes cash generation will remain strong even while it invests for growth.

Partner demand is scaling faster than consumer demand

Expedia’s update shows a clear internal mix change. In the fourth quarter, B2C gross bookings grew 5 percent, while B2B gross bookings grew 24 percent. This matters because B2B can expand Expedia’s reach without relying only on consumer marketing: partners integrate Expedia’s travel supply and technology into their own channels via travel APIs.

Reuters highlighted that Expedia’s strong B2B growth was driven by business clients and also noted increased deal-seeking behavior, including higher participation in events like Black Friday. In practice, that means Expedia benefits from both partner distribution and travelers shopping harder for value.

2026 outlook and what investors will watch

Expedia’s guidance suggests steady growth rather than a dramatic slowdown. For the first quarter of 2026, it expects gross bookings of $34.6–$35.2 billion (up 10–12 percent) and revenue of $3.32–$3.37 billion (up 11–13 percent).

For full-year 2026, Expedia expects gross bookings of $127–$129 billion (up 6–8 percent) and revenue of $15.6–$16.0 billion (up 6–9 percent), with continued adjusted EBITDA margin expansion.

Photo by Charlotte Noelle on Unsplash