Key financial results
- Expedia Group reported gross bookings growth of 11% and revenue growth of 12% for the third quarter.
We had a strong third quarter and outperformed the industry, growing bookings 11%, revenue 12% and and expanding our margins by more than 1 point.
- Adjusted EBITDA reached $1.7 billion, representing a margin of 34.2%, which is an improvement of over 1 point compared to the prior year.
Adjusted EBITDA was $1.7 billion in Q3, representing a margin of 34.2%, which is an improvement of over 1 point compared to the prior year.
- Adjusted EPS grew 24% year-over-year, benefiting from a 4% reduction in adjusted weighted average shares outstanding.
- Free cash flow reached $3.7 billion on a trailing 12-month basis, representing a 25% increase year-over-year.
Business segment results
- B2B: The B2B segment delivered 19% bookings growth during the quarter.
Our B2B business had another strong quarter, delivering 19% bookings growth.
- Consumer: Consumer bookings grew 7% overall, with accelerated growth in the U.S. market.
Our consumer bookings were up 7% and accelerated in the U.S.
- Expedia Brand: The Expedia brand remains the fastest-growing brand within the portfolio, achieving record attach rates due to enhanced recommendation capabilities.
Expedia remains our fastest-growing brand and across our consumer brands, active loyalty members grew low single digits.
- Vrbo: Vrbo implemented a new servicing agent that is resolving over 15% of inbound contacts within the first two months of release.
Capital allocation
- The company repurchased approximately 2 million shares for $576 million during the third quarter.
During the quarter, we repurchased approximately 2 million shares for $576 million.
- Year-to-date share repurchases totaled approximately $1.5 billion.
This brought our year-to-date share repurchases to approximately $1.5 billion.
- Capital allocation priorities remain focused on organic investment, disciplined M&A, and returning cash to shareholders via dividends and repurchases.
Industry trends and dynamics
- Travel demand remains healthy, particularly in the U.S., with consumers continuing to prioritize travel despite elevated airfare.
Consumers continue to prioritize travel even as airfare stayed elevated.
- Booked room nights grew 7% globally, with mid-single digit growth in the U.S., low single digits in EMEA, and mid-teens in the rest of the world.
Booked room nights grew 7%, up mid-single digits in the U.S., low single digits in EMEA and mid-teens in the rest of the world.
- Travel discovery is increasingly shifting toward AI-assisted search and social platforms, though the company notes that booking complexity still favors trusted brands.
Competitive landscape
- The company is actively partnering with major tech platforms to integrate its brands into AI-driven search experiences.
This quarter, we partnered with Google in AI mode and announced an integration with Meta Muse.
- The B2B segment now works with 75,000 partners, focusing on expanding share of wallet through improved integrations and supply.
We're really excited about the longer-term opportunity for the B2B business to contribute as it scales to our EPS growth as a business.
- The company's September sale exceeded $1 billion in bookings, highlighting the strength of its two-sided marketplace.
Our September sale marked our third consecutive sales event to exceed $1 billion in bookings demonstrating the power of our 2-sided marketplace.
Macroeconomic environment
- The fourth quarter outlook reflects a softer operating environment due to the U.S. election cycle.
The softer operating environment in Q4 reflects several factors, including the U.S. election cycle and ongoing geopolitical events driving travel disruptions across EMEA.
- Geopolitical events in the Middle East and Europe are causing travel disruptions and impacting long-haul corridors.
Growth opportunities and strategies
- B2B: The company is expanding its B2B capabilities by launching a new agentive template, with Qantas as the first partner.
This quarter, we expanded our relationship with Qantas making it the first partner to use our new agentive template.
- M&A: Strategic acquisitions, including CarTrawler, are being integrated to support the goal of becoming a one-stop travel platform.
- Product: The company released over 30 new product features in its fall product release to improve personalization and flexibility.
Last week, we had our fall product release. We released over 30 features across our brands.
Financial guidance and outlook
- For the fourth quarter, the company expects gross bookings of $27.9 billion to $28.4 billion and revenue of $3.69 billion to $3.75 billion.
We expect gross bookings of $27.9 billion to $28.4 billion, representing growth of approximately 3.3% to 5.2% year-over-year.
- Full year guidance has been raised, with expected gross bookings of $131.4 billion to $131.9 million and revenue of $16.37 billion to $16.43 billion.
- Full year adjusted EBITDA margin expansion is now expected to be 180 basis points to 200 basis points.
AI and Technology Integration
- The company is using AI to accelerate internal product development, such as the new autonomous hotel onboarding agent.
- Agentic traffic remains a small portion of overall volume but is characterized as high-intent.
Right now, again, it's a small amount of traffic. It's high-intent traffic. So we're pleased with that.
Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Gross bookings | 11% growth | Year-over-year |
| Revenue | 12% growth | Year-over-year |
| Adjusted EBITDA | $1.7 billion | 34.2% margin |
| Adjusted EPS | 24% growth | Year-over-year |
| Room night growth | 7% | Year-over-year |
How management sounded
Balanced (+35 on our -100 to +100 scale). Management expressed confidence in their strategic execution and raised full-year guidance, though they acknowledged a softer operating environment in Q4 due to geopolitical events and the U.S. election cycle. Management sounded more upbeat than on 20% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- Impact of geopolitical events on travel demand in EMEA and long-haul corridors.
- Performance of new AI-driven product features and agentic traffic trends.
- Integration progress and margin impact of recent acquisitions like CarTrawler.
Earlier calls
- Q2 2026 (Aug 5, 2026), tone Balanced: Expedia Group reported Q2 2026 revenue growth of 14% and gross bookings growth of 12%, exceeding expectations for the fifth consecutive quarter. Management raised full-year guidance, citing strong B2B momentum and consumer demand, despite anticipating tougher year-over-year comparisons in the second half.
